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Solar Firm Tongwei Reports Net Loss of 5.12 Billion Yuan in First Half of 2026, Widening 3.31% Year-on-Year
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- DeepHorus
Tongwei Co., Ltd. released its financial report for the first half of 2026 on August 26, with data indicating that the company's performance remained under pressure during the reporting period. The company achieved a total operating revenue of 34.357 billion yuan, a year-on-year decrease of 15.19%. The net profit attributable to shareholders of the listed company was a loss of 5.119 billion yuan, with the loss widening by 3.31% year-on-year. The net profit after deducting non-recurring gains and losses was a loss of 5.283 billion yuan, a year-on-year decrease of 5.05%. Basic earnings per share were -1.1371 yuan, down 3.31% year-on-year.
In terms of key financial indicators, the company's asset-liability ratio rose from 72.63% at the end of the previous year to 75.24%, an increase of 2.61 percentage points, indicating a rise in financial leverage. The weighted average return on equity was -14.10%, a decrease of 3.38 percentage points year-on-year, reflecting a further weakening of the company's return on net assets. Notably, the net cash flow from operating activities was 109 million yuan, achieving a year-on-year increase of 105.59% compared to the net outflow in the same period last year, serving as one of the few positive signals in this report.
From the shareholder structure disclosed in the report, as of the end of the reporting period, the total number of shareholders was 312,033. The controlling shareholder, Tongwei Group Co., Ltd., held a stake of 45.24%, with its shareholding remaining stable, though a certain proportion of its shares were pledged. Among the top ten shareholders, several institutional investors maintained their holdings, and the overall shareholder structure remained relatively stable.
The report also mentioned the company's debt situation. As of the end of the reporting period, the company still had several series of green medium-term notes and technology innovation bonds outstanding. During the reporting period, the company's EBITDA interest coverage ratio was 0.29, which is a low figure, indicating limited coverage of interest expenses by the company's current profitability, and its debt repayment capacity requires continuous attention.
Market analysis suggests that this performance was largely in line with previous market consensus expectations. Although both operating revenue and net profit showed a year-on-year decline, and the loss margin also expanded slightly, the positive cash flow from operations has provided the company with some breathing room. In the context of the photovoltaic industry's overall cyclical adjustment and intense market competition, Tongwei's performance report reflects the widespread pressure faced by industry leaders.
Looking ahead, the improvement in Tongwei's operating conditions will highly depend on the stabilization and recovery of prices across the photovoltaic industry chain, as well as the company's own achievements in cost control, technological upgrades, and optimization of production capacity structure. Considering its relatively high asset-liability ratio and low interest coverage ratio, the company faces challenges in maintaining stable cash flow and managing debt risks. Changes in the subsequent supply-demand dynamics of the industry and policy trends will be key variables affecting its performance in the second half of the year and beyond.
