Author | Huang Yu Editor | Liu Baodan Last year, thanks to the success of the "Speeding" on iQiyi, the company has had a difficult time recently. On the one hand, the explosively popular TV series is on hiatus, and on the other hand, the derivative concert of the variety show "Plant Some Goodness" has been criticized for "free offline but paid online." According to Wall Street News, the second Wheat Field Music Festival, produced by iQiyi's reality show "Plant Some Goodness," was held on June 6th. Some viewers had previously received free offline tickets through official activities, while online viewers, even iQiyi members, had to pay RMB 12 for viewing, and the viewing period was valid until June 14th. This differentiated pricing model has caused dissatisfaction among many viewers, who question that iQiyi's move is "cutting corners." In response, iQiyi's customer service said, "You can buy tickets to watch the concert live according to your own needs, and the edited content of the concert will be launched on the main platform in the future." In fact, this is not the first time that long video platforms represented by iQiyi have been accused of "cutting corners." In recent years, membership grading systems, early access, and inventory restrictions have often caused user backlash, in addition to paying extra for derivative programs. The differential pricing model reflects the growth anxiety faced by long-form video platforms such as "i优腾."

Edited by| | Zhou Zhiyu.

The Middle East is becoming a hot spot for Chinese photovoltaic companies to go abroad.

Recently, TCL Zhonghuan Renewable Energy Technology Co. Ltd. (SZ:002129), a photovoltaic enterprise under TCL Group, signed an agreement with the Public Investment Fund (PIF) of Saudi Arabia and Vision Industries to invest in and jointly establish a company to promote the localization of solar photovoltaic crystal chips in Saudi Arabia. The total investment amount of the project is about USD 2.08 billion, and TCL Zhonghuan owns 40% of the shares.

This is a significant investment project with an annual production capacity of 20 GW, and once landed, it will become the first local photovoltaic crystal chip project in Saudi Arabia and also the largest crystal factory overseas in terms of scale. According to Wall Street Journal, the project is an important initiative to promote the new energy transformation in the Middle East and North Africa based on the consensus of China and Saudi Arabia. PIF, one of the largest and most influential sovereign wealth funds in the world, is behind it.

On July 16, PIF announced that, in addition to TCL Zhonghuan, it had also signed agreements with Far East Cable Co. Ltd. and JinkoSolar Holding Co. Ltd. to establish joint ventures.

Saudi Investment Bank Vice President Yazid Humaid said that these new agreements are part of PIF's efforts to promote the localization of advanced renewable energy technology and will help Saudi Arabia achieve the goal of 75% localization production of renewable energy projects by 2030.

Against the backdrop of "anti-globalization" in recent years and the increasing trade barriers between countries, Chinese photovoltaic enterprises have previously "taken a detour" to Southeast Asia to avoid high tariffs imposed by European and American countries. However, as the United States further launched anti-dumping investigations into solar products in Southeast Asia, the layout of Chinese photovoltaic enterprises in Southeast Asia will also be restricted. Faced with the uncertainty in Southeast Asia, the Middle East has become a new land for Chinese photovoltaic enterprises to explore one after another. Earlier, Sungrow Power Supply Co. Ltd. signed a contract with Saudi ALGIHAZ for the world's largest energy storage project with a capacity of up to 7.8 GWh.

Public information shows that this year is a peak period for Chinese enterprises to invest in the Middle East, whether in terms of the scale or the number of investment projects.

Behind the collective foray of Chinese photovoltaic giants into the Middle East is first and foremost favorable policies. Middle Eastern countries are committed to promoting the transformation of renewable energy and have put forward many magnificent visions. For example, Saudi Arabia proposed the "2030 Vision" in 2016, aiming to achieve a renewable energy share in the energy structure of 50% by 2030. Secondly, the Middle East region has sufficient sunlight resources and favorable conditions for photovoltaic development.

Shanxi Securities analysts pointed out that Saudi Arabia plans to increase photovoltaic installation to 40 GW by 2023 according to the Saudi 2030 Vision. If this goal is achieved, Saudi Arabia will be one of the top five photovoltaic markets in the world.

Haitong International Securities believes that the Middle East region can become an important market for the photovoltaic industry chain to digest production capacity by going global through the Belt and Road Initiative and the transformation of energy in the Middle East.

Infolink Customs data shows that in May of this year, the Middle East imported about 2.5 GW of photovoltaic components from China, a 7% increase from the 2.3 GW in April and a year-on-year increase of 143%.

Many industry insiders believe that, in the context of the increasingly fierce price war in the domestic photovoltaic industry and the cooling of the European and American markets, targeting the Middle East market and enhancing localization operations through cooperation with sovereign funds in the Middle East is undoubtedly an important strategic layout for the global development of Chinese photovoltaic giants.

The photovoltaic market in the Middle East is indeed very broad and has shown strong growth momentum.

According to Infolink Customs data, the Middle East imported about 2.5 GW of photovoltaic components from China in May this year, up 7% from 2.3 GW in April and a year-on-year increase of 143%.

By aiming at the Middle East market and enhancing localization operations through cooperation with sovereign funds in the Middle East, Chinese photovoltaic giants are undoubtedly making a strategic move to develop in the global market.

TCL Zhonghuan also stated that the project of cooperation with PIF is the core part of heavy assets and highest technological complexity in the photovoltaic industry chain, and it will serve as an important fulcrum for commercial cooperation with Europe and North Africa, promote TCL Zhonghuan's deeper participation in the global photovoltaic supply chain, and radiate a more extensive global market.

Looking further, there are three important factors behind TCL Zhonghuan's layout of the Middle East project: the first is the status of the Middle East project in globalization and its relationship with barrier markets; the second is the relationship between the Middle East project and Chinese domestic projects in globalization; and the third is the economic rationality of the Middle East project itself.

TCL Zhonghuan was acquired by TCL Corporation in 2020, opening up a new field of new energy photovoltaics and semiconductor materials outside the strong cyclical industry of semiconductor display panels, in the hope of becoming TCL Corporation's new growth momentum.

Due to the rapid development of the new energy industry, TCL Zhonghuan achieved rapid growth in 2022 and surpassed semiconductors to become TCL Corporation's largest source of revenue that year. However, this highlight did not last long. Last year, the photovoltaic industry experienced cyclic adjustments, and prices plummeted due to overcapacity and intensified competition.

According to the financial report, in 2023, TCL Zhonghuan's operating income decreased by 11.74% year-on-year to 59.146 billion yuan, and the net income attributable to shareholders for the year decreased by 44.88% year-on-year to 3.899 billion yuan due to factors such as product price decline and losses and impairment provisions for investments in affiliated companies.

Since the beginning of this year, the overall situation of the industry has not improved significantly. In the first quarter of 2024, TCL Zhonghuan realized operating income of 9.93 billion yuan, a year-on-year decrease of 43.6%, and a net loss attributable to shareholders of 880 million yuan, a year-on-year decrease of 139%.

Against the background of localization of photovoltaic manufacturing and the trend of trade globalization, TCL Zhonghuan has long realized that localized manufacturing of the photovoltaic industry is an inevitable choice for achieving the company's global leading strategy in new energy solar materials. Therefore, as early as 2019, TCL Zhonghuan began planning the global development layout of the photovoltaic industry.

It is reported that TCL Zhonghuan has already established a presence in Malaysia, the Philippines, Mexico, Saudi Arabia, and other places, and is exploring the possibility of developing the photovoltaic industry in more countries and regions worldwide.

The progress of the Middle East project undoubtedly has strategic significance for Chinese photovoltaic companies such as TCL Zhonghuan. Influenced by this bullish news, the entire A-share photovoltaic sector has risen in the past three days, with a cumulative increase of about 2.9%, and TCL has seen a maximum increase of over 4%.

In addition to accelerating going global, listed photovoltaic companies have also continued to increase share buybacks this year to boost stock prices and stabilize market confidence.

According to incomplete statistics, nearly 20 photovoltaic-related companies have disclosed repurchase plans this year. TCL Zhonghuan, after announcing its share repurchase plan in October last year, had repurchased 5 million shares of the company's stock as of June 30, 2024, accounting for 0.1237% of the company's total share capital, at a cost of 62.558 million yuan.

Haitong Securities believes that the prices of photovoltaic companies have bottomed out, and Q2 is already the bottom of the photovoltaic performance. The bottom of the industry's volume and price has arrived, and policies attach great importance to the healthy development of the industry. It is necessary to pay attention to turning points in the second half of the year.

Nevertheless, the photovoltaic industry market still faces severe competition in the short to medium term, and the Middle East may become a new direction for Chinese photovoltaic companies to go global.