On the evening of September 13, CSG A announced that it had recently signed a cooperation agreement with Trina Solar. According to the contract, Trina Solar is expected to purchase 70,000 tons of high-purity silicon raw materials from the company from 2023 to 2026.
The total contracted sales are estimated to be 2 1.2 1 100 million yuan, while the latest market value of the company is only 2 1.22 million yuan. In the first half of 2022, the revenue contributed by the company's silicon products was less than RMB 65,438+0,654.38+0 billion. In addition, the company's current annual production capacity of high-purity crystalline silicon is 6.5438+0 million tons, which is equivalent to 7 times its existing production capacity.
Recently, super-large contracts have frequently appeared in the photovoltaic industry. In July, Tongwei announced two large contracts for polysilicon sales, with a total amount of 654.38+20 million yuan. On August 26th and September 9th, Jingke Energy successively announced two single 100-billion-level silicon procurement contracts with a total amount exceeding 200 billion yuan.
The largest procurement contract in CSG history
According to the announcement of CSG A and Trina Solar, the sales agreement is a long-term sales contract. According to the contract, CSG A is expected to sell 70,000 tons of high-purity silicon raw materials to the other party from 2023 to 2026. According to the current market price (based on the latest average price of polysilicon and silicon materials published by PVInfoLink), it is estimated that the total sales in 2023-2026 will be 2 1, 2 1 billion yuan (including tax).
However, CSG A emphasizes that this calculation does not constitute a price or performance commitment. The specific order price will be discussed on a monthly basis, and the total contract transaction amount will be subject to the final transaction amount. The company said that the signing of this contract is conducive to the stable sales of the company's high-purity silicon products, which is in line with the company's future business plan and will have a positive impact on the company's future business performance. This business cooperation will not have a significant impact on the company's current business.
At the same time, the company suggests that the contract has a long performance period. In the process of contract performance, if there are unforeseen or force majeure factors such as adjustment of industry policies, changes in market environment and adjustment of business strategies of both parties to the transaction, the contract may not be fulfilled as scheduled or in full. In addition, the estimated total sales volume does not take into account the contract performance risk, the future market price of high-purity silicon materials and other influencing factors, and there is some uncertainty.
The reporter of China Fund reported back to the previous announcement that this is the largest single purchase contract signed by CSG A. The last super-large contract of the company took place in August 2020, and several subsidiaries of Longji Green Energy plan to purchase 6.5 billion yuan of photovoltaic glass within five years.
It is planned to issue convertible bonds with an annual output of 50,000 tons.
In fact, CSG is one of the early enterprises in China to enter the field of photovoltaic product manufacturing.
The mid-year report in 2022 shows that its Yichang production base currently has the production capacity of high-purity crystalline silicon 1 10,000 tons/year, silicon wafer 2.2GW/ year and single crystal ingot purification material 7,200 tons/year; Dongguan production base has a battery capacity of 0.6GW/ year and a component capacity of 0.6GW/ year; Shenzhen Photovoltaic Holdings 139MW Photovoltaic Power Station.
In the first half of 2022, the company's operating income from solar energy and other businesses totaled 65.438+43.4 billion yuan, a year-on-year increase of 225.49%, and its net profit was 282 million yuan, a substantial year-on-year increase. Among them, silicon products contributed a lot to revenue, with revenue of 654.38+0.07 billion yuan.
In June this year, the company announced that it plans to build a production line with an annual output of 50,000 tons of high-purity crystalline silicon in Qinghai, with a total investment of about 4.5 billion yuan and a construction period of 20 months. After the project is completed and put into production, it is estimated that the average annual sales revenue will be 3.389 billion yuan and the average annual net profit will be 863 million yuan. It is estimated that the payback period of the project investment is 5. 19 years, and the financial internal rate of return is 28.64%.
At that time, the board of directors of CSG A believed that the photovoltaic industry was expected to develop rapidly in the future, the demand for high-purity crystalline silicon continued to increase, and upstream enterprises needed to expand their production capacity. The project can expand the advantages of its existing photovoltaic industry chain and further enhance the overall competitiveness in the new energy field.
However, CSG A actually doesn't have enough funds at hand. The company claims that the project funds come from external raised funds and other financing methods. If the raised funds are insufficient or unsuccessful, the company shall solve them by itself. In June, CSG A announced that it intends to publicly issue A-share convertible corporate bonds, and the total amount of funds raised will not exceed 2.8 billion yuan. After deducting the issuance expenses, 2 billion yuan will be used for the project with an annual output of 50,000 tons of high-purity crystalline silicon, and another 800 million yuan will be used to supplement working capital and repay debts.
At present, the convertible bonds have been approved by the board of directors and the shareholders' meeting, but have not been announced for approval by the regulatory authorities.
Very large photovoltaic contracts are not uncommon this year.
Although the large contract of more than 20 billion yuan has created the highest in CSG A's history and even tied the company's total market value, it can only be regarded as "a drop in the bucket" on this year's hot photovoltaic track. Like Tongwei shares, the "big witches" can easily harvest hundreds of billions of big orders.
On the evening of July 1, Tongwei announced that four subsidiaries of the company had recently signed long-term sales contracts with Ke Mei Silicon Energy. Ke Mei Silicon Energy is expected to purchase a total of 256 1 10,000 tons of polysilicon products from the company in 2022 -2027, and the estimated total sales is about 644 1 10,000 yuan.
On the same day, Liang Shuang Energy Conservation announced that Liang Shuang Silicon Materials, a wholly-owned subsidiary of the company, and four subsidiaries (sellers) of Tongwei Co., Ltd. signed the Framework Agreement on the Purchase and Sale of Polycrystalline Silicon, which stipulated that the buyer would purchase about 222,500 tons of polycrystalline silicon from the seller from 2022 to 2026, and the estimated purchase amount was about 56 billion yuan. These two orders totaled 1204 1 100 million yuan, while Tongwei's revenue last year was only over 60 billion yuan.
On August 26th, Jingke Energy also announced that from 2023 to 2030, Jingke Energy and its subsidiaries will purchase 336,000 tons of primary polysilicon from Xinte Energy, with an estimated purchase amount of 65.438+002.077 billion yuan. Less than two weeks later, on September 9, Jingke Energy announced again that it would purchase about 382,800 tons of polysilicon products from related subsidiaries of Tongwei Co., Ltd., with an estimated total contract amount of about 65.438+003.356 billion yuan. The contract date is from September 2022 to February 2026, and the actual purchase price is negotiated monthly.
Since last year, the price of solar-grade silicon materials has remained high, and the average price of polycrystalline silicon compact materials has climbed from 202/kloc-0 to 300,000 yuan/ton at the beginning of the year, an increase of more than 240%. In this context, the downstream giants of the photovoltaic industry chain are trying to ensure the long-term stable supply of polysilicon raw materials by locking the quantity without locking the price, bargaining on a monthly basis, and purchasing in bulk.
Duan Xiaohu, an analyst at East Asia Qianhai Securities, said that the historical price and supply and demand of polysilicon in the first half of 2000-2022, as well as the three sharp price increases in history, were all caused by the imbalance between supply and demand of silicon materials and its downstream links. At present, the head silicon enterprises are in the cycle of capacity expansion, and the new capacity is limited. The continuous high growth of downstream demand has led to a new round of rising cycle of silicon material price, so the silicon material price has continued to rise to a new high in the past decade.
It said that according to the calculation, it is conservatively predicted that the global photovoltaic silicon market space will reach 648,800 tons in 2022, which is +45. 1% year-on-year. Under the background of tight supply and demand pattern of polysilicon, we are optimistic about the leading silicon enterprises with high production capacity and profitability.
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