After a lapse of 6 years, Longi Green Energy Technology Co.Ltd(601012) ( Longi Green Energy Technology Co.Ltd(601012) ) pushed equity incentive again.
On March 9, the company issued the draft equity incentive plan, which plans to grant 37.54 million stock options and restricted shares to 2511 incentive objects in total, and set the performance evaluation target of revenue growth rate of no less than 80%, 120% and 175% in 20222024 based on the revenue in 2020, that is, the revenue in the next three years needs to reach 98.249 billion yuan, 120.83 billion yuan and 150103 billion yuan.
equity incentive combination
According to the draft, Longi Green Energy Technology Co.Ltd(601012) this round of equity incentive consists of stock options and restricted stocks, including 34.98 million stock options, covering 2484 incentive objects, and the exercise price is 62.20 yuan / share; There are 2.56 million restricted shares, 27 incentive objects, and the exercise price is 38.87 yuan / share. The latest share price of the company is 78.15 yuan / share, and the discount rates of this option and restricted stock are 20% and 50% respectively. By the end of 2020, Longi Green Energy Technology Co.Ltd(601012) employees totaled 46600, accounting for 5.38% of the equity incentive coverage.
In terms of performance assessment objectives, options and restricted stocks set the same standard, that is, based on the operating income in 2020, the revenue growth rate in 20222024 is not less than 80%, 120% and 175% respectively. The company’s revenue in 2020 is 54.583 billion yuan, that is, the exercise conditions of Longi Green Energy Technology Co.Ltd(601012) equity incentive are that the revenue in 20222024 needs to reach 98.249 billion yuan, 120.83 billion yuan and 150103 billion yuan. According to this calculation, the year-on-year growth rates of the company’s revenue in 2023 and 2024 are 22% and 25% respectively. It is worth mentioning that since 2013, the year-on-year growth rate of the company’s revenue over the years has been more than 30%.
For the above performance appraisal objectives, Longi Green Energy Technology Co.Ltd(601012) said that they are highly challenging, with both pressure and motivation, which not only helps to improve the competitiveness of the company, but also helps to mobilize the enthusiasm and creativity of the core employees of the company.
Corresponding to the discount rate of equity incentive grant and exercise price, Longi Green Energy Technology Co.Ltd(601012) subsequently, the share based payment fee will be accrued and the net profit will be diluted. It is estimated that 879 million yuan will be amortized for stock options and 100 million yuan will be amortized for restricted stocks, totaling 979 million yuan, accounting for 13% of the company’s net profit in 2020, which needs to be amortized in four years from 2022 to 2025. The company said that if the positive effect of the incentive plan on the development of the company is considered, the performance improvement brought by the equity incentive plan will be higher than the increase in expenses brought by share based payment.
it is expected that the photovoltaic industry will maintain a high outlook in 2022
As the world’s largest manufacturer of monocrystalline silicon wafers and components, Longi Green Energy Technology Co.Ltd(601012) component shipments rank first in the industry all year round. In the first half of 2021, the company delivered 38.36gw of monocrystalline silicon wafers, including 18.76gw of external sales, a year-on-year increase of 36.48%; The shipment volume of single crystal components was 17.01gw, including 16.60gw of external sales, with a year-on-year increase of 152.40%, and the component revenue accounted for 67%.
Due to the high price of upstream silicon material, the price of silicon wafer experienced a jump in 2021, reversing the terminal demand to a certain extent. On November 30 last year, Longi Green Energy Technology Co.Ltd(601012) took the lead in reducing the price and reduced the price again on December 16. The market once believed that the silicon wafer would enter the stage of “price war”. However, since this year, Longi Green Energy Technology Co.Ltd(601012) , Tianjin Zhonghuan Semiconductor Co.Ltd(002129) and other companies have raised the price of silicon wafers again. Among them, Longi Green Energy Technology Co.Ltd(601012) has experienced four rounds of price adjustment. The latest round was on March 7, in which the price of 182 silicon wafers increased by 0.2 yuan / piece to 6.7 yuan / piece, up 14.5% compared with the quotation at the end of last year.
In a recent survey on receiving investors, Longi Green Energy Technology Co.Ltd(601012) said that with the continuous progress of photovoltaic technology and the continuous release of new capacity of upstream raw materials, the supply and demand pattern of the industry will be further improved. It is expected that the global photovoltaic market demand will exceed 200GW in 2022, maintaining a high boom development trend; Neutral forecasts that the global PV installed capacity is expected to reach 220gw in 2022, with a year-on-year growth rate of more than 35%.
In terms of silicon material price, the company expects that from the fourth quarter of 2021, the new silicon material capacity of Tongwei, Daquan, poly GCL, Asian silicon industry and other large silicon material manufacturers will be started and put into operation successively, and the supply scale of silicon material will increase. It is expected that the silicon material price will gradually enter the path of price reduction in 2022.
With the expectation of the high prospect of the industry, Longi Green Energy Technology Co.Ltd(601012) also started the rhythm of production expansion without stopping. Recently, the company has completed the raising of convertible corporate bonds, raising a total of 7 billion yuan to invest in the annual output of 15gw high-efficiency single crystal battery project, the annual output of 3gw single crystal battery manufacturing project and the supplementary working capital project, and made it clear that it will fully introduce the mature technology of the next generation n-type high-efficiency single crystal battery.
