Net profit in the second quarter was cut in half! How to complete the 100 billion revenue of this photovoltaic giant?

15, TBEA and its subsidiary Xinte Energy released their performance reports for the first half of 2023. In the

first half of 2023, TBEA realized revenue of 49.778 billion yuan , an increase of 16.89% over the same period last year; The net profit attributable to the shareholders of the listed company was 7.467 billion yuan , an increase of 8.17% over the same period last year; the net profit attributable to the shareholders of the listed company after deducting non-recurring gains and losses was 7.077 billion yuan, an increase of 0.27% over the same period last year.

Although compared with the same period last year, it still maintained a growth momentum. But compared with the first quarter of this year, the second quarter profit nearly halved ! According to

the data, the operating income of TBEA in the first quarter of 2023 was 26.274 billion yuan, the net profit attributable to the parent company was 4.724 billion yuan, and the net profit attributable to the shareholders of listed companies after deducting recurring gains and losses was 4.321 billion yuan.

It can be calculated that in the second quarter of 2023, the operating income of TBEA was 23.504 billion yuan, the net profit attributable to shareholders of listed companies was 2.743 billion yuan, and the net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses was 2.756 billion yuan.

The data show that the main business of the special substation includes four aspects: power transmission and transformation business, new energy business, energy business and new material business. Among them, the new energy business mainly includes the production and sales of polysilicon, inverters and other products. Its business is mainly operated by its holding subsidiary , Xinte Energy . From the perspective of the

product sector, the revenue of new energy industry and engineering occupies the first place, reaching 15.983 billion yuan, accounting for 32.11% of the total revenue; the gross profit rate of this business is relatively high, reaching 44.61%, which has decreased by 11.73% compared with the previous year, and the degree of decline is far greater than that of other businesses. The reason for the slowdown in the profit growth

of TBEA's new energy business may be found in the subsidiary Xinte Energy.

According to the semi-annual report of Xinte Energy, in the first half of the year, the company achieved an operating income of 17.587 billion yuan, an increase of 19.51% over the previous year, a total profit of 6.442 billion yuan, a decrease of 9.18% over the previous year, and a net profit attributable to shareholders of 4.759 billion yuan, a decrease of 15.28% over the previous year.

From the perspective of business sector, the polysilicon sector realized revenue of 12.618 billion yuan, an increase of 21.79% over the previous year, and gross profit of 6.696 billion yuan, a decrease of 2.01% over the previous year.

As for the phenomenon of revenue growth but profit decline, Xinte Energy pointed out that due to the release of polysilicon production capacity, sales increased by about 80% compared with the same period last year, but the price of polysilicon decreased by about 32% compared with the same period last year.

According to the semi-annual report of Xinte Energy, the 34000 tons/year technical transformation project of Ganquanbao Base polysilicon production line in Xinjiang and the 100000 tons polysilicon project in Inner Mongolia have been completed in 2022 and released in 2023. However, the 100,000-ton polysilicon project in Inner Mongolia was shut down for maintenance, so the company's polysilicon production capacity did not reach the optimal level in the first half of this year.

However, during the reporting period, the company still achieved 76,100 tons of polysilicon production and 86,100 tons of sales, an increase of 64.72% and 80.50% respectively over the same period last year.

Therefore, in the first half of this year, the new special energy in the polysilicon business can be described as a volume premium .

Affected by the sharp fall in the price of silicon materials, not only TBEA, but also Daquan Energy, the leader of silicon materials, has suffered heavy losses this year. (For details, click " Cut in half directly!")! The net profit of Daqo Energy plunged by 53.56% in the first half of the year.)

Facing the pressure of the industry environment, the task of TBEA in the second half of the year is becoming more and more difficult.

Previously, TBEA set an annual target of revenue of 110 billion yuan and operating costs of less than 80 billion yuan in 2023, that is, to complete revenue of 60.222 billion yuan in the second half of 2023. However, revenue declined in the second quarter, profits were cut in half, and the task of TBEA in the second half of the year became more and more arduous.

In terms of polysilicon production capacity, TBEA also has an annual production target of 300000 tons per year.

According to Xinte Energy, in the second half of the year, the Group will speed up the first phase of the 200,000 tons polysilicon project in Zhundong and the 100,000 tons polysilicon project in Inner Mongolia to achieve stable and full production of 300,000 tons.