Tongwei (600438) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was RMB 15.93 billion, down 18.58% year-over-year, mainly due to a sharp decline in photovoltaic industry chain prices and product prices.

• Net loss attributable to shareholders was RMB 786.74 million, a 229.56% increase in losses compared to Q1 2024.

• Cash flow from operating activities was negative RMB 1.46 billion, further deteriorating from the previous year.

Financial highlights

• Gross margin declined as revenue fell and costs remained high; operating costs were RMB 16.39 billion.

• Basic and diluted EPS were both -0.5759, compared to -0.1748 in Q1 2024.

• Weighted average ROE was -5.47%, down 4.18 percentage points year-over-year.

• Total assets increased to RMB 209.05 billion, up 6.7% from year-end 2024.

• Owner's equity attributable to shareholders decreased by 4.41% to RMB 46.32 billion.

Outlook and guidance

• Management attributes the decline in performance to significant price drops in the photovoltaic sector and expects continued pressure if market conditions persist.