Revenue in the first three quarters exceeded 100 billion yuan, and Tongwei’s net profit increased by 2.65 times year-on-year

Image source: Visual China

Reporter | Ma Yueran

The “Silicon King” Tongwei (600438.SH) had a revenue of over 100 billion yuan in the first three quarters of this year, and its net profit increased by 2.65 times year-on-year.

On the evening of October 20, Tongwei released a performance report. Its revenue in the first three quarters reached 102.084 billion yuan, a year-on-year increase of 118.6%; the net profit attributable to the parent was 21.73 billion yuan, a year-on-year increase of 265.54%.

This performance reached the previously announced upper limit. Tongwei previously estimated that the net profit in the first three quarters would be 21.4 billion-21.8 billion yuan, a year-on-year increase of 259.98%-266.71%.

According to the statistics of Jiemian News, among the photovoltaic companies that have announced the third quarterly report or quarterly report forecast, Tongwei is the only company with a revenue of over 100 billion yuan, and its net profit also ranks first.

In the first quarter of this year, Tongwei achieved a net profit of 5.194 billion yuan and a net profit of 7.03 billion yuan in the second quarter, a month-on-month increase of 35.3%. Based on this calculation, the company’s third-quarter net profit was 9.506 billion yuan, a month-on-month increase of 35.2%.

Tongwei Co., Ltd. said that during the reporting period, the market demand for its high-purity crystalline silicon products continued to be strong, and the prices rose year-on-year. The superposition of new production capacity quickly ramped up to reach production, and achieved a significant increase in volume and profit; the cell business was also prosperous in production and sales, with a significant year-on-year increase in output; The feed business also achieved a double increase in volume and profit.

The main business of Tongwei Co., Ltd. includes two major sectors: agriculture, animal husbandry and new energy. The agricultural field includes the research, production and sales of aquatic feed, livestock and poultry feed and other products. In terms of new energy, high-purity crystalline silicon, solar cells and other products are the main products.

Tongwei Co., Ltd. has topped the world in the two major links of polysilicon and batteries. In the first half of the year, Tongwei’s annual production capacity of high-purity crystalline silicon was 230,000 tons, and the annual production capacity of solar cells was 54 GW.

Since the beginning of this year, due to factors such as the conflict between Russia and Ukraine, the global demand for clean energy has risen sharply. Coupled with the domestic support for distributed photovoltaic installations, the demand for photovoltaic products continues to be hot.

Under the support of demand, silicon materials are still maintaining stability at a high level, and the price of solar cells has also increased slightly due to the shortage of supply.

According to the latest data from PV InfoLink , as of the middle of this month, the main price of monocrystalline dense bulk materials remained in the range of 301-306 yuan per kilogram. This week, order execution and delivery were still the main focus. Observed this week, the price of silicon material has not changed significantly.

The price of mainstream battery cells is 1.34-1.35 yuan per watt, an increase of 0.6%-0.8% month-on-month. PV InfoLink said that the supply of solar cells remains tight, and module manufacturers are actively scheduling production.

The agency believes that it is expected that battery cells will still be the most tense and lacking link in the entire supply chain in October, and there is no sign of loosening when prices are at a high point.

Tongwei shares did not stop at the two links of silicon material and battery. On September 22, Tongwei Co., Ltd. announced that it will invest in the construction of a high-efficiency photovoltaic module manufacturing base project with an annual output of 25 GW in Yancheng City. It is expected to invest about 4 billion yuan in fixed assets and officially enter the downstream.

According to incomplete statistics from Jiemian News, Tongwei has at least four component orders in the public bidding results.

As of the end of the third quarter, the total assets of Tongwei Co., Ltd. were 134.728 billion yuan, an increase of 46.478 billion yuan or 52.67% from the end of the previous year; the owner’s equity attributable to shareholders of listed companies was 56.722 billion yuan, an increase of 19.219 billion yuan from the end of the previous year, and a year-on-year increase of 19.219 billion yuan. An increase of 51.25%.

On October 20, the photovoltaic sector weakened across the board, and Tongwei shares fell 3.43% to close at 47.25 yuan per share, with a total market value of 212.7 billion yuan.