On March 13, Longi Green Energy Technology Co.Ltd(601012) ( Longi Green Energy Technology Co.Ltd(601012) ) disclosed that the company signed a major investment agreement, and the listed company signed an investment cooperation agreement with Inner Mongolia Eerduosi Resources Co.Ltd(600295) Municipal People’s government and people’s Government of Yijinholo banner on March 12.
According to the announcement, the above parties have reached a cooperation intention on Longi Green Energy Technology Co.Ltd(601012) investing in the construction of 20GW monocrystalline silicon rod and chip project, 30GW high-efficiency monocrystalline cell project and 5GW high-efficiency photovoltaic module project in mengsu Economic Development Zone, Yijinholo banner, Inner Mongolia Eerduosi Resources Co.Ltd(600295) City, Inner Mongolia Autonomous Region, with a total investment of 19.5 billion yuan.
According to the agreement, Longi Green Energy Technology Co.Ltd(601012) will set up project holding subsidiaries in Yijinholo banner of Inner Mongolia Eerduosi Resources Co.Ltd(600295) city respectively as the operation subject of each project. The project subsidiary will lease the plant, warehouse and ancillary facilities of Yijinholo banner people’s government or its designated lessor, and be responsible for the purchase, installation and commissioning of production and process equipment of the project, Working capital investment and project operation management.
Specifically, the annual output of 20GW monocrystalline silicon rod and chip project is expected to invest 7.6 billion yuan, the annual output of 30GW high-efficiency monocrystalline cell project is expected to invest 10.3 billion yuan, and the annual output of 5GW high-efficiency photovoltaic module project is expected to invest 1.6 billion yuan. In other words, more than half of the investment amount will be used for the project of high-efficiency single crystal battery with an annual output of 30GW.
In terms of construction period, according to the conditions agreed in the contract, the production time of the above projects shall not exceed 6 months and the time to reach production shall not exceed 24 months since the plant, warehouse and ancillary facilities are handed over to Longi Green Energy Technology Co.Ltd(601012) project company for use. The specific implementation progress shall be subject to the progress approved by the competent authority within the company.
“The project investment agreement signed this time is in line with the company’s future capacity planning, which is conducive to giving full play to the leading advantages of technology and products, seizing the development opportunities of photovoltaic market, further improving the company’s capacity scale and continuously improving market competitiveness.” Regarding the impact of the signing of the major investment agreement, Longi Green Energy Technology Co.Ltd(601012) said that the project is not expected to have an impact on the company’s current operating income, and the company will convene a board of directors to analyze and calculate the feasibility of the project according to the project implementation plan and disclose it in time. The signing and performance of the investment agreement will not affect the business independence of the company.
It should be noted that Longi Green Energy Technology Co.Ltd(601012) internal review procedures need to be performed before the implementation of the signed investment project. “Given that the investment and construction of the above projects may put pressure on the company’s cash flow, the company will make overall fund arrangement and reasonably determine the source of funds, payment method and payment arrangement to ensure the smooth implementation of the project.” Longi Green Energy Technology Co.Ltd(601012) prompt the risk statement in the announcement.
Statistics show that as the world’s largest monocrystalline silicon wafer and component manufacturer, 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%.
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 anticipation of the high prospect of the industry, Longi Green Energy Technology Co.Ltd(601012) started the production expansion mode and increased the capacity of the battery terminal Longi Green Energy Technology Co.Ltd(601012) february 21 announced that the company plans to change the balance of 1.214 billion yuan raised in 2018 originally used for the construction of Ningxia Leye annual output 3gw single crystal battery project to 1.02 billion yuan for the construction of Taizhou Leye annual output 4gw single crystal battery project, and the remaining 194 million yuan will permanently supplement working capital. The new project is expected to be put into operation in August 2022.
Longi Green Energy Technology Co.Ltd(601012) said that after Taizhou Leye’s annual output of 4gw single crystal battery project is put into operation, the company will further expand the production capacity of high-efficiency single crystal battery with its own technical advantages, continuously meet the market demand for high-efficiency single crystal products and improve the profitability of the company.
