Core Viewpoint - The photovoltaic industry is facing significant challenges in 2024, with a price drop exceeding 29% for major materials, leading to substantial losses for many companies, including leading firms like LONGi Green Energy [2][3] Group 1: Industry Performance - Nearly half of the 80 listed photovoltaic manufacturing companies in A-shares are experiencing losses, with LONGi Green Energy describing 2024 as its most difficult year since its listing [2] - Major integrated companies like JinkoSolar and LONGi Green Energy have seen revenue declines of over 20%, with JinkoSolar's net profit plummeting by 98.67% and LONGi Green Energy reporting a net loss of 8.618 billion [3][6] - The top 10 photovoltaic companies show a mixed performance, with only Sungrow Power Supply achieving growth in both revenue and net profit [3][4] Group 2: Employment Trends - Many A-share photovoltaic companies are reducing their workforce, with ST Lingda cutting 86.67% of its staff, and other companies like ST Quan reducing their workforce by nearly 52% [2] - LONGi Green Energy has the highest total number of layoffs at 49.57%, reducing its workforce from approximately 75,000 to under 38,000 [3][5] - The reduction in workforce is correlated with the companies' financial performance, with those experiencing significant profit declines also showing higher layoff rates [2][4] Group 3: Cost Management - LONGi Green Energy's reduction in workforce has led to a 7.16% decrease in direct labor costs, while total employee compensation dropped by 33.53% to 1.574 billion [6] - The company has also seen a significant reduction in management expenses by 30.22%, although R&D expenses have decreased by 20.48% [6][7] - The overall trend indicates that while companies are cutting costs, the speed of cost reduction is not keeping pace with the decline in prices and revenues [6][7] Group 4: Future Outlook - Despite the current challenges, some companies are beginning to show signs of recovery in early 2025, although concerns remain about potential demand weakness in the latter half of the year [9] - The international trade environment is becoming increasingly challenging, particularly for companies with overseas operations, as tariffs and trade barriers impact their business [9][10] - Companies are likely to continue optimizing their workforce to maintain competitiveness in a rapidly changing market [7][9]

Financial Performance - Tongwei Co., Ltd. reported a significant decline in revenue, with Q1 2023 revenue at 15.933 billion yuan, down 18.58% year-on-year, and a net loss of 2.592 billion yuan, a decrease of 229.56% year-on-year [2] - The company has experienced six consecutive quarters of net losses since Q4 2023, with the highest loss among its peers in the main photovoltaic industry [2][3] - The primary reasons for the losses include low operating rates and silicon material prices remaining below cash costs [2] Debt Situation - As of the end of Q1 2023, Tongwei's total liabilities exceeded 150 billion yuan, with a debt-to-asset ratio of 72.25%, marking the highest level in its history [4] - Short-term borrowings surged nearly 18 times year-on-year to 3.531 billion yuan, while non-current liabilities due within one year reached 12.522 billion yuan, an increase of 89.4% year-on-year [2][3] - The company's total current liabilities, long-term borrowings, and bonds payable approached 90 billion yuan by the end of Q1 2023 [2] Cash Flow and Liquidity - The company had approximately 29.1 billion yuan in cash as of the end of Q1 2023, which is sufficient to cover short-term debts, but the long-term debt exceeding 70 billion yuan poses significant pressure [4][5] - Operating cash flow turned negative in Q1 2023, with a net outflow of 1.456 billion yuan, contrasting sharply with previous years where cash inflows were significantly higher [5] - Despite a 77.2% year-on-year increase in cash reserves to 29.4 billion yuan, the company’s ability to repay short-term debts is overshadowed by its long-term liabilities [5] Industry Context - The photovoltaic manufacturing sector is facing dual pressures of cost cash inversion and capacity reduction, leading to an overall increase in debt levels across the industry [2][4] - Tongwei's vertical integration model requires higher cash flow compared to other manufacturers, exacerbating its financial challenges [2]

Core Viewpoint - In 2024, the photovoltaic industry faced a significant downturn, leading to a widespread reduction in executive compensation across A-share photovoltaic companies, with over 60% of management teams experiencing salary cuts compared to 2023 [1][3][5]. Summary by Category Executive Compensation Trends - In 2024, 43 out of 67 photovoltaic stocks reported a decline in total annual executive compensation, representing approximately 64.18% of the companies [3]. - Longi Green Energy's management saw the largest reduction, with total compensation dropping from 41.55 million yuan in 2023 to approximately 15.85 million yuan in 2024, a decrease of 25.70 million yuan [3][4]. - Tongwei Co. followed closely, with a total compensation of 42.09 million yuan in 2024, down from 66.14 million yuan in 2023, a reduction of 24.04 million yuan [3]. Notable Executive Salary Cuts - Longi Green Energy's Chairman, Zhong Baoshan, experienced a drastic salary cut from 11.54 million yuan in 2023 to 895,500 yuan in 2024, a decline of over 90% [5][6]. - Tongwei's executive Li Bin's salary fell from 26.28 million yuan in 2023 to 6.43 million yuan in 2024, a decrease of approximately 75.52% [7]. - Trina Solar's Chairman, Gao Jifan, saw his salary drop from 6.47 million yuan to 4.01 million yuan, a reduction of 245,560 yuan [7]. Salary Increases in a Downturn - Despite the overall trend, some executives saw salary increases, such as JinkoSolar's Vice President Jin Hao, whose salary rose from 4.88 million yuan to 5.99 million yuan [8]. - Yangguang Power's Chairman, Cao Renxian, received a salary increase from 3.51 million yuan to 3.88 million yuan, while other executives also reported salary growth [10]. Industry Performance Context - The photovoltaic industry is currently facing challenges, with JinkoSolar reporting a revenue decline of 22.08% year-on-year, and a net profit drop of 98.67% [9]. - Yangguang Power, however, reported a revenue increase of 7.76% and a net profit increase of 16.92% in 2024, correlating with the salary increases for its executives [10][11].

Investment Rating - The investment rating for the company is "Recommended" (maintained) [1] Core Views - The company is facing challenges due to a significant decline in revenue and profitability, primarily driven by falling product prices in the photovoltaic manufacturing sector [4][7] - Despite the current downturn, the company maintains strong competitive advantages in scale, technology, and cost, positioning it well for recovery as market conditions improve [8] Financial Performance Summary - In 2024, the company reported revenue of 919.94 billion yuan, a decrease of 33.87% year-on-year, with a net profit attributable to shareholders of -70.39 billion yuan, down 151.86% [4] - For the first quarter of 2025, revenue was 159.33 billion yuan, a decline of 18.58% year-on-year, with a net profit of -25.93 billion yuan, a decrease of 229.56% [4] - Revenue projections for 2025 and 2026 are 94.64 billion yuan and 103.55 billion yuan, respectively, with expected net profits of -5.07 billion yuan and -0.90 billion yuan [6][9] Industry Context - The photovoltaic manufacturing business is experiencing a downturn due to industry-wide price declines and increased competition, impacting revenue and gross margins significantly [7] - The company has expanded its production capacity in high-purity polysilicon and continues to innovate in battery technology, which may enhance its competitive position in the future [7][8] Future Outlook - The company is expected to see a gradual recovery in profitability, with forecasts indicating a return to positive net profit of 1.32 billion yuan by 2027 [8] - The current stock price corresponds to dynamic P/E ratios of -14.5 for 2025 and 55.7 for 2027, reflecting the anticipated recovery in earnings [8]

Core Viewpoint - The company reported a significant decline in revenue and net profit for 2024, with a net loss of 70.4 billion yuan, indicating a challenging operating environment and pressure on profitability due to industry conditions [1] Group 1: Financial Performance - In 2024, the company achieved revenue of 919.9 billion yuan and a net loss of 70.4 billion yuan, representing a year-on-year decline of 33.9% and 151.9% respectively, falling at the lower end of the profit forecast [1] - For Q4 2024, revenue was 237.2 billion yuan, down 14.3% year-on-year and 3.1% quarter-on-quarter, with a net loss of 30.7 billion yuan, reflecting a significant increase in losses [1] - In Q1 2025, revenue was 159.3 billion yuan, a decrease of 18.6% year-on-year and 32.8% quarter-on-quarter, with a net loss of 25.9 billion yuan, which was worse than expectations [1] Group 2: Industry Position and Product Performance - The company maintained its leading position in the silicon material market, with sales of 467,600 tons in 2024, a year-on-year increase of 20.76%, capturing approximately 30% of the national market share [3] - The company’s silicon material and related businesses generated revenue of 198.97 billion yuan in 2024, down 55.59% year-on-year, with a gross margin of 2% [3] - In 2024, the company sold 87.68 GW of batteries, a year-on-year increase of 8.70%, and 45.71 GW of components, a 46.93% increase, expanding its market share and optimizing shipment structure [4] Group 3: Future Outlook and Valuation - The company expects a slow recovery in industry supply and demand balance, leading to a downward adjustment in price, shipment volume, and gross margin assumptions for silicon materials and battery businesses [6] - Projected net profits for 2025-2027 are -35.19 billion yuan, 50.71 billion yuan, and 70.45 billion yuan respectively, with a significant decrease in expectations for 2025 and 2026 [6] - The company is assigned a target price of 19.33 yuan for 2026, based on a PE ratio of 17.11x, reflecting its strong position in the silicon material and battery markets [6]

2025 年 5 月 5 日 公司研究 内蒙基地吨现金成本已降至 2.7 万元以内，组件海外业务实现跨越式增长 ——通威股份（600438.SH）2024 年年报&2025 年一季报点评 要点 事件：公司发布 2024 年年报&2025 年一季报，2024 年实现营业收入 919.94 亿 元，同比-33.87%，实现归母净利润-70.39 亿元，同比-151.86%；2025Q1 实现 营业收入 159.33 亿元，同比-18.58%，实现归母净利润-25.93 亿元，环比减亏。 硅料、电池市占率稳居行业第一，组件海外业务实现跨越式增长。2024 年公司 维持了硅料/电池环节的领先优势并在组件环节实现突破，高纯晶硅销量同比增 长 20.76%至 46.76 万吨，全年产销量约占全国 30%，市占率连续多年位居行业 第一；太阳能电池销量同比增长 8.70%至 87.68GW（含自用），全球市占率约 14%，连续八年蝉联全球电池出货量榜首；组件销量同比增长 46.93%至 45.71GW，海外销量同比增长 98.76%，斩获沙特、波兰等多国 GW 级项目订单。 2025Q1 在产业链价格持续下跌背景下公司盈利能 ...

2025 年 5 月 5 日 公司研究 内蒙基地吨现金成本已降至 2.7 万元以内，组件海外业务实现跨越式增长 ——通威股份（600438.SH）2024 年年报&2025 年一季报点评 要点 事件：公司发布 2024 年年报&2025 年一季报，2024 年实现营业收入 919.94 亿 元，同比-33.87%，实现归母净利润-70.39 亿元，同比-151.86%；2025Q1 实现 营业收入 159.33 亿元，同比-18.58%，实现归母净利润-25.93 亿元，环比减亏。 硅料、电池市占率稳居行业第一，组件海外业务实现跨越式增长。2024 年公司 维持了硅料/电池环节的领先优势并在组件环节实现突破，高纯晶硅销量同比增 长 20.76%至 46.76 万吨，全年产销量约占全国 30%，市占率连续多年位居行业 第一；太阳能电池销量同比增长 8.70%至 87.68GW（含自用），全球市占率约 14%，连续八年蝉联全球电池出货量榜首；组件销量同比增长 46.93%至 45.71GW，海外销量同比增长 98.76%，斩获沙特、波兰等多国 GW 级项目订单。 2025Q1 在产业链价格持续下跌背景下公司盈利能 ...

Core Viewpoint - The photovoltaic industry is experiencing significant challenges, including heavy losses in the main production chain and rising debt levels, despite some signs of reduced losses after production cuts [1][3][4]. Industry Overview - The photovoltaic industry has not fully escaped the capacity dilemma, with major losses still prevalent in the main production chain (silicon materials, silicon wafers, batteries, and modules) [1]. - In the first quarter, 18 out of 21 listed companies in the photovoltaic main production chain reported losses, with larger manufacturers facing more severe losses [1][3]. - The "430 node" has passed, leading to a significant decline in demand and a drop in prices across the industry chain, with silicon material and wafer prices falling sharply [1][7]. Financial Performance - In the first quarter, 17 companies in the photovoltaic main production chain reported positive growth in net profit, with TCL Zhonghuan, Trina Solar, and JA Solar seeing growth rates exceeding 50% [3]. - Despite some companies reducing losses, the overall reversal point for profitability in the photovoltaic industry remains unclear, and concerns about cash flow crises persist [3][6]. Debt Levels - The asset-liability ratio of the photovoltaic industry continues to rise, with the median asset-liability ratio of 21 listed companies reaching 73.27% by the end of the first quarter, an increase of 4.61 percentage points year-on-year [3][4]. - Leading manufacturers like Tongwei Co. and TCL Zhonghuan have seen significant increases in their debt ratios, with Tongwei's ratio reaching 72.25%, up 12.98 percentage points year-on-year [4]. - The total short-term borrowings of 21 photovoltaic companies reached a record high of 635.72 billion yuan, with a year-on-year increase of 135 billion yuan [4][5]. Market Dynamics - The end of the installation rush has led to a decline in downstream demand, causing prices to drop across the industry chain [7][8]. - Analysts predict that the photovoltaic industry may face a painful adjustment period due to uncertain investment returns and a lack of clear signs of price stabilization [7][8]. - The current market conditions, characterized by low trading activity and excess inventory, are challenging for many silicon material companies, prompting some to consider production cuts [7][8].

通威股份（600438.SH）2024 年年报及 2025 年一季报点评 业绩阶段性承压，多晶硅成本优势显著 2025 年 05 月 03 日 事件：2025 年 4 月 29 日，公司发布 2024 年年报及 2025 年一季报。2024 年公司实现营业收入 919.94 亿元，同比-33.87%；实现归母净亏损 70.39 亿 元，同比-151.86%；实现扣非净亏损 70.57 亿元，同比-151.84%。2024 年 公司业绩承压，主要原因是受到光伏产业链市场价格大幅下降、甚至低于行 业现金成本的冲击，叠加公司长期资产减值报废 10.65 亿元影响。 25Q1 公司实现营业收入 159.33 亿元，同比-18.58%，环比-32.83%；实现 归母净亏损 25.93 亿元，同比-229.56%，环比+15.42%；实现扣非净亏损 26.08 亿元，同比-230.01%，环比+13.64%。 ➢ 多晶硅市占率位居第一，持续降本增效。2024 年，公司高纯晶硅销量为 46.76 万吨，同比+20.76%，全年产销量约占全国 30%，市占率位居全球第 一；多晶硅业务实现收入 198.97 亿元，同比-55. ...

Group 1: Wind Power Industry - The wind power industry in China is experiencing a recovery in performance from Q4 2024 to Q1 2025, with some companies exceeding expectations [3] - In 2024, 23 A-share wind power companies reported a total revenue of 225.15 billion yuan and a net profit of 13.24 billion yuan, showing a revenue increase of 4.39% but a net profit decline of 12.70% year-on-year [3] - In Q1 2025, these companies achieved a total revenue of 47.58 billion yuan and a net profit of 4.22 billion yuan, indicating growth compared to Q1 2024 [3] - Goldwind Technology reported a revenue of 9.47 billion yuan in Q1 2025, a 35.72% increase year-on-year, and a net profit of 568 million yuan, up 70.84% [4] - The recovery in wind turbine prices and expansion into overseas markets have positively impacted the performance of wind power manufacturers [4][6] Group 2: Solar Power Industry - The solar power industry faced significant challenges in 2024, with 110 A-share solar companies reporting a total revenue of approximately 1.38 trillion yuan, a decrease of 17.96% year-on-year, and a net profit of approximately -363 million yuan, a decline of 100.25% [8] - In Q1 2025, these companies reported a total revenue of 279.14 billion yuan, with a net profit of approximately 4.74 billion yuan, indicating a significant drop compared to Q1 2024 [8] - Major integrated solar companies like TCL Zhonghuan, Longi Green Energy, and Tongwei reported substantial losses, with net profits of -9.82 billion yuan, -8.62 billion yuan, and -7.04 billion yuan respectively [8] - Despite the overall downturn, companies involved in solar energy storage have shown resilience, with notable performances from companies like Sungrow Power and Canadian Solar [9] Group 3: Energy Storage Industry - The energy storage industry saw a decline in overall performance in 2024, with 21 A-share companies reporting a total revenue of 682.1 billion yuan, a decrease of 3.59%, and a net profit of 74.54 billion yuan, down 21.4% year-on-year [12] - In Q1 2025, these companies reported a total revenue of 158.07 billion yuan, a year-on-year increase of 12.39%, and a net profit of 21.03 billion yuan, up 34% [13] - The profitability in the energy storage sector is increasingly concentrated among leading companies like CATL and Sungrow, which have reported significant profit increases [13] - The energy storage market is undergoing transformation, with a shift in focus from domestic to overseas markets for higher profit margins [14][15]