The private placement project was approved on June 30, 2023, with a total fundraising amount not exceeding 10.9 billion yuan. The purpose of the private placement includes leading the industry in the application of N-type technology and providing more competitive photovoltaic products; accelerating the construction of advanced battery module capacity; optimizing the capital structure, etc. Trina Solar Co., Ltd. also stated that the company will make cautious investments according to the industry situation in the future and will only conduct moderate and precise capacity deployment overseas in the short term.
On July 3, in the evening, Trina Solar announced that, after careful analysis of the company's actual situation, changes in capital markets and related policies, it has decided to terminate the issuance of A-shares to specific objects.
Trina Solar stated that the company's daily production and operation are normal. The termination of this issuance will not have any impact on its production, operation, or sustainable development. There is no situation that harms the interests of the company and all shareholders, especially small and medium shareholders.
It is understood that Trina Solar passed the issuance of A-shares to specific objects on June 30, 2023. According to the company's previous announcement, the total amount of capital raised by issuing stocks to specific objects does not exceed 10.9 billion yuan (including the number of shares). After deducting the relevant issuance costs, the raised funds will be used to invest in the following projects:
At that time, Trina Solar said, "After the completion of the construction of this investment project, the company will increase 20GW of N-type high-efficiency battery production capacity and 10GW of N-type high-efficiency component production capacity. Among them, 20GW of N-type efficient batteries will be mainly used for the company's own use." At the same time, its purpose of issuing stocks to specific objects includes: leading the application of N-type technology in the industry, providing more competitive photovoltaic products; accelerating the construction of advanced battery component production capacity; optimizing the capital structure and reducing financial costs.
It is understood that benefiting from the increase in the sales ratio of N-type TOPCon component products, Trina Solar achieved revenue of 113.392 billion yuan in 2023, a year-on-year increase of 33.32%; achieving net income attributable to shareholders of 5.531 billion yuan, a year-on-year increase of 50.26%. In terms of shipments, in 2023, Trina Solar's total component shipments were 65.21GW, the bracket business shipments were 9.6GW, and the cumulative shipments of energy storage compartments were nearly 5GWh. The company plans to achieve a target component shipment volume of 80-90GW in 2024.
However, in the first quarter of this year, affected by the supply and demand of the photovoltaic industry chain, the profitability of photovoltaic component products has decreased significantly, and many leading photovoltaic companies have experienced a decline in performance. Among them, Trina Solar had a double decline in revenue and net profit, with revenue of 18.256 billion yuan, a year-on-year decrease of 14.3%; and a net profit attributable to shareholders of 516 million yuan, a year-on-year decrease of 70.83%.
Trina Solar recently stated during institutional research that the company's negative operating cash flow in the first quarter was mainly due to the seasonal characteristics of the industry. Generally, negative cash flow is common in the industry in the first quarter. The main reason is that the downstream delivery demand is low during the off-season, but it will pick up in the second quarter. Therefore, the company will stock up according to the order situation. "As production progresses and orders are delivered, the company's operating cash flow will continue to improve, and it is expected that the operating cash flow in the second quarter will turn positive, and it will continue to improve in the second half of the year, achieving positive annual operating net cash flow."
At present, the photovoltaic industry is calling for cautious expansion of production capacity. On June 20th of this year, Li Chuangjun, Director of the New Energy and Renewable Energy Department of the National Energy Administration, said at a press conference of the State Council that the competition in China's photovoltaic industry is indeed very fierce and, in order to guide the healthy development of the industry, we will organize industry associations in conjunction with relevant departments to release information on industry scale, capacity utilization, and market demand in a timely and appropriate manner, and reasonably guide the construction and release of upstream photovoltaic capacity, avoiding the repetition of low-end capacity construction, and working to create a good market environment.
Trina Solar stated during institutional research in June of this year that there are currently no determinate large-scale external investment plans for domestic production capacity except for the three 10GW battery component projects that have been invested or are being invested in. Regarding overseas production capacity, the 1GW battery & component project in Indonesia and the 5GW component production capacity project in the United States will proceed normally, further strengthening the company's competitiveness in overseas markets. "In the future, the company will also make prudent investment decisions based on industry conditions, and will only undertake moderate and precise capacity layout overseas in the short term."