Industrial Silicon Industry Information Weekly

Section Issue 3

Sichuan Nabi Silicon-based Materials Research Institute

February 25, 2022

I. Macro articles

(1) Economic Development

1. [The details of the new round of tax and fee reduction policies are disclosed showing four characteristics] Following the State Council executive meeting, the tax reduction for the industrial service industry was announced After the fee reduction policy, in the "Notice on Printing and Distributing Several Policies to Promote the Steady Growth of the Industrial Economy" and "Several Policies on Promoting the Recovery and Development of Difficult Industries in the Service Industry" recently announced by the National Development and Reform Commission, the Ministry of Finance and other ministries and commissions, Detailed disclosure of the details of the tax and fee reduction policies, combined with the interpretation of relevant experts, the four characteristics of tax reduction and fee reduction in 2022: large-scale, more accurate, phased and richer. The details are as follows:

(1) The continuous tax cuts and fee reductions since 2019 have reduced the proportion of China's tax to GDP to a global low of 15.2%. The financial support for high-quality social development and the need to prevent the economic downturn in 2022, the total amount of tax cuts and fee reductions will not be less than 1 trillion, but the emphasis is on precise efforts - small and medium-sized, manufacturing, and difficult enterprises ;

(2) The means of financial support not only tax reduction and fee reduction, but also related to delayed tax payment, financial subsidies, fee rebates, financing guarantees, government procurement, etc. ;

Therefore, it is recommended that the Group lead its subsidiaries in the manufacturing and service industries to carry out targeted measures in accordance with the 2022 tax and fee reduction policy combined with its own business and investment plans. Policy connection.

2. ["The "14th Five-Year" New Energy Storage Development Implementation Plan" clarifies the current situation and future development path of the energy storage industry] The National Development and Reform Commission and the Energy Bureau issued the "14th Five-Year" New Energy Storage Development Implementation Plan Program". The plan clarifies the fundamental role of new energy storage in the process of green and low-carbon development and energy structure transformation from the perspective of an important foundation for building a new power system and an important support for achieving carbon peaking and carbon neutrality. It is still immature and restricts the reality of large-scale commercial applications. Proposes an entrepreneurial exploration path to support "multi-technology development, pilot demonstration of different technology routes" during the 14th Five-Year Plan period, with a view to achieving: In 2025, the new energy storage will enter the stage of large-scale development from the initial stage of commercialization, and meet the conditions for large-scale commercial application; by 2030, the new energy storage will be fully market-oriented.

It is predicted that during the 14th Five-Year Plan period, due to the inability of large-scale commercial application of new energy storage technologies, the development speed of the installed capacity of renewable energy sources such as wind and solar will be affected by the technical conditions of the existing power grid and the power consumption. The effect of end-absorbing structure. The more rapid development period of renewable energy sources such as wind and solar should be during and after the 15th Five-Year Plan period.

(II) Element Control

1, [Some investment institutions may enter the national carbon market in the second half of this year] China's carbon market trading scale It is relatively small, the transaction price is relatively low, the transaction liquidity is lacking, and the investment and financing functions need to be improved. Recently, Liu Jie, general manager of Shanghai Environment and Energy Exchange, said that some investment institutions may enter the national carbon market in the second half of this year.

2, [Accelerate the promotion of market-based trading of carbon emission rights] February 23, the Ministry of Ecology and Environment comprehensively The relevant person in charge of the company stated at a regular press conference that the market-oriented trading of carbon emission rights will be accelerated, and the management of the second performance cycle of the national carbon emission rights trading market will be done well.

(3) Currency and Capital

1, [About IPO, financial fraud, and intermediary responsibility SFC“response letter” revealed the latest Attitude] Recently, the China Securities Regulatory Commission has released 37 reply documents on the proposals of members of the National Committee of the Chinese People's Political Consultative Conference and members of the National People's Congress. Investor protection and other aspects have clarified the latest attitude. Among them, the registration system will be based on the principle of seeking progress while maintaining stability. Through pilots and summaries, finally realize the reform of the whole market registration and supporting trading mechanism /strong>;Crackdown on financial fraud will, under the principle of "zero tolerance", work with the Supreme People's Procuratorate and the Ministry of Public Security to research and improveSecuritiesFutures criminal case filing and prosecution standards, while clarifying the “helper&rdquo of securities violations ;, strengthen legal accountability; In respect of the responsibility of intermediaries, in addition to continuing to compact their "gatekeeper" responsibilities, further reaffirms the reasonable definition of "accounting responsibility" And “Audit Responsibility”;Investor Protection, it is considered to establish a special compensation for investor protectionThe Fund is of great significance and deserves further study , but the proposal to force securities market entities to purchase liability insurance has not been approved. explicitly supported.

(IV) Environmental protection and safety

——not yet

Second, the middle view

(1) Industry supply and demand

1, [Sany Group plans to invest in photovoltaic projects]: Recently, Sany Group The bidding announcement was issued for photovoltaic projects. The bidding equipment includes: single crystal furnace, backgrinding machine, slicer, single knife cutting machine, single knife cutting machine, and TOPCon battery boron diffusion equipment required for photovoltaic projects. As the world's leading construction machinery enterprise, Sany Group's current products cover: construction machinery, special equipment such as mining, oil and port environmental protection emergency, as well as wind turbines, new construction equipment and materials, etc. From the content of this bidding announcement: Sany Group only builds one complete test line from single crystal manufacturing to TOPCon cells, showing a solid investment strategy.

2. [China Photovoltaic Industry Association: It is estimated that 75-90GW of new photovoltaic installed capacity in China this year] The reporter learned that Wang Bohua, honorary chairman of China Photovoltaic Industry Association, said on the 23rd that driven by the huge domestic photovoltaic power generation project reserves, 2022 The annual newly installed photovoltaic capacity may increase to more than 75GW, which is about 75-90GW. In addition, it is estimated that from 2022 to 2025, my country's annual new photovoltaic installed capacity will reach 83-99GW.

【Oriental Hope Group marches into organic Silicon Industry Integration]On the morning of February 19th, at the mobilization meeting for major projects in Gansu Province in the first quarter of 2022 , The 400,000-ton industrial silicon + 400,000-ton organic silicon integration project invested by Dongfang Hope Group was officially launched. The total investment of the project is 15 billion yuan, which will be constructed in two phases. Among them, the total investment of the first phase is 800,000 yuan, covering an area of ​​1,200 mu, to build a 32×33MVA electric furnace production system and supporting facilities, with an annual output of 400,000 tons of industrial silicon, which is expected to be completed and put into production in December 2023; Covering an area of ​​1,800 mu, it will build a 400,000-ton/year organosilicon compound production project. It is planned to start construction in July 2023 and be completed and put into operation in December 2025.

3, 【LG ElectronicsSub-solar panel business will be shut down] On February 24, LG Electronics officially announced that it expects to close its solar panel business by June 30. It used to be an important supplier of photovoltaic modules in the world - LG Electronics, and its current global market share is less than 2%. The main reasons for LG Electronics to withdraw from the solar panel business are: China has the world's largest solar power generation industry chain cluster, and Chinese manufacturers currently control 70% of the global solar panel market. With eg LONGi Shares、Tongwei shares span>,< strong>Zhongli Group , JA Solar,Trina Solar span>< strong>A group of comprehensive listed companies that are deployed in the upstream and downstream of the photovoltaic industry chain have realized the expansion of production capacity and cost reduction at a rapid speed by virtue of their comprehensive advantages.Increase efficiency, thereby squeezing the profits of Japanese and Korean manufacturers and Gained market share. As Idemitsu director Atsushi Hirano said, "(In the solar panel market) cannot keep up with the speed of the expansion of Chinese manufacturers".

4. [On-machine numerical control: It is planned to invest 11.8 billion yuan to build a project with an annual output of 150,000 tons of high-purity industrial silicon and 10 tons of high-purity crystalline silicon] on the machine CNC announced that it plans to invest in the construction of a production project with an annual output of 150,000 tons of high-purity industrial silicon and 100,000 tons of high-purity crystalline silicon to expand new silicon material supply channels. The total investment of the project is expected to be RMB 11.8 billion.

5. [Organosilicon DMC trend is improving by 9.65% in February] According to monitoring data, as of February 23, 2022, organic silicon in mainstream areas The average price of DMC market quotation is 34,716 yuan/ton. Compared with the price on February 1, 2022 (organosilicon DMC reference price is 31,660 yuan/ton), the average price has increased by 3,056 yuan/ton, an increase of 9.65%.

5. According to the production capacity statistics of the polysilicon industry, as of the end of February 2022, there were 15 polysilicon enterprises in operation and 6 new enterprises in China, with a production capacity of 626,300 tons in operation, and a production capacity of 315,000 tons of polysilicon under construction. Environmental impacts have been implemented. The polysilicon production capacity announced in the evaluation report is 720,000 tons, and the reserve polysilicon production capacity that has signed an investment agreement is 1.66 million tons. According to the conversion factor of silicon material and module of 1:0.8 and the silicon consumption of 3g/W silicon wafer, the polysilicon production capacity of 941,300 tons in the second half of 2022 can meet the production capacity of 250GW of photovoltaic modules. By the end of 2021, there will be 150GW of newly installed photovoltaic capacity globally, of which 53GW will be newly installed in China.

(2) Technology and economy

——not yet

(III) Industry development trend

1, [JinkoSolar: Haining Base Tiger Neo's first N-type cell successfully rolled off the production line] Recently, JinkoSolar's high-efficiency N-type cell project has been successfully rolled off the production line at the Haining base, and the first N-type high-efficiency product has been successfully produced. This is an important layout made by JinkoSolar for Tiger Neo series products to "explore the territory". The increase in N-type production capacity will reshape the existing photovoltaic product pattern and lead the high-quality upgrade of the photovoltaic industry strong>.

2. [The world's first perovskite photovoltaic ground-based power station starts construction in Qujiang, Quzhou] Recently, the first phase of the perovskite concentrated photovoltaic power station project in Qujiang District, Quzhou City and the world's first perovskite ground-based photovoltaic power station groundbreaking ceremony Held in Houxi Town. The project plans a total investment of 60 million yuan. It is understood that fiber nano perovskite The efficiency of the solar small module at steady-state power output is as high as 21.4%, and the perovskite-crystalline silicon four-terminal stack module obtains A photoelectric conversion efficiency of 26.63% was achieved. Perovskite materials have excellent optical and electrical properties, and the cost of raw materials is only about 5% of traditional photovoltaics.

3. [Silicon Industry Branch predicts that there will be 760,000 tons of excess capacity per year in the polysilicon industry] Ma Haitian, Deputy Secretary-General of Silicon Industry Branch of China Nonferrous Metals Industry Association, discusses the development review of the photovoltaic industry in 2021 and the outlook for 2022. The meeting stated: Beware of overheating of polysilicon investment.

Silicon Industry Branch statistics show that by the end of 2025, China's polysilicon production capacity will be 3 million tons per year. However, experts predict that by 2025 and 2030, the global photovoltaic installed capacity demand will reach 400GW and 1,000GW, and the demand for multi-product silicon will reach 1.3 million tons and 3 million tons, that is, from the end of 2021. With an annual production capacity of 2 million tons/year, only 1.5 million tons/year of incremental capacity can meet the needs of the industry. Therefore, by 2025, China will have excess polysilicon production capacity of 760,000 tons/year.

4. [The industry concentration of the photovoltaic industry chain continues to increase] The data of China Photovoltaic Industry Association shows that the four main links of the manufacturing end of the photovoltaic industry chain all show the scale of leading enterprises obvious advantages. According to CPIA statistics, in 2021, module CR5 will reach 63.4%, an increase of 8.3% compared with 2020, and the average output of TOP5 will exceed 23GW, a year-on-year increase of 67.4%. In addition, the polysilicon production CR5 reached 86.7%, the silicon wafer 84%, and the battery wafer 53.9%.

Third, microscopic articles

(1) Process and equipment case

——not yet

(II) Operation and Management Cases

1, [Sany Group plans to invest in photovoltaic projects]: Recently, Sany Group The bidding announcement was issued for photovoltaic projects. The bidding equipment includes: single crystal furnace, backgrinding machine, slicer, single knife cutting machine, single knife cutting machine, and TOPCon battery boron diffusion equipment required for photovoltaic projects. As the world's leading construction machinery enterprise, Sany Group's current products cover: construction machinery, special equipment such as mining, oil and port environmental protection emergency, as well as wind turbines, new construction equipment and materials, etc. From the content of this bidding announcement: Sany Group only builds one complete test line from single crystal manufacturing to TOPCon cells, showing a solid investment strategy.

2. [Trina Solar and Huaneng New Energy signed a comprehensive strategic cooperation agreement] On February 23, Trina Solar Chairman Gao Jifan led a team to Beijing visited Huaneng New Energy Company, and representatives of both parties signed a comprehensive strategic cooperation agreement. Based on the existing cooperation, the two parties will further expand the breadth and depth of cooperation, and reach new heights of cooperation in the fields of centralized photovoltaic power stations, energy storage power stations, photovoltaic energy storage products and equipment. The leading enterprises in the photovoltaic industry continue the upward and downward integrated development model.