Change of name is hard to change life, King Kong Photovoltaic still lost 155 million in the first three quarters

Image source: Visual China

Reporter｜Ma Yueran

Two days after the scheduled quarterly report announcement was delayed, King Kong Photovoltaic (300093.SZ), which was on the new energy track, handed in an unsatisfactory performance report.

On October 26, King Kong Photovoltaic announced that the revenue in the first three quarters was about 284 million yuan, a year-on-year increase of 1.62%; the net profit loss attributable to shareholders of the listed company was about 155 million yuan, a year-on-year decrease of about 103 times.

Among them, the revenue in the third quarter was 94 million yuan, a year-on-year decrease of 2.56%; the net profit loss was 62 million yuan, a year-on-year decrease of about 128 times.

Image source: King Kong Photovoltaic Announcement

The financial report shows that the operating cost of King Kong Photovoltaic in the first three quarters increased by 54.74% year-on-year to 294 million yuan. The reason given by the company is that the production scale of traditional projects has declined, and the corresponding costs are relatively high, and the photovoltaic projects are initially put into production, and the cost is relatively high in the climbing stage.

During the same period, the research and development cost of King Kong Photovoltaic for researching photovoltaic projects reached 26 million yuan, an increase of more than 3 times year-on-year.

King Kong Photovoltaic, formerly known as King Kong Glass, completed the industrial and commercial change registration at the end of September, and officially launched the new name on October 10. This is mainly due to the major changes in its main business.

King Kong Photovoltaic was originally mainly engaged in special security glass products, and real estate customers are the main customers of this product. In recent years, due to the decline of the real estate industry and other reasons, the performance of King Kong Photovoltaic has been greatly affected, and its performance has been losing money for three consecutive years. In 2021, the debt ratio of King Kong PV will reach 77.81%.

In 2021, King Kong Photovoltaic sees “opportunities” in the field of new energy, betting on N-type heterojunction photovoltaic technology. That year, the company announced an investment of 832 million yuan to build a 1.2 GW large-scale half-heterojunction (HJT) solar cell and module project.

In June this year, the company made another move, spending 4.191 billion yuan to build a 4.8 GW heterojunction cell and module project.

This large investment has also attracted the attention of the Shenzhen Stock Exchange. The Shenzhen Stock Exchange questioned the company’s ability to finance the construction project. At the same time, the shareholders of King Kong Photovoltaic reduced their shares at a high level, and were asked by the Shenzhen Stock Exchange to explain whether there was any “suspect” of speculation.

In the 2021 annual report, King Kong PV’s revenue also comes from the glass processing industry. As of the first half of this year, the business income of King Kong Photovoltaic solar cells and modules was 147 million yuan, accounting for 77.08% of the current operating income, and the proportion of glass-related business income dropped to 22.92%.

According to the semi-annual report and the reply to the inquiry letter, King Kong Photovoltaic currently has a single-line design production capacity of 600 MW/year. As of the end of June, the actual cell production capacity of King Kong Photovoltaic was about 7 MW, and the actual production capacity as of the end of August was about 21 MW.

The single-line design capacity of King Kong PV modules is 500MW/year. The module production line has been put into production in February, and the power of the produced heterojunction modules is 700W+.

At present, in the N-type battery technology route, the industrialization of TOPCon technology is faster, and the heterojunction is subject to cost and other issues in a timely manner, and the degree of industrialization is slightly slower. King Kong Photovoltaic stated in the investor relations event that the main advantage of heterojunction compared to traditional PERC cells is higher conversion efficiency.

In recent months, King Kong Photovoltaic has completed a series of plans for increasing holdings and acquisitions. In August, its controlling shareholder Ouhao Group completed the increase in its holdings of King Kong PV through centralized bidding and block transactions. After the completion, Ouhao Group and its concerted parties will hold 54.02 million shares of King Kong Photovoltaic, accounting for 25.01% of its total share capital.

According to the Tianyancha app, Ouhao Group currently holds 21.99% of the shares of King Kong Photovoltaic.

On September 29, King Kong Photovoltaic announced that its holding subsidiary King Kong Yide signed an equity transfer agreement with Ouhao Group, and will acquire 100% of the equity of Ouhao Power held by the latter. After the transaction was completed, Ouhao Power became a wholly-owned subsidiary of King Kong Yide.

On the same day, King Kong Photovoltaic changed the implementation of the 4.8 GW heterojunction project from King Kong Yide to Ouhao Power.

As of the close on October 26, King Kong Photovoltaic fell 0.54% to close at 50.05 yuan per share, with a total market value of 10.8 billion yuan.