How Tongwei Co. is Navigating the Solar Industry’s Challenges with Resilience and Innovation

How Tongwei Co., Ltd. is Navigating the Shifts in the Photovoltaic Industry

With a focus on three key pillars—technology as a competitive advantage, financial resilience, and a global strategy—Tongwei Co., Ltd. is charting a path forward amidst the fluctuations in the photovoltaic (PV) sector. This strategy not only reflects the transformation and upgrading of China’s solar industry but also offers a “Chinese solution” for global energy transition.

1. Counter-Cyclical Strengthening

At the end of April, Tongwei released its annual report for 2024 and its first-quarter report for 2025. The financial data revealed that Tongwei’s revenues for the full year of 2024 and the first quarter of 2025 were approximately 91.994 billion yuan and 15.933 billion yuan, respectively, representing declines of 33.87% and 18.58% year-over-year.

The pressures faced by Tongwei are not unique; major domestic PV companies have also reported revenue declines and shifts from profit to loss in their 2024 financial statements. This trend indicates that the PV industry is still in an adjustment phase, with product prices across various segments of the supply chain—including silicon materials, wafers, cells, and modules—staying at low levels.

Consequently, the market had already anticipated the performance of major PV companies, including Tongwei. After the financial report was released, Tongwei’s stock price reached a low point but subsequently rose for four consecutive trading days.

A key factor in this rebound was the increase in shipment volumes. Despite the backdrop of oversupply, Tongwei’s core product sales continued to grow, maintaining a leading market share. In 2024, the sales of high-purity silicon reached 467,600 tons, a year-over-year increase of 20.76%, accounting for approximately 30% of national production and ranking first globally.

During the same period, solar cell sales reached 87.68 GW, reflecting an 8.70% year-over-year growth, marking the eighth consecutive year as the top seller globally, with a market share of about 14%. Additionally, the company sold 45.71 GW of solar modules in 2024, a significant increase of 46.93%.

Tongwei’s ability to thrive in these challenging conditions is supported by its integrated business model, which highlights the importance of its three pillars: cost reduction through technological innovation, financial resilience, and a global footprint.

2. Dual Engines: Cost Reduction and Innovation

In a struggling industry, companies face the challenge of overcapacity and are often drawn into a relentless “price war.” In this environment, leading companies like Tongwei must commit to high-intensity research and development to drive quality growth.

Tongwei’s approach involves a dual-engine strategy of cost reduction and innovation to counteract the downward price trends in the industry. On one hand, the company continuously optimizes its processes and innovation mechanisms to enhance cost efficiency and market competitiveness; on the other, it invests in multidimensional technological innovations to prepare for upcoming technological advancements.

In terms of cost reduction, Tongwei has introduced critical equipment and optimized processes involving 60-pair rod reduction furnaces, high-boiling cracking, and waste silicon powder recycling. This has resulted in significant reductions in energy consumption, with power consumption down to 46 kWh and silicon consumption to below 1.04 kg per unit. By the end of Q1 2025, Tongwei’s production cash cost at its Inner Mongolia base fell below 27,000 yuan per ton (excluding taxes).

For technological innovation, Tongwei focuses on addressing critical bottlenecks with a multi-faceted breakthrough strategy. Its TOPCon series TNC and HJT series THC modules have repeatedly set new power records. On March 20, 2024, Tongwei’s photovoltaic technology center announced that its TNC2.0 module achieved a front-side power output of 682.8 watts and a conversion efficiency of 25.28%, as certified by the international authority TüV. This was an increase of about 60 watts compared to the current market standards. Under the same conditions, the TNC2.0 module achieved 778.5 watts with a conversion efficiency of 25.06%.

Furthermore, Tongwei’s HJT 210-66 model has consistently broken world records, reaching a maximum module power of 790.8 watts and an associated efficiency of 25.46%. The company’s copper interconnect 2.0 technology is facilitating the implementation of silver-free HJT solutions.

Tongwei’s commitment to research and development is evident in its establishment of a photovoltaic technology center, which includes several national-level technological sub-centers. Over the past three years, it has invested over 11 billion yuan in R&D, and as of the end of 2024, its R&D personnel increased by 1,120 to 5,277.

With a total of 2,675 authorized patents covering several key technologies across the high-purity silicon, solar cell, and module segments, Tongwei is well-positioned for the upcoming rounds of technological competition.

3. Financial Resilience: A Safety Net Through Cycles

During the downturn starting in 2024, many companies in the solar industry have faced significant cash flow crises, often experiencing sharp declines in cash flow and negative operating cash flow. A healthy financial status and stable financing capabilities have become critically important during this time.

Tongwei’s ample cash flow and solid financial reserves provide it with the necessary strength to navigate through industry cycles. In 2024, Tongwei maintained a positive net cash flow from operating activities. As of the end of Q1 2025, the total amount of cash and financial assets was approximately 40 billion yuan, with cash reserves of 29.146 billion yuan, reflecting an increase of 77.20% since the beginning of the year.

Confident in the industry and the company’s operational prospects, the controlling shareholder initiated a stock buyback plan from February 2024 to February 2025, acquiring a total of 62.51 million shares at a cost of approximately 1.3 billion yuan. Additionally, Tongwei started a stock repurchase plan in April 2024, which resulted in a total buyback of 102 million shares by March 6, 2025, representing 2.2588% of the total equity and amounting to 2.008 billion yuan, marking the largest repurchase in the PV industry that year.

The stability in Tongwei’s core business sales and market share not only reflects its bargaining power and operational efficiency but also provides robust financial support to weather market fluctuations.

4. Global Strategy: A New Narrative on the International Stage

As the domestic PV market becomes increasingly competitive, major PV companies are expanding internationally to seek new growth opportunities. The year 2024 marked a breakthrough year for Tongwei in overseas markets.

Strategically, Tongwei is focusing on technology export and local partnerships to penetrate high-potential markets globally. In 2024, the company achieved 16 new regional product certifications and secured GW-level project orders in countries like Saudi Arabia and Poland, with overseas sales increasing by 98.76% year-over-year. Tongwei was also recognized in Forbes’ list of the top 30 Chinese companies going global.

Currently, Tongwei’s module products are present in over 70 countries and regions, with applications spanning residential rooftops, commercial distributed systems, and large-scale centralized power plants.

Europe serves as a primary market for Tongwei’s international endeavors. In response to this market, the company launched the TNC-G12/G12R series of modules, which cover a power range from 455W to 720W. Tongwei has established partnerships with leading European distributors such as R.Power S.A. of Poland and PVO International B.V. of the Netherlands.

The rapidly growing markets in the Middle East and Africa are also key targets for Tongwei. In September of last year, Tongwei signed a supply agreement with ACWA Power for the Saudi PIF Phase IV MUWAYH PV project, committing to provide 1.175 GW of TNC-G12R 66 high-efficiency solar modules. Additionally, partnerships with overseas PV companies such as ACO and AMEA Power are expanding Tongwei’s reach into the African markets of South Africa and Egypt.

In October 2024, Tongwei signed a strategic distribution agreement with Blue Sun Group, a notable distributor in Australia, to supply 1 GW of high-efficiency modules over the next five years.

The performance pressures in 2024 and the first quarter of 2025 reflect the growing pains of the solar industry as it transitions from disorganized growth to high-quality development. This period also presents historical opportunities for leading companies to restructure their competitive advantages and seize technological heights.

During this challenging phase of cyclical adjustment in the solar industry, Tongwei Co., Ltd. leverages its technological moat, financial resilience, and global strategy to strengthen its position. This approach not only represents a microcosm of the transformation and upgrading of China’s solar industry but also contributes a “Chinese solution” to the global energy transition.

As industry concentration increases and favorable policies emerge, the cumulative effects may further amplify the competitive advantages of leading companies like Tongwei.