The market channel capability is outstanding and has been surpassed before going into production

The Hongxin New Energy Photovoltaic Project is a provincial key project in Yunnan Province and the first high-efficiency photovoltaic silicon wafer production project in Dali Prefecture. The total planned land area of the project is approximately 579 mu, with a total planned annual production capacity of 10GW of high-efficiency N-type monocrystalline silicon rods and wafers. After the first phase of the project reaches its full production capacity, it will form an effective production capacity of 3.5GW of high-efficiency monocrystalline silicon wafers. The product can meet the needs of N-type high-end solar cells including Topcon, HJT, IBC, etc.

It is learned that this photovoltaic cell project is equipped with advanced monocrystalline silicon drawing and slicing production lines, full-category washing production lines and comprehensive supporting facilities. Among them, the proportion of large furnace types reaches 100%, and it can make specification changes at any time according to market and customer demands. It can meet the production capacity of 210mm large-sized silicon wafers and be compatible with silicon wafers of various specifications and sizes below 210mm. It has more favorable compatibility and latecomer advantages in the upgrading and replacement of silicon rod/silicon wafer products, and is expected to seize the opportunity of the upgrade of monocrystalline silicon to "M10/G12 large-sized" to form core competitiveness in the large-sized silicon wafer field.

In addition, in order to effectively enhance the consistency of monocrystalline silicon rod product quality and improve the conversion efficiency of batteries, the monocrystalline silicon rod production process of Hongxin New Energy's photovoltaic project adopts the most advanced furnace type in the industry in terms of automation level, which can achieve fully automatic control of monocrystalline growth furnace with one-click crystal pulling. In the future, the mature OCZ technology will be adopted. While reducing manual intervention, it has improved the consistency of product quality and effectively reduced the impurity content in single crystals. Moreover, through thermal field design and process optimization, the oxygen content can be reduced to a lower level, thereby achieving the sufficiently good low-oxygen quality required for high-efficiency photovoltaic products and enhancing the conversion efficiency of the battery.

Meanwhile, in order to enhance the efficiency and quality of silicon wafer cutting and expand the space for cost reduction in slicing, the monocrystalline silicon slicing production process of Hongxin New Energy's photovoltaic project adopts the multi-wire cutting technology of diamond wire. The multi-wire cutting technology of diamond wire features high cutting speed, reduced wire consumption, fine wire cutting and thin sheet cutting. It is currently an advanced cutting technology in the industry, which can greatly improve the efficiency and quality of silicon wafer cutting. Moreover, the advantages of thin sheet and fine wire cutting technology have greatly expanded the space for reducing the cost of single crystals.

It is understood that after the completion and commissioning of the Yunnan project of Huamin Co., LTD., the conversion efficiency of the monocrystalline batteries produced by the mass-produced crystal rods will approach 25.3%, and it may become an N-type monocrystalline production base representing the world's advanced technological level.

While having significant advantages in product and process technology, Hongxin New Energy has also made early preparations for the business of silicon material recycling and reuse through its subsidiary Hongxin Dahai, in order to reduce the production cost of silicon wafer products. It is reported that Hongxin Dahai's silicon material recycling and reuse business can sort/magnetic separation, grind, clean, acid wash and pass inspection of the substandard silicon materials that cannot be directly put into the single crystal furnace in the market, and then put them into the polycrystalline ingot casting furnace. After loading, ingot casting, square cutting, testing, cutting, flat grinding and testing, small square ingots of polycrystalline finished products are produced for use in the single crystal furnace. Provide supporting monocrystalline raw materials for Hongxin New Energy's monocrystalline business, achieve the recycling and reuse of silicon materials, ensure the stable supply of raw materials for the monocrystalline business, effectively reduce the cost of monocrystalline silicon wafers, and enhance the market competitiveness of monocrystalline silicon wafer products. Some insiders disclosed that its silicon material purification capacity is at the leading level in the industry.

Another point worth noting is that Huamin Co., Ltd. has an extremely outstanding market channel capability. Before the official production this time, Huamin Co., Ltd. had already won the first batch of billion-yuan orders after its transformation into the photovoltaic industry. At the production launch ceremony site, strategic cooperation signing ceremonies were initiated with Hunan Hongtaiyang New Energy Technology Co., LTD., Anhui Huasheng New Materials Co., LTD., Anhui Xuhe Technology New Energy Co., LTD., Zhejiang Pengzhan New Energy Technology Co., LTD., and Hunan Lixin Silicon Materials Technology Co., LTD.

In the announcement disclosed by Huamin Co., Ltd. on December 28th, it was also mentioned that Hongxin New Energy signed a procurement framework agreement with Huasheng New Materials and Pengzhan New Energy. Among them, Huasheng New Materials plans to purchase 1,512 tons of monocrystalline silicon rods from Hongxin New Energy throughout the year, and Pengzhan New Energy plans to purchase 50 million monocrystalline silicon wafers throughout the year. It is estimated that the total amount of a single contract will exceed 100% of Huamin Co., LTD. 's latest audited main business income of 139 million yuan, and the amount will exceed 200 million yuan. The two orders are expected to bring in more than 400 million yuan in revenue in the future.

Xia Yu, the executive vice president of Huamin Co., LTD., previously stated: "Currently, it is mainly the production capacity that restricts the company's order volume. Subsequently, as the production capacity gradually increases, the company will continue to expand more orders from major clients." As for the future strategic development plan of Huamin Co., LTD., Xia Yu stated, "The Yunnan project of Hongxin New Energy is the first step the company has taken. In the future, in addition to continuously strengthening professional capabilities in the crystal pulling and slicing stage and effectively amplifying the latecomer advantage, the company will also actively activate application-end resources, strive to connect the upstream and downstream of the industrial chain, and conduct beneficial explorations at the right time."

Against the backdrop of the industry's high prosperity, Huamin Co., LTD., which has a good hand of cards on the table at this time, has a significant late-mover advantage and is expected to continue to benefit from the current wave of industrial upgrading of "large-sized + N-type silicon wafers", and even have the opportunity to overtake on a curve. Huaxin Securities is also optimistic about the boosting effect of Huamin Co., LTD. 's current transformation into the photovoltaic sector on its performance, stating that considering the company's new silicon wafer production capacity will be gradually put into operation in the future.