On December 13, 2021, Deputy Secretary of the Provincial Party Committee and Governor of Yunnan Provincial Government Wang Yubo and Executive Director and Chairman of Xinyi Glass Holdings Co., Ltd. and Li Xianyi, Executive Director and Chairman of Xinyi Solar Holdings Co., Ltd., held work in Kunming Talks and witnessed the signing of project cooperation agreement between Qujing City and Xinyi Glass.

It is reported that the People's Government of Qilin District of Qujing City and Xinyi Solar signed a 200,000 tons of polysilicon supporting 20,000 tons of white carbon black project, and the photovoltaic module cover production line is equipped with waste heat generating units, environmental protection facilities, photovoltaic power generation and wind power projects. Cooperation agreements with Xinyi Glass Signed a cooperation agreement for the float glass production line and photovoltaic power generation and wind power projects in Qilin District.

The total planned investment of the three projects is 23 billion yuan. After the project is completed, it will achieve an annual output of 200,000 tons of polysilicon and 20,000 tons of white carbon black, and a daily melting of 1,400 tons of float glass and 2,400 tons of photovoltaic covers.

Leading photovoltaic glass enterprise

According to data, Xinyi Glass Holdings Co., Ltd. was founded in 1988 and listed in Hong Kong in 2005. It is the world's leading integrated glass manufacturer, dedicated to the production of high-quality float glass, automotive glass, energy-saving architectural glass and other products, with a global sales network More than 130 countries and regions. There are also production bases in China's Yangtze River Delta, Pearl River Delta, and Bohai Rim Economic Zone.

Xinyi Solar is a subsidiary of Xinyi Glass. It was listed in Hong Kong in 2013. Relying on the strength of its parent company, Xinyi Glass, it has grown into a leading solar photovoltaic glass manufacturer in the world. Advantages, to provide solar photovoltaic glass products for the world's major domestic and foreign solar module manufacturers.

According to the data, Xinyi Solar is the leading photovoltaic glass company in 2019, with a market share of 38%, 14% higher than the second-ranked Flatt. The cumulative market share of the two companies exceeds 60%, far exceeding the total of other companies, so it is also It is called the "duopoly" of photovoltaic glass.

After the performance skyrocketing ushered in new challenges

Previously, compared with other glass products, photovoltaic glass did not have an advantage in market expectations and gross profit margin. Coupled with the production capacity advantages of Xinyi Solar and Flat, other glass companies have no intention of entering the photovoltaic glass field. However, in 2020, under the background of capacity constraints and substantial growth in downstream demand, photovoltaic glass ushered in "spring".

In the second half of 2020, the price increase of photovoltaic glass nearly doubled, and the performance of the company also increased. Among them, Xinyi Solar achieved revenue of 12.32 billion Hong Kong dollars (approximately RMB 10.04 billion) in 2020, an increase of 35.4% year-on-year; net profit attributable to the parent company was 4.56 billion Hong Kong dollars (approximately RMB 3.72 billion), an increase of 88.7% year-on-year. Flatt achieved revenue of 8.393 billion yuan, a year-on-year increase of 31.59%; net profit attributable to the parent company was 1.565 billion yuan, a year-on-year increase of 63.52%.

The Prophet of Chunjiang Plumbing Duck, in 2020, many glass companies have announced that they will enter photovoltaic glass. Kibing Group, Deli shares, and even Fuyao Glass, a leading automotive glass company, also announced that they will enter photovoltaic glass, which has put a lot of pressure on Xinyi Solar and Flat.

Of course, seeing the "challengers" like the crucian carp across the river, Xinyi Solar and Flatt have not "idled" and have announced several expansions. In March of this year, Flatter officially stated on the interactive platform that the company's daily production capacity of photovoltaic glass will increase from 6,400 tons at the end of 2020 to 12,200 tons at the end of 2021, an increase of nearly 100%, and Xinyi Solar will also increase its daily production capacity to 13,800 tons.

It can be seen that although Xinyi Solar still has a certain advantage in production capacity, its gap with Flatter has gradually narrowed, and its leading advantage is not obvious in 2019. According to its official website, the company occupies approximately 30% of the global market share. Under the impact of other "challengers", Xinyi Solar's market share is bound to decline.

Therefore, Xinyi Solar will invest in a photovoltaic glass project with a daily capacity of 2,400 tons in Qujing, Yunnan. In addition to increasing production capacity, it can also make full use of Qujing’s hydropower resources to produce photovoltaic glass under the premise of ensuring low energy consumption, and promote the development of my country’s photovoltaic industry. .

Not only photovoltaic glass

Of course, in addition to photovoltaic glass, there is another bright spot in Xinyi Solar's investment project, which is the polysilicon project with an annual output of up to 200,000 tons.

Since 2021, the price of silicon materials has increased by more than 200%, which is even worse than that of photovoltaic glass in 2020, attracting a lot of foreign capital to influx into silicon material production. If Xinyi Solar really wants to join the team of silicon materials, it is bound to make its performance explode again.

However, it is worth noting that silicon material is a relatively difficult link in the photovoltaic industry chain, and the investment amount is large and the construction period is long, which is quite different from photovoltaic glass.

Although Xinyi Solar is a leading photovoltaic glass company, it is still a "newcomer" in the field of silicon materials. The construction of a polysilicon project with an annual output of up to 200,000 tons in Yunnan is risky. Of course, we also believe that as a leading company, Xinyi Solar has already conducted sufficient market research and talent team building. Editor/Sang Xiaomei