January 09, 2025

27 PV companies earned a net profit of 13.5 billion yuan in the past half of the year.

The photovoltaic industry achieved explosive growth in 2017, and most of the photovoltaic companies achieved "flying red" performance.

Of the 27 A-share PV companies that have published an annual report or performance report sorted out by the interface news reporters, nearly 90% (25) had achieved profits last year, and their total net profit reached 13.51 billion yuan.

Among them, the world's largest monocrystalline silicon wafer maker Longji Green Energy Technology Co., Ltd. (601012.SH, hereinafter referred to as Longji shares) won the "net profit rankings" first round, becoming A shares last year's "most profitable" photovoltaic companies. Tongwei (600438.SH) and Sunshine Power (300274.SZ) followed. During the reporting period, the net profits of these three companies were respectively 3.57 billion yuan, 2.01 billion yuan, and 1.04 billion yuan, which together accounted for half of the total net profit of the 27 companies.

Yi Cheng Xin Neng (300080.SZ) and Aerospace (600151.SH) became the only companies with losses, with losses of 1.02 billion yuan and 310 million yuan respectively. * ST Hairun (600401.SH) has not yet officially released its annual report, so it is not included in the statistics, but its previous loss is expected to be 2.37 billion -2.840 billion yuan, or it will become the "loss-making king" of A-share PV companies, and faces the risk of delisting.

In 2017, the installed capacity of China's photovoltaic industry continued to maintain strong growth. According to data from the China Photovoltaic Industry Association, China’s newly installed capacity last year reached 53GW, an increase of 53.6% year-on-year, ranking first in the world for five consecutive years, with a cumulative installed capacity of 130GW, ranking first in the world for three consecutive years.

Longji said that the reason for the significant increase in main business revenue last year was due to the rapid growth in the sales volume of its main products, single crystal modules and silicon wafers. As of the end of 2017, Longji’s single-crystal silicon wafer production capacity reached 15GW, which doubled compared to the same period of last year. The single-crystal module production capacity reached 6.5GW, a 30% increase year-on-year.

In 2017, Longji Group achieved sales of 2.197 million wafers of monocrystalline silicon, including 1.126 billion external sales, 1,077 million for personal use, and 99.57% for monocrystalline wafers. A single crystal battery module shipment of 4.7 GW was achieved, ranking first in domestic component shipments.

In response to future market demand, Longji’s three-year strategic plan shows that single-crystal wafer production capacity will reach 28GW by the end of this year, 36GW by the end of 2019, and 45GW by the end of 2020. In addition, the new non-silicon cost target for standard silicon wafers in the next three years will be no more than RMB 1 per chip.

However, Longji has warned of the risk of falling market prices that excess capacity may bring. Currently, there are phased and structural overcapacity in the industry, and some backward production capacity is facing withdrawal. In order to delay the withdrawal rate, this part of the company may adopt the means of price vicious competition, resulting in a rapid decline in market prices, and the risk of falling prices beyond expectations in the industry.

In 2017, Tongwei Co., Ltd. (600438.SH), which operates under the dual-vendor “Feed + Photovoltaic” business, achieved a revenue of 26.09 billion yuan, a year-on-year increase of 24.9%, and a net profit of 2.01 billion yuan, an increase of 96.4% over the same period. Its photovoltaic panel business performed outstandingly last year, with revenue of RMB 9.382 billion, a year-on-year increase of 58.52%, and gross profit margin increased by 3.29 percentage points year-on-year, which is higher than the agricultural sector.

Tongwei Co., Ltd. stated that its photovoltaic business has increased significantly year-on-year, mainly due to polysilicon's upgrading of technological innovations, release of solar cell production capacity, and enhanced profitability.

In 2017, Tongwei Polysilicon completed technological transformation, its production capacity increased from 15,000 tons/year to 20,000 tons/year, and production and sales volume of polysilicon, solar cells and modules both increased substantially, and the new 2GW solar single crystal battery project was successfully put into operation.

Another single crystal leader Tianjin Zhonghuan Semiconductor Co., Ltd. (002129.SZ, hereinafter referred to as Central shares) results show that in 2017 achieved a net profit of 560 million yuan.

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