The charm of the market may exist in “uncertainty”!
Longi Green Energy Technology Co.Ltd(601012) with a market value of nearly 400 billion suddenly announced on April 5: on April 1, 2022, the company received the letter of Yunnan development and Reform Commission on clarifying Longi Green Energy Technology Co.Ltd(601012) relevant electricity prices (yfgai industrial letter [2022] No. 103). According to the requirements of relevant national departments to clean up the preferential electricity price policies, the preferential electricity price policies and measures enjoyed by the company in Yunnan Province will be cancelled from September 1, 2021, All electricity prices of the company are formed through electricity market-oriented transactions and settled directly with power grid enterprises. The announcement also said that this will have a certain adverse impact on the company’s profits.
So how big is the impact? Will it affect the industry?
In addition, the listed company Guangdong Haomei New Materials Co.Ltd(002988) announced that on April 3, 2022, furnace 9 in the melting and casting workshop of Guangdong exquisite special profile Co., Ltd., a wholly-owned subsidiary of the company, had an explosion accident in the production process. The accident resulted in 4 deaths and 1 serious injury.
From a global perspective, the events in Ukraine in the past two days have complicated the situation in Russia and Ukraine. In addition to the Bucha incident, on April 5 local time, Ukrainian President Zelensky said in the live broadcast of Ukrainian television that Ukraine would not even talk about the provisions on demilitarization and de Nazism in the treaty negotiated by Russia and Ukraine. Ukraine is ready to join NATO. If NATO proposes Ukraine to join instead of joking, Ukraine is ready to join. After the release of this statement, the European stock market began to weaken again, and the US stock market was not optimistic. Natural gas and oil rose to a certain extent.
Longi Green Energy Technology Co.Ltd(601012) announcement raid
On April 5, Longi Green Energy Technology Co.Ltd(601012) an announcement shook the investment circle. The company suddenly announced that on April 1, 2022, the company received the letter of Yunnan development and Reform Commission on clarifying Longi Green Energy Technology Co.Ltd(601012) relevant electricity prices (yfgh [2022] No. 103). Letter: according to the requirements of relevant state departments to clean up the preferential tariff policies, the preferential tariff policies and measures enjoyed by the company in Yunnan Province will be cancelled. From September 1, 2021, all the electricity prices of the company will be formed through power market transactions and settled directly with power grid enterprises.
Longi Green Energy Technology Co.Ltd(601012) said that by the end of 2021, the company’s slicing capacity in Yunnan accounted for about 54% of the company’s total capacity. Since the company’s investment projects in Yunnan Province can no longer implement the electricity price agreed by both parties in the original cooperation agreement, the production cost of investment enterprises in Yunnan Province will be increased to a certain extent. The electricity charge accounts for about 15% of the whole process processing cost of silicon wafer, which will have a certain adverse impact on the company’s profits.
According to the requirements of Longi Green Energy Technology Co.Ltd(601012) strategic development, the company signed a strategic cooperation framework agreement with the people’s Government of Yunnan Province on March 10, 2016, and reached a strategic cooperation intention on the company’s investment in the construction of monocrystalline silicon rod silicon wafer, high-efficiency battery module and characteristic agricultural photovoltaic power station industrial chain in Yunnan Province, driving 100 billion level monocrystalline photovoltaic industrial cluster and giving relevant preferential policy support to Yunnan Province.
Since 2016, Longi Green Energy Technology Co.Ltd(601012) has successively signed project investment agreements with Yunnan Provincial Development and Reform Commission, Energy Bureau, Baoshan Municipal People’s government, Lijiang Municipal People’s government, Chuxiong Yi Autonomous Prefecture People’s government, Tengchong Municipal People’s government, Qujing Municipal People’s government and other places in Yunnan Province to promote the effective implementation of the above strategic agreements. By the end of 2021, the company has formed about 67gw of crystal drawing capacity and 57gw of slicing capacity in Yunnan Province. The Lijiang phase III construction project with an annual output of 10GW monocrystalline silicon rod, Qujing phase II project with an annual output of 20GW monocrystalline silicon rod and 30GW monocrystalline silicon wafer, and Qujing project with an annual output of 30GW monocrystalline battery have not been started or put into operation.
Longi Green Energy Technology Co.Ltd(601012) said that the unfinished part of the company’s investment project in Yunnan has the risk of change. The company will disclose the progress in time in accordance with the stock listing rules of Shanghai Stock Exchange and other relevant regulations. Please pay attention to the investment risk.
So, how much will this impact be? According to guojundian’s new calculation, the current non silicon cost of monocrystalline silicon wafer is about 0.11 yuan / W. according to the current tariff, it is expected to be 0.25 yuan / kWh, and the power cost is about 0.0165 yuan / W, accounting for about 15% of the total non silicon cost. If the estimated electricity price increases by 1 / 2 / 3 gross / kWh respectively, the corresponding non silicon cost increases by about 0.66/1.32/1.98 cents / W.
in addition, it is estimated that for every 1 gross / kWh increase in electricity price in Yunnan, the corresponding cost of industrial silicon will increase by about 1.16 yuan / kg and that of silicon material will increase by 4.87 yuan / kg The electricity price adjustment has an impact on the cost increase of the photovoltaic industry chain, but the impact is controllable, and the industry logic will not be changed in the long run. In 2022, the upstream capacity will be released quarterly to support the terminal supply, and the downstream demand will be strong, maintaining the expectation of the year
explosion occurs suddenly
On April 5, according to the official wechat “Qingcheng release” of the Information Office of the people’s Government of Qingcheng District, Qingyuan City, Guangdong Province: on April 3, an explosion occurred in the No. 9 casting well of the No. 2 Melting and casting workshop of Guangdong exquisite special profile Co., Ltd. in Yuantan town, Qingcheng district. After the accident, Qingcheng District immediately launched the rescue emergency plan, and the fire fighting, public security, emergency, medical and other emergency rescue forces rushed to the scene at the first time and fully carried out the rescue work. According to the preliminary judgment on site, the reason is that the aluminum water leaked into the cooling pool during the drawing and casting of aluminum rod, resulting in the accident. The accident resulted in 4 deaths and 1 serious injury. The injured have been sent to the hospital for treatment in time. The rehabilitation work is in progress. At present, Qingyuan has established an accident investigation team, which is carrying out accident investigation and handling, and will seriously investigate the responsibilities of relevant units and personnel according to law. At the same time, draw inferences from one instance, comprehensively investigate and rectify the potential safety hazards of enterprises, and spare no effort to prevent all kinds of accidents.
According to the data, Guangdong exquisite special profile Co., Ltd. is a wholly-owned subsidiary of Guangdong Haomei New Materials Co.Ltd(002988) listed company. On the evening of April 5, Guangdong Haomei New Materials Co.Ltd(002988) also announced that an explosion occurred in furnace 9 of the melting and casting workshop of Guangdong exquisite special profile Co., Ltd. (hereinafter referred to as “exquisite special material”), a wholly-owned subsidiary.
After the accident, Guangdong Haomei New Materials Co.Ltd(002988) immediately start the emergency plan, take emergency response measures, quickly evacuate the crowd, organize rescue work, timely report to relevant departments of the local government according to relevant procedures, and actively cooperate with the emergency fire department to organize rescue and investigation. The accident resulted in 4 deaths and 1 serious injury. The injured have been sent to the hospital for treatment in time. At present, the competent government department has established an accident investigation team and is carrying out accident investigation and handling. The company has also urgently started the aftermath work such as appeasing family members.
So, how big is the impact of the explosion Guangdong Haomei New Materials Co.Ltd(002988) said that the exquisite special material is a factory subordinate to the company that produces industrial aluminum profiles and automobile lightweight products.
As of December 31, 2021, the total assets of exquisite special materials are 2340517100 yuan, and the net assets are 881138200 yuan; In 2021, the operating revenue was 1934702 million yuan and the net profit was 27.447 million yuan. The damaged houses and equipment are mainly the melting and casting workshop of exquisite special materials, and other workshops and production processes are not affected. At the same time, the company has also taken out relevant property insurance and reported the case to the insurance company.
At present, the melting and casting workshop of exquisite special materials and Guangdong Haomei New Materials Co.Ltd(002988) Taiji industrial city has been shut down for safety inspection. In addition, the production process and plant production and operation are normal. At present, the company is fully cooperating with relevant government departments to investigate and analyze the causes of the accident, count the economic losses caused by the accident, and carry out safety self inspection and self correction in strict accordance with relevant national standards to eliminate potential safety hazards.
Zelinski suddenly changed his language
After the Bucha incident, Europe and the United States increased sanctions against Russia. The Russian stock market has also been affected. The biggest decline on Wednesday was more than 7%. However, the most important thing is the change in Ukraine’s attitude. Ukrainian President Zelensky may feel that he has a few more cards to play, so he began to be tough again.
According to the news client of China Central Television, on April 5 local time, Ukrainian President Zelensky said in the live broadcast of Ukrainian television that his meeting with Russian President Vladimir Putin is likely not to take place. However, Zelensky believes that Ukraine must continue negotiations with Russia.
Zelinski said, “it’s easy to tell your position. In this case, you have to find the possibility of meeting with the other party and find a solution without losing territory.”
When talking about the Russian Ukrainian negotiations on live television, Zelensky said that Ukraine would not even talk about the provisions of the Treaty on demilitarization and “de Nazism”. “As for the part of ‘de Nazism’, we can also ask Russia to do it.”
Zelensky said, “On the issue of joining NATO, Ukraine is ready to join tomorrow. I have talked about it with the heads of NATO and major powers. If NATO proposes Ukraine to join tomorrow, instead of joking, Ukraine is ready to join. In addition, there are provisions on Crimea. The two sides have not talked about the issue of Donbas because they have their own positions. Ukraine’s position in Crimea is very simple, and we It is impossible to reach agreement on all points of view. If all parties want to end the war and include Western partners, then we need to continue our efforts. “
Zelinski’s attitude has changed significantly from what he said before about “maintaining neutrality”. It is conceivable that this attitude of zelenkis is likely to bring great variables to the negotiations between the two sides, delay the end of the conflict and bring greater uncertainty to the world economy.
