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Photovoltaic industry invested over 200 billion yuan in the first half of the year to expand production

Photovoltaic industry invested over 200 billion yuan in the first half of the year to expand production

The photovoltaic industry has ushered in a new wave of expansion.
On the evening of August 9 this year, A-share company Aixu (600732.SH) announced that it plans to invest 20 billion yuan in expansion in the next five years. The production capacity of high-efficiency solar cells will reach 60.8GW, which is 6.61 times that of the end of 2019.
In recent years, similar expansion actions are not uncommon. According to incomplete statistics from a reporter from the Changjiang Business Daily, in the first half of this year, Chinese photovoltaic companies invested more than 200 billion yuan to expand production, of which the production capacity of cells and modules exceeded 300GW.
Correspondingly, photovoltaic companies have carried out equity financing on a large scale. Since the beginning of this year, 20 listed photovoltaic companies have issued fixed increase plans and plan to raise more than 20 billion yuan.
Whether it is due to investment in expansion or fundraising, the amount exceeds that of the whole year of 2019.
According to "China's Photovoltaic Development Outlook in 2050", China's total installed photovoltaic power generation capacity will reach 5000GW in 2050, and photovoltaic power generation will account for 40% of the country's total electricity consumption.
The future of the photovoltaic market seems to be limitless. This is the logic that supports the massive expansion of photovoltaic companies. In fact, since last year, the overall operation of photovoltaic enterprises has improved. In the first half of this year, 55 A-share photovoltaic companies achieved operating income of 243.135 billion yuan, an increase of 26.649 billion yuan from 216.486 billion yuan in the same period last year, an increase of approximately 12.31%.
In the secondary market, photovoltaic companies have also received financial attention. As of September 4 this year, the total market value of 55 photovoltaic companies was 1.15 trillion yuan, an increase of about 0.52 trillion yuan from the 634.823 billion yuan (52 companies) at the beginning of the year.
Expansion of modules by over 200GW

In recent years, enterprises in the photovoltaic industry have expanded their production more intensively, and this year will be the peak.

The reporter combed and found that in the first half of this year, Longi, Tongwei, Yijing Optoelectronics, JA Solar, Risen , Aixu, Beijing Express, Zhongli Group, GCL Integration, Zhonglai, CSG A, etc. Many have disclosed expansion plans. For example, Beijing Express plans to invest 2.311 billion yuan in Wuhai to build a high-efficiency monocrystalline silicon ingot project. GCL Integration plans to invest 1.070 billion yuan and 18 billion yuan to build shingled modules, photovoltaic modules and supporting projects in Funing, Jiangsu and Feidong County, Anhui, respectively.

According to incomplete statistics, in the first half of this year, the design investment for the above-mentioned expansion project was about 220 billion yuan, involving silicon wafers, solar cells, modules, and materials. Among them, module expansion was the most prominent. Risen Energy, GCL Integration, Longi, Zhonglai, Zhonghuan, JinkoSolar, Akcome Technology and other companies have announced module expansion plans. The total investment in module expansion exceeds 100 billion yuan, accounting for the total investment Half of the total capacity of the expanded modules exceeds 220GW.

It is worth mentioning that there are not many that have invested more than 10 billion yuan in expansion projects. For example, Tongwei Co., Ltd. plans to invest in the construction of high-purity crystalline silicon, high-efficiency solar cells and supporting projects in Leshan, Sichuan and Chengdu, with plans to invest 3.5 billion yuan and 20 billion yuan respectively.

JinkoSolar, which is listed in the US, has the largest investment. JinkoSolar is currently the world’s largest supplier of photovoltaic modules. It announced that it plans to invest 11 billion yuan, 13.5 billion yuan and 10.5 billion yuan in three production bases in Yiwu, Jiangxi, and Haining, Zhejiang, respectively, for silicon wafers, Expansion of production capacity in all aspects of cells and modules.

A reporter from the Changjiang Business Daily found that the concentration of the photovoltaic industry is increasing, which can be confirmed by the expansion plan of industry enterprises. In the first half of this year, industry companies announced investment plans including JinkoSolar's investment of 35 billion, LONGi's investment of 28.785 billion,
Risen's investment of 28.6 billion, Tongwei's investment of 23.5 billion, JA Solar's investment of 12.33 billion, and the total investment of the five companies, 1282.15. Billion, about 60% of the industry's total investment.

To support expansion, photovoltaic companies intensively raise funds. On April 21 this year, the general meeting of Tongwei Shareholders passed the fixed increase plan. The company intends to issue no more than 857,571,100 shares to no more than 35 specific investors. GW high-efficiency crystalline silicon solar cell smart factory project, annual production of 7.5GW high-efficiency crystalline silicon solar cell smart interconnected factory project and supplementary working capital. Currently, Tongwei shares have the largest fixed increase in fundraising. On March 9th and June 3rd this year, Jingrui shares successively implemented fixed increases, raising a total of about 600 million yuan. On August 6 this year, Zhonghuan shares implemented a fixed increase plan, non-public offering of approximately 248 million shares, raising 5 billion yuan.

According to incomplete statistics, in the first half of this year, about 20 A-share companies disclosed fixed increase plans or amendments, and the total amount of funds to be raised is about 40 billion yuan.