At present, the high-purity crystalline silicon production capacity of Yongxiang Co., Ltd., a subsidiary of Tongwei Co., Ltd., exceeds 900,000 tons, and Daqo Energy has formed an annual polysilicon production capacity of 305,000 tons, with a total production capacity of more than 1.2 million tons.

On the evening of December 24, Tongwei (600438. SH), Daqo Energy (688303. In order to actively respond to the spirit of the Central Economic Work Conference and eliminate the vicious competition of "involution", the two polysilicon companies will reduce production in an orderly manner.

According to the official WeChat news of Tongwei Co., Ltd., the company gradually arranged four high-purity crystalline silicon production companies under Yongxiang Co., Ltd., Yunnan Tongwei High-Purity Crystalline Silicon Co., Ltd., Sichuan Yongxiang Polysilicon Co., Ltd., Sichuan Yongxiang New Energy Co., Ltd., and Sichuan Yongxiang Energy Technology Co., Ltd., to carry out technical transformation and maintenance work according to the company's overall production and operation plan, reduce production and control production in a phased and orderly manner, and the follow-up specific resumption arrangements will be planned according to the changes in power prices and market conditions in the project area.

Tongwei said: "This technical overhaul and production reduction will help the company reduce the operating loss of high-purity crystalline silicon business in the current market environment, and is expected to have a positive impact on the company's overall production, operation and profit." ”

Tongwei Co., Ltd. also announced this evening that the company will conduct a comprehensive and systematic investigation and maintenance of the production equipment of the production base involved during the shutdown and maintenance, and carry out some technical transformation work, and at the same time coordinate and organize technical training for employees of relevant production bases, so as to continue to maintain and enhance the company's high-purity crystalline silicon project in the industry's leading competitiveness.

According to the announcement information released by Daqo Energy's official micro account tonight, in order to strictly implement the spirit of the Central Economic Work Conference, standardize the behavior of enterprises themselves, prevent "involution" vicious competition, and promote the healthy and sustainable development of the photovoltaic industry, the company will gradually start the phased maintenance of high-purity polysilicon production lines in Xinjiang and Inner Mongolia production bases, and orderly reduce and control production of some production lines.

Talking about the possible impact of production reduction and production control, Daqo Energy said that the production reduction and maintenance work will lead to a reduction in the effective production capacity of the company's high-purity polysilicon, and the production and sales of the company's main line products will be reduced accordingly. "From an overall point of view, the production reduction and maintenance work will help reduce operating costs and reduce the company's operating losses while improving the future stability and product quality of the production equipment, so it is expected that the production reduction and maintenance will not have a significant impact on the company's production and operation."

Daqo Energy also said that during the production reduction and maintenance, the company will carry out systematic and comprehensive investigation and maintenance of the production equipment involved, and carry out some technical transformation work in a timely manner, and the company will coordinate and organize relevant employees to carry out vocational counseling and technical training in an orderly manner, so as to continuously enhance the company's leading competitiveness in the industry.

At present, the high-purity crystalline silicon production capacity of Yongxiang Co., Ltd., a subsidiary of Tongwei Co., Ltd., exceeds 900,000 tons, and Daqo Energy has formed an annual polysilicon production capacity of 305,000 tons, with a total production capacity of more than 1.2 million tons.

The first financial reporter learned that the current seller's inventory of polysilicon companies is about 278,000 tons, which is about 2 to 3 months of inventory level. According to industry insiders, polysilicon inventories are expected to gradually decrease from December onwards due to the voluntary production cuts by leading companies and the relatively low utilization rate of most polysilicon producers.

According to the statistics of the China Photovoltaic Industry Association, affected by the contradiction between supply and demand and the mismatch of production capacity, the price of the photovoltaic industry chain will drop significantly in 2024, and the price of polysilicon will fall by more than 35%.