On April 29, Tongwei Co., Ltd. (600438.SH) released its annual report for 2024, revealing a significant net loss of 7 billion yuan for the previous year. This marks the company’s first loss since its listing in 2004. The report showed that Tongwei’s revenue totaled 91.994 billion yuan, a 33.87% decrease compared to the previous year, while the net loss attributable to shareholders reached 70.39 billion yuan, a staggering 151.86% decline year-on-year. In contrast, the company had achieved a record net profit of 25.734 billion yuan in 2022, followed by 13.574 billion yuan in 2023.
Tongwei attributed the decline to a significant drop in prices across its main business sectors, coupled with a long-term asset impairment write-off of 1.065 billion yuan, which adversely affected both revenue and net profit. The company’s core operations include agriculture and new energy sectors. According to the annual report, Tongwei’s photovoltaic business generated 59.792 billion yuan in revenue, with a gross profit margin of 4.67%, a decrease of 28.20 percentage points year-on-year. Meanwhile, the agriculture and animal husbandry segment reported revenue of 31.740 billion yuan and a gross margin of 9.38%, reflecting an increase of 1.57 percentage points from the previous year.
In terms of production, Tongwei achieved a sales volume of 467,600 tons of high-purity silicon, representing a 20.76% year-on-year growth. The company also sold 87.68 GW of solar cells (including self-use), marking an 8.70% increase, and its module sales reached 45.71 GW, a rise of 46.93%. Currently, Tongwei has established a production capacity of over 900,000 tons of high-purity silicon, more than 150 GW of solar cell capacity, and 90 GW of module capacity. In the agriculture sector, the company has a feed production capacity exceeding 10 million tons, with a sales network covering most regions of China and extending to Southeast Asian countries such as Vietnam, Bangladesh, and Indonesia.
On the same day, Tongwei also released its first-quarter performance report for this year. During this period, the company’s revenue was 15.933 billion yuan, a decrease of 18.58% year-on-year, and the net loss attributable to shareholders amounted to 2.593 billion yuan, reflecting a decline of 229.56% compared to the previous year. Tongwei indicated that the drop in revenue and net profit was primarily due to a significant decline in the prices of its main products in the photovoltaic industry.
In April of last year, Tongwei initiated a share repurchase plan, and as of March 6, 2025, the company had repurchased a total of 102 million shares, accounting for 2.2588% of the total share capital, with a repurchase amount of 2.008 billion yuan. From February of last year to February 2025, the company’s controlling shareholder gradually increased their stake, acquiring a total of 62,511,972 shares for approximately 1.3 billion yuan.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/tongwei-co-reports-first-annual-loss-since-ipo-with-7-billion-yuan-deficit/
