tariff preference is cancelled, and the profits of " Longi Green Energy Technology Co.Ltd(601012) photovoltaic Mao" may be adversely affected
On the evening of April 5, 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 transactions, Direct settlement with power grid enterprises.
Affected by this news, on April 6, Longi Green Energy Technology Co.Ltd(601012) closed at 68.6 yuan / share, down 5.51%, with a total market value of 371.3 billion yuan.
production cost increase
What is the impact of canceling the discount on Longji? 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 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, and 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. The reporter of international finance news called Longi Green Energy Technology Co.Ltd(601012) board secretary's office as an investor, and the other party said, "the main reason why Yunnan cancels the electricity price preference is to respond to the national industrial and commercial electricity price related policies. I don't know the situation of other photovoltaic enterprises for the time being."
The reporter noted that in August last year, the national development and Reform Commission issued the notice on improving the stepped electricity price policy of electrolytic aluminum industry, requiring all localities to strictly prohibit the implementation of preferential electricity prices for electrolytic aluminum industry and the organization of special transactions in the power market of electrolytic aluminum enterprises. Those that have been implemented and organized should be cancelled immediately. The situation that preferential electricity price policies are strictly prohibited will be included in the evaluation and assessment of the dual control target responsibility of energy consumption of the provincial government. Judging from Longi Green Energy Technology Co.Ltd(601012) this announcement, the cancellation of preferential tariff policy may have been extended to the photovoltaic industry.
As early as March 10, 2016, Longi Green Energy Technology Co.Ltd(601012) signed a strategic cooperation framework agreement with the Yunnan provincial government, 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.
Similarly, since 2016, the company has successively signed project investment agreements with Yunnan Provincial Development and Reform Commission, Energy Bureau, Baoshan Municipal government, Lijiang municipal government, Chuxiong Yi Autonomous Prefecture Government, Tengchong municipal government, Qujing municipal government and other places in Yunnan Province to promote the effective implementation of the above strategic agreements.
By the end of 2021, Longi Green Energy Technology Co.Ltd(601012) 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.
However, due to the cancellation of the preferential electricity price policy, Longi Green Energy Technology Co.Ltd(601012) admitted that the unfinished parts of the above-mentioned companies' investment projects in Yunnan have the risk of change.
new project landed in Inner Mongolia
Yunnan was frustrated, and Longji set his sights on Inner Mongolia. According to the announcement on March 13, Longi Green Energy Technology Co.Ltd(601012) signed the investment cooperation agreement with Inner Mongolia Eerduosi Resources Co.Ltd(600295) municipal government and Yijinholo banner government, 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, with a total investment of about 19.5 billion yuan. Among them, 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 fact, Inner Mongolia has become a must for photovoltaic enterprises. On March 8, Jiangsu Sunshine Co.Ltd(600220) announced that it planned to set up a wholly-owned subsidiary, Inner Mongolia Cheng'an new energy Co., Ltd., in Inner Mongolia, with a registered capital of 2 billion yuan. In addition, on December 14 last year, Jiangsu Sunshine Co.Ltd(600220) controlling shareholder Jiangsu Sunshine Co.Ltd(600220) Group signed a framework cooperation agreement on the whole industrial chain project of photovoltaic new energy with Bayannur municipal government and Ulat front banner government of Inner Mongolia, and plans to invest 100000 tons of polycrystalline silicon, 15gw single crystal pull rod, 15gw battery module and power station projects, with a total investment of 35.15 billion yuan.
Similarly, at the end of 2021, Risen Energy Co.Ltd(300118) announced to the public that it planned to invest in the source network load storage integration demonstration project (phase II) in Guyang County, Baotou city through a wholly-owned or holding subsidiary, with a total investment of 44.65 billion yuan. The project is divided into two parts: load end and power end, corresponding to "annual output of 200000 tons of metal silicon + 150000 tons of high-purity silicon + 10gwn type high-efficiency crystal pulling + 3gw module" and "3.5gW photovoltaic power plant project + 1.6gw wind power plant project + energy storage project". In addition, in November 2021, Tbea Co.Ltd(600089) announced that it had signed the investment cooperation framework agreement with the government of Damao Banner, including 400000 tons of high-purity industrial silicon project, with an estimated investment of 6 billion yuan.
In less than half a year, four photovoltaic companies drew a 100 billion investment map in Inner Mongolia.
Why Inner Mongolia? The aforementioned person from the Longi Green Energy Technology Co.Ltd(601012) board secretary office told the reporter of the international finance news that on the one hand, it is due to the consideration of diversified industrial layout, on the other hand, the policies given by the local government are more competitive.
The policy side is indeed making efforts. On March 3, Inner Mongolia Energy Bureau issued a notice on the "14th five year plan" renewable energy development plan of Inner Mongolia Autonomous Region. The notice made it clear that during the 14th Five Year Plan period, the installed capacity of new energy in Inner Mongolia reached more than 135 million KW, including about 45 million kw of photovoltaic power generation. According to the statistics of grassroots photovoltaic, as of March 29, 20 provinces and urban areas have issued the "14th five year plan" photovoltaic related installation plan. The installed capacity of 45 million kW in Inner Mongolia is second only to 57 million kW in Shandong.
silicon material price rises for 12 weeks
In the photovoltaic market, the price of silicon material "rises" continuously, ushering in the 12th week of continuous rise. On April 6, the silicon industry branch announced the latest price of Cecep Solar Energy Co.Ltd(000591) grade polycrystalline silicon. The transaction price of single crystal re feeding this week was 249 Jc Finance & Tax Interconnect Holdings Ltd(002530) 00 yuan / ton, with an average of 250700 yuan / ton, with a week-on-week increase of 0.36%; The transaction price of single crystal compact is 247 Tianjin Motor Dies Co.Ltd(002510) 00 yuan / ton, with an average of 248400 yuan / ton, with a weekly increase of 0.36%; The transaction price of single crystal cauliflower was 2440 Chengdu Xinzhu Road&Bridge Machinery Co.Ltd(002480) 00 yuan / ton, with an average of 245500 yuan / ton, an increase of 0.29% on a weekly basis
The silicon branch said that the factors supporting the rise of silicon material price are still mainly reflected in: first, last week, all silicon material enterprises signed long orders in April, and the vast majority of enterprises signed all orders in April within a week. This week mainly focused on the implementation of early orders, and only some enterprises had some surplus and loose orders, which slightly increased the average price of silicon material this week; Second, the operating rate of downstream silicon wafers, including existing capacity and new capacity, remained relatively high. In the same period, the maintenance of Chinese and foreign silicon material enterprises and the obstruction of imported silicon material transportation due to the epidemic situation led to the relative shortage of silicon material supply.
The price of silicon material remains high, and the price of silicon wafer has been raised five times in Longi Green Energy Technology Co.Ltd(601012) year. On March 25, Longi Green Energy Technology Co.Ltd(601012) again raised the price of monocrystalline silicon wafer across the line, with an increase of 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) 6.7 yuan / piece, unchanged. On March 7, the company's monocrystalline silicon wafer p-type M10 165 μ The price of m thickness (182 / 247mm) rose to 6.7 yuan / piece, an increase of 3.08%. From January to February, Longji raised the price of silicon wafers three times, with a maximum increase of 5.1%.
PV InfoLink analysis points out that although the new capacity of silicon material has been put into operation successively, due to the limited and slow growth of the actual supply and output of silicon material, and the recent separate line maintenance of silicon material enterprises, which will affect the output to varying degrees, if the production level of crystal drawing remains stable or even slightly improved, the supply-demand relationship between silicon material supply and crystal drawing material demand in April is still tight, The price of silicon material is expected to remain strong.
