Ancai Hi-Tech: "14th Five-Year Plan" Photothermal Glass Is Expected to Achieve Both Volume and Profit Increase

2023-04-17 11:57:11

The layout of photothermal glass business is expected to benefit from the increase in demand and the increase in volume and profit brought by the high barriers in the industry.

In 2022, the revenue of Ancai Hi-Tech increased quarter by quarter, and the net profit attributable to the parent company was under pressure.

In 2022, the Company achieved an operating income of RMB4.14 billion, representing a year-on-year increase of + 23%; a net profit attributable to the parent company of RMB80 million, representing a year-on-year decrease of -63%; and a net profit attributable to the non-parent company of RMB50 million, representing a year-on-year decrease of -71%. Corresponding to the single quarter of 22Q4, the Company achieved a revenue of RMB1.36 billion, representing + 57% year-on-year and + 31% month-on-month; the net profit attributable to the parent company was RMB-30 million, representing -727% year-on-year and -161% month-on-month; the net profit after deduction of non-attributable to the parent company was RMB-40 million, representing -1526% year-on-year and -202% month-on-month. The layout

of photothermal glass business is expected to benefit from the increase in demand and the increase in volume and profit brought about by high barriers in the industry. In March 2023, the National Energy Administration proposed that during the "14th Five-Year Plan" period, 3GW of new solar thermal construction will be added every year, and the installed capacity of solar thermal and the demand for related equipment in China are expected to increase. In 2017, the company broke the technological monopoly of Japanese Asahi Glass, and developed and produced 3mm and 4mm photothermal ultra-white float glass substrates, with full-spectrum transmittance of more than 91%, and the main quality performance indicators such as elastic modulus, weather resistance and Mohs hardness reached the advanced level of the same industry. At present, the production capacity of photothermal glass in the industry is limited, the industry barriers are high and the competition pattern is stable. Under the production capacity caliber, Asahi Glass and Ancai Hi-Tech account for about half of the market share. In the future, the company is expected to benefit from the high demand for glass brought about by the rapid development of photothermal power generation and achieve a simultaneous increase in volume and profit. With the optimization of

shipment structure and the decline of raw material prices, the gap between the gross profit margin of photovoltaic glass and the leading enterprises has been narrowing. The company optimized the sales product structure, increased the proportion of 2.0mm photovoltaic glass shipments with high gross profit margin, and actively laid out quartz sand processing capacity. The gap between the comprehensive gross profit margin of photovoltaic glass business and the first echelon has been narrowing. In 2022, the gross profit margin of the company's photovoltaic glass was 17%, which was 6/6 pcts lower than that of the industry leader Xinyi Solar Energy and Flat, and the gap narrowed by 10/5 pcts year on year. Since 2023, as the price of silicon materials has dropped, the profitability of the module sector has been restored, and the capacity utilization rate of the glass sector is expected to increase. Combined with the decline in the prices of soda ash and natural gas, the profitability of photovoltaic glass will be marginally improved. Profitability is expected to further improve with the

sale of assets related to LNG, CNG trading and gas station business. The company intends to sell 100% equity of Henan Ancai Gas and LNG and CNG business assets operated by the company to controlling shareholder Henan Investment Group or its holding subsidiaries, and the transaction will be completed by the end of June 2024. After the completion of the transaction, the company will gradually shift its business focus to photovoltaic glass, photothermal glass and pharmaceutical glass with higher technology added value and gross profit margin, and its profitability is expected to improve.                    

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The layout of photothermal glass business is expected to benefit from the increase in demand and the increase in volume and profit brought by the high barriers in the industry.

2023-04-17 11:57:11