Tongwei profits nearly treble as polysilicon, 210mm cell expansion plans take shape

By Carrie Xiao
Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email
One of Tongwei’s heterojunction modules on display at SNEC 2021 earlier this year. Image: PV Tech.

Tongwei reported a near-trebling of profit in the first half of 2021 as prices rose throughout the solar value chain.

In the first half of 2021 Tongwei recorded 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 cell producer capitalised on surging average selling prices.

Tongwei’s gross margin reached 69.4% – broadly in line with that of Daqo New Energy, which last week reported a gross margin for Q2 2021 of 68.7% – with the manufacturer attributing its performance to an optimisation of manufacturing indexes which allowed it to achieve capacity utilisation rates upwards of 125%.

The company is now looking to capitalise on its performance in the first half of the year by completing three new polysilicon production facilities, all of which are to come onstream within the next 18 months. Both Leshan II (50,000MT) and Baoshan I (50,000MT) projects are expected to start production before the end of this year, with Baotou II (50,000MT) coming on stream in 2022.

With the first stage of Tongwei’s planned 200,000MT facility in Leshan City, announced earlier this year, set to also come onstream in 2022, the company expects to have polysilicon production capacity of 330,000MT by the end of next year.

Tongwei said the new capacity would allow it to deliver a higher proportion of n-type polysilicon as the solar manufacturing industry’s demands shift alongside a wider migration towards n-type technologies which is forecast to occur over the next three years.

The vertically-integrated manufacturer also noted a concerted shift towards large-format cells in the first half of the year. In June, 37% of the cells shipped by Tongwei were 210mm in size, and Tongwei expects to further solidify its position in the large-format module arena through the phased implementation of a 15GW cell project with Trina Solar.

The first stage of the project, which will have a 7.5GW capacity, will complete this year while the second phase will complete in H! 2022. The project will take Tongwei’s total overall cell capacity beyond the 55GW mark, of which 35GW will be for 210mm cells.

Meanwhile Tongwei is also increasing its standing in heterojunction modules, with a 1GW test production line also brought onstream in the first half of 2021.

6 October 2021
The future is bright for a new era of US solar and storage, and the 8th annual Solar & Storage Finance Summit will provide opportunities to discuss solutions to the industry’s challenges and provide a networking platform designed to bring together the top minds in the industry to do business. With a mix of high-level, informative presentations and panels, a stellar cast of speakers and audience members with deal-making capacity, the 2021 edition of the event will be a sell-out success.

Read Next

September 16, 2021
As much as 191GW of new solar PV is expected to be installed this year – up by a third on last year’s deployment figure – despite polysilicon and module prices remaining high into 2022, BloombergNEF has said.
September 16, 2021
Energy engineering firm Babcock & Wilcox is to enter the US solar market through the acquisition of a majority stake in Illinois-based solar contractor Fosler Construction.
September 16, 2021
North American module manufacturer Silfab Solar has received an investment led by private equity firm ARC Financial Corp to help scale up its US PV production footprint.
PV Tech Premium
September 16, 2021
Spencer Jansen, head of new technology solutions at developers Hive Energy and Ethical Power, assesses how the introduction of large-format solar modules has had repercussions throughout the solar design and procurement process.
September 15, 2021
Solar module manufacturer Seraphim has started construction on new phases of its 10GW module manufacturing facility in Jinzhai, China.
September 15, 2021
Leading ‘Solar Module Super League’ manufacturer JinkoSolar has said it is addressing the reliability of shipments to the US market, while also upgrading its module capacity forecast for this year and teasing an expansion of n-type cell capacity.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 6, 2021
Solar Media Events
October 19, 2021
BRISTOL, UK
Solar Media Events
December 1, 2021