H1 Review 丨 China PV industry Present Strong Momentum LONGi Obtain Eye-Catching Fruits
Time:2019-09-02 09:28:50
On July 25, the National Energy Administration held a press conference in Beijing to analyze the energy situation in the first half of the year and introduced the grid connection of renewable energy. It said that China's energy situation showed its good trend and the renewable energy utilization hit a new record high in the first half of the year.


▲ National energy administration press conference

On the same day, the Seminar of "PV Industry Development Review for the First Half of 2019 and Situation Outlook for the Second Half of the Year" was held in Beijing. Wang Bohua, vice chairman and secretary general of the China PV Industry Association, also reviewed the development of China's PV industry in the first half of 2019. Overseas markets, technological advancement, and policy innovation have become the highlights of the PV industry in the first half of the year.
 
National Energy Bureau Press Conference
 

 
At the press conference on July 25, Li Fulong, director of the Development Planning Department of the National Energy Administration, introduced the energy development situation in the first half of the year in China, among which the PV power generation was highlighted frequently.


▲ Li Chuangjun, deputy director of the New Energy and Renewable Energy Department of the National Energy Administration

The installed capacity of renewable energy has got constantly improved. Up to the end of June, the installed capacity of the renewable energy reached 750 million KW in China, increasing 9.5% over the same period of last year. Among them, the installed capacity of PV power generation reached 186 million KW.
 
The utilization of the renewable energy has got constantly increased in the first half of 2019. The renewable energy generation reached 87.9 billion KWh, increasing 14% over the same period of last year; Among them, PV power generation reached 106.7 billion KWh, increasing 30% over the same period of last year. The new installed PV capacity reached 11.4 million KW in China, of which the capacities of the PV power station and distributed PV reached 6.82 and 4.58 million KW respectively; The PV has been nationally utilized for 576 hours in average, increasing ten hours.
 
the Seminar of the Development Review for the First Half year and the Situation Outlook for the Second Half Year
 

 
On July 25, the China PV Industry Association held a seminar on the development review of the PV industry for the first half of 2019 and the situation outlook for the second half of the year. At the conference, Wang Bohua, the vice chairman and secretary-general of the association, gave a keynote speech on "the development of China's PV industry - the Review for the First Half of 2019 and the Outlook for the Second Half of the Year".


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In summarizing the development of the industry, Wang Bohua said that the industry showed six characteristics: “overseas market shines”, “the industry scale grows steadly” and “technology development blooms” in the first half of the year:
In the overseas market, China's PV exports totaled 10.61 billion dollars in the first half of 2019, up 31.7% over the same period of last year; wafer exports got dropped over the same period of last year with slight increase in exports. Monocrystalline wafers accounted for more than 70% (about 35% in 2018); the export volume of cells has increased significantly, which has exceeded the total export volume of last year; the export volume of modules to about 36GW, which has doubled over the same period of last year; the target countries and regions for export are also more diversified. With the accelerated recovery of the European markets, the total market volume may be twice what it was last year.

Under the environment of the rapid progress of the industry internationalization, LONGi has further strengthened its global distribution and further improved the overseas industrial layout and sales network. The overseas sales of modules have increased rapidly, the sales area has further expanded, and overseas revenue has grown significantly.
In terms of industrial scale, China produced 63GW wafer in the first half of the year, up 26% over the same period of last year; cell production was about 51GW, up 30.8% over the same period of last year; module production was about 47GW, up about 11.9% over the same period of last year. It is worth mentioning that in the first half of 2019, the proportion of monocrystalline products increased significantly, accounting for more than 60% of the total in the wafer manufacturing.

Since 2019, LONGi capacity building has entered another high-speed development period. The module project with in Xianyang and monocrystalline project with annual output of 5GW in Taizhou have been signed. Mono ingot and wafer project with annual output of 15GW in Yinchuan started construction, and the efficient mono module project with annual output of 5GW in Luzhou was officially put into production. By the end of 2021, it is expected to produce 65 GW mono ingots and wafers, 20GW mono cells, and 30GW mono modules.

In terms of technology development, 100% diamond wire slicing has been achieved in the industry, and large wafers have become a trend in the manufacturing process of wafers. In the cell and module process, PERC technology has been widely popularized, and bifacial double glass modules have become the mainstream in the market. The half-cell and overlap technology have maximize the cell capacity, equipment localization has got accelerated, and collaborative innovation effect in the supply chain has played its role.
LONGi also continues to maintain its focus and high investment in technology research and development. In the first half of 2019, its 24.06% PV efficiency of efficient monocrystalline PERC cell breaks the world record again; the front power of bifacial double-glass PERC modules initiatively breaks the industry bottleneck, up to 500.5W; Hi-MO4, the new efficient monocrystalline module and large wafer M6 have appeared successively. LONGi continues to maintain its leading position in the blooming PV industry.

In the first half of 2019, China's PV industry has quickly got rid of the impact of the “531 Policy” and returned to the high-quality development track. Looking forward to the second half of the year, the PV market may present the explosive growth. The new installed capacity of the global PV market is expected to be 110GW-120GW. It is estimated that the installed capacity for the grid connection to be built within the year will be 40-45GW in China.

According to the semi-annual performance pre-announcement released by LONGi, thanks to the overall healthy development of the industry driven by the rapid growth of its overseas market demand and the lower production cost brought by its technology progress, it is estimated that its net profit will be up to 1.961 billion to 2.091 billion in the first half of 2019.

Up to the closing of stock trading on July 26, the market value of LONGi reached a record high of 94.401 billion yuan, continuing to maintain the highest market value in the global PV companies. It also created a satisfactory half-year transcript with the Chinese PV industry in the first half of 2019.