fierce35000| Two billion-dollar giants join hands! Tongwei Co., Ltd. and LONGi Green Energy signed a sales order of 39.1 billion yuan
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Under the downward cycle of the photovoltaic industry, the two 100 billion giant Tongwei shares (600438Fierce35000SH, market capitalization 101.7 billion yuan) and Longji Green Energy (601012Fierce35000SH, with a market capitalization of 141.1 billion yuan) announced that it would join hands.
On May 11, Tongwei shares announced that six subsidiaries of the company's flag (Golden Kirin analyst) (hereinafter referred to as "sellers") recently signed sales contracts for high-purity silicon products with Longji Green Energy and its nine subsidiaries (hereinafter referred to as "buyers").
The sales contract stipulates that during the period from 2024 to 2026, the buyer shall purchase not less than 862400 tons of high-purity silicon products, and the purchase price shall be determined through monthly consultation, and the total amount of the contract transaction shall prevail.
Based on the domestic average transaction price of 45300 yuan / ton announced by the Silicon Branch of China Nonferrous Metals Industry Association (May 8, 2024), the total amount of this contract is expected to be about 39.1 billion yuan (including tax).
The reporter noted that the silicon material order signed by Tongwei shares and Longji Green Energy is not the first cooperation between the two sides. Tongwei shares signed major sales contracts with Longji Green Energy of 55000 tons and 203600 tons of high-purity silicon in 2018 and 2022 respectively.
Referring to the potential impact of the newly announced long order cooperation, Tongwei shares believes that this contract is a daily operational long order sales contract, and the signing of this contract is conducive to the stable sales of the company's high-purity silicon products and is in line with the company's future business planning. it has a positive impact on the company's business performance. "the company's main business will not be dependent on the other party as a result of the performance of this contract, which will not affect the independence of the company's business."
Tongwei shares said that the estimate of 39.1 billion yuan of this contract does not take into account factors such as future polysilicon market price changes, there is a certain degree of uncertainty, does not constitute a performance commitment.
Tongwei shares also suggested the risks related to the performance of the contract.
For example, in the process of performance, if there are major changes in policy and market environment or major force majeure factors, there is still a risk that the contract will not be performed on schedule or in full.Fierce35000Affected by factors such as changes in the macroeconomic environment and phased changes in supply and demand in the market, the total amount of sales may be different from the current estimated value.
Since last year, the price of photovoltaic industry chain has gone down. According to Tongwei's 2023 financial report, at the end of 2023, the average selling prices of high-purity silicon, silicon wafers, cells and photovoltaic modules in the four main links of the photovoltaic industry chain fell by 80%, 58%, 60% and 45% respectively compared with the beginning of the year, and the prices of wafers, batteries and modules hit record lows in the fourth quarter.
In 2023, Tongwei Co., Ltd. has a production capacity of 450000 tons of high purity silicon and a production capacity of 400000 tons under construction.
"Last year, the average production cost of the company's high-purity silicon products has dropped to less than 42000 yuan / ton, substantially leading the industry average." Tongwei shares said in the 2023 financial report that the company's high-purity silicon business still achieved a net profit of more than 45000 yuan per ton under the impact of the sharp reduction in product prices in 2023.
As of December 31, 2023, the total assets of Longji Green Energy, the buyer, are 163.969 billion yuan, and the net assets belonging to the shareholders of the listed company are 70.492 billion yuan. The operating income in 2023 is 129.498 billion yuan, and the net profit belonging to the shareholders of the listed company is 10.751 billion yuan.
