Photovoltaic glass provider Flat Glass Group has secured two major orders in the past few days, of which the sales amount has exceeded the total revenue of CNY 15.461 billion yuan in 2022.
The signings are definitely conducive to achieving rapid profit growth for the company. From 2019 to 2022, Flat’s performance maintained rapid growth, reaching CNY 4.807 billion yuan, CNY 6.260 billion yuan, CNY 8.713 billion yuan, and CNY 15.461 billion yuan, respectively. The net profit attributable to the parent company was CNY 717 million yuan, CNY 1.629 billion yuan, CNY 2.12 billion yuan, and CNY 2.123 billion yuan, respectively.
Obviously, in 2022, under significant revenue growth, the growth of net profit attributable to the parent company has almost stagnated, which resulted from gross profit margin. During the period, the gross profit margin was 49.41%, 35.7%, and 23.31%, respectively.
To reverse this situation, Flat has taken multiple approaches. In terms of production capacity. Flat continues to expand production, reducing the manufacturing cost of photovoltaic glass through large-scale production, improving the product yield, and enhancing the competitiveness of product cost-effectiveness.
At the beginning of 2021, the capacity was 6,400 tons/day. As of the end of December 2022, the number had increased to 19,400 tons/day. According to the plan, it will be further increased to 25,400 tons/day by the end of 2023.
The company also follows the trend to produce lighter and thinner glasses, further increased the proportion of 2.00mm photovoltaic glass production capacity, as well as the investment in R&D to improve glass transmittance and yield.
From 2019 to 2022, the R&D expenses of Flat were CNY 204 million yuan, CNY 285 million yuan, CNY 408 million yuan, and CNY 523 million yuan, respectively, with year-on-year growth of 80.27%, 39.46%, 43.45%, and 28.11%.
The above approaches achieved notable results. According to the company’s annual report in 2022, it has signed long-term contracts with Longi Solar, Jinko Solar, Risen Energy, and JA Solar with outstanding amounts of CNY 10.7 billion yuan, CNY 10.85 billion yuan, CNY 7.768 billion yuan, and CNY 2.93 billion yuan, respectively.
