GCL-integrated PV modules do not make money | To enter the semiconductor industry

Recently, GCL Technology Co., Ltd. announced that the company is planning matters involving major asset purchases. The target asset is a semiconductor company that is supported by the state. This enterprise belongs to the semiconductor material industry, the transaction partner is an independent third party, and GCL There is no association between integrations and specific names have not been disclosed.

GCL-integrated stocks have been suspended since April 27, and have resumed trading since May 14.

After the resumption of trading on the same day, the GCL-integrated stock price rose 7.46% to the peak of the year and closed at 4.79 yuan per share. As of the close of May 15, the GCL-integrated stock dropped 0.84% ​​to 4.75 yuan per share.

'The company's current main business is photovoltaic components and system integration, among which photovoltaic components are the most competitive and profitable segments in the photovoltaic industry chain. ' GCL's Chairman Shu Hua told reporters on the interface that through technological advancement, Cost optimization, etc. continue to create photovoltaic manufacturing, EPC business competitiveness at the same time, GCL integration is also actively looking for the second main business.

Obviously, the semiconductor industry has become the latest choice for the integration of GCL. GCL Integration stated that this acquisition is not a 'hot spot' but a response to market demand.

'The components are doing too much money, after which the semiconductor industry may become the main business of GCL integration. ' The relevant person in charge of GCL integration said to the interface news reporter.

According to the announcement, the aforesaid asset purchase is planned to be carried out by means of issuing shares or paying cash. It is expected that the transaction amount will reach the deliberation standard of the general meeting of shareholders and will have a significant impact on the integration of GCL.

GCL Integration stated that since the acquisition of this asset involves multiple counterparties and all the internal approval procedures involved by the parties are expected to take a long time, it is difficult to form and sign a framework agreement in the short term, and the transaction time does not exist. Certainty.

At present, China's semiconductor market accounts for nearly one-third of the world's total, but domestic semiconductor self-sufficiency rate is very low, especially the core chip is extremely scarce. "Made in China 2025" proposed that China's chip self-sufficiency rate to reach 40 in 2020 %, to reach 50% in 2025.

"GCL Group has long been involved in the semiconductor industry and has a certain amount of technology and industry accumulation. As a group holding listed company, entering the semiconductor industry also meets the overall development strategy of GCL Group.' Shu Hua said.

Similar to the photovoltaic industry, polysilicon is an indispensable raw material for the semiconductor industry. According to public information, in December 2015, the National IC Industry Investment Fund and GCL-Poly were established as a joint venture to establish Jiangsu Xinhua Semiconductor Material Technology Co., Ltd. The 5,000-ton electronic-grade polysilicon special line, after nearly two years of construction and commissioning, has produced qualified electronic grade polysilicon products by the end of 2017.

GCL Integration is one of the photovoltaic listed companies under GCL Group, the largest new energy company in China. It specializes in photovoltaic modules and system integration. It is the largest polysilicon and wafer producer in the world, GCL-Poly, and is engaged in the development of downstream photovoltaic power plants. GCL Xinyin, which is cooperating with O&M, built the business model of GCL Group's “Three Tours”.

In August 2015, Chaori Solar, which was on the verge of bankruptcy liquidation, was restructured and renamed as GCL-integrated after reorganization by the GCL Group. It returned to the A-share capital market and became a dark horse in the PV industry. The group made performance pledges to shareholders during the reorganization. After the reorganization, in 2015, the net profit attributable to the owners of the parent company audited in 2016 was no less than 600 million yuan and 800 million yuan respectively.

In 2015, GCL-Integrated achieved a net profit of approximately RMB 626 million attributable to the shareholders of the listed company. However, its performance has continued to weaken since 2016. Affected by the decline in the prices of the components of the industry, its performance commitments have also been stifled.

In recent years, the days of component companies have not been very good. The price of components has dropped from about RMB 3/watt at the beginning of 2017 to about RMB 2.5/watt.

Under the dual pressure of industrial competition superimposing the solar energy legacy issues, the search for another profit growth point is a problem that GCL has integrated for nearly two years.

In January 2017, Zhu Gongshan, chairman of GCL Group, served as the chairman of GCL Integrated, saying that 'the two main businesses will be adjusted' and triggered the external expectations for the company's business development and performance. According to the annual report, 2017 , GCL-Integrated Turnaround achieved a net profit increase of 188.63% to 23.58 million yuan, but net profit after deductions fell 123.59% year-on-year, a loss of 170 million yuan.

In the newly disclosed 2018 quarterly report, GCL-Integrated the first-quarter earnings loss was relatively large, mainly due to the 'slight decline in gross profit margin due to the continuous decline in the prices of component products'. In the first quarter, GCL-integrated revenue decreased by 18.38% year-on-year to 20.21%. Billion; Net profit decreased 16.91% year-on-year to a loss of 147 million yuan.

In addition, GCL-Integrated expectations for the first half of this year's performance are not optimistic. It is expected that the company will lose a maximum of 100 million yuan.

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