Tongwei’s H1/2021 Cell Shipments Nearly Double 

• Tongwei's H1/2021 operating income went up over 41% to RMB 26.55 billion
• It grew its annual shipments of solar cells and modules by more than 92% to 14.93 GW
• Majority shipment comprised large sized cells of 166mm dimension and above
• Management confirmed it continues to expand polysilicon and solar cell production capacity
• Having started 1 GW HJT module pilot production line, it is now aiming to build TOPCon pilot line with 1 GW annual capacity in H2/2021

One among the largest PV value chain manufacturers from China, Tongwei sold mostly solar cells and modules worth 14.93 GW, growing H1/2021 shipments by 92.68% on annual basis. Shipments for large sized cells comprising 166mm and above accounted for 65% of the total.

The operating income of Tongwei, which also produces silicon, in H1/2021 grew 41.75% annually to RMB 26.55 billion, while its net profit went up 193.5% to RMB 2.966 billion. It had been expecting healthy financial results for the reporting period due to high demand and tight supply situation (see Tongwei Expanding Polysilicon Capacity With New Fab).

Management confirmed that the ongoing mismatch between demand and supply in the industrial solar supply chain cannot be effectively alleviated within 2021.

At the end of 2020, Tongwei had a total annual production capacity of 80,000 tons of high-purity crystalline silicon in Leshan, Baotou and Baoshan, and 35 GW of solar cells capacity in Shuangliu, Jintang, Meishan and Hefei, all in China. It continues to add to its capacity with 200,000 tons silicon capacity planned for Leshan out of which 100,000 tons capacity is scheduled to come online by the end of 2022. Management guides for the group's cumulative high-purity crystalline silicon production capacity to reach 330,000 tons by the end of 2022.

As for cell capacity, the company provided an update for its plans to build a 15 GW cell project along with Trina Solar in 2 phases, out of which 7.5 GW will be completed within 2021, to be followed by phase II of 7.5 GW by H1/2022 (see Tongwei & Trina Solar Joint Venture For 210 Products). It sees its total cell production capacity to exceed 55 GW, out of which 35 GW will comprise 210mm sized cells.

It is also operating a heterojunction (HJT) module pilot production line with 1 GW capacity. The plan is to also build a 1 GW TOPCon pilot line in H2/2021.

Back in H1/2020, Tongwei reported an annual increase of 16.21% in its operating income, and shipped 7.75 GW solar cells (see Tongwei: H1/2020 Net Income Down, Operating Income Up).

Tongwei's peer from China and a renowned polysilicon producer Daqo New Energy had a good run in Q2/2021 thanks to higher ASPs and tight supply of polysilicon in the market (see Daqo New Energy Reports 'Excellent' Quarter In Q2/2021).