Feasibility analysis report on investment and use of funds raised by non-public issuance of A-Shares in 2022
January 2002
Eging Photovoltaic Technology Co.Ltd(600537)
Feasibility analysis report on investment and use of funds raised by non-public issuance of A-Shares in 2022
Eging Photovoltaic Technology Co.Ltd(600537) (hereinafter referred to as “the company” or ” Eging Photovoltaic Technology Co.Ltd(600537) “) plans to issue A-Shares (hereinafter referred to as “this offering” or “this non-public offering”), and the total amount of funds to be raised shall not exceed 1302.4 million yuan (including this amount). The feasibility analysis of the company’s use of the funds raised by the non-public offering of shares is as follows:
1、 Use plan of raised funds
The total amount of funds to be raised by the company in this non-public offering of shares shall not exceed 1302.4 million yuan (including this amount), which will be used for the following items after deducting the issuance expenses:
Unit: 10000 yuan
No. total investment amount of the project invested by raised funds proposed to use the amount invested by raised funds
1 Changzhou 5GW / a high efficiency Cecep Solar Energy Co.Ltd(000591) component construction project 85650.62 70240.00
2. Supplement working capital and repay interest bearing loan 60000.00 60000.00
Total 145650.62 130240.00
Before the funds raised from this non-public offering of shares are in place, the company will first invest with its own funds or self raised funds according to the actual situation of the investment project progress of the raised funds, and replace them in accordance with the procedures specified in relevant laws and regulations after the raised funds are in place.
If the net amount of funds raised this time is less than the total amount of funds to be invested in the above projects, within the scope permitted by relevant laws and regulations and authorized by the resolution of the general meeting of shareholders, the board of directors of the company has the right to adjust according to the actual amount of funds raised and the priorities of the projects, and finally decide the priority of the investment of funds raised and the specific investment amount of each project, The shortage of raised funds shall be solved by the company with its own funds or self raised funds.
2、 Necessity and feasibility analysis of the project invested by the raised funds
(I) necessity of using raised funds
1. Meet the demand of photovoltaic power generation market and improve the profitability of the company
The scale of photovoltaic power generation industry continues to expand, which has become an important direction of energy structure reform in various countries. For example, major energy countries such as China, India, the United States and Saudi Arabia have announced large-scale photovoltaic energy plans. Some countries plan to account for more than 50% of renewable energy power generation by 2050. The development growth rate of photovoltaic industry ranks first among all kinds of renewable energy, It will become the main force to replace “old energy” in the future. According to the prediction of the International Renewable Energy Agency (Irena), in the future, photovoltaic power generation is expected to replace a large number of non renewable energy power generation in 2040. By 2030, the global photovoltaic cumulative installed capacity is expected to reach 1760gw, the power generation capacity will reach 7% of the global energy demand, the installed capacity will increase six times, and the annual average growth rate will reach 15%. According to the prediction of solarpower Europe, the photovoltaic power generation will reach 7368twh in 2040, accounting for 21% of the global power generation. It is also proposed to replace a large number of non renewable energy power generation, and the demand of photovoltaic power generation market will increase rapidly. In view of the good development prospect of the photovoltaic industry and the company’s long-term dilemma of “production capacity is less than the order”, the project plans to expand the production capacity of high-efficiency Cecep Solar Energy Co.Ltd(000591) modules. After the construction is completed, the annual production capacity of 5GW high-efficiency Cecep Solar Energy Co.Ltd(000591) modules can be realized, which will help to meet the rapidly expanding market demand and improve the profitability of the company.
2. Optimize product structure, integrate upstream and downstream resources and develop “integration” strategy
At this stage, among the world’s major photovoltaic module manufacturers, Chinese enterprises are developing relatively rapidly. With the maturity of China’s photovoltaic module industry, the industry competition is becoming more and more fierce, which is mainly caused by three reasons: serious product homogenization; Low technical barriers and low entry barriers for manufacturers; The information is complete and transparent, and the profit space is compressed. In order to reduce costs, increase efficiency and improve the yield rate, enterprises in the industry began to integrate upstream and downstream resources and develop to “integration”. Based on the judgment of the technical development, market scale and its own technical strength of the photovoltaic module industry, the company plans to actively optimize the product structure and formulate the “integrated” development strategy. According to the latest production technology and process, the project plans to build a digital and intensive chemical plant. The products will comply with the trend of large size, and the specifications will be fully compatible with the sizes of 210mm and below. It can produce component products integrating technologies such as double-sided, double glass, half sheet, multi main grid and large-size silicon wafer, which will help to optimize the product structure. In addition, after the completion of the project, the annual production capacity of 5GW high-efficiency Cecep Solar Energy Co.Ltd(000591) components will promote the company to form an upstream and downstream production supporting pattern of “annual output of 5GW Battery + 10GW components”, which will help the company integrate upstream and downstream resources, develop the “integration” strategy, and further consolidate and improve the industry position.
3. Improve the level of automatic production and improve product quality and core competitiveness
With the rapid development of photovoltaic equipment and component manufacturing industry, the market competition is bound to become increasingly fierce. In order to cope with the market competition and the stringent product performance requirements of downstream customers, the company urgently needs to build an automatic production workshop in order to improve production efficiency, reduce cost and improve product quality. The project plans to build a 5GW component workshop, which can greatly improve the automation level of production equipment. For example, it is equipped with complete inspection line, offline framing and El / IV equipment, and has strong emergency coordination ability; The laminated double glass feeding frame improves the automation ability; The functions of automatic dicing and series welding machine (AGV), automatic glass feeding (AGV) and automatic packaging line in packaging area are realized; The four point test function of withstand voltage and grounding test unit is added; IV automatic four wire system test scheme is configured; The intelligent three-dimensional constant temperature material storage (adhesive film, back film, silica gel, etc.) is realized. In conclusion, after the completion of the project, the single line capacity is expected to increase by 20%, the single line staffing is expected to decrease by 15%, and the unit energy consumption is expected to decrease by 5%, which will help to improve the company’s automatic production level, product quality and core competitiveness.
(II) feasibility analysis on the use of raised funds
1. The project construction is consistent with the national industrial support policy
As a global sunrise industry, photovoltaic industry is of great significance to the optimization and adjustment of China’s energy structure and the sustainable development of national economy. In recent years, national ministries, commissions and industry associations have successively issued a series of policies to guide the healthy development of photovoltaic enterprises and promote the overall technological progress and industrial upgrading of the industry, such as meeting the requirements of encouraging “advanced various Cecep Solar Energy Co.Ltd(000591) photovoltaic cells and high-purity crystalline silicon materials” in the Guiding Catalogue for industrial structure adjustment (2019 Edition), Comply with the requirements of the notice on actively promoting the work of new energy power generation projects to be able to combine and develop at full capacity; In line with the requirements of opinions on completely, accurately and comprehensively implementing the new development concept and doing a good job in carbon peak and carbon neutralization, the proportion of non fossil energy consumption will reach more than 80% by 2060; Meet the requirements of promoting the diversified layout of photovoltaic power generation in the action plan for carbon peak before 2030; It meets the requirements of guiding the high-quality development of intelligent photovoltaic industry in the guiding opinions on strengthening industrial integration to promote industrial green development. In conclusion, the good policy environment encourages the development of photovoltaic module industry and provides policy guarantee for the construction of the project.
2. Rich technical accumulation provides an executable basis for project construction
Focusing on the improvement of scientific and technological innovation ability, the company has independently developed and mass produced the high-efficiency “affordable pioneer” component series products, which integrate the industry-leading technologies such as gallium doping, multi main grid, perc double-sided, half wafer, large-size silicon wafer, 1500V system and double glass components, realizing the “integration of seven technologies”, and the maximum front power of components is 540W + (182 size battery), At the same time, it has lower annual attenuation rate and higher double-sided power generation gain rate. In addition, the company has established Jiangsu Key Laboratory – Jiangsu Yijing photovoltaic engineering research institute, and has scientific research and development platforms such as “international scientific and technological cooperation base”, postdoctoral scientific research workstation, provincial enterprise technology center, Jiangsu Cecep Solar Energy Co.Ltd(000591) material engineering technology research center, etc, The module Laboratory of the company is now recognized by China National Accreditation Service for conformity assessment (CNAs), and it is also the Tdap Laboratory of International Photovoltaic certification agency VDE. The company has transformed many technologies into patents. As of January 14, 2022, the company has obtained 358 patents, including 111 invention patents, 245 utility model patents and 2 design patents. In conclusion, the company’s rich technical accumulation provides an executable basis for the project construction. 3. High quality customer resources provide a solid foundation for project construction
High quality customer resources can ensure the capacity digestion of the project to a certain extent. The company has a good brand influence in the industry and has high-quality and stable customers. For example, in terms of sales in China, the company has established a long-term good cooperative relationship with large central enterprises such as China’s well-known power group with reliable product quality, good reputation and strong marketing ability, The main customers are concentrated in five major power generation groups (such as Huaneng Group, Datang Group, Huadian Group, Guodian group and Guodian investment), two major power grids (State Grid and China Southern Power Grid), China nuclear power, China Guangdong nuclear power, Sdic Power Holdings Co.Ltd(600886) , Guohua Power, China Resources Power and other enterprises. The main customers signing the contract in 2021 include Shanghai Huaneng e-commerce Co., Ltd. – Huaneng Group, Sunan Yugur Autonomous County Zhongneng Industrial Park Co., Ltd., Jinta Huisheng new energy Co., Ltd. – China nuclear group, CGN Taishan Wind Power Generation Co., Ltd. – China Guangdong nuclear power, China Southern Power Grid Energy Efficiency&Clean Energy Co.Ltd(003035) , Foshan integrated energy, Zhuhai integrated energy – China Southern Power Grid and other enterprises. In terms of foreign sales, while consolidating the traditional markets in Europe, the company has made great efforts to expand emerging markets such as Japan, Southeast Asia and Latin America, which has been widely recognized. Its main customers are SIL spessart innovation GmbH and United renewable energy Co Ltd and other enterprises, market share and industry popularity have been continuously improved. In conclusion, the company’s high-quality customer resources provide a solid foundation for the construction of the project.
4. Excellent sales team provides performance guarantee for project construction
The company has a capable sales team with excellent performance. With its excellent professional quality and strong service awareness, the team has established a good cooperative relationship with customers and still achieved excellent sales performance during the epidemic prevention and control period. For example, in 2020, the company’s component products shipped 2669mw, a year-on-year increase of 32.43%, including 1964mw in China, a year-on-year increase of 36.46%, Overseas exports were 705mw, a year-on-year increase of 22.37%. In 2021, with the efforts of the company’s excellent sales team, the company won the bid of China Nuclear Huineng 300MW photovoltaic module equipment project, China Resources Zhongning Haiyuan 180MW photovoltaic module centralized procurement project, CGN Heilongjiang Tiefeng Xianghe 112mw photovoltaic module project, Longyuan Power Gansu 103mw photovoltaic module procurement project, etc. In 2021, the overseas epidemic continued to break out, the industry’s overseas photovoltaic orders decreased sharply, and China’s photovoltaic export business was blocked. The company’s international sales team worked hard to overcome difficulties, actively expanded customer resources through e-mail and telephone, and successfully achieved a breakthrough of zero sales in Romania, Bulgaria and Uruguay, At present, the company has expanded its sales scope to 37 countries and regions. In conclusion, the company’s excellent sales team provides performance guarantee for the construction of the project.
3、 Details of the project invested by the raised funds
(I) Changzhou 5GW / a high efficiency Cecep Solar Energy Co.Ltd(000591) component construction project
1. Basic information of the project
Project Name: Changzhou 5GW / a high efficiency Cecep Solar Energy Co.Ltd(000591) component construction project
Implementation subject Changzhou Eging Photovoltaic Technology Co.Ltd(600537) Technology Co., Ltd
The total investment of the project is 856.562 million yuan
The project will expand the production scale of efficient Cecep Solar Energy Co.Ltd(000591) modules in the existing photovoltaic field by building a 5GW module workshop, making use of the existing plant supporting facilities and purchasing advanced production equipment. After the project is completed and reaches the construction content of the project, it can achieve an annual production capacity of 5GW efficient Cecep Solar Energy Co.Ltd(000591) modules, which will help to meet the demand of the photovoltaic power generation market, Optimize product structure, integrate upstream and downstream resources, develop towards “integration” strategy, improve automatic production level, improve product quality and core competitiveness, and then consolidate the company’s market competitive advantage
Project construction site: Dongchang District, Changzhou Eging Photovoltaic Technology Co.Ltd(600537) Technology Co., Ltd., No. 18, Jinwu Road, Jintan District, Changzhou City, Jiangsu Province
2. Project investment estimate
The total investment in construction project evaluation includes construction investment, interest during construction period and initial working capital. The total investment of the project is 856.562 million yuan, including 817.8865 million yuan of construction investment, 38.6197 million yuan of initial working capital, and 702.4 million yuan of investment to be raised. The specific investment contents are shown in the table below:
