The three leading photovoltaic enterprises have joined forces to jointly lay out the benign development of the photovoltaic industry

Tongwei Co.
, Ltd.
(600438) announced on the evening of January 4 that in view of the development trend of monocrystalline photovoltaic industry and making full use of the advantages and market resources of all parties, Yongxiang Co.
, Ltd.
, a subsidiary of the company, and Xi'an LONGi Silicon Materials Co.
, Ltd.
(hereinafter referred to as "LONGi") and Changzhou Trina Solar Co.
, Ltd.
(hereinafter referred to as "Trina Solar") signed the "Joint Venture Agreement" in Xi'an on January 4, 2017, intending to jointly invest in the construction of Lijiang's 5GW monocrystalline silicon rod project by means of a joint venture company funded by three parties , in order to achieve the purpose of
strategic cooperation and win-win situation.
The registered capital of the joint venture is RMB 800 million, of which LONGi shares contributed RMB 480 million, holding 60% of the shares; Trina Solar invested 200 million yuan, holding 25% of the shares; Yongxiang invested 120 million yuan and held 15%
of the shares.

Tongwei Co.
, Ltd.
said that the establishment of a joint venture to invest in the construction of Yunnan Li's 5GW monocrystalline silicon rod project can give full play to the advantages of all partners in all links of the monocrystalline industry chain, which is conducive to improving the profitability of the project company, reducing project risks, creating better economic benefits for the company, and meeting the company's business development needs
.
After the completion of this investment, there will be no new related party transactions and intra-industry competition
.

Open up the whole tourism industry chain and jointly promote photovoltaic power price parity on the Internet

According to the announcement previously disclosed by LONGi, the project is expected to be put into operation in the first half of 2018, and is expected to achieve an average annual operating income of about 3.
4 billion yuan after reaching production, and a net profit
of 500 million yuan in 2019.

The three companies will give full play to their own advantages, which will effectively avoid vicious competition within the industry, reduce the management radius, reduce the risk of repeated investment, and cooperate with each other to reduce the cost of
photovoltaic power generation.
Colleagues who bring benefits to the enterprise are of milestone significance
on the road to promoting photovoltaic power generation parity on the grid.

It is reported that the three investment entities of Lijiang LONGi Silicon Materials Co.
, Ltd.
, Trina Solar and Sichuan Yongxiang belong to the upstream, middle and downstream enterprises of silicon material manufacturing, and each has industry-leading advantages
.
As an upstream enterprise of the industrial chain, Yongxiang Co.
, Ltd.
is the world's leading manufacturer of polysilicon materials, and has obvious cost advantages in the field of polysilicon production; LONGi mainly produces monocrystalline silicon, silicon rods and wafers, and is the world's largest manufacturer of monocrystalline silicon products; Trina Solar is a leading global component supplier and leading system integrator
.
At the same time, Tongwei Co.
, Ltd.
also has the world's largest single solar cell production base, the world's highest degree of automation, the largest single-workshop production capacity of high-efficiency crystalline silicon cell line project, as well as years of accumulated "fishery and solar integration" distributed power station construction and operation experience
.
In this way, the joint venture company has opened up the two veins of the photovoltaic industry chain, and has the core competitive advantages of the upstream, middle and downstream and the layout of the whole industrial chain
.

Strong alliance is optimistic about the development prospects of the photovoltaic industry

Among the three investment entities, LONGi Co.
, Ltd.
is the world's largest manufacturer of monocrystalline silicon photovoltaic products, has been focusing on the research and development, production and sales of monocrystalline silicon rods and wafers, after more than ten years of development, the industry covers the whole industry chain
of LONGi monocrystalline silicon, Leye photovoltaic, Leye Energy, and LONGi clean energy photovoltaic.
The establishment of the joint venture company can give full play to LONGi's advantages in monocrystalline technology, ensure the supply of upstream products of partners, reduce supply chain costs, and increase market share
.

Another investor, Trina Solar, is a leading global module supplier and first-class system integrator
.
Founded in 1997, it was listed
on the New York Stock Exchange in 2006.
The business involves monocrystalline, silicon wafer, module and system installation, realizing the vertical integration of the photovoltaic industry chain, and continuously providing reliable and environmentally friendly power energy
to residential, commercial and public facilities around the world.
It has always been a leading enterprise
in China's photovoltaic industry.

In addition, Sichuan Yongxiang is a wholly-owned subsidiary of Tongwei Co.
, Ltd.
and is the world's leading manufacturer
of polysilicon materials.
The company's main business involves polysilicon and photovoltaic industry, polyvinyl chloride (PVC), ion membrane caustic soda, comprehensive utilization of calcium carbide slag cement
.
At present, the production capacity of polysilicon reaches 15,000 tons/year, polyvinyl chloride 120,000 tons/year, ion membrane caustic soda 150,000 tons/year, and calcium carbide slag comprehensive utilization cement 1 million tons/year
.
At present, it has formed a new energy industry chain from polysilicon, monocrystalline silicon, silicon chipping, to solar cell modules and solar photovoltaic power generation, and gradually built a world-class clean energy company
.

In recent years, with the smog sweeping most cities in the north and the formulation and implementation of a series of government support policies, the photovoltaic industry has developed
rapidly.
According to the reporter, polycrystalline photovoltaic has gradually developed into the mainstream
of domestic photovoltaic applications in the past few years with the help of cost advantages.
However, since 2015, the domestic monocrystalline silicon market share has increased rapidly, and some photovoltaic manufacturers have begun to invest in the construction of monocrystalline silicon projects to meet market demand
.
With the decline in the cost of monocrystalline silicon and the in-depth implementation of the "leader" plan, and the "limit" of parity on the Internet, photovoltaic power plant developers are paying more and more attention to the reduction of electricity costs, which is also one of the main reasons for the increase in the market share of
monocrystalline silicon.

Some industry experts believe that after decades of technical improvement, monocrystalline silicon photovoltaic cells have reached the highest level in the industry at present with product stability and service life; The production cost of monocrystalline silicon modules is gradually equal to that of polycrystalline silicon modules, and it is expected that the global photovoltaic market will be evenly divided between monocrystalline silicon and polysilicon this year
.
This time, LONGi, Trina Solar and Sichuan Yongxiang jointly invested in the establishment of a joint venture company based on optimism about the future development prospects of the industry, long-term layout of the photovoltaic industry and joint efforts to promote the benign development
of the industry.