“By the end of this year, the company’s annual design capacity of photovoltaic adhesive film is expected to reach 1.6 ~ 1.7 billion square meters.” In the 2021 performance presentation of Hangzhou First Applied Material Co.Ltd(603806) ( Hangzhou First Applied Material Co.Ltd(603806) . SH) on April 7, general manager Zhou Guangda said that the company adheres to the production expansion strategy of photovoltaic adhesive film and photovoltaic backplane, and strives to increase the production capacity of photovoltaic adhesive film by 300 ~ 400 million square meters within the year.
In the photovoltaic industry chain, photovoltaic adhesive film (EVA) is mainly used in the packaging of photovoltaic modules. Hangzhou First Applied Material Co.Ltd(603806) , Swick, Shanghai Hiuv New Materials Co.Ltd(688680) ( Shanghai Hiuv New Materials Co.Ltd(688680) . SH) are the main suppliers of photovoltaic adhesive film in the world, of which Hangzhou First Applied Material Co.Ltd(603806) accounts for more than 50% of the global market. According to the financial report, the company achieved a revenue of 12.858 billion yuan last year, a year-on-year increase of 53%; The net profit attributable to shareholders of listed companies was 2.197 billion yuan, a year-on-year increase of 40%; Deduct non net profit of RMB 2.140 billion, with a year-on-year increase of 40.7%.
The financial Associated Press reporter noted that benefiting from the strong demand for terminal photovoltaic installation, the volume and price of the company’s main products increased at the same time. Throughout the year, the total sales of photovoltaic adhesive film was 968 million yuan, a year-on-year increase of 11.85%, and the sales of photovoltaic backplane was 682214 million square meters, a year-on-year increase of 19.43%. In addition, in the electronic materials business, a total of 1032982 million square meters of photosensitive dry films were sold throughout the year, with a year-on-year increase of 136.79%, and the operating revenue was 446 million yuan, with a year-on-year increase of 143.42%.
In addition to the photovoltaic adhesive film, Lin Jianhua, chairman of the company, said at the exchange meeting that the increase in the proportion of distributed generation system in the terminal application market has also driven the demand for backplane products. Therefore, the company currently adopts a positive development strategy for the backplane business and has formulated a large-scale production expansion plan. It is expected that a total of 110 million square meters of backplane capacity will be added this year and next year.
According to the exchange meeting, during the reporting period, several production expansion projects continued to be promoted, including the production capacity of some photovoltaic adhesive films in Chuzhou base, and the photovoltaic backplane project in Jiaxing base completed the preliminary preparations and entered the civil construction stage; In terms of electronic materials, preliminary preparations were carried out for the production expansion project of photosensitive dry film and alkali capacitive resin in Jiangmen base, Guangdong Province. Zhou Guangda said that in the future, the company will continue to expand high-quality production capacity in industrial clusters to prepare in advance for the rapid development of the photovoltaic industry and the domestic substitution of electronic materials.
It is worth noting that the output of adhesive film is actually limited by the output of upstream EVA particles, and the global shortage of EVA particles has appeared in 2021, and may become the bottleneck of photovoltaic industry chain this year. According to the analysis of Jibang consulting, it is estimated that in 2022, the global total demand for photovoltaic EVA particles will be about 1.02 million tons, and the total supply will be about 984000 tons. In the process of quarterly demand fluctuation, there may still be periodic shortage, and the price of EVA particles may still rise in the short term.
The rising cost of raw materials has put pressure on the company’s gross profit. By industry, the company achieved a revenue of 12.236 billion yuan in the photovoltaic packaging material industry in 2021, an increase of 50.68% over the previous year. However, operating costs increased by 58.10%, resulting in a decrease in gross profit margin by 3.53 percentage points. In addition, the gross profit of electronic materials industry also decreased by 3.11%.
In this regard, general manager Zhou Guangda said at the exchange meeting that he would strive to control the profitability of the company’s business at a reasonable level through the product price transmission mechanism. At the same time, we will make strategic reserves according to the downstream demand and the cost changes of upstream raw materials.
