(Yicai Global) July 4 -- Tongwei’s shares soared after the Chinese solar polysilicon giant announced it had signed the fourth large order of polysilicon products in two weeks.

Tongwei [SHA: 00438] was trading up 7.2 percent at CNY63.94 (USD9.55) as of 10.40 a.m. today, after earlier gaining as much as 9.9 percent.

Baotou Meike Silicon Energy will buy 256,100 tons of polycrystalline silicon from four units of Tongwei between 2022 and 2027, while Shuangliang Silicon Material Baotou will purchase 222,500 tons of polycrystalline silicon from the same subsidiaries from this year to 2026, the Chengdu, Sichuan province-based company said in separate statements on July 1.

The parties will negotiate prices on a monthly basis, Tongwei added, noting that according to recent prices published by the silicon industry division of the China Nonferrous Metals Industry Association, the contract with Baotu Meike Silicon Energy is worth CNY64.4 billion (USD9.6 billion) and that with Shuangliang Silicon Material Baotou CNY56 billion.

On June 22, Tongwei said it inked a CNY38.5 billion agreement with a unit of Yuze Semiconductor to provide the buyer at least 161,100 tons of polysilicon products from 2022 to 2026. Five days earlier, the company announced it had signed a four-year deal worth around CNY50.9 billion with Gokin Solar for 216,100 tons of polysilicon.

Tongwei also won a CNY44.2 billion order from Chinese silicon wafer giant Longi Green Energy Technology in March.

Tongwei was the world’s largest high-purity silicon supplier by capacity last year, holding a 22 percent market share, according to data from the China Photovoltaic Industry Association. At the end of 2021, it had an annual capacity of high-purity silicon of 180,000 tons, but with the new capacity expansions to be completed by the end of next year, the amount will almost double to 350,000 tons.

Net profit at Tongwei soared 513 percent to CNY5.2 billion (USD775.9 million) in the first three months of 2022 from a year earlier, buoyed by the long-term supply deals it received from downstream companies, per the firm’s latest earnings report.

Editor: Futura Costaglione