On September 23, JinkoSolar announced its second quarter 2020 financial report. So far, the half-year shipment transcripts of TOP10 component companies have been published. From the perspective of component shipments, the 10 companies are clearly divided into four camps.
Among them, the first camp is led by Jinko and Longi. After winning the annual shipment champion for four consecutive years, JinkoSolar still tops the list with 7.8GW. However, Longi’s strength as a rising star in the component field cannot be underestimated. In the first half of 2019 Compared with shipments, Longi’s half-year shipments have doubled.
In addition, from the perspective of the whole year, Jinko and Longi are also comparable competitors. The annual shipment targets of the two are both aimed at 20GW, and the final contest may only be between a few cents.
Following the two companies is the second camp represented by Trina, JA Solar, and Canadian Solar. The semi-annual shipments of these three companies fall between 5-6GW. Obviously, after returning to the A-share market, Trina Solar and JA Solar have increased their investment in both expansion and domestic sales.
In this year’s competition for centralized procurement of components from central enterprises, JA Solar ranked second after LONGi with a scale of 5.2GW. Trina Solar, which had rarely participated in the centralized procurement of domestic central enterprises before, also recruited on a large scale this year, and won an order of 2.64GW.
Compared with Trina and JA Solar, Canadian Solar’s domestic competitive strength is slightly inferior, but this is also closely related to its business layout. It is understood that Canadian Solar’s annual domestic production capacity arrangement is only about 1GW, which is more The shipments come from overseas orders.
In addition to Jinko and Longi, there is only one seat left in the TOP 3 echelon for the three to compete. From the perspective of the compactness of the shipments of the three, the future PK of the second camp will also be brilliant.
The actual shipments of Hanwha and Risen Energy, located in the sixth and seventh positions, may only be between a few megawatts-because they have not obtained public financial data from Hanwha, their shipments are disclosed by insiders.
Risen Energy, which has been working hard since last year, has achieved results in 2020 for all to see. In the domestic component procurement, Risen Energy has won orders for a total of 2.5GW from SPIC, Three Gorges, and China National Nuclear Corporation; overseas, it has also successively won large orders in many markets such as Australia and Europe.
Although there is still a distance from the first-tier echelon, for Dongfang Risheng, the opponent Hanwha in the same camp is not out of reach. However, as one of the only foreign companies in the top 10 component companies, Hanwha has been stable at 6-7 for many years, which indirectly proves that this foreign component company has incomparable advantages.
The last camp is the 2GW echelon led by Chint. In fact, the dominant markets of Chint and Suntech are more concentrated overseas. But judging from the situation this year, the two companies have also begun to focus on competition in the domestic market.
In the first half of the year’s centralized procurement, Chint won some orders from SPIC and Huadian. In this year’s supply chain crisis, Chint, relying on its strength in multiple fields, may have a certain right to speak in procurement. In addition, photovoltaics learned that Suntech has also won module orders from some central enterprises and local state-owned enterprises in China.
In addition, the competition in the component market in 2020 also reflects a particularly clear trend-the concentration of component orders is becoming more concentrated. First of all, compared with 2019, the number of participating companies in the centralized procurement of central SOE components decreased by about 10 this year. At the same time, the concentration of winning bidders is also very obvious. Longi, JA, Yijing, Trina, and Risen Energy have won 20GW of orders, accounting for more than 80%.
Secondly, in the competition in overseas markets, the influence of corporate brands has become more and more prominent. Except for some projects with relatively fixed partnerships, most projects will give priority to first-line brand cooperation.
In fact, in addition to shipments, the battle for head component companies is also reflected in the scale of capacity expansion-especially in the current size melee. There is no doubt that high-power products are more popular in the market, and they need to rely on new Capacity for production. According to the plan, Longi’s module production capacity will reach 50GW by the end of this year, and its module shipment target for 2021 is set at 45GW; in TRW’s plan, by the end of 2021, module production capacity will be 50GW, and its goal is to compete for the top two By the end of 2020, Jinko’s and JA Solar’s module production capacity will reach 25 and 23 GW respectively. By 2021, only the TOP 5 module production capacity will exceed 200 GW.
Yesterday Jinko announced that it would split its business into the Science and Technology Innovation Board. Together with Canadian Solar, which has been operating before, all domestic head component companies will soon return to A shares. So far, whether it is the first camp’s contention or the market share of Pk, the component rivers and lakes are about to set off another bloody storm.