Upstream solar major Tongwei has forecasted for profits to more-than-double in its 2021 financial year on the back of increased material and cell prices experienced last year.
In a statement issued to the Shanghai Stock Exchange on Friday (7 January 2022), Tongwei said it was forecasting for profit for 2021 to fall in the region of RMB8-8.5 billion (US$1.25-1.33 billion), an increase of between 122% and 136% compared to figures recorded in 2020.
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Tongwei also said it expected net revenues to increase at a similar rate – 122-136% – to between RMB43.92-48.92 billion (US$6.88-7.67 billion).
It attributed the dramatic increase in performance to last year’s trend for increase material and component prices, driven largely by a surging polysilicon price. Tongwei said its high-purity polysilicon production facilities operated at full capacity while production and sales volume increased year-on-year.
The forecast follows Tongwei’s report of its H1 2021 results in August last year, where it noted that operating revenue for the half was up nearly 42% year-on-year while net profit nearly trebled to RMB3 billion on the back of a gross margin of nearly 70%.