Polycrystalline silicon company profits explode in the first quarter of 2022

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Entering 2022, the upstream raw material link has not yet ushered in a period of price reductions. Due to factors such as new production capacity still under construction and transportation restrictions before the epidemic, the contradiction between supply and demand in the photovoltaic market is still quite tense. Silicon material prices continue to rise. Tracking prices from the Silicon Industry Branch, polysilicon prices rose by 7.3%-7.45% in the first quarter of this year, and silicon wafer prices rose by 5.9%-16.5%. Affected by this, silicon material and wafer companies continued to achieve "full production and full sales" in the first quarter, and their performance and revenue dominated the entire industry chain. Among them, Daqo Energy's performance exploded, with a net profit of 4.312 billion yuan in the first quarter, a year-on-year increase of 640.85%, and the production and sales rate reached 123.76%. ； Tongwei Co., Ltd. ranked second in the net profit increase list with a net profit increase of 513.01%, achieving a net profit of 5.194 billion yuan, and total revenue as high as 24.69 billion yuan, a year-on-year increase of 132.49%, creating the highest single-quarter record in Tongwei's history. As the only silicon material company with a decline in net profit in the statistics, Jingyuntong said that the company's two major monocrystalline silicon ingot production bases in Leshan and Wuhai, Inner Mongolia are still in the production capacity ramping stage or undergoing upgrades and maintenance. Therefore, although product shipments increased in the first quarter, the gross profit margin level was low or unstable. ； In addition, the prices of the main raw materials of the new materials business have increased significantly compared with the same period last year, resulting in an increase in production costs and a significant year-on-year decrease in gross sales profit margin, which has had a certain impact on its performance.