Direct solar energy performance presentation: optimistic about the development prospects of photovoltaic industry profits to achieve sustained growth

The Solar 2022 annual performance presentation was held in Beijing on May 5. At the meeting site, senior leaders related to solar energy respectively shared the company's business operation and industry development last year, as well as the company's business planning and industry development prospects in detail.

The company's performance is growing rapidly

"Last year, China's newly installed PV capacity exceeded 87 gigawatts, up 59.3 percent year on year, the largest new installed capacity and the fastest growth rate, which also drove all links of the PV industry chain to a new high." Solar energy chairman Zhang Huixue revealed at the meeting.

Solar energy is mainly engaged in the investment and operation of solar photovoltaic power stations, as well as the production and sales of photovoltaic cell modules. Data show that last year, the company achieved operating revenue of 9.236 billion yuan, a year-on-year growth of 31.44%; Net profit attributable to shareholders of listed companies was 1.387 billion yuan, up 16.60% year on year.

By business, the sales revenue of solar photovoltaic power station sector in 2022 was 4.356 billion yuan, accounting for 47.16% of the total revenue; The sales revenue of solar energy products was 4.857 billion yuan, accounting for 52.59% of the total revenue.

In 2022, the company will continue to promote high-quality investment in the construction of photovoltaic power stations. The data showed that by the end of 2022, about 4.347 gigawatts of power stations in operation, about 1.784 gigawatts of power stations under construction, and about 2.807 gigawatts of power stations to be built or in the process of acquisition amounted to about 8.938 gigawatts.

In addition, in terms of product manufacturing, the company actively studied battery module technology and product development trend last year, and the newly built 1.5 gigawatt high-efficiency module project was completed and put into production.

It is understood that last year, the solar energy deepened the quality and efficiency improvement, overcame the impact of the sharp price rise of raw materials, optimized the linkage mechanism of production, supply and marketing, and the gross profit margin of product manufacturing reached 4.42%, up 2.66 percentage points year-on-year. At the same time, the company increased marketing efforts, reasonable distribution of domestic marketing centers, overseas sales to achieve new breakthroughs. Data showed that the shipment of components for the whole year of 2022 was 2.68 gigawatts, an increase of 50.48 percent year-on-year.

"In 2023, the company will mark the industry leader, strengthen the refined management of the industrial chain, and continue to improve production efficiency. At the same time, we will strengthen the international market development with Europe, South America, South Asia and the Middle East as the main targets, and continue to expand the share of domestic and foreign market sales." As for the 2023 business development plan, Zhang Huixue admitted at the performance presentation that under the "double carbon" goal, the new energy industry ushered in a rare development opportunity. The company will firmly set the goal, seize the opportunity and accelerate the high-quality development.

In addition, solar energy's latest financial data show that in the first quarter of this year, the company achieved operating revenue of 1.707 billion yuan, a year-on-year growth of 22.27%; Net profit attributable to shareholders of listed companies reached 389 million yuan, up 48.39% year on year.

According to the company, in 2023, it is expected to achieve operating revenue of 9.5 billion yuan, total profit of 1.743 billion yuan, net profit of 1.4 billion yuan. In addition, power stations put into operation, under construction, planned to be built or under acquisition strive to reach a total scale of 11.938 gigawatts.

Industry development into the fast lane

In the past two years, the photovoltaic industry in which solar energy is located has stepped into a fast track of development.

According to the data released by the National Energy Administration, in 2022, the newly installed PV capacity in China was 87.41 gigawatts, a year-on-year increase of 60.3%. In 2022, the newly installed PV capacity in China accounted for 46% of the newly installed PV capacity in the year. This shows that under the "two-carbon" goal, photovoltaic power generation has entered a stage of rapid and healthy development with large scale, high proportion and high quality.

In addition, the International Energy Agency (IEA) released its "Renewable Energy 2022" report, predicting that global renewable energy installations will grow by 2,400 gigawatts between 2022 and 2027. Utility-scale solar PV and onshore wind are the cheapest options for new power generation in the vast majority of countries. Global solar photovoltaic capacity is set to nearly triple, overtaking coal as the world's largest source of installed electricity.

In the face of the high business climate of the industry, the major power generation groups, energy enterprises and many crossover, are expanding the investment in photovoltaic, photovoltaic market competition is becoming increasingly fierce.

Talking about the future development trend of the industry, An Lianlian, the independent director of solar energy, said in answer to the reporter's question of Securities Daily: "Under the goal of 'double carbon', the continuous progress of photovoltaic technology, the expansion of the industrial chain capacity scale, will certainly promote the further development of the industry, the prospect is more considerable."

He further stated that the above judgment is mainly based on the following two points: First, with the continuous release of silicon production capacity, silicon production capacity will no longer be the bottleneck restricting the development of the industry in 2023, and will bring the price of downstream products to decline, which is expected to stimulate the downstream owners' intention to install; Second, as new energy storage technologies continue to advance, energy storage markets and policies continue to develop, which will help build a new grid system capable of carrying a high proportion of renewable energy.

"The China Photovoltaic Industry Association predicts that the installed scale of solar power in 2023 will reach 95 million kilowatts to 120 million kilowatts, an increase of 9 to 37 percent compared to 2022, and the photovoltaic industry will continue to grow." An chain said.

Based on the considerable prospect of the industry, Solar Energy actively expands the market. By taking advantage of the good cooperative relations established with local governments, Solar Energy has locked in advance the projects of high-quality solar photovoltaic power generation in areas with good optical resources, good Internet access conditions and good returns, so as to ensure the steady growth of the scale of photovoltaic power stations of subsequent companies.

Up to now, the company has locked in about 16 gigawatts of high-quality self-built solar photovoltaic power generation projects and acquired projects in areas with good optical resources, good Internet access and good policy conditions, providing a strong guarantee for sustainable development.