Chinese PV Industry Brief: Rising polysilicon prices, new 5 GW HJT cell factory


The average price of polysilicon rose by 11% last week to CNY 238.4 ($36.98)/kg. The main reason for the price increase was a 100% jump in silicon costs,  due to stalling production caused by power shortages that affected China last week. According to the China Silicon Association, two of the total 12 major polysilicon manufacturers are experiencing annual overhauls and won’t return to normal production until late October. The total output of China’s polysilicon in September was 42,800 metric tons, up slightly from August. In October, polysilicon output will not surpass the figures of the last two months and prices are expected to continue to rise, the association said.

Wind developer Mingyang Smart Energy said on Wednesday that it has signed an agreement with the government of Yancheng, Jiangsu province, to build a 5 GW heterojunction solar cell factory. The plant will be built in two 2.5 GW phases and will produce solar cells with a power conversion efficiency of more than 24.5%. The two sides will invest CNY 5 billion in the project.

Polysilicon manufacturer Xinte Energy said on Tuesday that it has raised CNY 2.29 billion by issuing stock to controlling shareholder TBEA. The solar manufacturer is raising its majority stake from 62% to 67% in Xinte, with CNY 2 billion to go into the construction of 100,000 tons of annual poly fab capacity. The remainder will kept for working capital, said Xinte.

Polysilicon manufacturer GCL-Poly said this week that it will “soon” publish the findings of an investigation into a CNY 510 million pre-payment it made in 2019 for a silicon project that was never built. The matter prompted the resignation of  Deloitte Touche Tohmatsu as its auditor in May. Trading in GCL-Poly shares has been suspended since the company’s failure to publish its 2020 figures by the end of March, but the company has vowed to submit its figures for last year and the first half of this year in the coming weeks. The company also said it “accepts the internal control consultant’s findings and recommendations and is in the process of taking steps to address those recommendations,” as it has turned to an independent party to examine its processes. That decision followed the discovery that the general manager responsible for approving the contentious pre-payment had done so against company policy. GCL-Poly has already acknowledged that it failed to report the the engineering, procurement and construction services contract related to the 2019 payment, in breach of stock market regulations.

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Solar manufacturer JinkoSolar said this week that the application of its main Jinko Solar Co Ltd subsidiary for a listing on the Shanghai Stock Exchange’s Sci-Tech innovation board has been approved by the exchange’s stock listing committee. Jinko Solar will now have to register with the China Securities Regulatory Commission before the initial public offering can take place.

State-owned solar developer China Shuifa Singyes Energy announced plans this week to spend CNY 103 million on a 2 MW, distributed-generation solar system at a sewage plant. The investment also includes a 25 MW “fishery-solar” project and 20 1 MW blocks of solar, with the latter capacity to be installed by a company that also deals in computer software, herbs, livestock and poultry. Shandong Shuifa Clean Energy, which is owned by the Shuifa Group water industry entity that also owns China Shuifa Singyes, will sell the projects. The acquisition still needs to be approved by the independent shareholders of China Shuifa Singyes. It has promised to release the details of the special general meeting that will be needed for the vote by Oct. 25.

Solar developer Shunfeng International suspended trading in its shares on Monday morning, pending the announcement of a “very substantial transaction.” It later said it would provide the Hong Kong Stock Exchange with details of a “very substantial disposal of the company” by Oct. 29. Shunfeng International is selling off its solar farms to pay down creditors and has already announced a current-assets-to-liabilities deficit of CNY 2.67 billion.

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