Tongwei (600438) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 was RMB 34.36 billion, down 15.19% year-over-year, with a net loss attributable to shareholders of RMB 5.12 billion, reflecting continued industry headwinds in both core segments.

• The company maintained leading positions in global solar-grade polysilicon and solar cell shipments, and its feed business achieved record sales volumes, especially in overseas markets.

• Cash and equivalents plus trading financial assets totaled RMB 26.4 billion at period end, with a stable AAA credit rating and ample financing channels.

Financial highlights

• Operating income: RMB 34.36 billion, down 15.19% year-over-year.

• Net loss attributable to shareholders: RMB 5.12 billion, compared to a loss of RMB 4.96 billion in H1 2025.

• Operating cash flow: RMB 109 million, a significant improvement from negative RMB 1.95 billion in H1 2025.

• Gross margin declined due to persistent low prices in the solar value chain and raw material volatility in feed.

• Non-recurring gains totaled RMB 164 million, mainly from government subsidies and asset disposals.

Outlook and guidance

• The company expects continued pressure from oversupply and price competition in solar, but is focused on cost reduction, technology upgrades, and market expansion to weather the cycle.

• Feed business is expected to benefit from ongoing industry consolidation and overseas expansion.