Tongwei (600438) H2 2023 earnings summary

Executive summary

• 2023 saw a challenging macroeconomic and industry environment, with global economic recovery slow and the photovoltaic (PV) industry facing significant price declines across the supply chain, despite record-high installations and output volumes.

• The company maintained global leadership in high-purity polysilicon and solar cell shipments, with module shipments entering the global top five, and feed sales achieving steady growth.

• Net profit attributable to shareholders fell 47.25% year-over-year to ¥13.57 billion, despite only a 2.33% decrease in revenue to ¥139.1 billion, due to sharp price declines in the PV sector and asset impairments.

Financial highlights

• Operating revenue: ¥139.1 billion, down 2.33% year-over-year.

• Net profit attributable to shareholders: ¥13.57 billion, down 47.25% year-over-year.

• Adjusted net profit (excluding non-recurring items): ¥13.61 billion, down 48.73% year-over-year.

• Basic EPS: ¥3.0151, down 47.26% year-over-year.

• Gross profit margin: 26.44%, down 11.88 percentage points year-over-year.

• Net cash flow from operating activities: ¥30.68 billion, down 29.98% year-over-year.

• Total assets: ¥164.36 billion, up 12.91% year-over-year.

Outlook and guidance

• The company targets 2024 deliveries of 550,000 tons of high-purity polysilicon, 90 GW of solar cells, and 50 GW of modules.

• Feed, food, and related business revenue is expected to grow by over 10% year-over-year.

• Strategic focus remains on technological innovation, cost leadership, and global expansion in both PV and agriculture sectors.