Company code: Xinjiang Daqo New Energy Co.Ltd(688303) company abbreviation: Xinjiang Daqo New Energy Co.Ltd(688303) Xinjiang Daqo New Energy Co.Ltd(688303)
Summary of annual report 2021
Section I important tips
1 the summary of this annual report comes from the full text of the annual report. In order to fully understand the company’s operating results, financial status and future development plan, investors should go to www.sse.com com. cn. The website carefully reads the full text of the annual report. 2 major risk tips
During the reporting period, there were no particularly significant risks that had a material impact on the company’s production and operation. For various risks that the company may face in the process of operation, please refer to the “risk factors” section of “section III Management Discussion and analysis” of this report. Please pay attention to the investment risks. 3 the board of directors, the board of supervisors and the directors, supervisors and senior managers of the company guarantee the authenticity, accuracy and completeness of the contents of the annual report, and there are no false records, misleading statements or major omissions, and bear individual and joint legal liabilities. 4. All directors of the company attended the board meeting. 5 Deloitte Touche Tohmatsu (special general partnership) has issued a standard unqualified audit report for the company. 6. The company is not profitable and has not yet achieved profitability when it is listed □ yes √ No 7. The profit distribution plan or the plan for the conversion of provident fund into share capital in the reporting period adopted by the resolution of the board of directors
The company plans to distribute a cash dividend of RMB 6 (including tax) to all shareholders for every 10 shares. As of the disclosure date of this report, the total share capital of the company is 1925000000 shares. Based on this, the total amount of cash dividends to be distributed is RMB 115500000000 (including tax). The total cash dividends of the company in this year accounted for 20.18% of the net profit attributable to shareholders of Listed Companies in the consolidated statements. If the total share capital of the company changes from the date of disclosure of this report to the date of equity distribution and equity registration, the company plans to maintain the total distribution unchanged and adjust the distribution proportion per share accordingly. The above profit distribution plan of the company has been deliberated and approved at the 22nd Meeting of the second board of directors of the company and needs to be submitted to the general meeting of shareholders of the company for deliberation and approval. 8. Whether there are important matters such as special arrangements for corporate governance □ applicable √ not applicable
Section II basic information of the company
1 company profile company stock profile √ applicable □ not applicable
Company stock profile
Stock type stock exchange stock abbreviation before stock code change stock abbreviation and sector
A-share Shanghai Stock Exchange Xinjiang Daqo New Energy Co.Ltd(688303) Xinjiang Daqo New Energy Co.Ltd(688303) none
Scientific innovation board
Company depositary receipts profile
Contact person and contact information
Contact person and contact information secretary of the board of directors (domestic representative of information disclosure) securities affairs representative
Name: Sun Yicheng Duan Liwen
Office address: No. 16, Weiliu Road, chemical industrial park, Shihezi Economic Development Zone, Xinjiang
Tel: 09932706066
E-mail [email protected]. [email protected].
2. Introduction to the company’s main business in the reporting period (I) main business, main products or services
Since its establishment in 2011, the company has been focusing on the R & D, production and sales of high-purity polysilicon closely around the national new energy strategic plan, relying on continuous R & D investment and technological innovation, combined with the advantages of low-cost energy and the cluster advantages of silicon industrial base. After ten years of exploration and development, the company has formed a high-purity polysilicon production capacity with an annual output of 105000 tons of high quality, low energy consumption and low cost. It is one of the main market participants in the polysilicon industry.
The company’s main products are high-purity polycrystalline silicon, which is mainly used in the photovoltaic industry and is in the upstream link of the photovoltaic industry chain. After melting ingots or pulling crystal chips, polycrystalline silicon can be made into polycrystalline silicon and monocrystalline silicon respectively, which can be used to manufacture photovoltaic cells. According to the different silicon wafers produced downstream, high-purity polycrystalline silicon can be divided into monocrystalline silicon wafer materials and polycrystalline silicon wafer materials.
The composition of photovoltaic industry chain and the company’s position in the industry chain are shown in the figure below:
In recent years, with the reduction of monocrystalline silicon material and monocrystalline silicon production cost and the improvement of monocrystalline component efficiency, the cost performance of monocrystalline technology has gradually become prominent and has gradually become the mainstream technical route of the industry. Through technological upgrading and new projects put into operation, the output proportion of monocrystalline silicon wafer materials has gradually increased. At present, the company’s monocrystalline silicon wafer material output accounts for more than 99% of the total output, which is at the advanced level in China.
Phase III phase B project was completed and put into operation in December 2021. At present, the company’s design capacity has reached 105000 tons / year, and the capacity scale is in the first echelon in the industry. The company’s products have a high market share. According to the data of silicon industry branch, China’s polysilicon output was 488000 tons in 2021, and the company’s polysilicon output in the corresponding period was 86600 tons, accounting for 17.75% of China’s polysilicon output.
（2） Main business model
(1) Profit model
The company has an independent R & D, procurement, production and sales system. After purchasing industrial silicon powder and other raw materials, the company produces high-purity polysilicon products by itself, and makes profits by selling products directly to downstream silicon wafer manufacturers.
(2) Procurement mode
The company formulates annual production plan, quarterly production plan and monthly production plan according to the market and its own situation. The procurement department shall formulate the procurement plan according to the production plan and submit it to the management for approval before implementation. For the main purchased materials such as industrial silicon powder, graphite chuck and packaging materials, the company usually signs annual procurement contracts with the main qualified suppliers, and the two parties agree on the terms such as product specifications, models and pricing principles, procurement volume range, quality standards, quality assurance, packaging methods and requirements, transportation and delivery, payment methods, etc, And send specific orders to suppliers according to raw material inventory and procurement plan to implement procurement.
(3) Production mode
The production department of the company determines the annual production plan, quarterly production plan and monthly production plan according to the long-term supply agreement signed with customers, specific contracts and orders, the company’s production capacity, the expected judgment of the market and the annual maintenance plan, and organizes production.
The improved process of hydrogenation and rectification is used to produce polycrystalline silicon, and the polycrystalline silicon is produced by the improved hydrogenation and rectification process of Siemens company. Since its successful development in 1955, Siemens method has experienced continuous improvement for more than 60 years. Mature technology, high safety and high product quality are the core advantages of the improved Siemens method. In addition, the improved Siemens process can produce 9n-11n high-purity silicon, which is compatible with Cecep Solar Energy Co.Ltd(000591) grade and electronic grade products. On the whole, the improved Siemens method is expected to maintain its competitive advantage for a long time.
(4) Sales model
The agreements signed between the company and customers are mainly composed of long-term supply agreements and sales contracts / orders. For major polysilicon customers, the company usually signs long-term supply agreements with them, and the term of the agreements usually ranges from one to five years. The long-term supply agreement generally stipulates the product specification, model, pricing principle, scope of supply, agreement period and other terms. The specific monthly supply quantity and product unit price are generally subject to the sales contract / order signed by both parties. In order to ensure the smooth progress of the contract, long order customers need to pay a certain amount of advance payment to deduct the monthly order amount. From January to December 2021, the company received a long order advance payment of about 1.2 billion yuan. For customers who have not signed a long-term supply agreement, the company usually signs a sales contract with them at each transaction to agree on the specific terms of each transaction. （3） Industry 1 Development stage, basic characteristics and main technical threshold of the industry
(1) Industry
The company’s main business is the R & D, production and sales of high-purity polycrystalline silicon. According to the industry classification guidelines for listed companies issued by the China Securities Regulatory Commission, it belongs to “C38 electrical machinery and equipment manufacturing industry”; According to the industry classification and code of national economy (GB / t47542017), the industry of the company belongs to “c3985 manufacturing of special electronic materials”; According to the classification of strategic emerging industries (2018) issued by the National Bureau of statistics, the company’s business belongs to crystalline silicon materials in “6. New energy industry – 6.3 Cecep Solar Energy Co.Ltd(000591) industry – 6.3.2 Cecep Solar Energy Co.Ltd(000591) material manufacturing”.
(2) Development stage and basic characteristics of the industry
Photovoltaic industry is a sunrise industry based on semiconductor technology and new energy demand. Under the dual role of industrial policy guidance and market demand drive, China’s photovoltaic industry has achieved rapid development, complete industrial chain layout, and global leadership in overall manufacturing capacity and market demand. Affected by the goal of “carbon peak and carbon neutralization”, China’s photovoltaic market will enter a stage of rapid development during the 14th Five Year Plan period, and the industry will usher in the peak of market-oriented construction. In addition, with the substantial reduction of the cost of photovoltaic power generation and the gradual realization of the parity of photovoltaic power generation on the Internet, China’s photovoltaic industry will usher in a new driving force for development and have a broad space for development in the future.
The upstream of photovoltaic industry includes the smelting, ingot casting / rod pulling, slicing and other links of polycrystalline silicon, the midstream includes Cecep Solar Energy Co.Ltd(000591) battery production, photovoltaic power generation module packaging and other links, and the downstream includes the installation and service of photovoltaic application system.
Driven by the continuous photovoltaic industry policy, the technology of Chinese polysilicon manufacturers has made rapid progress and the production cost has decreased significantly. China’s polysilicon industry shows a trend of rapid development and the output continues to reach a new high. According to the data of silicon branch, China’s polysilicon output was 488000 tons in 2021, an increase of 23.21% year-on-year. As the high-quality production capacity of many leading enterprises in China is gradually put into operation, the high-cost production capacity outside China is gradually withdrawn, and the industry pattern continues to be optimized. Polysilicon market share will be further concentrated in enterprises with high technical level, obvious cost advantage and prominent economies of scale.
(3) Main technical threshold
The core product of the company is Cecep Solar Energy Co.Ltd(000591) grade high-purity polysilicon, which is in the upper reaches of the industry. Due to the high production technology threshold, complex process, high requirements for production equipment and talent team, large investment scale and long production capacity construction cycle, polysilicon has become the main bottleneck in the development of the whole industrial chain of photovoltaic industry. 2. Analysis of the company’s industry position and its changes
(1) The company’s production capacity, product quality and cost control are at the forefront of the industry
The current production capacity of the company is 105000 tons / year. According to the data of the silicon industry branch, China’s polysilicon output in 2021 was about 488000 tons, and the company’s polysilicon output in the corresponding period was 86600 tons, accounting for 17.75% of China’s polysilicon output. The scale is in the first echelon in the industry. In addition, relying on its continuous R & D investment and technological innovation, the company has stable product quality, various technical indicators have reached the international advanced level, and the proportion of monocrystalline silicon wafer materials is at the advanced level in China. At present, the company’s polysilicon products are in good production and sales, and the product quality is well-known all over the world. With the continuous implementation of the company’s production expansion plan and the continuous innovation of production technology in the future, the company’s industry position is expected to be further improved. In the production process of the company’s products, the unit consumption of power, water and other energy, as well as silicon powder and other materials are far better than the industry average level according to the statistics of China Photovoltaic Industry Association. The low power consumption and low raw material consumption make the company have a certain cost advantage.
(2) The company’s products have been recognized by many well-known customers in the industry and have established stable cooperative relations
The company has been highly recognized by customers in terms of product quality, professional technology and service response. The company has established long-term and stable cooperative relations with leading enterprises in the photovoltaic industry such as Longi Green Energy Technology Co.Ltd(601012) , Ja Solar Technology Co.Ltd(002459) , Trina Solar Co.Ltd(688599) , Tianjin Zhonghuan Semiconductor Co.Ltd(002129) , Wuxi Shangji Automation Co.Ltd(603185) , Meike, Gaojing Cecep Solar Energy Co.Ltd(000591) , and has won market recognition and good reputation in the industry. 3. Development and future development trend of new technologies, Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) , new business forms and new models during the reporting period
With the reduction of monocrystalline silicon wafer materials, monocrystalline silicon wafer production cost and the improvement of monocrystalline product efficiency, the cost performance of monocrystalline technology has gradually become prominent and has gradually become the mainstream technical route of the industry. The downstream demand for single crystal products will continue to expand, the market share of single crystal silicon wafer will further increase, and the market scale of n-type single crystal silicon wafer will continue to increase.
With the acceleration of “affordable Internet access” in the photovoltaic industry, the demand for cost reduction and efficiency increase is increasing. Downstream TOPCON, heterojunction and other n-type batteries with higher mass production conversion efficiency are in the stage of rapid development. In the future, with the decline of battery cost and the improvement of yield, n-type batteries are expected to gain a larger market share, which is one of the main development directions of battery technology, At that time, the demand for n-type silicon material with higher purity will increase significantly. The development of n-type monocrystalline silicon wafer brings the corresponding material demand of n-type monocrystalline silicon wafer. N-type silicon material means higher purity, and the cleanliness requirements for all links of silicon material production (rectification, reduction, crushing, packaging, etc.) are improved. The company keeps up with the development trend of industry technology and continuously improves its core technology. At present, it has realized the batch supply of n-type silicon material and has been recognized by many downstream customers. 3 main accounting data and financial indicators of the company 3.1 main accounting data and financial indicators in recent three years
Unit: 10000 yuan currency: RMB
20212020 year over year
