Recently, various listed Chinese companies in the PV industry chain have disclosed their financial performance report for the first half of 2019.
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TrendForce has consulted its renewable energy research center, EnergyTrend, which has compiled financial information concerning 43 Chinese PV companies listed at home and abroad. The following table shows the revenue and net profit of each company.
The financial data of certain enterprises was calculated using the exchange rate of the Bank of China on September 4. The exchange rate of the US dollar was 1:7.0878. The Hong Kong dollar exchange rate is 1:0.9035.
Half of the PV companies included in the statistics reported an increase in the operating revenue from January to June 2019. The top ten enterprises with the highest revenue accounted for 63.09% of the total. 60% of the enterprises have reported a decline of various degrees in the net profit. However, the concentration of corporate profits continues to rise.
TBEA, Tongwei Solar, Chint Electric, LONGi, Jinko Solar, Canadian Solar Inc. (CSI), GCL- Poly, in particular, have made it to the “Billion-Dollar Club” with operating revenue of RMB 17.05 billion, RMB 16.12 billion, RMB 14.43 billion, RMB 14.11 billion, RMB 12.74 billion, RMB 10.78 billion, RMB 10 billion, respectively.
Additionally, the listed companies that are specialized in the manufacturing of photovoltaic equipment performed well, thanks to the increase in demand for key production equipment for PERC cells in the first half of the year. The operating revenue of S.C. New Energy, Suzhou Maxwell and DR Laser all increased by more than 50% YoY.
Among these 43 PV companies, the top ten companies with the highest net profit accounted for 81.45% of the total, up 10% YoY. The net profit of LONGi, Chint Electric, TBEA, and Tongwei Solar exceeded 1 billion. Tongwei Solar passed the RMB 1 billion threshold for the first time. The net profit of Ancai Hi-tech, Risen Energy, MOSO Power, and Panda Green increased by more than 200% YoY.
Module Sales
Under the circumstances that the newly PV installed capacity has dropped significantly YoY in the first half of the year, the module companies which are still capable of ensuring rapid growth in sales have all expanded their sales territories to operate internationally.
According to the financial reports of various companies, the overseas sales of LONGi mono-Si modules reached 2.42GW in the first half of the year, an increase of 252% YoY. Risen Energy’s sales from its exports accounted for 66.89% of its operating revenue. The sales volume in Ukraine alone has reached 736MW. The largest overseas customers of Shunfeng International Clean Energy accounted for 6% of its total revenue. GCL System Integration's overseas shipments reached 1.33GW, accounting for more than 60% of its total.
With the introduction of China's latest regulation regarding solar power in 2019, where a blended system of grid parity and auctions is the main focus, the newly installed capacity in 2019 will be concentrated in the second half of the year. Consequently, the domestic market will be flourishing in the second half of 2019, forming a stark contrast with a relatively dull market from the first half of 2019. The companies’ domestic and overseas market strategy and cost control will subsequently be the focus of attention. Enterprises which are less competitive and rely excessively on subsidies will gradually withdraw from the market. The Chinese photovoltaic industry is ushering in a new era of grid parity as well as company mergers and acquisitions.