Tongwei's huge loss meets regulatory push to end price wars
First-half loss of 4.8–5.4 billion yuan Tongwei expects to lose 4.8–5.4 billion yuan in the first half, the largest loss among solar companies. This shows the core business is still burning cash, which weighs on the stock price.
It is the single biggest company-specific fact and explains why the stock is under pressure.
Regulators move to stop below-cost selling China's market regulator is pushing solar firms to stop competing on price. New mandatory standards could remove 20–30% of old capacity by 2027. This helps Tongwei as a low-cost leader because it reduces destructive price wars.
It is the main new force that could turn the industry around and directly lifted Tongwei's shares.
Eight polysilicon giants pledge not to sell below cost Eight firms controlling over 90% of China's polysilicon capacity, including Tongwei, signed a pledge not to sell below cost. This should support prices and ease the cash drain, though enforcement is still uncertain.
It is a concrete new action that could directly improve Tongwei's pricing and margins.
Industry losses persist but early signs of a bottom Solar giants lost over 13 billion yuan combined in the first half, and new installations fell 66% year-on-year. Analysts see a policy bottom forming, but clearing the supply glut will take time, so the recovery is not guaranteed.
It gives the essential counterweight: the industry is still deeply troubled and any turnaround will be slow.