Hangzhou First’s H1 2024 operating income of RMB 10.76 billion was led by the PV film sales business
Unpredictability of orders and mismatch in domestic and foreign production capacity impacted financials
It now aims to expand its overseas PV film production capacity to meet overseas demand
The world’s leading EVA and backsheet manufacturer, based out of China, Hangzhou First Applied Materials reported RMB 10.76 billion in operating income for the period between January and June 2024, representing a 1.39% year-over-year (YoY) growth. Its net profit during the period grew 4.95% to RMB 928 million.
Its PV film sales volumes increased 43.61% YoY to 138,906.40 million sq. m., bringing in an operating income of RMB 9.9 billion, representing a 3.8% YoY increase.
The backsheet business declined by 43.53% with an operating income of RMB 415 million as it sold 67.7815 million sq. m. volume.
Calling 2024 a difficult year for the PV industry, the management stated in its H1 2024 report, “The industry has entered a stage of capacity clearance, and the prices of various photovoltaic products have also fallen rapidly. Many photovoltaic companies continue to suffer losses. As a member of the photovoltaic industry, the company also faces various difficulties in production and operation, such as the unpredictability of orders, the mismatch of domestic and foreign production capacity, and the transmission of customer operating pressure.”
Nonetheless, it claims to have increased its global market share during the reporting period. It sees the US and Europe as significant overseas markets for its business as these markets have special requirements regarding the origin of PV modules and their auxiliary materials.
“The company can meet the needs of overseas module customers by accelerating the expansion of overseas photovoltaic film production capacity and continue to stabilize the company's global market share of photovoltaic materials. The company will reduce the pressure caused by industry factors through differentiated product development and overseas sales promotion, smoothly cross the photovoltaic industry cycle, and strive to obtain better returns in the next round of industry prosperity,” it added.
At the upcoming RE+ event in California, TaiyangNews has partnered with EUPD Research and RE+ to host a 1-day conference on Solar Made In USA How to manufacture solar wafers, cells & modules competitively in the United States. At this event on September 9, 2024, the Sales Director of North America Market for Hangzhou First Steve Akey will speak about comprehensive packaging solutions for solar modules. The conference will bring together stakeholders that are looking at solar manufacturing in the US as the country targets to become self-sufficient for its solar PV needs. Register for the event here.
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