Within the first half of 2022, Risen Vitality’s income and profitability each elevated considerably. The corporate’s income reached RMB12.615 billion (US$1.77 billion), up by 51.29% year-on-year (YoY), and web revenue attributable to its father or mother firm was RMB505 million (US$70.7 million), up by 653.56% YoY.
As of mid-2022, Risen Vitality has 15GW of cell capability and 22.1GW of module capability, unfold throughout its Chinese language websites in Chuzhou, Jintan, Yiwu and Ningbo, plus Malaysia.
On the identical time, its 5GW n-type ultra-low carbon high-efficiency heterojunction cell and 10GW high-efficiency module tasks in Ninghai have additionally entered the development section, and are anticipated to begin manufacturing in April 2023.
In September, Risen was granted a RMB5 billion (US$700 million) non-public placement, to help an acceleration in development of its n-type capability amenities.
Following the publication of its Q1 report, Risen’s president Solar Yuemao sat down with PV Tech to debate a spread of subjects, together with structural modifications within the firm, provide chain methods and new cell applied sciences. At the moment, Risen had simply undergone a sequence of inner modifications, whereas additionally saying a number of areas of accomplishment.
The next dialogue from the interview has been edited for publication functions.
Behind Risen Vitality’s structural modifications
PV Tech: Did Risen Vitality’s H1 efficiency meet administration’s expectations? What did you discover most satisfying about it?
Solar Yuemao: Sure, the efficiency lived as much as our expectations, however we’ve to maintain going. Initially, we’ve managed to manage our prices throughout the board, reaching a very good stage within the business. Secondly, we’ve additional adjusted our organisational construction, organising a number of new administration platforms, strengthening collaboration amongst departments and enhancing our operational and product technique.
PV Tech: What particular efforts do you assume contributed to the corporate’s achievements?
Solar Yuemao: For over a 12 months of inner change and adjustment, the entire staff labored extraordinarily arduous. We’ve additionally additional strengthened areas resembling course of administration and it is a self-discipline through which we should proceed to do effectively.
PV Tech: One 12 months in the past, Risen Vitality applied an inner transformation technique. What do you assume the affect of this transformation has been on the corporate? What has been the most important change to date?
Solar Yuemao: The very first thing is that our administration prices have been considerably diminished in areas resembling communication, danger prevention, pricing mechanisms, revenue forecasting and company capital management prices. The second includes decision-making mechanisms, the place we’ve adjusted the organisational platform. For instance, there are actually dialogue platforms for merchandise, expertise analysis and improvement, expertise retention, coaching and high quality administration. Our provide chain has additionally modified rather a lot, with some beneficial changes previously 12 months.
Going ahead, we’ll proceed to make particular evaluation based on the scenario of the business. Based mostly on this, we’ll make choices to keep away from exterior fluctuations impacting the corporate. For instance, we’ll undertake some hedging and safety mechanisms to make sure the steadiness of our earnings.
The PV business has modified quickly, particularly in recent times. By means of this adjustment, our decision-making mechanism is extra well-rounded, and we will adapt to exterior modifications extra shortly. It’s then simpler for us to discover a basis to make sure the survival of the corporate and keep away from dangers which will happen because of speedy improvement. The reforms have additionally had a major affect on the corporate’s tradition.
In contrast with final 12 months, Risen Vitality’s scale and quantity have elevated roughly two-fold. Though there may be nonetheless a niche in contrast with the highest corporations, our development charge actually displays an enchancment in our complete operational system.
Provide chain technique and dangers
PV Tech: Final 12 months, costs within the PV business fluctuated massively and this 12 months the value of silicon remains to be rising sharply. We’ve seen that Risen Vitality is dealing with these challenges higher than earlier than. What strategic modifications have been made? What do you consider the availability and demand drawback inside the silicon sector?
Solar Yuemao: Polysilicon is a posh scenario. There may be the market issue. Cooperation can be crucial. However the underlying drawback remains to be provide and demand, which incorporates a number of hyperlinks upstream of the silicon wafer sector – for instance, uncooked supplies, ingot pulling and slicing. A mismatch between provide and demand in any of the hyperlinks will seemingly trigger fluctuation within the pricing of uncooked supplies.
We’ve taken a number of measures to mitigate these challenges. Firstly, we now have our personal upstream silicon facility, giving us a level of management over uncooked supplies. Secondly, our evaluation of the entire business may be very detailed, together with operation charge, potential future launch of latest development capability and spontaneous components which will trigger momentary modifications, resembling energy failure. We’ll undertake particular countermeasures, that are after all short-term. Once we discover that some capability launch or momentary components might trigger modifications to general provide and demand, we’ll alter the stock, both growing or lowering it, which can defend earnings. We’ll undertake totally different measures for brief and mid-term conditions.
PV Tech: The photo voltaic business is more and more signing extra long-term orders for silicon supplies following the latest provide challenges. Does Risen Vitality have extra mid-to-long-term or short-term plans?
Solar Yuemao: It’s arduous to quantify them, however we’ve each mid-to-long-term plans and short-term plans. The short-term mechanism is extra handy. We’ll dynamically examine and analyse the essential scenario within the business. That is comparatively easy. Nevertheless, in the long term, there will likely be many variables affecting the long run, together with manufacturing capability launch, de-globalisation and abroad restrictions. We’ll take all these under consideration as a substitute of simply taking a normal view.
PV Tech: Will Risen Vitality additional increase its upstream operations?
Solar Yuemao: Our present plan for the uncooked materials sector includes a 200,000 tonne silicon metallic venture in Interior Mongolia, which is being pushed ahead with the help of the federal government. After all, we’ll take into account different options based on the scenario, together with a possible abroad facility.
Standing by HJT
PV Tech: Along with upstream and abroad amenities, what different plans are on Risen Vitality’s radar?
Solar Yuemao: Our future positioning is to be a number one firm specializing in HJT expertise. At current, our HJT merchandise have entered a comparatively mature stage with precise tasks occurring. They’ve been formally put into manufacturing.
We’ve additionally entered the ultimate stage for our self-developed gear and supplies. We’ve nice confidence in our HJT merchandise, together with the expertise used, LCOE and preliminary funding prices. We imagine that our HJT merchandise will likely be effectively developed within the subsequent 12 months.
PV Tech: You simply talked about HJT. At current, quite a lot of corporations have their very own concentrate on subsequent technology n-type expertise. In your view, what are some great benefits of HJT?
Solar Yuemao: Prior to now 12 months, I used to be primarily in command of our staff’s HJT R&D. We focused the weakest factors of HJT expertise and got here up with options. To this point, we’ve overcome all issues, together with the associated fee points I discussed earlier. Our most vital achievement is that we’ve now entered a stage the place we’re able to mass manufacturing, which is a good assist in lowering prices and our carbon footprint.
We’ve additionally modified our module welding expertise by means of changes carried out with our gear suppliers. We’ve now entered a mature stage for mass manufacturing and are additionally working with a fabric provider on in-depth analysis and improvement, which is delivering optimistic outcomes. In brief, I believe that HJT has appreciable benefits for future purposes.
From 2020 to 2021, Risen was in a number one place within the business for HJT output. Now, we’re making ready for mass manufacturing, together with enhancing some earlier merchandise and finishing up reliability exams, all of which can allow us to have gigawatt ranges of manufacturing when the venture is accomplished.
PV Tech: Risen has already shipped some HJT merchandise to abroad tasks this 12 months. Are you able to go into the gross sales and cargo efficiency of the corporate’s HJT modules?
Solar Yuemao: Beforehand, manufacturing was not giant so the cargo quantity was minimal. Nevertheless, many shoppers have expressed explicit curiosity in our HJT merchandise. We’ve labored with some key clients on our current manufacturing capability. The suggestions was optimistic, however we have been working out of provide. We’re very assured of our mass manufacturing capabilities sooner or later and can launch capability as quickly as attainable. Our key manufacturing bases are additionally effectively below method with the assistance of the federal government. We count on a giant capability launch, actually the biggest within the business, and this may happen subsequent 12 months.
PV Tech: Now that October is right here, what would be the focus for Risen for the remainder of the 12 months? What are the corporate’s expectations for this and subsequent 12 months?
Solar Yuemao: I believe subsequent 12 months will likely be a giant 12 months for us. With a gradual enchancment in funding help, HJT will present a bonus and we’ll proceed to restructure ourselves internally. Transformation doesn’t occur in a single day, in any case.
There will likely be some challenges, as worldwide politics and the financial scenario are consistently altering, however my confidence comes from the progress of the entire firm previously 12 months. Our arrange for subsequent 12 months is prepared, together with expertise, manufacturing capability and merchandise, and we’ll observe our present schedule till we’re able to our large strikes subsequent 12 months.
PV Tech: Are you able to be particular about what you’ll be able to obtain?
Solar Yuemao: Our future capability will likely be dominated by HJT merchandise. We’ll go all out for extra capability and rating for subsequent 12 months, ideally high 5.
We’ve extra modifications to make when it comes to earnings than we’ve now, and we’re additionally making additional changes to our product strengths and market evaluation. With aggressive merchandise and efficient advertising and marketing and gross sales methods, we’re assured that we will stay worthwhile, even within the face of provide chain instability and market modifications.
PV Tech: The hole between the highest 4 corporations and the remaining has regularly widened when it comes to each capability quantity and module cargo scale. How is Risen planning to reply?
Solar Yuemao: I believe each firm has its personal traits. After the restructure, our basis is changing into extra stable. I’ve additionally labored in two of the superb corporations you have got talked about. When the general basis is stable, I imagine that velocity of enlargement could be maintained. After all, it is not going to be a easy enlargement of manufacturing, however the premise is that we should have glorious merchandise.
Our HJT and metal body modules have entered a mature stage. Going ahead, with the suitable merchandise, clear administration choices and provide chain methods, in addition to an acceptable response to worldwide traits, we will scale back the dangers. We are actually extra acknowledged within the capital market and, with important funding, we’ll develop quickly and meet up with the market share of the highest 4 corporations.
PV Tech: The talk about n-type HJT and TOPCon expertise remains to be fairly fierce within the business. How do you view the competitors between the 2?
Solar Yuemao: TOPCon is an prolonged product, which shares the identical lineage with the mono PERC sequence. HJT, then again, has a very totally different technical route, with benefits when it comes to value and low carbon emissions and potential for additional enhancement.
HJT has benefits in energy with excellent future potential. As well as, in some components of the world we will obtain a discount of seven% in LCOE, primarily based on exact calculation of latitude, temperature and associated parameters. I believe that, for a lot of international locations and areas, particularly these prioritising vitality safety, it’s a very enticing proposition.
Every expertise has its personal traits and we at all times purpose to offer our clients with a cheap product. Particularly now, below the present worldwide financial development and within the face of rising international rates of interest, they pay lots of consideration to the return on funding of their belongings.
Sooner or later, merchandise will likely be left to market analysis however, primarily based on our complete evaluation, we imagine that HJT will regularly develop into extra advantageous as all hyperlinks of the availability chain mature.