Heavy! JA Solar Technology’s first tens of billions investment project in the new year has been launched

Image source: JA Solar Announcement

According to the announcement, JA Solar Energy Co., Ltd. (hereinafter referred to as "JA Solar"), a wholly-owned subsidiary of JA Solar Technology, signed an "Investment Framework Agreement" with the Qujing Municipal People's Government and the Qujing Economic and Technological Development Zone Management Committee on March 5, 2022. 》. In the next six years, JA Solar Technology plans to invest in the development and construction of a "green photovoltaic new energy base" in Qujing City, with a total investment of approximately 10 billion yuan, including a manufacturing base of no less than 10GW of high-efficiency solar cells and 5GW of components, as well as new energy power station projects. .

　The first 10 billion investment project in 2022

This is JA Solar’s ​​first 10 billion investment project in 2022 For investment projects, the choice of landing in Qujing was also fully considered. In recent years, Qujing Municipal Government has vigorously developed the new energy industry and has attracted photovoltaic leaders such as Longi and Sungrow to build production bases here, becoming the only city in China with a complete closed-loop silicon photovoltaic industry chain. It successfully held the China Silicon Industry Conference and won the title of "Green Crystalline Silicon Photovoltaic City".

After the project is completed, it will allow JA Solar to add 10GW of high-efficiency solar cells and 5GW of module production capacity, which will help enhance its vertically integrated production capacity advantages and further improve its competitiveness and market share.

In recent years, as the cost of photovoltaic power generation has dropped significantly, the number of photovoltaic companies has increased significantly. However, industry concentration is constantly increasing, especially in the component sector. According to PV Infolink data, based on the 2021 module demand of 172.6GW, the top ten manufacturers account for far more than the previous 70-80% share, with a market share of more than 90%.

　Continuous huge investments

JA Solar Technology, as the second largest vertically integrated company in terms of global module shipments in 2021 The leader has already put production expansion on the agenda, and has invested in 3 tens of billions of projects in multiple regions across the country in 2021:

An announcement was made on January 24, 2021 that JA SolarScience and Technology signed a "Strategic Investment Framework Agreement" with the Yangzhou Economic and Technological Development Zone Management Committee, and plans to invest in the construction of battery and module projects in the Yangzhou Economic and Technological Development Zone. The project will be constructed in two phases. The first phase is a 10GW battery and 6GW module project with a total planned investment of 6 billion; the second phase has a total planned investment of 4 billion.

On March 4, JA Solar announced that it had signed a "Strategic Investment Framework Agreement" with the People's Government of Qidong City, Jiangsu Province, and planned to invest and build 20GW in Qidong Economic Development Zone, Jiangsu Province. The total planned investment in photovoltaic cells, modules and supporting photovoltaic equipment projects is 10.2 billion yuan.

On November 19, JA Solar Technology announced that the company had signed an "Investment Framework Agreement" with the People's Government of Chaoyang City, Liaoning Province and the People's Government of Chaoyang County, Liaoning Province, and planned to open in Chaoyang, Liaoning Province. The city is investing in the construction of the "JA Chaoyang Comprehensive New Energy Industry Base", which specifically includes the planned construction of an informatized, intelligent, high-efficiency photovoltaic module manufacturing and supporting equipment industrial base project with an annual output of 5GW and a 2GW wind and photovoltaic power station large base project. The total investment is expected to be approximately is RMB 10 billion.

During this period, there were also billions of investments in silicon wafer and cell projects to further enhance JA Solar’s ​​vertical integration capabilities.

　Performance and market value are "flying together"

Data shows that at the end of 2020, JA Technology's component production capacity was approximately 23GW. Silicon wafer and cell production capacity is approximately 80% of module production capacity. By the end of 2021, JA Solar's module production capacity has increased to 40GW, and silicon wafer and cell production capacity is still about 80% of module production capacity. It fully reflects JA Solar Technology’s outstanding coordinated development capabilities.

Data shows that in the first three quarters of 2021, JA Solar Technology achieved operating income of 26.097 billion yuan, a year-on-year increase of 56.32%; net profit attributable to the parent company was 1.312 billion yuan, a year-on-year increase of 1.62%.

Although the full-year results have not yet been released, according to predictions from 10 institutions, the average net profit of JA Solar in 2021 will be as high as 2.018 billion yuan, a year-on-year increase of 33.94% from 2020.

In terms of market value, JA Solar Technology’s stock price has increased as high as 128% in 2021, and it has become another 100 billion photovoltaic company. As of March 8, JA Technology’s share price closed at 92.39 yuan, with a market value of 147.7 billion.