On February 26, HZFS Applied Materials Co., Ltd. announced that the company decided to invest in 500 million square meters of photovoltaic film projects through self-raised funds. The total investment of this project is about 1.603 billion yuan.
The announcement shows that in this project: land and plant investment is about 666 million yuan, equipment investment and other ancillary facilities are about 788 million yuan, supporting liquidity and unforeseen expenses are 150 million yuan. The project construction period is 4 years. At present, the project is in the preparatory stage.
In terms of specific production products, the project will include 250 million square meters of POE film and 250 million square meters of EVA film.
The project will be implemented by HZFS Chuzhou New Materials Co., Ltd. a wholly-owned subsidiary registered by Foster in November 2019. HZFS ( Chuzhou) has a registered capital of 50 million yuan, and its business scope includes the production and sales of solar cell films and solar cell backsheets. As of now, the total assets of HZFS Chuzhou are 15.9614 million yuan.
HZFS said that the company is a global leader in the field of photovoltaic packaging. Among them, photovoltaic film products occupy more than 50% of the global market share. The successful implementation of the above projects will further expand the company's production capacity and meet the development needs of the photovoltaic industry. Enhance the company's supporting capabilities, optimize the company's product structure, increase the company's photovoltaic packaging film products' added value and core competitiveness, and improve the company's economic benefits. At the same time, the successful implementation of the project will ensure that the company's photovoltaic packaging film has the technology and scale The market advantage further strengthens the company's leading position in the global photovoltaic packaging field.
In addition, the investment and construction of this project may put pressure on the company's cash flow.
It is worth noting that in December 2019, HZFS has successfully issued 1.1 billion yuan of convertible bonds, of which 800 million yuan of proceeds are intended to be used for the construction of 250 million square meters of white EVA film technology transformation project and annual output 2 100 million square meters of POE packaging film project. Therefore, this project investment can be seen as Foster's further expansion of the company's photovoltaic film production capacity.
In this regard, Dongfang Securities stated that photovoltaic film is an indispensable material for photovoltaic module packaging. Although there are dozens of solar cell technology routes, they are basically inseparable from the protection of the film; at present, full-scale photovoltaic access to the Internet is about to be achieved, and the future There is still room for growth of around 10 times the global new installed capacity, and the industry's future output value space is basically synchronized with the new installed capacity.
HZFS was established in 2003 with a registered capital of 522.6 million yuan. It is a high-tech enterprise focusing on the development, production and sales of new materials. The company has a number of subsidiaries in Zhejiang, Jiangsu, Hong Kong, Thailand and other places, which are engaged in the R & D and production of new materials such as photovoltaics, electronic circuits, lithium batteries, international trade, and intelligent equipment.
In the first three quarters of 2019, HZFS realized operating income of approximately 4.591 billion yuan, an increase of 34.6% year-on-year. Net profit attributable to shareholders of listed companies was approximately 592 million yuan, an increase of 70.8% year-on-year. Among them, the sales of photovoltaic film business Q3 was 190 million square meters, a year-on-year increase of 21.9% and a year-on-year increase of 30.2%.