On January 13, Tianjin Zhonghuan Semiconductor Co., Ltd. (hereinafter referred to as "Zhonghuan Co., Ltd.") reached a share price of 33.17 yuan, and its total market value exceeded 100 billion yuan, reaching 100.6 billion yuan, becoming another 100 billion market value photovoltaic company, it is also the fifth photovoltaic-related company with a market value of over 100 billion yuan.
 
It has been nearly 20 years for China's photovoltaic industry to form a global advantage from its infancy to the present. Before 2021, only three companies, namely Longi, Tongwei and Sungrow, had a market value of more than 100 billion. However, in the first month of 2021, the market value of North Huachuang and Zhonghuan has exceeded 100 billion, which shows that there is still huge room for photovoltaic development in the future.
 
About Zhonghuan
 
According to the data, in the field of monocrystalline silicon materials, Zhonghuan has formed four major product series mainly consisting of Czochralski silicon rods, zone fused silicon rods, Czochralski silicon wafers, and zone fused silicon wafers, which is the most complete variety of silicon single crystals in China. One of the manufacturers. Products are mainly used in semiconductor integrated circuits, semiconductor discrete devices, power electronic devices, solar cells and other microelectronic devices, and related products are also well recognized by customers.
 
Compared with the photovoltaic industry, Zhonghuan shares has a long corporate history. It was established as Tianjin Zhonghuan Semiconductor Co., Ltd. in 1989; passed ISO9002: 1994 quality system certification in 1994 and was recognized as a high-tech enterprise in Tianjin; in 1999, it was restructured into a wholly state-owned Tianjin Zhonghuan Semiconductor Co., Ltd.; Tianjin was established in 2000 Huanou Semiconductor Material Technology Co., Ltd.
 
In 2007, Zhonghuan was officially listed on the Shenzhen Stock Exchange, becoming the first company in Tianjin to be listed on the small and medium-sized board. The issue price was 5.81 yuan, and the closing price on the first day was 17.37 yuan, an increase of 198%.
 
An important reason why the listed stock price is favored by the market is that Zhonghuan has entered the photovoltaic field earlier. In 2004, the production and sales volume of high-voltage silicon reactors ranked first in the world; in 2006, the production and sales scale of district-melted monocrystalline silicon materials jumped to the top three in the world. These achievements were of great significance to the early stage of my country's photovoltaic development, and photovoltaic subsidies were high at that time , Which also allows it to obtain higher profits.
 
Deepen the layout of the photovoltaic industry
 
After listing, Zhonghuan further increased its layout in the photovoltaic industry.
 
In 2009, Zhonghuan established Inner Mongolia Zhonghuan Photovoltaic Materials Co., Ltd. The business scope of the latter includes manufacturing, sales, technical research and development and technical services of solar ingots (ingots) and wafers, semiconductor materials and related products, as well as monocrystalline silicon and polycrystalline silicon materials. Processing with supplied materials, etc.
 
In 2012, Zhonghuan Energy (Inner Mongolia) Co., Ltd. was established, mainly engaged in the technology development and investment of solar energy photovoltaic power station projects, mineral resources industry, and energy projects.
 
Undertook the construction task of the facility agricultural greenhouse photovoltaic power station in Hohhot, and actively participated in the photovoltaic building integration photovoltaic power station demonstration project and the Golden Sun demonstration project. The efficient combination of Zhonghuan’s products and projects, while actively constructing photovoltaic projects, has also demonstrated the advantages of Zhonghuan.
 
In 2013, Zhonghuan Co., Ltd. established Sichuan Zhonghuan Energy Co., Ltd., intending to use local comparative advantages and natural conditions to build high-efficiency photovoltaic power station projects in Sichuan.
 
In 2015, Zhonghuan Co., Ltd. joined hands with Apple and SunPower in the United States to jointly operate high-efficiency photovoltaic power plant projects in Sichuan, Inner Mongolia and other places, and jointly developed Apple's first renewable energy project invested in China to jointly protect the beautiful earth. In the same year, it also established subsidiaries in many places across the country to develop solar cell business and high-efficiency solar photovoltaic module business according to local conditions in different regions.
 
In 2016, the new diamond line slicing expansion project in Tianjin was launched. After the completion of the project, it will have an annual production capacity of approximately 215 million 8-inch P-type high-efficiency solar wafers; the fourth phase of the Zhonghuan Photovoltaic project started, and the total monocrystalline production capacity after the construction is completed The scale will exceed 15GW.
 
To sum up, it can be seen that Zhonghuan's layout in the photovoltaic field is very solid, and at the same time every step is steady and steady, unlike some companies blindly pursuing speed. At the same time, it also attaches great importance to core technologies and has industry-leading technologies in different periods, especially in the photovoltaic field.
 
Pay attention to R&D investment to bring rapid growth
 
According to Zhonghuan's 2019 annual report, Zhonghuan's R&D investment was as high as RMB 1,168,529,400, accounting for 6.92% of operating income. Compared with the market value of Longi, Tongwei and Sungrow, which have exceeded 100 billion in 2019, they are all higher, which shows that Zhonghuan shares the importance of R&D investment.
 
In terms of performance, since 2017, Zhonghuan’s operating income has maintained rapid growth. In 2017, operating income was 9.64 billion; in 2018, it reached 13.8 billion; in 2019, it was 16.9 billion; in the first three quarters of 2020, it reached 13.4 billion, approaching 2018. The annual revenue level of the year, if a major breakthrough can be achieved in the fourth quarter, the annual revenue is expected to exceed 20 billion yuan, reaching a new milestone.
 
In terms of customers, according to Zhonghuan's 2019 annual report, Zhonghuan's customers are not concentrated. The largest customer accounts for only 8.77%, the second largest customer is 8.57%, and the top five customers total no more than 35%, only 33.21%. . It shows that Zhonghuan is not concentrated and needs to continue to improve its sales ability. But from another perspective, the lack of customer concentration is also conducive to the multi-directional development of Zhonghuan, and it will not rely too much on a single customer.
 
In terms of market position, in 2004, Zhonghuan's high-voltage silicon stack production and sales volume has leapt to the world's first place, and in 2006, the production and sales scale of district-melted monocrystalline silicon materials has jumped to the top three in the world.
 
In addition, in order to strengthen its position in the photovoltaic industry, on November 30, 2020, Zhonghuan's wholly-owned subsidiary Tianjin Huanou Semiconductor Material Technology Co., Ltd. also increased its stake in its wholly-owned subsidiary. The latter spent 618,609,200 yuan to acquire a 44.444% stake in Wuxi Zhonghuan Applied Materials Co., Ltd., a subsidiary of the company held by China Merchants Asset Management, and its shareholding increased from 37.037% to 81.481%.
 
It is reported that Wuxi Zhonghuan Applied Materials Co., Ltd. is mainly engaged in the research and development, production, sales and service of ultra-thin silicon monocrystalline diamond wire slices for high-efficiency solar cells. At the end of 2020, it signed a huge order with photovoltaic company Trina Solar. The amount will reach 6.552 billion yuan. This move has a very positive effect on the performance of Zhonghuan and its position in the photovoltaic industry.
 
Looking to the future, Zhonghuan has accumulated deep accumulation in photovoltaic technology through years of technology research and development and precipitation, and through its subsidiaries across the country, it has launched a layout in high-efficiency solar cell modules and power station projects. With further growth in the global market, it is believed that Zhonghuan will have a better development.