Longji Green Energy (6112) signed a long list purchase agreement with Daquan Energy (68833), a silicon material giant, after investing in the high-purity crystalline silicon project with Tongwei Co., Ltd. (6438).

On the evening of November 3th, Longji Green Energy announced that on November 3th, 222, in order to ensure the stable supply of polysilicon materials for the company, the company and its nine subsidiaries signed a long purchase agreement for polysilicon materials with Inner Mongolia Daquan New Energy Co., Ltd., with an estimated total contract amount of about 67.156 billion yuan (excluding tax).

The organization predicts that with the gradual lifting of the bottleneck of silicon supply, the profits of the photovoltaic industry chain will shift from upstream to downstream, and the battery chips and components are expected to benefit from the profit redistribution of the industry chain.

in the secondary market, according to Morningstar data, in October, JPMChinaA-shareOpps, a fund owned by JPMorgan Chase, added 7.4% of Longji Green Energy.

Longji Green Energy locks the upstream supply on both sides

JPMorgan Chase increased its position by 7.4% in October

On the evening of November 3th, Longji Green Energy announced that according to the company's strategic planning and business needs, the company and its nine subsidiaries (hereinafter referred to as "Party A") signed a long list purchase agreement with Inner Mongolia Daquan New Energy Co., Ltd. (hereinafter referred to as "Party B") to ensure the stable supply of polysilicon materials.

according to the calculation of the average price of polysilicon dense material of 32 yuan /kg announced by PVInfoLink11 on November 24th, it is estimated that the total contract amount is about 67.156 billion yuan (excluding tax, this calculation does not constitute a price commitment).

On the same day, Daquan Energy also issued an announcement with the same content.

before signing a 75.887 billion yuan polysilicon procurement contract with Daquan Energy, Longji shares also joined forces with Tongwei shares to jointly build a high-purity crystalline silicon project.

On November 28th, Tongwei announced that its subsidiary Sichuan Yongxiang Co., Ltd. and Longji Green Energy had reached an agreement on * * * to jointly invest in the construction of Yunnan Tongwei Phase II project and carry out relevant cooperation on the basis of jointly building Yunnan Tongwei Phase I 5,-ton high-purity crystalline silicon project. The two parties signed the Supplementary Agreement on Capital Increase and Share Expansion of Yunnan Tongwei High-purity Crystalline Silicon Co., Ltd., and planned to jointly invest in Yunnan according to the original share ratio.

according to the agreement, the registered capital of the project company will increase from 1.6 billion yuan to 5.6 billion yuan, of which Yongxiang shares will contribute 2.4 billion yuan and Longji Green Energy will contribute 1.96 billion yuan. After the completion of capital increase and share expansion, Yongxiang shares hold 51% of the shares of the project company, Longji Green Energy holds 49% of the shares of the project company, and the project company is still a holding subsidiary of Yongxiang shares.

Prior to this, Tongwei Co., Ltd. signed the Investment Agreement of Yunnan Tongwei Phase II 2,-ton High-purity Crystalline Silicon Green Energy Project with Baoshan Municipal People's Government and Changning County People's Government in August 222, and planned to invest in the construction of 2,-ton High-purity Crystalline Silicon Green Energy Project and supporting facilities in Changning Park of Baoshan Industrial and Trade Park, with a total investment of about 14 billion yuan, which is planned to be completed and put into production in 224.

both parties have agreed that before Yunnan Tongwei Phase II Project is put into production, Tongwei shares will meet the procurement needs of Longji Green Energy polysilicon according to the procurement agreement signed by both parties. After Yunnan Tongwei Phase II Project is put into production, both parties take Longji Green Energy as the basic goal to own twice the equity production capacity of Yunnan Tongwei Phase II Project, that is, the actual output of Yunnan Tongwei Phase II Project ×49%×2 polysilicon trading volume.

in the secondary market, Morningstar data shows that the latest scale of JPMorgan Chase's fund JPM JPMChinaA-ShareOpps is about 37.6 billion yuan. As of the end of October, JPMChinaA-shareOpps' awkward stocks include: Longji Green Energy, Mindray Medical, Contemporary Amperex Technology Co., Limited, Jinshan Software, Huichuan Technology, Guodian Nanrui, China Merchants Bank, Maiwei Shares, Wuliangye, etc. In October, JPMChinaA-shareOpps added 7.4% of Longji Green Energy.

Daquan Energy has signed eight big orders since October

The total sales amount is about 377.5 billion yuan

Daquan Energy (68833) also announced on the evening of November 3, and recently signed a Purchase Agreement with Longji Green Energy (6112) and its nine subsidiaries, with an estimated purchase amount of about 75.887 billion yuan; In addition, a contract for purchasing and supplying polysilicon was recently signed with a customer, and the estimated purchase amount is about 8.335 billion yuan. The two sides agreed that the actual purchase price will be determined by monthly bargaining and will be adjusted according to market conditions.

previously, daquan energy has signed six polysilicon procurement and supply contracts with relevant customers.

On October 13th, Daquan Energy announced that it had signed a polysilicon procurement and supply contract with Shuangliang Silicon Materials, a subsidiary of Shuangliang Energy Saving Co., Ltd., which will supply 155,3 tons of polysilicon from 222 to 227, with an estimated sales amount of about 47.56 billion yuan. The actual purchase price is negotiated monthly.

On October 17th, Daquan Energy announced that the company and its wholly-owned subsidiary, Inner Mongolia Daquan, signed a Silicon Material Purchase Contract with a customer, and will supply 46,2 tons of polysilicon products to them in the next five years. The estimated sales amount is about 13.999 billion yuan, and the actual purchase price is negotiated weekly.

On October 25th, Daquan Energy announced that the company has signed a Procurement Framework Contract with a customer, and will supply 432, tons of polysilicon products to him in the next six years, with an estimated sales amount of about 13.896 billion yuan. The actual purchase price is negotiated monthly.

On November 3rd, Daquan Energy announced that the company had signed a Polycrystalline Silicon Procurement Cooperation Agreement with a customer, and the contract stipulated that a customer expected to purchase 57,6 tons of solar-grade polycrystalline silicon from the company and Inner Mongolia Daquan from October 222 to December 227, with an estimated purchase amount of about 14.696 billion yuan.

On November 7th, Daquan Energy announced that the company had recently signed a polysilicon purchase and supply contract with a customer, and the estimated purchase amount was about 41.511 billion yuan (including tax).

On November 19th, Daquan Energy announced that it had signed a Purchase Agreement with a customer, and the contract stipulated that from January 223 to December 227, a customer was expected to purchase 148,8 tons of solar-grade first-class disposable blocks from the company, and the average price of polycrystalline silicon dense materials was 33, yuan/according to the latest (November 16th, 222) published by PVInfoLink.

the total amount of polysilicon purchase and supply contracts signed by the above eight polysilicon purchase and supply contracts is about 377.466 billion yuan, which is 34.85 times of Daquan Energy's total operating income in 221.

silicon material production capacity release

the profits of industrial chain will shift downstream

the photovoltaic industrial chain is divided into four major links: silicon material, silicon wafer, battery chip and components from top to bottom.

Since September, the Ministry of Industry and Information Technology and the National Development and Reform Commission have successively taken measures to keep the price of silicon materials rising sharply. The Ministry of Industry and Information Technology and other departments have collectively interviewed some key polysilicon enterprises and industry organizations, and the National Development and Reform Commission has severely investigated and dealt with such monopolistic behaviors as spreading false price increase information and hoarding, as well as reaching monopoly agreements and abusing market dominance.

On the supply side, since 222, major silicon manufacturers have continuously expanded their production capacity, which has improved the shortage of silicon materials. According to agency estimates, silicon production capacity is expected to increase by 25% in the fourth quarter.

According to the statistical data of Silicon Industry Branch of China Nonferrous Metals Industry Association, in 221, the domestic silicon production capacity totaled 519, tons, and the actual output was 498, tons. By the end of 222, the domestic silicon production capacity will reach 1.23 million tons, and the annual output is expected to be 82, tons, an increase of 32, tons; In 223, the silicon material production capacity will be further released, and it is expected to reach 2.44 million tons by the end of 223.

Previously, experts from Silicon Industry Branch said at relevant investment and research meetings that the price of silicon materials will eventually return to 1,/ton in the future. The logic of silicon material price decline is that the operating rate will be reduced at the component end from downstream to upstream, resulting in less battery purchases and reduced battery operating rate, and then fewer silicon wafers will be purchased by the battery, and finally the operating rate of silicon wafers will be reduced and the price of silicon wafers will be reduced.

on the evening of November 27th, TCL Zhonghuan announced the latest quotation for silicon wafers, and both P-type and N-type silicon wafers were lower than the previous round. Earlier, Longji Green Energy announced the latest round of silicon wafer quotation, which showed that the company also lowered the quotation of monocrystalline silicon wafer. It is worth noting that the two photovoltaic faucets just adjusted the quotation of silicon wafers at the end of October, which means that the quotation of silicon wafers has dropped for two consecutive years.

while the price of "silicon wafer duo" has been lowered successively, the price of mainstream silicon materials has also decreased slightly.

with the downward adjustment of silicon wafer price, the downstream demand is expected to increase, which is conducive to the upward repair of downstream performance.

judging from the previous construction situation, after entering the fourth quarter, domestic ground power stations will generally enter the stage of full-scale rush to install. In the first three quarters of 222, the bidding scale of domestic components exceeded 124GW, nearly three times that of the whole year of 221, and will exceed 15GW by the end of 222, laying the foundation for the rush to install ground power stations in the fourth quarter and the explosion of installed capacity demand next year.

chuancai securities predicts that with the decline of silicon material price, the demand for ground power stations accumulated in the past two years under the background of high component prices will be released one after another in 223-224. it is estimated that the domestic photovoltaic demand is expected to reach 13GW in 223, up 45% year-on-year, of which the centralized demand is about 7GW in 223, up 75% year-on-year. The distribution is about 6GW, a year-on-year increase of 9%. At the same time, with the gradual lifting of the bottleneck of silicon supply, the profits of the industrial chain will also shift from upstream to downstream, and the battery chips and components are expected to benefit from the redistribution of profits in the industrial chain.