China Zhongji Investment completed a targeted investment in "Zhonghuan Shares"
Recently, China Zhongji Investment completed a targeted investment in Tianjin Zhonghuan Semiconductor Co., Ltd. (stock abbreviation: Zhonghuan Shares, code: 002129). The company possesses a unique dual industrial chain encompassing energy-saving semiconductor devices and high-efficiency photovoltaic power stations, starting with silicon wafers as its foundation and extending vertically in the semiconductor and new energy manufacturing fields. Its main products include solar energy materials, power stations, semiconductor materials, and devices.
The company's monocrystalline silicon wafer shipments rank first globally. It is the world's largest manufacturer and supplier of high-efficiency N-type photovoltaic-grade monocrystalline silicon wafers and the world's largest supplier of high-efficiency shingled modules. Leveraging its expertise in semiconductor material manufacturing, the company launched the "Kua Fu" series of 210mm silicon wafer platform products, triggering a large-size revolution in the industry. The 210 large silicon wafers effectively reduce the BOS and LCOE of photovoltaic power stations, improving profitability and contributing to grid parity. In February 2021, the company announced plans for a 50GW annual production capacity 210mm silicon wafer project in Yinchuan, Ningxia. This is one of the world's largest single-crystal projects to date, aiming for production in 2022, and the company's large-size production capacity is expected to be rapidly released.
The company's market sales of semiconductor float-zone monocrystalline silicon wafers rank first nationally and third globally; integrated circuit silicon wafers rank first nationally and seventh globally. The company has been using the float-zone method to manufacture 8-inch silicon wafers since 2008 and has mature supply capabilities, becoming a leading global supplier. The company's 8-inch and 12-inch semiconductor silicon wafer production capacity will be concentratedly released from 2021 to 2023, and the company's semiconductor material production capacity structure will continue to be optimized.
In September 2020, the company's mixed-ownership reform was officially completed, and in June 2021, the company released its first equity incentive plan after the reform. Through the mixed-ownership reform, TCL Technology became the controlling shareholder of Zhonghuan Shares. After the reform, TCL Technology will leverage its capital, management advantages, and production-investment synergy capabilities to empower Zhonghuan Shares, accelerating business expansion and the commercialization of technology, enabling sustained and rapid growth in the photovoltaic and semiconductor materials and power semiconductor device fields. Equity incentives are expected to further improve the company's governance structure, ensuring its long-term, stable, and healthy development.
Tan Runzhan, Partner and Managing Director of China Zhongji Investment, stated that with the implementation of the top-level design and action plan for "dual carbon," the path for carbon neutrality and carbon peaking is becoming clearer. By 2030, the proportion of non-fossil energy consumption will reach about 25%, and the total installed capacity of wind and solar power generation will exceed 1.2 billion kilowatts. As a leading silicon wafer company in the photovoltaic and semiconductor industries, Zhonghuan Shares will fully benefit from the strategic development of carbon neutrality and the domestic substitution of semiconductors. In the future, with the release of the company's photovoltaic 210 silicon wafers and semiconductor 8-inch/12-inch silicon wafer production capacity, the company will further consolidate its leading position in the industry, providing stable support for its performance.
