Annual polysilicon production capacity of Tongwei till 2019 end was 80,000 ton which the. Chinese company plans to increase by another 80,000 ton by the end of 2021. For solar cells, the plan is to increase it to a total of over 40 GW from 20 GW at the end of 2019. (Photo Credit: Tongwei Group Co., Ltd.)
- During H1/2020, Tongwei grew its annual operating income by 16.21% but net profit declined 30.35%
- It sold 97.04% more high purity crystalline silicon than last year and 33.75% more solar cells
- It plans to run its facilities at full production going forward and sees supply of high purity crystalline silicon getting tighter and prices have risen significantly
Tongwei had a bittersweet mix of first half in 2020 with its operating income going up 16.21% to RMB 18.738 billion ($2.7 billion), while its net profit of RMB 1.01 billion ($145 million) dropped 30.35% compared to H1/2019, reported local media referring to the Chinese solar cell and polysilicon producer’s official results.
In H1/2020, the average price of monocrystalline products dropped by 14.4% and that of polycrystalline went down by 41.2% yet its average gross profit margin was 27.7%.
Its high purity crystalline silicon production facilities continued to operate at full capacity reporting a capacity utilization rate of 116%, while that for monocrystalline materials was 90.86%. Average production cost was RMB 39,500 ($5,669) per ton of which the average production cost of new capacity was RMB 36,500 ($5,238) per ton.
During the reporting period, it sold 97.04% more high-purity crystalline silicon with a total volume of 45,000 tons. The management believes supply of high purity crystalline silicon has become tighter — with new capacities of downstream silicon wafer manufacturers starting as scheduled—and prices have risen significantly. However, a key reason for the recent increase in silicon prices is the fire at GCL, which led to a 10% reduction in global silicon capacites (see Explosions Reported At GCL-Poly Xinjiang Fab)
Tongwei plans to maintain full capacity production.
It shipped 7.75 GW capacity of solar cells in H1/2020, reflecting an annual increase of 33.75%. It says current mainstream solar cell product prices have increased by over 10% from the low in the first half of 2020.
In Q1/2020, Tongwei reported a drop in annual net profit to a total of RMB 344 million even though its operating income and revenues grew. It blamed the pandemic for its losses back then since its major customer base remains located in China (see Tongwei To Invest In 7.5 GW M12 Cell Fab).
At the end of 2019, Tongwei’s total operational annual cell production capacity reached 20 GW, and by the end of 2021, it is expected to report over 40 GW since its Meishan phase I facility with 7.5 GW capacity has become operational and it has launched construction of 2 more facilities, Meishan phase II and Jintang phase I with 7.5 GW capacity each. These 2 facilities are planned to come online in 2021.
As for polysilicon, Tongwei’s current annual solar cell production capacity is 80,000 ton. It aims to double it by another 80,000 ton by 2021.