Financial News Agency reported on December 3 (Editor Square) Linyang Energy, an energy storage concept stock with a total market value of over 20 billion yuan, announced after the market that it plans to sign an investment agreement with the Nantong Economic and Technological Development Zone Management Committee to invest in the construction of a 20GW high-efficiency N-type TOPCon photovoltaic cell production base and new energy-related industrial projects . The project construction period is three years. The total investment in the first phase of the 12GW project is about 5 billion yuan, and the total investment in the second phase of the 8GW project is about 5 billion yuan.
company stated in the announcement that strives to start the construction of the first phase of the 6GW production line before the end of December 2022, and will be completed and put into production before the end of July 2023. The TOPCon battery product planned to be invested and constructed this time has not yet been mass-produced and has not been verified by customers. It is still in the research and development certification stage .
On the news, according to SMM statistics, China's TOPCon battery production capacity will expand rapidly in 2022. has now been put into production at 49.4GW, and the large-scale mass production of TOPCon batteries has been gradually verified . Recently, the conversion efficiency of the 182N TOPCon developed by JinkoSolar has been certified by a third-party test by the China Academy of Metrology. The full-area battery conversion efficiency reached 26.1%, once again setting a new record for battery conversion efficiency .
In this regard, Linyang Energy stated in the announcement that the conversion efficiency of N battery technology has achieved certain breakthroughs. With the continuous advancement of battery technology and production processes, the conversion efficiency of N batteries is expected to continue to increase. After further localization of some raw materials and production equipment, manufacturing costs will decrease, and the market share of N batteries will continue to increase.. In the future, as the scale of photovoltaic installations continues to increase, the market demand for N-type photovoltaic cells will also continue to grow.
public information shows that Linyang Energy is mainly engaged in the three business sectors of intelligence, energy saving, and new energy . The company's semi-annual report shows that in the first half of the year, the revenue from photovoltaic power generation, photovoltaic EPC, and energy storage and energy saving business accounted for 31.81%, 16.21%, and 1.08% of the company's revenue respectively, and the total accounted for 49.1%.
Soochow Securities analyst Chen Ruibin reported in a research report on November 25 that due to high silicon material prices and high component prices in 2022, it will affect the power plant EPC business yield and the amount of construction started. At the same time, the epidemic in 2022 will repeatedly lead to delays in the delivery of relevant land, and the overall EPC business of Linyang Energy will be greatly affected. It is expected that with the decline in silicon material prices in 2023, which will drive down component prices, company's photovoltaic EPC business is expected to usher in both volume and profit .
Zheshang Securities analyst Zhang Lei and others reported in a research report on November 3 that as the epidemic situation gradually improved in various places in the third quarter, Linyang Energy photovoltaic projects were put into construction one after another. The company's current reserve photovoltaic project scale exceeds 6GW. The company actively promotes the intelligent application of photovoltaic operation and maintenance, and uses advanced technologies such as drone fleets and clouds for photovoltaic operation and maintenance, effectively improving project operation efficiency.
Linyang Energy recently announced that the first production line of the annual output 10GWh energy storage battery project built by Yiwei Linyang, a joint venture established by the company and Yiwei Lithium Energy 's wholly-owned subsidiary, has completed equipment installation and commissioning and has been officially put into production. The project has three production lines, and the debugging and production of will be completed one after another.
Debon Securities analyst Li Ji reported in a research report on November 22 that Linyang Energy has comprehensively laid out the energy storage industry chain , and has more than 3GWh of reserve projects in hand. Among them, the upstream energy storage battery side: 21 established a joint venture company with Yiwei Lithium Energy in June; the midstream energy storage system integration field: cooperated with Huawei to deepen the core competitiveness of energy storage system integration; the downstream user side: focus on developing new energy power generation + "shared energy storage" business model.
Soochow Securities analyst Zeng Duohong and others reported in a research report on November 22 that Linyang Energy’s energy storage business has accelerated its development and is expected to ship 600MWH in 2022. As of the end of the third quarter of 2022, company has accumulated more than 4GWh of energy storage project resources. In the next three years, it will strive to achieve a cumulative construction of no less than 5GWh of energy storage systems. energy storage system has become the company's new performance growth point..
Zeng Duohong and others said that based on the joint venture's 10GWh energy storage battery project being put into production as scheduled and initially showing the advantages of the industrial chain, Linyang Energy's energy storage business will accelerate development. It is expected that the company's net profit attributable to the parent company in 2022 will be 835 million yuan, a year-on-year decrease of 10%, and the net profit in 2023 is expected to increase to 1.11 billion yuan, a year-on-year increase of 33%.
However, it is worth noting that Linyang Energy further reminded of risks such as funding, uncertain performance, and construction land in this announcement. The company stated that as of October 2022, the company's book monetary funds and financial management totaled 5.177 billion yuan, and the cumulative repayment funds from the sale of assets were 1.549 billion yuan. The company estimates that the investment in the project construction will be 4 billion yuan in bank loans, and the rest of the funds will be raised by the company itself. will increase the company's asset-liability ratio .
