Tongwei profits almost treble as polysilicon, 210mm cell growth strategies materialize

• Tongwei reported a near-trebling of profit in the initial half of 2021 as costs climbed throughout the solar worth chain.

In the initial fifty percent of 2021 Tongwei taped operating revenue of RMB26.5 billion (US$ 4 billion), up nearly 42% year-on-year, with net profit nearly trebling-- up 193.5%-- to RMB3 billion (US$ 462.3 million) as the polysilicon and also cell manufacturer capitalised on surging average market price.

Tongwei's gross margin reached 69.4%-- generally in line with that of Daqo New Energy, which recently reported a gross margin for Q2 2021 of 68.7%-- with the manufacturer associating its efficiency to an optimisation of manufacturing indexes which enabled it to achieve capacity utilisation prices upwards of 125%.

The firm is now aiming to capitalise on its efficiency in the first half of the year by completing three brand-new polysilicon manufacturing centers, all of which are ahead onstream within the following 18 months. Both Leshan II (50,000 MT) and Baoshan I (50,000 MT) projects are anticipated to begin production prior to the end of this year, with Baotou II (50,000 MT) beginning stream in 2022.

With the first stage of Tongwei's intended 200,000 MT center in Leshan City, announced previously this year, set to likewise come onstream in 2022, the firm expects to have polysilicon manufacturing capability of 330,000 MT by the end of following year.

Tongwei stated the new ability would certainly permit it to provide a higher proportion of n-type polysilicon as the solar manufacturing sector's needs shift alongside a larger movement in the direction of n-type technologies which is anticipated to occur over the next three years.

The vertically-integrated maker additionally noted a concerted change towards large-format cells in the very first half of the year. In June, 37% of the cells shipped by Tongwei were 210mm in dimension, as well as Tongwei anticipates to further solidify its setting in the large-format module sector through the phased execution of a 15GW cell project with Trina Solar.

The initial stage of the project, which will certainly have a 7.5 GW capacity, will complete this year while the 2nd phase will certainly finish in H! 2022. The project will certainly take Tongwei's complete general cell ability past the 55GW mark, of which 35GW will certainly be for 210mm cells.

Meanwhile Tongwei is additionally enhancing its standing in heterojunction modules, with a 1GW examination production line likewise brought onstream in the first half of 2021.