Xiexin Technology, which is mainly engaged in the manufacture and sales of photovoltaic materials, is the world's leading supplier of silicon-based materials. The company mainly operates business through three departments: photovoltaic materials business division, new energy business division and photovoltaic power station business division.
The performance turned from deficit to profit in 2021, and various indicators were improved: the company realized revenue of 19.7 billion yuan (RMB, the same below) in 2021, which was + 34.3% compared with the same period last year, mainly due to the increase in the sales price of photovoltaic products. The net profit of returning home was 5.08 billion yuan, much higher than the loss of 5.67 billion yuan in the same period last year, turning losses into profits, of which the photovoltaic materials business achieved a profit of 5.53 billion yuan: the overall gross profit margin was 37.3%, year-on-year + 11.7pcts, of which the photovoltaic materials business gross profit margin was 32.9%, significantly + 29.6pcts compared with the same period last year, promoting the overall profitability to be greatly improved.
The new production capacity of the Xuzhou base will be further increased this year: on June 16, the company successfully put into production 30, 000 tons of FBR granular silicon at the Xuzhou base, and the project took only 8 months to start production, far below market expectations. In addition, the company also plans to build a number of 100000-ton granular silicon production bases in Inner Mongolia, Sichuan, Jiangsu and other places, and it is estimated that the company's silicon production capacity will reach 360000 tons this year.
Domestic and foreign policies are good for the development of photovoltaic industry: domestically, the "implementation Plan for promoting the High-quality Development of New Energy in a New era" recently issued by the National Development and Reform Commission and the National Energy Administration emphasizes the need to speed up the construction of large-scale wind power photovoltaic bases; the "14th five-year Plan for Renewable Energy" jointly issued by many ministries and commissions puts forward the goal of doubling landscape power generation during the 14th five-year Plan period. Overseas, in the context of the conflict between Russia and Ukraine aggravating the energy crisis in Europe, the European Union, in order to accelerate the transformation of renewable energy, announced the REPowerEU action plan, setting the goal of accumulating photovoltaic capacity to reach 320GW by 2025 and 600GW by 2030. The US government announced that it would exempt four Southeast Asian countries from tariffs on photovoltaic modules and reduced the lease price of photovoltaic land by more than 62%. Under the stimulation of multiple favorable policies, it is expected that the installed capacity of photovoltaic at home and abroad will continue to accelerate growth, silicon as a key part of the upstream of the photovoltaic industry chain, the demand is expected to continue to increase. Investment advice: Silicon supply and demand is expected to continue to tighten, prices will remain high, while the company's production capacity will be accelerated in the second half of the year, silicon is expected to achieve volume and price rise, optimistic about the company's performance growth prospects, recommended to buy.