Tianwei Co. Strengthens Its Position in the Solar Industry with 2 Billion Buybacks and 1.3 Billion Shares Increase Amid Market Challenges

In the face of a challenging solar energy market, Tongwei Co., Ltd. has revealed its strategic advantages through a combination of technology innovation and robust cash flow. This year, the company has announced a share buyback worth 2 billion yuan and an increase in shareholding by 1.3 billion yuan, demonstrating confidence amidst the industry’s downturn.

Since 2024, the global photovoltaic (PV) industry has encountered significant supply-demand mismatches and rapid price declines. According to data from the China Photovoltaic Industry Association (CPIA), global installations reached 530 GW in 2024, marking a 35.9% year-on-year increase, while domestic installations amounted to 277.6 GW, a 28.3% rise. However, despite sustained demand for energy transition, the industry faces considerable operational pressures due to pronounced supply-demand imbalances, leading to substantial price drops across major products. For instance, prices for polysilicon, wafers, cells, and modules fell by 39%, 50%, 40%, and 29% respectively, pushing many companies into a state of continuous loss.

As a leading global player in both silicon materials and solar cells, Tongwei has showcased resilience by enhancing its technological research and production efficiency. Throughout the year, the company achieved an operating revenue of 91.994 billion yuan, maintaining positive cash flow despite industry challenges.

Investors are particularly interested in Tongwei’s robust cash flow, which has established a solid operational safety cushion amid adversity. The company’s focus on both “green agriculture” and “green energy” has allowed it to navigate complex market dynamics with composure. Tongwei’s major products, including high-purity polysilicon, solar cells, and modules, have seen stable sales growth and improved product structure, thereby solidifying its market position even in tumultuous times.

In the polysilicon segment, Tongwei faced market challenges head-on, achieving sales of 467,600 tons, a year-on-year increase of 20.76%, capturing approximately 30% of the national market share. Additionally, over 90% of its production was N-type, and the company successfully supplied electronic-grade polysilicon to the semiconductor industry.

In solar cell production, Tongwei accelerated the upgrade of its existing PERC capacity while enhancing its R&D platform, resulting in solar cell sales of 87.68 GW, reflecting an 8.7% increase year-on-year. The company has maintained its status as the global leader in solar cell shipments for eight consecutive years, achieving a market share of approximately 14%.

Tongwei’s module business has also expanded, with sales reaching 45.71 GW, a remarkable 46.93% increase. The core products have received numerous prestigious certifications, solidifying the company’s competitive edge in the downstream photovoltaic industry.

Despite the pressures faced by the solar sector, Tongwei has taken proactive measures to reassure investors of its long-term value. Since April 2024, the company has executed a share buyback totaling over 2 billion yuan, repurchasing 102 million shares, which reflects the management’s confidence in the company’s future. Furthermore, from February 2024 to February 2025, the controlling shareholder has gradually increased their stake by 62.51 million shares, investing approximately 1.3 billion yuan.

As of the end of the first quarter of 2025, Tongwei reported 40 billion yuan in cash and trading financial assets, underscoring its bargaining power and operational efficiency, while providing a solid financial foundation to withstand market fluctuations.

The photovoltaic industry, rooted in the photovoltaic effect, has evolved from low efficiency and high costs to high efficiency and low costs. According to the IRENA report on renewable energy costs in 2023, global solar PV generation costs have fallen to 4.4 cents per kilowatt-hour, significantly lower than the average LCOE of the cheapest fossil fuel generation. By the end of 2024, cumulative global PV installations reached approximately 2000 GW, positioning solar energy as the leading source of new energy generation.

As the industry transitions, the legacy PERC technology has been replaced by the more efficient TOPCon technology, which has seen its market share soar to over 70%. Tongwei has positioned itself at the forefront of this technological shift, launching its global innovation R&D center to accelerate technological advancement. The company is focusing on improving production efficiency and reducing costs across multiple dimensions, establishing benchmarks in line capacity, efficiency, and non-silicon costs.

Innovations in emerging technologies, such as HJT, have significantly boosted production efficiency. Tongwei’s HJT components have set world records for power output, achieving a maximum of 790.8W with an efficiency of 25.46%. The company is also actively exploring Bifacial Cell (BC) technology and has achieved significant milestones with its TBC products, which have received TUV Rheinland certification.

Additionally, Tongwei continues to optimize its silicon material technology by introducing key equipment that has significantly reduced energy consumption and production costs. Current production costs at its Inner Mongolia facility have dropped below 27,000 yuan per ton (excluding tax), showcasing the company’s commitment to cost leadership.

As the photovoltaic industry navigates its cyclical challenges, Tongwei’s strong technical foundation, resilient cash flow, and strategic foresight position it well for recovery. The convergence of supply-demand rebalancing and technological iteration is likely to lead to a dual recovery in both performance and valuation for Tongwei, redefining the value benchmarks within the photovoltaic sector.