On April 5, “photovoltaic Mao” Longi Green Energy Technology Co.Ltd(601012) announced that on April 1, the company received the letter of Yunnan Provincial Development and Reform Commission on clarifying Longi Green Energy Technology Co.Ltd(601012) relevant electricity prices, informing that 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 will be formed through electricity market trading, Direct settlement with power grid enterprises.
Longi Green Energy Technology Co.Ltd(601012) said that 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 fee accounts for about 15% of the whole process processing cost of silicon wafers, which will have a certain adverse impact on the company’s profits.
Source: company announcement
affects more than half of the cost of silicon wafers
According to the announcement, on March 10, 2016, Longi Green Energy Technology Co.Ltd(601012) signed a strategic cooperation framework agreement with the people’s Government of Yunnan Province, 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 the 100 billion level monocrystalline photovoltaic industry cluster and giving relevant preferential policy support to Yunnan Province.
Since 2016, the company 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 construction project of Lijiang phase III with an annual output of 10GW monocrystalline silicon rod, Qujing phase II with an annual output of 20GW monocrystalline silicon rod and 30GW monocrystalline silicon wafer and Qujing with an annual output of 30GW monocrystalline battery have not been started or put into operation.
By the end of 2021, Longi Green Energy Technology Co.Ltd(601012) the slicing capacity put into operation in Yunnan accounted for about 54% of the company’s total capacity.
On March 7 this year, Longi Green Energy Technology Co.Ltd(601012) announced that the investment scale of Yunnan Qujing (phase II) monocrystalline silicon wafer project was changed from 20GW per year to 30GW per year Kaiyuan securities predicts that the company’s silicon wafer production capacity is expected to reach 140gw-150gw by the end of 2022 For this policy change, Longi Green Energy Technology Co.Ltd(601012) said that there is a risk of change in the unfinished part of Yunnan investment projects.
the price of silicon wafer has been raised five times this year
On March 25, Longi Green Energy Technology Co.Ltd(601012) again raised the price of monocrystalline silicon wafer, and the price of products increased by 1.8% – 1.9%, including p-type M6 165 of monocrystalline silicon wafer μ M thickness (166 / 223mm) 5.55 yuan / piece, up 1.8%; Monocrystalline silicon p-type 158.75/223mm 165 μ M thickness 5.35 yuan / piece, up 1.9%; Monocrystalline silicon p-type M10 165 μ M thickness (182 / 247mm) is 6.7 yuan / piece, unchanged, which is the second time to increase the price of silicon wafer in March.
On March 7, the company raised the single crystal silicon p-type M10 165 μ The price of m thickness (182 / 247mm) is 6.7 yuan / piece, with an increase of 3.08%.
From January to February this year, the price of Longi Green Energy Technology Co.Ltd(601012) silicon wafer has increased three times. In terms of price increase range, on February 22, the price of silicon wafers of different sizes of the company increased by 0.1-0.12 yuan / piece, or nearly 2%; On January 27, the product price rose by 3.7% – 4%; On January 16, the product price rose by 2.4% – 5.1%.
Recently, Longi Green Energy Technology Co.Ltd(601012) is also actively investing abroad. On March 13, 2022, Longi Green Energy Technology Co.Ltd(601012) announced that according to the strategic development needs, the company, the people’s Government of Inner Mongolia Eerduosi Resources Co.Ltd(600295) city and the people’s Government of Yijinholo banner signed the investment cooperation agreement on March 12, and reached cooperation intention on the company’s investment and 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.
The announcement shows that the above investment projects are invested by the subsidiary of Longi Green Energy Technology Co.Ltd(601012) project with about 19.5 billion yuan (including working capital). 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 terms of construction period, the agreement requires that 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.
For the latest investment agreement signed with Inner Mongolia, Longi Green Energy Technology Co.Ltd(601012) said that this is in line with the company’s future capacity planning, which is conducive to the company to give full play to the leading advantages of technology and products, seize the development opportunities of photovoltaic market, further improve the capacity scale and continuously improve the market competitiveness Relevant report
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