Shenzhen Stock Exchange recently issued a Letter of Attention regarding the Equity Incentive Draft released by solar cell and module producer Akcome Technologies on January 26, questioning their excessive set revenue goals.
According to the Draft, the company planned to grant a total of 18.6426 million shares to the incentive objects, and set the performance evaluation indicators for the four exercise/lifting of restrictions as follows: Based on the company’s operating revenue in 2021, the growth rate of operating revenue in 2022 shall not be less than 200%, that in 2023 is not less than 400%, and that in 2024 is not less than 600%. The growth rate of operating revenue in 2025 shall not be less than 1,000%.
In 2020, the company’s revenue was RMB 3.016 billion, with expected revenue of RMB 2.5 billion to 3 billion in 2021. To meet the performance evaluation indicators, the revenue of this new energy company needs to rise to more than 20 billion or higher in 2025.
In 2020, their revenue down by 41% year-on-year and up by 5.65% year-on-year in 2019. The revenue in 2020 (RMB 3 billion yuan) also decreased compared with RMB 4.852 billion yuan in 2018.
To clarify, the company made an announcement, saying that the sharp decline in revenue from 2018 to 2021 was mainly affected by COVID-19, which limited overseas business development. The underpayment of the power station and bankruptcy and reorganization of the controlling shareholder Akcome Industry led to the deterioration of the company’s financing environment, led to the contraction of the company’s traditional manufacturing business.
In addition, the newly invested cell and module project of the company is in the stage of capacity climbing, resulted in the low profit in 2021. After the sale of the company’s power station and the reorganization, the fundamentals are gradually repaired and the financing environment is improved as a whole, which is expected to achieve excess growth in revenue.
In terms of cell and module business, the company has established four module manufacturing bases in Huzhou, Suzhou, Ganzhou, and Taizhou, which can be compatible with the production of modules of different formats, as well as different cell and module technologies, including perc, heterojunction, half-cut and MBB. In 2025, they will have its own module capacity of 21.4 GW and joint venture capacity of 20 GW, with a total of 41.4 GW.
Currently, Akcome has about 750 GW of old power stations at home and abroad, which may bring key profit due to transformation work.
In 2021, the company achieved sales of about 1 GW of solar cell modules, with an estimated operating revenue of RMB 1.8 billion yuan. Up to now, they have 766.3 MW on hand, and 250 MW potential orders under negotiation in the first quarter. The company is expected to achieve the sales target of 3.8 GW in 2022 and achieve a 200% growth rate of operating revenue.
Trackers, the company’s previous main business, will also create some fortune. In 2021, the tracker installation of the company across the country was 60 GW, which may exceed 330 GW in 2025, bringing Akcome RMB 100 billion. As of the disclosure date of the announcement, Akcome already has orders worthy RMB 350 million yuan in hand.
Power sales is another way to increase their revenue. It is expected that the operation and maintenance business of power station in the next four years can be increased by about 6.3 GW, and the revenue can be increased by RMB 315 million yuan.
The company stressed that with the gradual release of the capacity of the new cell module manufacturing base, they will take high-efficiency solar cell modules as its main business in the future, accounting for more than 80% of the operating revenue.