On April 29, 2024, Tonghe Energy (688599.SH) announced its 2024 annual performance report and its forecast for the first quarter of 2025. The financial report indicated that Tonghe Energy’s revenue for 2024 is expected to be 80.282 billion yuan, reflecting a decrease of 29.20% year-on-year. The net profit is forecasted to be -3.443 billion yuan, a significant drop of 162.25%. Moreover, the first quarter of 2025 is projected to show a net loss of -1.32 billion yuan.
According to the company’s spokesperson, this year’s operational focus for Tonghe Energy will be on the downstream application market. In early 2025, Tonghe Energy is set to launch a new product series aimed at enhancing its competitive edge in the industry. This initiative involves setting up a comprehensive strategy to improve supply chain efficiency and reduce operational costs. By 2024, the company anticipates that its service-oriented business will generate revenue of around 20 billion yuan, accounting for approximately 25% of its total income, with a strong potential for growth.
In February of this year, the State Development and Reform Commission, along with the National Energy Administration, released the 136 Document, which primarily addresses the need for and distribution of electricity in the new energy sector, focusing on renewable energy sources such as solar and wind power. This document aims to promote the efficient use of clean energy and facilitate the transition towards low-carbon energy solutions.
Additionally, Tonghe Energy aims to increase its production capacity significantly, projecting a total capacity of 135 GW by 2024, with a design capacity already reaching 120 GW. However, the company faces challenges due to fluctuating material costs and competitive pricing pressures within the market.
In 2021, the pricing of energy sources saw a reduction, with significant price drops for various materials expected to continue into 2024. According to estimates, the prices of polysilicon, lithium batteries, and other essential components are projected to decline by 39%, 50%, and 30% respectively.
Looking ahead, Tonghe Energy plans to expand its market reach and enhance its production capabilities. By May 2024, it aims to ramp up its operational capacity to 120 GW. The company is also focusing on improving its service offerings and customer engagement strategies to address the evolving demands of the energy market.
In conclusion, Tonghe Energy is poised for significant growth and transformation in the coming years, with strategic initiatives designed to enhance its operational efficiency and market presence in the renewable energy sector.
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