On May 6, Dongfang Risheng, the leading A-share photovoltaic enterprise, announced that the company planned to acquire 100% of the equity of Jiangsu Jiujiujiu Technology Co., Ltd. held by Bikang Pharmaceutical Co., Ltd. In principle, the transfer price shall not be less than 2.6 billion yuan, and the final transfer price shall be determined by both parties through negotiation based on the evaluation results.
According to the announcement, Dongfang Risheng is committed to building core competitive advantages in the field of new energy and new materials through both endogenous growth and extensional development, and finally achieving the company’s two new strategic planning objectives of “new energy and new materials”; If the relevant contents of this framework agreement are implemented, it is expected to improve the industrial chain layout of the company’s new energy storage sector, enrich the core product categories of new materials, enhance the company’s market share in the field of new energy and new materials, increase the company’s profit growth point, have a positive impact on the company’s performance, and meet the company’s development needs and long-term planning.
As for the reason why Dongfang Risheng took over Jiujiu Technology, a subsidiary of Bikang Pharmaceutical, the company said that it had nothing to do with the rapid development of Jiujiu Technology in the fields of new energy and new materials in recent years. According to the public information, the main products of Jiujiujiu Technology are lithium hexafluorophosphate and high-strength high-modulus polyethylene fiber, of which the new material sector with high-strength high-modulus polyethylene fiber as the main product achieved an operating income of 227 million yuan in 2017, a year-on-year increase of 61.46%. In the field of new materials, Jiujiujiu Technology has profound technology accumulation and strong scale advantages. With the production of 6800 tons/year capacity expansion project, the future Jiujiu Technology’s high strength and high modulus polyethylene fiber capacity will be close to 10000 tons, ranking the forefront of the industry.
Before acquiring Jiujiujiu Technology, Dongfang Risheng has vigorously promoted the development of energy storage business. According to the 2017 annual report released by the company, at present, Oriental Risheng has carried out commercial applications in “optical storage”, “optical storage and charging” integrated solutions, smart microgrid solutions, etc. In the future, Dongfang Risheng will also promote the multi-form disposal of existing photovoltaic power stations and improve the efficiency of the use of the power station construction funds. At the same time, the company will gradually realize the horizontal and vertical extension and layout of new materials and new energy business through technology research and development, talent introduction and resource integration, implement the strategic concept of “ten billion daily rise, world daily rise, and hundred year daily rise”, and promote the realization of “two new strategies”.
In recent years, household PV, which has occupied half of the PV market, has also brought opportunities for the development of China’s energy storage market. Due to the intermittence and instability of wind, light and other new energy, the rapid development and application of renewable energy power generation are hindered. Therefore, if the energy storage system is applied to photovoltaic power generation, this problem can be largely changed.
Yang Yusheng, an academician of the CAE Member, recently pointed out that China should vigorously develop small-scale photovoltaic power generation. He pointed out that the small “PV+energy storage” application system should not be concentrated in the northwest, but should be built next to the users, so that the long-distance transmission lines and line losses can be avoided, and the wind power – photovoltaic – energy storage micro-grid can be built in it, which can also complement the large grid. In residential areas, in addition to using the roof, the wall can also be used to develop household photovoltaic energy storage system. This also indicates that a new pattern of “PV+energy storage” application is about to open.
Some insiders also pointed out that from the perspective of energy storage cost trend, the energy storage cost has been declining in the past two years. In 2017, the cost of energy storage per megawatt hour was 2 million yuan, and by 2020 this figure will be close to 1.5 million yuan. In the face of this promising photovoltaic energy storage market, Dongfang Risheng has formulated a more ambitious plan. Wang Hong, the president of the company, said that by 2026, the group is expected to achieve revenue of 50 billion yuan, build an influential global smart energy platform operator service provider, and realize the simultaneous development of photovoltaic, energy storage, new materials, and smart home.