L R AS Published on Saturday 2 September 2023 - n° 455 - Categories:company results
With such a high profit margin in the first half of the year, Tongwei has no choice but to invest.
In thefirst half of the year, Tongwei posted sales of RMB 74 billion (up 23% year-on-year) and a net profit of RMB 13 billion (up 8.6%), giving a net margin of 17.9%.
China's Tongwei to invest
2.7 billion in Sichuan province to install an annual capacity of 32 GW of ingots, wafers and cells. This follows Tongwei's announcement that it will build a 120,000 tonne silicon plant in June 2023.
At 30 June, Tongwei had an annual production capacity of 420,000 tonnes of high-purity silicon, 9 GW of solar cells and 55 GW of panels. Since then, the 25 GW panel factory in Yancheng and the 16 GW factory in Jintang have become fully operational.
The company is concentrating on large customers. It has distribution agreements for residential installations in China and a number of other regions (Europe, Asia-Pacific and South America).
PV Tech of 25 August 2023
Editor's note When you achieve a net margin of almost 18% of sales, you have the means to invest and you also have an obligation to invest because the business is so profitable. Hence Tongwei's plans.
With this level of profitability, which is lower than that of silicon manufacturers, we might wonder whether competition between Chinese producers is really effective. If it were, margins would be lower. Chinese manufacturers are on a cheese that they intend to keep as long as possible. They are pretending to compete with each other!
