Photovoltaic companies are anticipating a doubling of their net profits in the first half, with an increased contribution from exports, thanks to rising market demand and lower prices for upstream silicon materials. Jinko Solar Co, a major Chinese PV company, recently revealed its half-year performance forecast and projected its net profits to soar at least threefold year-on-year to reach CNY3.66 billion or more. The company attributed the surge to strong global demand for PV facilities and its efforts in coping with price fluctuations, exchange rates and international trade policies. JA Solar Technology Co estimated its half-year profit to reach at least CNY4.2 billion or a minimum growth of 146.8% year-on-year. JA Solar said the surge was driven by the continuous upswing in PV product demand, domestic and international market expansion, considerable increases in shipments and revenue, and optimizations in supply chain management that led to reduced production costs.
Statistics from news outlet Jiemian showed that among the 17 domestic PV companies that released their half-year forecasts, 16 have reported profit growth and only one silicon wafer company experienced a year-on-year decline. Eging PV Technology Co leads the pack with its net profit soaring at least 1,086% to exceed CNY280 million. The company said the drop in silicon material prices led to the profit growth of cells and modules.
The flourishing PV industry has also fostered growth in related sectors. Solar mounting gear producer Clenergy reported an estimated 251.59% to 321.91% year-on-year growth in its first-half profit to reach CNY100 million to CNY120 million. The company attributed the growth largely to rising revenue from overseas. In recent years, the PV industry has experienced rapid growth, fueled by favorable policies and growing market demand. By the end of June, China’s solar power capacity reached approximately 470.67 million kilowatts, a year-on-year increase of 39.8%, according to the National Energy Administration (NEA). The China Photovoltaic Industry Association (CPIA) forecast a further 120-140 gigawatt growth in installed capacity this year, a record high. According to the Association, the export value of China’s PV products surpassed USD29 billion in the first half, an increase of 13% year-on-year. Wang Bohua, honorary Chairman of the CPIA, said silicon wafers and solar cells have seen increasing exports. China holds a dominant position in the global PV supply chain, accounting for more than 75% of its total, said Jiang Yali, Analyst with energy research provider BloombergNEF. According to the Silicon Industry of China Nonferrous Metals Industry Association, the price of silicon materials ranged between CNY63,000 and CNY82,000 per metric ton, a significant decline from an average of CNY240,000 per ton in early February, the China Daily reports.
