Today (April 6), Longi Green Energy Technology Co.Ltd(601012) closed at 68.60 yuan / share, with the share price down 5.51% and the total market value of 371329 billion yuan. According to the latest closing price, its market value evaporated about 21.6 billion yuan compared with the previous trading day.
On the news, on 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, stating that according to the requirements of relevant national departments to clean up the preferential electricity price policies, the company will cancel the preferential electricity price policies and measures enjoyed by the company in Yunnan Province from September 1, 2021, All electricity prices of the company are formed through electricity market-oriented transactions and settled directly with power grid enterprises
In view of the above situation, Longi Green Energy Technology Co.Ltd(601012) relevant people responded to the reporter of science and Innovation Board daily that “in the short term, the cancellation of electricity price preference does have a certain impact on the production cost, but the overall impact is controllable. The company will take other measures to reduce the production cost in the future.”
more than half of the cost of silicon wafers may be affected
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 cooperation intention on the former’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 industrial cluster and giving relevant preferential policy support to Yunnan Province.
The reporter of sci tech Innovation Board daily learned that 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 in addition, the Lijiang phase III project with an annual output of 10GW monocrystalline silicon rods, the Qujing phase II project with an annual output of 20GW monocrystalline silicon rods and 30GW monocrystalline silicon wafers, and the Qujing project with an annual output of 30GW monocrystalline cells have not been started or put into operation.
Regarding the cancellation of Yunnan electricity price preference, Longi Green Energy Technology Co.Ltd(601012) also said in the announcement, ” by the end of 2021, the company’s chip production capacity in Yunnan has accounted for about 54% of the company’s total production capacity. In view of the fact that 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 fee will account for about 15% of the whole silicon wafer processing cost, which will have a certain adverse impact on the company’s profits. “
At the same time, Longi Green Energy Technology Co.Ltd(601012) the unfinished part of the investment project in Yunnan “has the risk of change”.
The reporter of the science and Innovation Board daily learned from the Longi Green Energy Technology Co.Ltd(601012) official website that at present, the company has seven major industrial clusters in China. Among them, Yunnan and Ningxia bases are the top two industrial bases in China. Specifically, Longi Green Energy Technology Co.Ltd(601012) Yunnan production cluster includes seven factories: Baoshan single crystal factory, Lijiang single crystal factory, Chuxiong slicing factory, Lufeng slicing factory, Huaping single crystal factory, Tengchong single crystal factory and Qujing single crystal slicing factory.
According to statistics, since 2022, Longi Green Energy Technology Co.Ltd(601012) has raised the quotation of silicon wafers for many times. On March 25, Longi Green Energy Technology Co.Ltd(601012) again raised the price of monocrystalline silicon, and the price of the whole product increased by 1.8% – 1.9%.
several photovoltaic enterprises said they would not be affected
Some insiders predict that “with the continuous promotion of the dual control policy of energy consumption, the preferential electricity price in more high energy consumption areas may change.”
Regarding the electricity price adjustment in Yunnan Province, Jingke energy related persons responded to the reporter of the science and Innovation Board daily, “at present, the company’s power consumption policy in Yunnan has not changed.” The person further said, “Jingke mainly has battery capacity in Yunnan, which consumes much less energy than the silicon chip link; at the same time, Yunnan’s battery capacity accounts for a small proportion of the company’s total capacity, and even if there are relevant risks in the future, the impact will be small.”
Tongwei Co.Ltd(600438) relevant people told the reporter of science and Innovation Board daily, “we have not received the relevant notice.”
Just today (April 6), Ja Solar Technology Co.Ltd(002459) said on the investor interaction platform, “the company has invested in the construction of crystal pulling and slicing production base in Qujing, Yunnan Province. The electricity charge is implemented in the ‘market-oriented electricity price policy’, and the adjustment of preferential electricity price policy in Longi Green Energy Technology Co.Ltd(601012) has no impact on the company.”
