Tongwei (600438) H1 2025 earnings summary

Executive summary

• Revenue for H1 2025 was RMB 40.51 billion, down 7.51% year-over-year, with a net loss attributable to shareholders of RMB 4.96 billion due to continued price declines and supply-demand imbalance in the photovoltaic (PV) industry.

• Core PV and feed businesses maintained leading market positions, with PV silicon and cell shipments ranking first globally and feed business providing stable cash flow.

• Liquidity remains strong with RMB 33.2 billion in cash and trading financial assets, and robust access to financing tools.

Financial highlights

• Operating income: RMB 40.51 billion, down 7.51% year-over-year.

• Net loss attributable to shareholders: RMB 4.96 billion, compared to a loss of RMB 3.13 billion in H1 2024.

• Basic and diluted EPS: -1.1007, down 58.35% year-over-year.

• Operating cash flow: -RMB 1.95 billion, compared to RMB 0.96 billion in H1 2024.

• Gross margin compressed due to industry-wide price declines and cost pressures.

Outlook and guidance

• The company will continue to focus on "green energy" and "green agriculture" as dual core businesses, aiming for quality and efficiency improvements.

• Industry-wide PV overcapacity and price pressure expected to persist in the short term, but long-term prospects remain positive with ongoing technology upgrades and market expansion.

• Feed business expected to remain stable, leveraging global procurement and cost control.