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Before 2006, the domestic photovoltaic glass industry had not yet achieved scale due to the high entry barrier and low market demand. After 2006, driven by the further expansion of demand and profits, the domestic photovoltaic industry has developed rapidly. Domestic manufacturers have become the main global supply, and an oligopoly pattern has formed. At present, China's photovoltaic glass production accounts for more than 90% of the world's production.

China's photovoltaic glass output accounts for more than 90% of the global

With the introduction and research and development of technologies by domestic manufacturers, China has achieved a transition from dependence on imports to alternative imports. As of 2019, China has become the largest exporter of photovoltaic glass, accounting for more than 90% of global production. At present, the main players in the photovoltaic glass industry include Xinyi Solar, Flatlight, Rainbow, Jinxin Solar, CSG, China Building Materials and other companies, and the main leaders are Xinyi Solar and Flatlight. Due to factors such as scale effect, technical capital barriers and customer stickiness, large enterprises have obvious competitive advantages, and the leading advantages of the industry are even more significant. According to the current expansion plan, it will reach 51% in 2019 and more than 60% in 2020.

The short-term epidemic has led to a lag in demand, and it has remained prosperous for a long time. In the domestic market, due to the effective domestic control of the epidemic, the timely resumption of production and production, the supply level has little impact, and the demand level, this year's subsidy policy was introduced earlier, the project has sufficient time for grid connection, plus 19 years of bidding The project is expected to add 35-45GW of new photovoltaic installations this year, which will return to the peak year. In overseas markets, due to the sudden outbreak in 2020, many projects in overseas countries are at greater risk, and they are faced with shutdowns and production in the second quarter. But most of these shelved projects are only postponed construction and will not be cancelled directly. Therefore, we expect that strong overseas demand is still expected to be delayed, and due to the staged oversupply, the product price has fallen sharply. After the epidemic, retaliatory demand may be ushered in. It is expected that global installed capacity will decline in 2020, and it will usher in a reversal in 2021 and continue to maintain a relatively high growth rate.

There is a static supply gap, and major manufacturers need to expand production to meet demand. We can see from the measured data that if the impact of this year's epidemic is properly taken into account, the existing production capacity can cover the current demand and is basically balanced. If the negative impact of the epidemic exceeds expectations, there may also be an oversupply situation. However, with the recovery of the newly installed capacity in 2021, there is a supply gap and expansion is needed. According to the data of the current expansion plan that can be checked, when the expansion is carried out smoothly, it can meet the increasing demand.