On Monday, GCL-Poly Energy Holdings Limited, a leading polysilicon and wafer maker, published its earnings estimates for 2021. The company expects the net profit of the year to be about 5 billion yuan, a significant increase over that of 2020.
Its solar PV material business is expected to be the biggest winner, contributing about 5.4 billion yuan, while the losses from other businesses are estimated to decrease by more than 50% compared to the previous year.
GCL-Poly said in the announcement that despite of the surge in raw material and energy prices and the phased shortages of energy, the demand for solar PV materials saw substantial growth as the world is moving towards net zero.
Last year, the output of granular silicon, GCL-Poly’s signature product, accounts for 18% of the company’s total polysilicon output.
The gross profit margin of granular silicon is over 15% higher than that of silicon rods amid the price hikes of silicon metal and polysilicon.
However, the year 2021 was not a smooth ride for GCL-Poly. An industry analyst pointed out that, GCL-Poly’s production in the second half of 2021 was constrained by power rationing and shutdowns. The soaring coal prices exerted heavy pressure on the company’s electricity costs, as GCL-Poly relies mainly on its own power plant for electricity.
Except for the prosperity of the solar PV industry, the increase in granular silicon output and its advantage in cost and efficiency are also major reasons behind GCL-Poly’s good performance in 2021, added the analyst.
The overall power consumption of granular silicon is only 15 kWh/kg, 70% lower than that of traditional silicon rods. Granular silicon is believed to have huge market potential with its low investment costs and carbon emissions.
GCL-Poly has established two 10,000-ton polysilicon facilities and one 30,000-ton polysilicon facility in Xuzhou, Leshan and Baotou.
