3q’2010 business performance - gcl-polywafer expansion progressing on-schedule 7 production...
TRANSCRIPT
18th October 2010
3Q’2010 Business Performance
2
Content
Solar Business Performance
Power Business Performance
3
Solar Business-Key Operating Data
51.7
3,405
25.4
892
63.4
38.7
Q3 2010Q2 2009
1,686
61.9
39.8
Q3 2009
2,072
54.7
36.4
Q4 2009
2,584
31
50.0
35.0
Q1 2010
2,810
198
50.0
31.5
Q2 2010
Wafer Sales (MW)
Polysilicon Sales (MT)
Polysilicon ASP (US$/kg)
Polysilicon production
cost(US$/kg)
0.74 0.80Wafer ASP (US$/W)
0.63 0.57Wafer production cost
(US$/W)
435
0.80
0.58
4
Continued Ramp Up of Polysilicon
Production Volume
4
MT
Polysilicon Production
Proven Capability to Reduce Polysilicon
Production Cost
Note
Translated into $ at the average exchange rate for the period
5
Polysilicon Production Cost
per kg
$48.5
% of TCS Produced In-house
$38.7
$39.8
$35.0$36.4
$31.5
$25.4
6
Polysilicon Production Process Enhancement
Technical
Improvement
Initiatives
• Increased annual hydrochlorination capacity from 300,000
MT to 500,000 MT
• Deposition process improvement
• Upgrading of distillation technologies
Results
• Cost of producing TCS in-house significantly lower than
purchasing from third party suppliers
• High-quality N-type resistivity of 200~500 Ω*cm and
continuously improving
• Started producing electronic grade polysilicon in 1Q’2010
(average 11’Ns)
• Energy consumption rate at industry leading levels
• Monthly production volume more than 1,700 MT
• Production cost down from US$48.5/kg in 1Q’2009 to
US$25.4/kg in 3Q’2010
• Average conversion efficiency of 17% using in-house
polysilicon
Wafer Expansion Progressing On-Schedule
7
Production
Capacity of
Four Wafer Plants
Wuxi Konka 1020 MW
GCL Xuzhou 650 MW
GCL Suzhou 300 MW
GCL Changzhou 300 MW
Production
Capacity
and Strategy
Fast ramp-up capabilities: started production in
1Q’2010 and target 3.5GW of production capacity by
end of 2010
Seamless integration with customers’ supply chain is
a unique business model: co-location strategy at key
clients’ sites well on track and can satisfy customers’
requirements
Continues quality and cost improvement initiatives
For the period ended 30th September 2010
Target Wafer Capacity by End of 2010
8
Target Wafer Capacity by End of 2010
3,200
300
650
600
1,650
600
0 500 1,000 1,500 2,000 2,500 3,000
Xuzhou
Changzhou
Wuxi
Suzhou
Slicing Ingot
9
Competitive Advantages from Co-Location Strategy
Co-location strategy involves
manufacturing close to key
customers’ manufacturing sites
• Strategic partnership with
leading cell and module
manufacturers to further
capture market share
• Instant customer feedback
on quality
• Provide quality assurance
to customers
• Minimize breakage rate
• Minimize transportation and
packaging costs
• Customer inventory
reduction
represents GCL-Poly’s wafer facilities
10
Technology + Quality
Technology
Use most up-to-date equipment from leadingequipment suppliers to lower production cycletime from 60 hours to 48 hours
Expand crucible volume to increase output
Increase R&D investment in slicing wire, crucibleand slurry recovery technologies to enhanceproduction efficiency
Quality Average conversion efficiency over 17% (Multi)
Our Competitive Edges Leading to Market Dominance
11
Build up mutual trust
and confidence
with customers
Symbiotic partnership with
downstream customers to
winning bigger share of the
growing solar market
Division of labor in
manufacturing between
GCL-Poly and
downstream customers
− The largest solar raw materials supplier in the world
− Co-location strategies leading to seamless integration with downstream customers’ supply chain
− Strong R&D team and technical innovation capabilities
− High quality products
− Able to ramp up capacity rapidly and effectively
12
Key Financial Results of the Power Business
3,580,159
5,090,342
11.7%
First Three Quarters Ended
30th September 2010
Power Sales (MWh)
Steam Sales (MT)
Gross Margin
3,929,057
4,030,895
15.9%
First Three Quarters Ended
30th September 2009
13
THANK YOU!