Chinese PV Industry Brief: Solar manufacturers report strong financial performances

Module manufacturer JA Solar said this week it expects its net profit for the first half of 2022 to be in the range of CNY 1.6 billion (US$239 million) to CNY 1.8 billion ($267 million). If confirmed, these figures would represent year-on-year growth of 124.3% and 152.3%, respectively. The company said the strong performance is due to increasing demand and raising module prices.

Wafer producer TCL Zhonghuan said it expects its revenue to grow from CNY 17.6 billion in the first six months of last year to up to CNY 33 billion in the same period of 2022. Net profit is estimated to be between CNY 2.85 billion and CNY 3.05 billion.

Polysilicon maker GCL Tech this week said it expects a bumper, unaudited first-half profit of around CNY 6.9 billion, up from CNY 2.4 billion a year earlier. That came on the back of six-month revenue estimated at CNY 15.4 billion, up from CNY 8.8 billion, with CNY 14.7 billion generated from the turnover from producing around 40,000 tons of poly during the period at an average gross profit margin of 48%. There was a contrast in fortune at GCL’s New Energy project business, which warned shareholders it expects a net loss of CNY 300 million for the first half, after selling off 2.1 GW of the 3 GW solar estate it had at the end of June 2021. GCL said the value of the dollar against the yuan also contributed a CNY 130 million hit to the six-month figures. GCL New Energy banked a CNY 180 million net profit in the first half of last year.

Battery raw materials supplier Ganfeng Lithium this week said it expects a first-half net profit for shareholders of CNY 7.2 billion to CNY 9 billion, up from CNY 1.42 billion from the same period last year. It put the improved performance down to demand for its products from the new energy industry.

Polysilicon maker and solar developer Xinte Energy has secured an eight-year, 201,900-ton deal to supply the solar panel raw material to wafer maker Shuangliang Silicon Materials (Baotou) Co Ltd. Starting in January, Xinte this week said the product would be priced monthly. The latest polysilicon price published by the silicon industry branch of the China Non-ferrous Metals Industry Association would value the deal at CNY 58.5 billion.

State-owned developer Beijing Energy International this week announced a subsidiary has secured the engineering, procurement, and construction (EPC) contract for a 100 MW agrivoltaic project in Qionghai city, Hainan province. The agreement, from state-owned Powerchina Jiangxi Electric Power Construction Co Ltd and private entity Sichuan Tongli Hengneng Power Enegineering Design Co Ltd, will be worth CNY 480 million. Beijing Energy recently awarded a CNY 317 million EPC contract for the 150 MW first phase of a planned 300 MW agrivoltaic project in Baise city, Guangxi Zhuang autonomous region.

PV module manufacturer JinkoSolar signed a cooperation agreement with US-based Cummins for the joint development of hydrogen projects. The two companies will initially participate in tenders for the construction of large-scale PV-powered hydrogen plants.