1. Introduction to the Project

1.1 Project background

1.1.1 Project introduction

Photovoltaic glass is a kind of encapsulation material used in photovoltaic modules, and its main function is to protect the cell from moisture and gas oxidation and corrosion of the electrode.

Photovoltaic glass has the characteristics of high strength, high light transmittance and high weather resistance. In order to improve the photoelectric conversion efficiency, crystalline silicon photovoltaic cells require the encapsulated panel glass to have a high light transmittance while protecting the crystalline silicon cell, of which the tempered glass should reach more than 91.5% and the coated glass should reach more than 93.5%. In order to achieve the characteristics of high strength, high light transmittance and high weather resistance in the preparation of photovoltaic glass, it is necessary to use tempering, coating and glaze plating processes. Compared with ordinary glass, photovoltaic glass has lower iron content, higher temperature, stronger light transmittance, impact resistance and corrosion resistance.

1.1.2 Market prospect

(1) Photovoltaic glass industry chain

From the perspective of the industrial chain, the upstream of the photovoltaic glass industry chain includes raw materials and fuel power, of which raw materials mainly refer to the soda ash and quartz sand used in the production of glass, and fuel power includes oil, natural gas, electricity, etc.; Midstream is a manufacturer of photovoltaic glass; The downstream application market is photovoltaic modules, and finally applied to the field of photovoltaic power generation.

Structure diagram of photovoltaic glass industry chain

(2) Photovoltaic glass market prospects

As an indispensable material for photovoltaic modules, photovoltaic glass is closely related to the installed capacity of photovoltaic modules on the demand side. As an important direction of energy structure reform and energy substitution, relevant national departments have successively issued the “14th Five-Year Plan” Renewable Energy Development Plan, the “14th Five-Year Plan” New Energy Storage Development Implementation Plan, and the Notice on Promoting the Coordinated Development of the Photovoltaic Industry Chain and Supply Chain to promote the integrated development of all aspects of photovoltaic power generation, and further improve the certainty of sustainable growth of photovoltaic terminal demand. The data shows that: In 2023, China's new photovoltaic installed capacity was 216.02GW, a year-on-year increase of 147.13%, achieving a doubling leap forward.

In 2024, the photovoltaic industry will show a complex and changeable development trend. Output and installed capacity: According to data from the China Photovoltaic Industry Association, in the first half of 2024, the photovoltaic industry maintained a trend of continued expansion in both the manufacturing and application ends. The output of polysilicon, wafers, cells and modules all increased by more than 32% year-on-year, showing strong production capacity. At the same time, the new domestic photovoltaic installed capacity reached 102.48GW, a year-on-year increase of 30.7%, indicating that the market demand is still strong.

Exports: In terms of exports, domestic exports of silicon wafers, cells and modules also achieved significant growth, with year-on-year growth of 34.5%, 32.1% and 19.7% respectively. This reflects the competitiveness and increased demand for China's photovoltaic products in the international market.

Industrial chain price: In stark contrast to the growth in production and installed capacity, prices in the industrial chain have fallen sharply. In the first half of 2024, domestic polysilicon and wafer prices fell by more than 40%, while cell and module prices fell by more than 15%. This may be due to a combination of factors such as overcapacity, fluctuating demand, and the international trade situation.

Output value of manufacturing end: Affected by the decline in prices in the industrial chain, the output value of domestic photovoltaic manufacturing (excluding inverters) has also declined significantly. In the first half of 2024, the output value was about 538.6 billion yuan, a year-on-year decrease of 36.5%. This reflects the vulnerability of the photovoltaic industry in the face of market challenges.

Policy support: Despite the challenges, the photovoltaic industry is still actively supported by national policies. Taking into account the supporting factors such as the liberalization of the consumption red line to 90%, the acceleration of the construction of large base projects, the acceleration of the construction process of power grids, and the multiple measures to support distributed development, China's new photovoltaic installed capacity is expected to continue to remain high in 2024.

Technological Innovation and Industrial Upgrading: In order to cope with industry challenges and risks, photovoltaic companies need to increase technological innovation and industrial upgrading. Enhance their competitiveness and anti-risk ability by improving product quality, reducing costs, and expanding market channels.

Photovoltaic glass is one of the most important materials for photovoltaic modules. In recent years, with the rapid development of the photovoltaic industry and the further expansion of market demand, related enterprises have introduced foreign advanced technology, vigorously invested in research and development, expanded production lines, realized the localization of photovoltaic glass, and achieved steady growth in photovoltaic glass output.

To sum up, the photovoltaic industry will face a complex and changing market environment and many challenges in 2024. However, with the support of policies and the efforts of enterprises, the industry is still expected to maintain stable growth and usher in broader development prospects. Under the general trend of global low-carbon economy and energy revolution, China's environmental protection policies are becoming stricter, and China has always attached importance to the development of the new energy industry, and has successively introduced a large number of policies to encourage and support the development of the new energy industry. China has put forward the goal of “carbon neutrality and carbon peaking”, and in the future, photovoltaic power generation, as an excellent clean energy, will gradually become the main energy from the current auxiliary energy. The growth of photovoltaic power generation demand will inevitably drive the growth of photovoltaic glass demand.

1.1.3 Technical analysis

Photovoltaic glass products are processed from the original sheet of ultra-white embossed glass. In the original film production line, melting, forming and annealing are the core links, which will affect the quality and yield of the product, and the operation of the kiln will also affect the thermal efficiency of the product. In the finished product production line, the product enters the deep processing process, edging, cleaning, coating, and tempering are the core links, the coating makes the photovoltaic glass have better light transmittance, and the tempering makes the photovoltaic glass have higher strength.

In addition to the production of photovoltaic glass, supporting deep processing projects are also an important part of the photovoltaic glass industry. In terms of deep processing, it mainly involves cutting, polishing, punching, coating and other links. Through deep processing, photovoltaic glass can be endowed with more functions, such as improving the photoelectric conversion efficiency and increasing the stability of photovoltaic modules.

The technology and process to be adopted in this project, the project organizer has relatively mature technology, and has reached the level of industrial production.

1.1.4 Advantageous conditions of project construction

(1) Policy advantages

The General Office of the Ministry of Industry and Information Technology, the General Office of the State Administration for Market Regulation, and the General Department of the National Energy Administration jointly issued the Notice on Promoting the Coordinated Development of the Photovoltaic Industry Chain and Supply Chain, pointing out: Local departments in charge of industry, information technology and energy should effectively use the domestic photovoltaic market to guide the upstream and downstream enterprises of the industrial chain to conduct in-depth docking and exchanges. Implement the spirit that new renewable energy and raw material energy are not included in the total energy consumption control, coordinate and promote the construction of photovoltaic stock projects, strengthen the reserve of new projects such as polysilicon, coordinate the handling of procedures, and steadily accelerate the release of production capacity and orderly expansion according to downstream demand. Encourage in-depth cooperation between polysilicon and wafer enterprises, wafer and cell, module and inverter, photovoltaic glass and other enterprises, module manufacturing and power generation investment, and power station construction enterprises, and support enterprises to establish long-term cooperation mechanisms through strategic alliances, long-term orders, technical cooperation, mutual equity participation, etc., so as to guide upstream and downstream to clarify quantity and price, ensure supply, and stabilize expectations.

As an old industrial base in China, Shuangliao has its own silica sand production base to provide raw materials, which is the source of new glass materials and new display glass original technology, and has a good foundation and conditions for the development of photovoltaic glass industry.

The project is in line with the national industrial policy and regional industrial planning, and will have a positive impact on the local economic construction, economic structure and new material engineering. This project is a project supported and encouraged by the national and local governments, and has obvious policy advantages.

(2) Industrial advantages

Shuangliao Jufeng placer mine is known as one of the world's four richest minerals, and the silica content can reach more than 98% after treatment. 41.79 million tons of quartz sand resources for glass have been discovered in the area, including 7.63 million tons of proven resources, 15 million tons of controlled resources and 19.16 million tons of inferred resources. Relying on silica sand resources, Shuangliao City, with two glass giants in China, Jinken Glass and Yingxin Glass, has become the only glass building materials characteristic park in Jilin Province, the largest glass building materials base in northern China, and the siliceous raw material production base planned by the state. It is planned to spend 3 to 5 years cultivating the glass “industrial tree” of Shuangliao and build a glass building materials industrial park with an output value of 10 billion yuan.

(3) Talent advantages

Siping brings together all kinds of talents in scientific research, engineering technology, survey and design, operation and management, consulting services, etc. Jilin University, Changchun University of Science and Technology, Changchun University of Technology, Northeast Normal University, Jilin Academy of Agricultural Sciences, Jilin Normal University, Jilin Provincial College of Agricultural Engineering, Siping Institute of Science and Technology provide talent guarantee for the development of Siping, forming a complete talent training system. Siping has obvious advantages in labor resources, the proportion of skilled workers is at a high level in the Northeast urban agglomeration, the labor force is in the dividend period, the labor cost is relatively low, and there are a large number of high-quality industrial workers, which can meet the employment needs of various enterprises.

(4) Location and transportation advantages

With significant geographical advantages, Shuangliao is located in the central area of Liaoning, Jilin and eastern Inner Mongolia, and has been positioned as the central city and gateway city in the western part of Jilin Province in the “Planning of Urban Agglomeration in Central Jilin Province”. Shuangliao is a transportation hub in the western part of Northeast China and an important material distribution center in Northeast China. There are two railways in the city, namely Shuangliao-Dahushan Railway and Siping-Qiqihar Railway; Daqing-Guangzhou Expressway, Changchun-Shenzhen Expressway, Ji'an-Xilinhot Expressway, Nenjiang-Dandong Expressway, Shuangliao-Baicheng Expressway and other expressways converge in Shuangliao, which is the only city in Jilin Province with multiple expressway nodes and 9 expressway exits; Two national trunk highways: Shenyang-Mingshui Highway and Ji'an-Xilinhot Highway, and G231 Nenjiang–Shuangliao Expressway run through the north and south; The Changchun-Shuangliao provincial trunk highway spans east and west. Shuangliao is a 50-minute drive from Tongliao Airport, and a 150-minute drive from Changchun Longjia International Airport and Shenyang Taoxian International Airport. Shuangliao will be integrated into the Changchun 1-hour economic circle and the Shenyang 2-hour economic circle.

1.2 Contents and scale of project construction

1.2.1 Scale of Construction

An annual output of 40 million square meters of ultra-thin photovoltaic backsheet glass.

1.2.2 Contents of Construction

With an area of 75,000 square meters and a proposed construction area of 42,000 square meters, the project is planned to build production workshops, warehouses, office buildings and supporting facilities; Construction of 2 kilns with a daily melting capacity of 1,200 tons; Purchased 4 ultra-thin photovoltaic backsheet glass deep processing production lines.

1.3 Total investment of the project and capital raising

1.3.1 Total investment of the project

The total investment of this project is 380 million yuan, including the construction investment of 304 million yuan.

1.4 Financial analysis and social evaluation

1.4.1 Main financial indexes

After the project reaches the production capacity, its annual sales income will be 221.45 million yuan, its profit will be 73.1 million yuan, its investment payback period will be 7.2 years (after the tax, including the construction period of 2 years) and its investment profit rate will be 19.2%.

Note: “10 thousand yuan” in the table is in RMB.

1.4.2 Social evaluation

The deep processing of ultra-thin photovoltaic backsheet glass in this project is in line with the requirements of sustainable development strategy and has good application prospects, whether from environmental protection, energy saving, or synthesis of polymer materials with special properties. It further promotes the extension, supplementation and strengthening of the local glass deep processing industry, plays a practical role in enhancing the kinetic energy of the city's glass manufacturing industry, and promotes the glass manufacturing industry in Shuangliao City to enter a new stage of high-end development. At the same time, the project provides a large number of employment opportunities for the local labor force, and the social benefits are significant.

1.5 Cooperative way

Sole proprietorship, joint venture and cooperation.

1.6 What to be invested by the foreign party

Funds, other ways are negotiable.

1.7 Construction site of the project

Shuangliao City.

1.8 Progress of the project

We are attracting foreign investment.

2. Introduction to the Partner

2.1 Basic information

Name: Shuangliao Municipal People's Government

Address: No. 1980, Liaohe Road, Shuangliao City, Siping City

2.2 Overview

Shuangliao City, which is located at the junction of Jilin, Liaoning and Inner Mongolia provinces (areas), and in the border area between the Songliao Plain and the Horqin Grassland, is known as bordering the three provinces. It covers an area of 3,121.2 square kilometers, has a permanent population of 320,000, and has jurisdiction over 18 townships (streets) and 1 provincial-level economic development zone. There are 2 railways and 4 national and provincial trunk lines in the territory, and it is the only node city in Jilin Province with 4 expressways and 9 expressway exits.

The regional transportation is well developed. Shuangliao is a highway and railway transportation hub in the western part of Northeast China. Two railways: Siping-Qiqihar Railway and Dalian-Shaungliao Railway pass. The four expressways of Daqing-Guangzhou, Changchun-Shenzhen, Ji'an-Xilinhot and Nenjiang-Dandong intersect in Shuangliao, which is the only node city in Jilin Province with 4 expressways and 9 high-speed exits.

Resources are abundant. Silica sand resources are hidden for use, and Qikeshu silica sand mine is one of the four largest rich minerals in the world, with reserves of 900 million tons. Relying on silica sand resources, the two major glass giants in China, Jinken Glass and Yingxin Glass, have gathered in Shuangliao, which has become the only glass building materials characteristic park in Jilin Province, the largest glass building materials base in northern China, and the siliceous raw material production base planned by the state in the north.

Agricultural and animal husbandry resources are abundant. Shuangliao, which is located in the world's “golden corn belt”, with a cultivated land area of 2.8 million mu and a stable annual grain output of 3 billion catties of staged level, is the largest livestock distribution center in Jilin, Liaoning and Inner Mongolia provinces. It has been successively named as a national grain producing county, a national commercial grain base county, a national sheep base county, a national lean pig base county, and a national ecological demonstration county.

The supply of electricity and energy is sufficient. Guodian Shuangliao Power Plant is the largest thermal power plant in Jilin Province, with an installed capacity of 2 million kilowatts. Shuangliao is also a county and city rich in wind energy resources in China, and large state-owned enterprises such as Guodian Group, Huaneng Group, Datang Group, and Huadian Group have successively developed and constructed wind power generation projects in our city, with an installed capacity of 400,000 kilowatts. Guohua Energy Investment, China Huaneng Group, Jilin Puhua Yineng, Jilin Zhongneng, Bailun Wind Power and other enterprises are developing and constructing wind power projects of 400,000 kilowatts. At the same time, photovoltaic companies such as Shuangliao Qingda, Changzhou Tianhe, Xinjiang Tbea, and Guangdong Mengshine have invested in the development of photovoltaic projects in our city, and have accumulated 225MW of grid-connected power generation.

Integrated development of culture and tourism. It has been rated as a national safe agricultural machinery demonstration county, a full mechanization demonstration county, an advanced unit of traditional Chinese medicine and a county-level civilized city in the province, and the characteristic culture is integrated into the scenic spot, which is a provincial-level health city, with ecological landscapes such as Shuangliao Yimashu Sandy Forest Park, Baihe Nature Reserve, Qixing Lake Park, Jiashutai Lake Wetland Park, Shuangliao Park, and Bayi Lake.

Shuangliao Economic Development Zone was founded in 2002 and was listed as a provincial-level industrial concentration zone in Jilin Province in 2005. The total planning area of the park is 28 square kilometers, and the planning layout is divided into “one district and four parks”, of which the chemical park was established in October 2012 with the approval of the Provincial Environmental Protection Department, with a planning area of 1.48 square kilometers (1.28 square kilometers in the north area, developing chlor-alkali industry chain clusters; 0.2 square kilometers in the southern area for the development of chemical raw materials), is the development base of the salt chemical industry in our province. In 2022, it was promoted to a provincial-level development zone with the approval of the provincial government, and in the same year, it was rated as the only “onshore scenery and three gorges” green power demonstration park among county-level cities in Jilin Province.

2.3 Contact method

Contact person: Huang Xibo

Tel: +86-13844438112

Contact method of the city (prefecture) where the project is located:

Contact unit: Siping Economic Cooperation Bureau

Contact person: Wen Dacheng

Tel: +86-434-3260536

Email: spjhjjhk@163.com