" Global crystalline silicon looks at China, China crystalline silicon looks at Sichuan, and Sichuan crystalline silicon looks at Leshan.". The photovoltaic road of Tongwei Co., Ltd. (Hereinafter referred to as "Tongwei Co., Ltd."), the leading silicon material company, started in Leshan, Sichuan.
From the main industry of "agriculture and animal husbandry" to the dual main industry of "photovoltaic + agriculture and animal husbandry", from less than 3000 people in the initial stage of listing, less than 3 billion revenue to more than 50000 people today, nearly 150 billion revenue scale, from feed leader to photovoltaic hegemony , how Tongwei's photovoltaic business has grown step by step, and how Tongwei's photovoltaic business has grown step by step. Where will the future go?
Tongwei Co., Ltd. 1. In July and September of the same year, two polysilicon production lines of Yongxiang Co., Ltd. were put into operation successively, with a total capacity of 1000 tons per year (800tpa + 200tpa).
Yongxiang Co ., Ltd., formerly Leshan Yongxiang Resin Co., Ltd., was jointly established by Sichuan Juxing Agriculture and Animal Husbandry Group Co., Ltd. and Leshan Juxing Feed Co., Ltd. in October 2002. In 2004, Tongwei Group acquired 50% of the shares through equity transfer. After the capital increase in the first half of 2007, Tongwei Group accounted for 50.
Before being acquired by Tongwei Co., Ltd., the main product of Yongxiang Co., Ltd. was PVC (production capacity of 120000 tons/year), and the total income in 2007 was 8.
The Chengdu-Meizhou-Leshan Silicon Industrial Belt in Sichuan Province is in the period of growth and expansion, and Leshan City is the largest production and research base of polysilicon and high-purity metal in China, with abundant silicon resources.
Table 1: Revenue
of Yongxiang in 2007 
In the same year, the company announced that it planned to invest 5 billion yuan to build 10000 tons/year polysilicon production capacity in three phases, and put forward a "three-step" development plan :
the first step is to make use of the opportunity profits of the project in the early stage of industrial development. To develop Tongwei Group into the largest polysilicon production base in China and the top three in the world;
The second step is to make use of the advantages of capital and capital to promote the development of the industrial chain to monocrystalline silicon, solar cells and battery components in turn. Getting Through II. 2010-2016: Divestiture and Re-Entry
2004-2008 Driven by the substantial growth of photovoltaic installed capacity abroad, the price of polysilicon continued to rise, with the price of solar-grade polysilicon rising from $25/kg to more than $400/kg in 2008. During this period, the market generally expects that the tight situation of polysilicon will continue into 2010.
However, with the outbreak of the financial crisis in 2008, the demand for photovoltaic cells, which are highly dependent on overseas markets, has dropped sharply, thus affecting the upstream polysilicon industry. At the same time, with the breakthrough of domestic production technology and the gradual start of large-scale production, Release of new polysilicon production capacity (2007 production capacity 0.
Figure 1: Trend
of polysilicon production capacity utilization rate from 2006 to 2012 Data source: Digital New Energy DataBM.
In 2009, the price of silicon materials continued to fall further. As a result, the gross profit margin of the company's new energy sector business dropped from 63% in 2008 to 13% in the first half of 2009, while the net profit of Yongxiang shares dropped by more than 90%, approaching the edge of loss.
As the world's largest photovoltaic market at that time, Germany was the main destination of China's export of photovoltaic cells. In the second half of 2009, Conergy and Solarworld of Germany filed an anti-dumping investigation, and photovoltaic overseas trade frictions also loomed. In February
2010, Tongwei announced that it planned to transfer 50% of Yongxiang's shares back to Tongwei Group at a final price of 2. However, the sale was questioned by the market at that time.
Firstly , Tongwei's acquisition of Yongxiang shares at that time was declared to be "injecting high-quality assets to make listed companies bigger and stronger better and faster", and it was difficult to justify that "high-quality assets" were sold in less than two years;
Secondly, the expansion of Yongxiang's polysilicon business has not been terminated after the sale of assets, which shows that Tongwei Group is still firmly optimistic about the later development of Yongxiang's shares, which contradicts Tongwei's judgment that "the development prospects are not clear". Of course, Tongwei Group has another plan to take over this "high-quality asset";
Thirdly , at that time, the market expected that the growth momentum of the photovoltaic market was still strong, and the polysilicon market would usher in a recovery. At the same time, China's economy entered the recovery track. In 2010, the new installed capacity of photovoltaic in the world did achieve a 120% growth. At the same time, after the completion of the transfer, the price of polysilicon also bottomed out.
After Tongwei Group recovered the controlling right of Yongxiang shares, it started the second phase of Sichuan Yongxiang Polysilicon 3000 tons/year polysilicon project in July 2010 (put into operation in October 2011), while another subsidiary, Leshan Yongxiang Polysilicon 6000 tons/year project, laid the foundation, and announced that it planned to take three to five years. Yongxiang shares will become the largest polysilicon production enterprise in China. The operation of controlling shareholders
of Tongwei shares is in great contrast to the transfer of shares of Tongwei shares.
However, Yongxiang shares did not want to be listed by backdoor alone. In July 2012, Far East Industries announced the termination of the absorption and merger of Yongxiang shares and believed that the short-term market prospects of the photovoltaic industry were uncertain. Since the second half of 2011, polysilicon prices have continued to fall sharply, falling below $30/kg, hitting an eight-year low . At the end of the year, the United States launched a "double-reaction" investigation into China's photovoltaic products.
At the same time, the domestic polysilicon production capacity was further enlarged, which doubled in 2011 compared with 2009. In 2012, the industry capacity utilization rate was only about 40%, and the price of imported polysilicon also fell sharply in 2012, with the lowest price falling below $17/kg . As a result, in the second half of the year, the operating rate of more than 40 polysilicon production enterprises was less than 20% , the market was full of people in distress, the price of crystalline silicon continued to run at a low level in 2013-2014, and Yongxiang shares fell into successive losses.
By the end of December 2014, the current assets of Sichuan Yongxiang polysilicon were only 557 million yuan, while the current liabilities were as high as 725 million yuan, the debt ratio was more than 80%, and the cumulative loss in 2013-2014 was 1.
The polysilicon business of Yongxiang shares also faces the problem of single customer source and related party transactions. Therefore, at this time, Yongxiang shares urgently need to solve the problem of capital shortage of Sichuan Yongxiang polysilicon.
Figure 2: Price Trend
of Polysilicon from 2000 to 2014 Source: Digital New Energy DataBM. Com
Five years after the divestiture of Yongxiang shares, in May 2015, Tongwei shares issued the " Tongwei shares to issue shares to purchase assets and raise matching funds and related transactions plan ", intending to issue shares to Tongwei Group to purchase its 100% stake in Tongwei New Energy. Shares issued to 17 legal persons such as Tongwei Group, Giant Star Group and 29 natural persons such as Tang Guangyue were approved by the Securities Regulatory Commission in
2016, with a transaction consideration of 2.06 billion yuan, of which the transaction consideration of Yongxiang shares was 20.
Annual production capacity of polysilicon increased from 4,000 tons to 1.
Table 2: Capital operation timeline
of Yongxiang Co., Ltd. 
After the completion of the acquisition, Tongwei started the acquisition of Tongwei Solar (Hefei) Co., Ltd. in the same year and completed the acquisition in October 2016.
Tongwei Solar Energy (Hefei) Co., Ltd., formerly known as Saiwei LDK Solar Energy High-tech (Hefei) Co., Ltd. , was established in August 2010. In September 2013, Tongwei Group acquired 100% equity for 870 million yuan. Hefei LDK Original 1.
On November 18, 2013,
Tongwei Solar Energy (Hefei) Co., Ltd. held a production ceremony (photo source: Tongwei Co., Ltd.)
Tongwei Group resumed production and technological transformation of the production line of LDK Hefei Company, and realized turning losses into profits in 2014. In 2015, the sales volume of solar cells was 1,598.11 MW, and the sales volume of solar modules was 1,058.11 MW. 2. In 2016, the production line of solar cells continued to resume production through further technological transformation, while raising funds for the construction of Phase II. 2.
The recovery of solar cell sales and the improvement of the company's profitability led to a significant increase in the value of Tongwei Solar's asset valuation in 2016. It has become a very successful acquisition in the development history of Tongwei Group. The transfer of Tongwei Solar Energy (Hefei) Co., Ltd. to Tongwei shares not only avoids the risk of Tongwei Solar Energy in raw materials, but also avoids the problem of related party transactions.
Table 3: Revenue and profit
of Yongxiang and Tongwei Solar in 2014 Data source: Tongwei By the end of
2016, Tongwei's polysilicon production capacity reached 15,000 tons. The production capacity of solar cells reached 3.4G W (Hefei 2.4G W + Chengdu 1G W), the module production capacity was 350 GW, and the output of polysilicon and solar cells was 1.
Despite several twists and turns, Tongwei finally returned to the photovoltaic field.
As the industry gradually entered a downturn, Yongxiang's polysilicon business did not expand blindly, but through cost reduction and efficiency enhancement, technological upgrading and the company's diversified advantages, the support of controlling shareholders and the support of its listed companies.
In this process, Tongwei Group has always firmly adhered to the development direction of photovoltaic business, and through the expansion of photovoltaic power generation , photovoltaic cell business and the acquisition of Saiwei Hefei against the trend, it has achieved the extension from silicon materials to cells, highlighting the strategic vision and definition of management.
Summary
Since 2017, Tongwei shares have gradually accelerated its layout in the field of batteries. It has formed three major production bases in Hefei, Chengdu and Meishan, while polysilicon is located in Leshan, Baotou and Baoshan. Silicon wafers are mainly purchased from outside, while components are located in Jiangsu and Anhui, which have been greatly expanded since 2022.
From 2023 to 2026, the overall expansion of Tongwei integration will also be steadily promoted.
Looking back on the past, looking at today and looking forward to the future, the key factors for the development and growth of Tongwei's photovoltaic business are mainly inseparable from three points. We are in the < a href = "https://www.databm.com/news/39927227214236115.".
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