Xinte Energy’s 2021 Financial Results

• Xinte Energy improved the group revenues in 2021 by 58.81% to RMB 22.52 billion
• Its polysilicon business segment experienced higher sales and prices for polysilicon during last year
• The company produced 78,200 tons polysilicon in 2021; says by the end of 2022, its total annual polysilicon production capacity will reach 200,000 tons

Chinese polysilicon producer Xinte Energy improved its 2021 group revenues by 58.81% to RMB 22.52 billion and total profit by 608.08% to RMB 4.95 billion thanks mainly to increase in sales and prices for its polysilicon products last year.

Of the total operating revenues, polysilicon brought in RMB 11.57 billion having increased 158.82% over the previous year, while its other business segments namely wind and PV power plant construction and operation and others contributed to the remaining amount.

Gross profit of the group went up 281.20% on annual basis to RMB 9.3 billion, while its net profit of RMB 4.95 billion was 680.88% more than in 2020 (see Xinte Energy Grew Annual Revenues By Over 54%).

Increase in costs due to high raw materials prices such as silicon powder and trichlorosilane along with increase in electricity costs did push up its polysilicon costs by 28.95% to RMB 4.78 billion.

Xinte produced 78,200 tons polysilicon in 2021. Going forward, it will put into operation technically upgraded polysilicon lines in Xinjiang in H1/2022, post which its Xinjiang location production capacity will increase to 100,000 tons annually. Meanwhile, the 100,000 ton polysilicon project in Inner Mongolia is planned to come online in mid-22 and reach full production by the end of 2022. "By then, the total polysilicon production capacity of the group will reach 200,000 tons per year," stated the management.

For the Inner Mongolia project, Xinte has joined hands with JinkoSolar, and JA Solar Technology as 9% shareholders each, providing itself with long-term stable sales of polysilicon (see JA & Jinko To Invest In Xinte Subsidiary).

Global polysilicon production capacity and prices

According to Xinte, global polysilicon production capacity in 2021 was close to 631,000 tons while the total demand was around 653,000 tons. Chinese production capacity was approximately 490,000, net import volume 116,000 tons while the total demand was somewhere close to 613,000 tons.

"The transaction price of re-feeding has risen from RMB 87,600 per ton at the beginning of 2021 to RMB 217,200 per ton at the end of June after a series of record highs; after a slight decline from July to September, such price has entered an upward channel again from the beginning of October, with a high point reached RMB 272,200 per ton; it fell again in December to RMB 232,500 per ton at the end of this year, representing an increase of 165.4% from the beginning to the end of this year," it explained. "The annual average price of monocrystalline silicon re-feeding was RMB194,400 per ton, representing a sharp increase of 148.3% year-on-year."