Tongwei shares plans to invest 12 billion yuan to build a crystalline silicon battery project, and start production in 3-5 years.

For crystalline silicon solar cells, only light with a wavelength of less than 1.1 μm can produce electron-hole pairs in the crystalline silicon material, while the remaining wavelengths of sunlight cannot be utilized by the battery and directly converted into heat. In addition, the recombination of electron-hole pairs, light reflection on the silicon surface, and the like all affect the conversion efficiency of the battery.

Tongwei Co., Ltd. (hereinafter referred to as "the company") issued an announcement. The company's subsidiary Tongwei Solar (Hefei) Co., Ltd. (hereinafter referred to as “Hefei Solar Energy”) plans to sign the “Investment Agreement” with Hefei High-tech Industrial Development Zone Management Committee and Chengdu Shuangliu District People's Government respectively, in Hefei High-tech Industrial Development Zone. Chengdu Shuangliu District Xihanggang Economic Development Zone invests an annual output of 10GW, a total of 20GW high-efficiency crystalline silicon battery production project, mainly engaged in the production, research and development and sales of high-efficiency crystalline silicon cells. The total investment of the above two projects is expected to be RMB 12 billion. yuan.

Tongwei shares plans to invest 12 billion yuan to build a crystalline silicon battery project, and start production in 3-5 years.

According to the announcement, this 20GW high-efficiency crystalline silicon battery production project is planned to focus on high-efficiency single-crystal battery unmanned intelligent manufacturing routes, and build intelligent factories, digital workshops, logistics warehousing and related supporting facilities, and two new 10GW in Hefei and Chengdu. Each project has about 60 new projects and a total of 120 high-efficiency single crystal battery production lines. The project will be launched in November 2017. The overall project will be gradually completed and put into operation in the next 3-5 years according to market demand.

The company stated that building a “world-class clean energy enterprise” is the company's target vision, and the implementation of this project is an important layout for the company to achieve this strategic goal. According to Tongwei, as of now, the company has formed 5.4GW of high-efficiency crystalline silicon battery capacity, and has built 4.3GW of new capacity. The non-silicon cost has entered the range of 0.2 yuan/W to 0.3 yuan/W, far lower than China. The industry average cost line published by the Photovoltaic Industry Association. After the project is completed and put into production, the company's high-efficiency crystalline silicon battery capacity will reach 30GW.

However, the company also suggested that due to the long implementation period of the project, such as the solar crystal silicon battery technology innovation, resulting in drastic changes in the market, the implementation of the project may be subject to change, suspension or termination. In addition, because the project construction involves a large amount of investment, it may exert certain pressure on the company's future cash flow during the specific implementation. The company will make overall fund arrangements and reasonably determine the source of funds to ensure the smooth implementation of the project.

The data shows that Tongwei's current main business involves two major sectors of agriculture and solar photovoltaic, forming a business model of “agriculture (fishery) + photovoltaic” two main business resources integration and coordinated development. In terms of new photovoltaic energy, the company mainly focuses on the R&D, production and sales of polysilicon and solar cells, and is committed to the construction and operation of terminal power stations such as “fishing and light integration” and household distributed power generation. In the first three quarters of this year, the company achieved operating income of 19.613 billion yuan, a year-on-year increase of 24.95%, and realized net profit attributable to shareholders of listed companies of 1.529 billion yuan, an increase of 69.51%.

From the perspective of polysilicon business, the company's polysilicon production capacity has further improved through technological transformation, and the total cost of polysilicon of the company has dropped to below 60,000 yuan / ton at the end of 2016. As most of the domestic first-tier manufacturers are scheduled to be repaired in the third quarter, the supply-side tightening has led to a rise in polysilicon prices. The company's polysilicon business has benefited greatly, driving its third-quarter earnings to reach 737 million yuan this year. It is expected that the annual polysilicon business performance contribution is expected. It has reached 800 million yuan.

In addition, Hefei Tongwei has become a global professional solar cell production enterprise, and has a relatively stable strategic cooperation customers. It is expected that it will have a high performance commitment of 600 million yuan in 2017, and it is expected to add new growth points to its performance. After the completion of the project, it will further highlight the advantages of listed companies in the industry and enhance competitiveness.

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