Tongwei Co., Ltd. released its 2025 annual report and Q1 2026 report, with the latter showing a year-on-year reduction in losses

In 2026, the global photovoltaic industry stands at a critical juncture of cyclical transition and structural reshaping. The domestic 'anti-involution' policy measures continue to be implemented, inefficient capacity is being rapidly phased out, and the industry is moving from the quagmire of price wars into a new phase of value-based competition. On the evening of April 29, Tongwei Co., Ltd. (600438.SH), a global leader in the photovoltaic industry, released its 2025 annual report and first-quarter report for 2026. The company reported a net loss attributable to shareholders of 9.553 billion yuan for the full year 2025, representing a year-on-year decrease of 35.73%; while in Q1 2026, the net loss attributable to shareholders was 2.444 billion yuan, with a year-on-year reduction in losses by 5.72%. Leveraging technological leadership, cost advantages, global presence, and counter-cyclical integration capabilities, Tongwei is building core barriers amid the construction of a new industry order, potentially welcoming dual opportunities of profit recovery and value reassessment.

Industry governance advances deeply; a new order of high-quality development in the PV sector accelerates into shape

The year 2026 is defined within the industry as the 'anti-involution' pivotal year for the photovoltaic sector, with a series of targeted and long-term regulatory policies and industry norms being intensively rolled out. These efforts are fundamentally reversing the disorderly expansion pattern centered around low-price competition that has characterized the industry over the past few years, driving a profound restructuring of the industry's development logic. The cancellation of export tax rebate policies curbs vicious competition through low-priced exports at the source; the upcoming mandatory national standard, 'Photovoltaic Module Safety Requirements,' will raise the industry entry threshold with strict standards, forcing out backward capacity. Multiple departments jointly convened a photovoltaic industry symposium, clarifying ongoing efforts to standardize competitive order, promote resource concentration towards high-quality enterprises, and guide the industry's transformation from scale expansion to quality enhancement.

At the market level, the supply-demand imbalance is gradually easing, with competitive dynamics shifting from 'price wars' to 'value wars.' Industry consensus is emerging: the model of capturing market share solely through low pricing is no longer sustainable, with technological innovation, cost control, product quality, and global service capabilities becoming core competitive factors. Leading companies are proactively controlling production levels and increasing R&D investments to drive product upgrades toward higher efficiency. Meanwhile, small and medium-sized enterprises lacking core competitiveness face dwindling operating rates and are progressively being eliminated, resulting in a continuous rise in industry concentration.

Technologically, clear differentiation has emerged, with N-type technology taking the lead. Full industrial chain integration, green and low-carbon practices, and globalization have become the four core directions of the industry. Overall, the PV sector is undergoing an inevitable phase of squeezing out bubbles and returning to rational growth. Policy interventions are proving effective, market clearance is accelerating, and technological iteration is advancing. A new order of high-quality development is comprehensively taking shape, creating a more favorable industry ecosystem for leading companies with core competencies.

At the bottom of the cycle, leading companies demonstrate core value through resilience

As a global leader in the photovoltaic industry, Tongwei Co., Ltd. has cultivated an integrated industrial chain over many years, fostering a synergistic development pattern across high-purity polysilicon, solar cells, and photovoltaic modules. Its sales volumes for polysilicon and battery cells have ranked first globally for several consecutive years. Last year, the overall decline in industry prices led to a drop in product gross margins, and asset impairment provisions based on prudence principles brought temporary operational pressure to the company. However, Tongwei's fundamental business operations remain unchanged, with its leading position in core businesses continuously strengthening and solidifying.

During this period of deep industry adjustment, Tongwei Co., Ltd. has consistently prioritized technological innovation as a key driver, reinforcing the long-term competitiveness of its entire industrial chain while maintaining industry leadership across all core segments. In high-purity polysilicon production, the company’s annual capacity exceeds 900,000 tons, accounting for approximately 30% of the global market share. Through continuous process optimization and technological innovation, the company achieved an average silicon consumption of 1.03 kg/kg.si for the year, hydrogen consumption reduced to under 100 Nm³/t.si, chlorine consumption below 0.05 kg/t, and a cold hydrogenation conversion rate reaching up to 32.5%, with power consumption controlled within 40 kWh/kg. Cost management and product quality remain industry-leading.

In the battery and module segments, the company achieved battery sales of 103.03 GW in 2025, with cumulative shipments surpassing 400 GW, continuously setting new global sales records for solar cells. The company’s products, recognized for their superior performance, gained widespread approval from global customers, enhancing brand influence. By the end of 2025, Tongwei’s module products had been sold in over 80 countries, maintaining a top-tier position in the domestic market while experiencing rapid growth overseas. In 2025, the company achieved module sales of 43.25 GW, including 9.52 GW in overseas markets, representing a year-on-year increase of 164%. Additionally, the company consistently received authoritative certifications such as Tier 1 and EcoVadis Gold.

On the technological front, the company has comprehensively invested in mainstream technologies like TOPCon, HJT, BC, and perovskite/crystalline silicon tandem, achieving phased R&D results in 2025. In TOPCon technology, by integrating steel plate printing, lithography, and Poly Tech for cell-to-module efficiency improvements, the company launched the TNC 3.0 module product with mass production power output reaching 650W (210R-66 format). Regarding HJT technology, the company pioneered a three-piece cell manufacturing technique, paving the way for a 780W HJT mass production route, reducing silver consumption to below 4mg/W. Furthermore, the average power outputs of the company’s pilot lines for BC and crystalline silicon tandem cells also maintain advanced industry levels.

In terms of capital operations, Tongwei Co., Ltd. also demonstrated strong operational resilience and market foresight. In February 2026, the company announced plans to acquire 100% equity of Qinghai Lihao Qingneng Co., Ltd. via share issuance and cash payments, carrying out market-based capacity integration amid industry 'anti-internal competition.' Lihao Qingneng ranks among the top ten in high-purity polysilicon production capacity, with leading product quality and cost control capabilities. After completing this transaction, the company will further enhance its market share and capacity regulation flexibility in the high-purity polysilicon segment, optimize its production layout in the northwest's clean energy advantage regions, enrich its portfolio of green high-purity polysilicon products, and strengthen its core voice in the global photovoltaic industry chain.

As the supply-demand dynamics of the industry gradually improve, the turning point for profit recovery is approaching. During this process, leading enterprises with full industrial chain synergy advantages, extreme cost control capabilities, advanced technological reserves, and global channel layouts will be the first to benefit from the restructuring of industry order, welcoming profit recovery. For Tongwei Co., Ltd., its global leadership positions in high-purity polysilicon and battery cells are unshakable. The vertically integrated full industrial chain layout creates strong synergies that can maximize risk mitigation from price fluctuations across the supply chain. As the industry transitions from price wars to value wars in this new phase of development, the company's technological and cost advantages will further amplify.

In the capital markets, investment sentiment in the photovoltaic sector has shown significant recovery, with the photovoltaic equipment sector experiencing a sustained rebound driven by capital inflows over the past two weeks. Over the last two years, the valuation of the photovoltaic sector has remained under pressure, with the long-term growth potential of leading companies significantly undervalued. As the industry establishes a new order, the market's pricing logic for the photovoltaic sector will shift from cyclical downturns and disordered internal competition to profit recovery and high-quality growth. Leading companies with core competitive advantages will undergo a revaluation of their valuation systems.

As one of the few global leaders in the photovoltaic industry achieving full industrial chain deployment in high-purity polysilicon, batteries, and modules, Tongwei Co., Ltd. combines upward cyclical earnings elasticity with long-term growth certainty. The company solidifies its core competitiveness through continuous technological innovation, expands its industry influence via market-driven capacity consolidation, and ensures operational safety through robust financial management, laying a solid foundation for post-recovery performance rebounds. Looking ahead, under the new order of high-quality industry development, the market will likely gain a clearer view of Tongwei Co., Ltd.’s operational resilience across cycles and its long-term growth realization logic.

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