As the photovoltaic industry enters a new round of adjustment cycle, the long-term survival capability of industry chain enterprises becomes particularly important under the dual challenges of intensified market competition and slowing global demand. Recently, many photovoltaic companies have announced their performance forecast for the first half of 2024, and their performance has turned from profit to loss year-on-year.

In recent years, the photovoltaic industry has experienced a process from explosive growth to gradual return to rationality. With the rapid release of production capacity, the global demand growth rate has slowed down, and the problem of homogenization competition has become increasingly prominent. The photovoltaic industry has entered a new stage full of challenges and opportunities, and the long-term survival capability of enterprises has become the key factor determining whether they can cross the cycle.

As a leading enterprise in the photovoltaic industry, Tongwei Co., Ltd. has demonstrated strong comprehensive competitiveness with its profound industry accumulation and forward-looking strategic layout. Industry experts revealed that the performance of the enterprise disclosed so far is in line with market expectations with the operation of the photovoltaic cycle up to now. With the gradually improving supply and demand pattern in the industry, the bottom of the price has been reached, and Tongwei and other photovoltaic companies are expected to lead in the performance turning point in the second half of the year.

New technology and high performance demonstrate the "hard power" of the product.

In the face of fierce competition in the battery technology, Tongwei Co., Ltd. always regards technological innovation as the core driving force for enterprise development, in order to break the deadlock of the photovoltaic cycle. The company not only continuously optimizes and upgrades the existing technology, but also actively lays out new technology fields to respond to future market changes.

As the hotspot of current photovoltaic battery technology, Tongwei Co., Ltd. has also made significant progress in this field. Its TOPCon battery capacity has reached a considerable scale, and plans to further increase TOPCon capacity through PERC production capacity transformation. According to public information, it is expected that by the end of this year, the company's TOPCon will have 100GW of capacity, significantly enhancing the company's competitiveness in the N-type product market. With the continuous improvement of TOPCon component penetration rate, Tongwei Co., Ltd. is expected to steadily increase its market share in the next few years.

In addition to focusing on the promotion and application of TOPCon technology, Tongwei Co., Ltd. has also carried out in-depth layout in cutting-edge technologies such as HJT, XBC, and perovskite/silicon layered batteries. Among them, HJT technology, as a powerful competitor for the next generation of photovoltaic battery technology, Tongwei Co., Ltd. has built the first GW-level HJT production line in China. On June 6th, the first battery of the 1GW HJT+THL R&D line of Tongwei Global Innovation R&D Center in Shuangliu, Chengdu was off the production line, marking the full operation of equipment and process. The company will continue to optimize indicators around this pilot line and further promote HJT technology to near-scale production conditions.

In terms of components, Tongwei Co., Ltd. has also performed outstandingly. At present, the company has built a rich product matrix including TPC, TNC, THC and other differentiated battery technology routes and diversified component technologies, and completed the development of high-value rectangular battery components, while introducing efficiency enhancement methods such as double-plated glass, reflective busbars, and gap films to meet the increasingly rich application scenarios of global photovoltaic installations and the demand for higher power component products of end customers.

Dual empowerment of low cost and new orders creates growth expectations.

Thanks to the layout scale and breakthroughs in new technologies, Tongwei Co., Ltd. has a global leading competitive advantage in the polysilicon field, with cost advantages particularly prominent, which translates into a strong weapon for the company to break through the industry cycle.

Tongwei Co., Ltd.'s independently developed "Yongxiang Method" technology has been upgraded to the eighth generation, and the purity of high-purity crystalline silicon products can reach more than 99.9999999%. The company's Yunnan 0.2 million-ton and Baotou 0.2 million-ton high-purity crystalline silicon projects are both based on the above technology, and have been optimized and upgraded in terms of advanced process design, reliable system operation, and intelligent production management. The company said that with the advantages of economies of scale and process management, the investment cost per 10,000 tons of new projects is expected to be reduced to about 0.5 billion yuan.

According to a recent research report by Soochow Securities, with the commissioning of Yunnan's 0.2 million tons of silicon in the second quarter of this year, and the later commissioning of Inner Mongolia's 0.2 million tons of silicon, the company's overall capacity at the end of the year will reach 0.85 million tons, and is expected to expand to 0.8-1 million tons between 2024-2026, strengthening cost advantages while synchronously developing industrial silicon projects in Inner Mongolia and Sichuan. Meanwhile, the proportion of the company's N-type silicon has exceeded 90%, and the production cost has dropped to 0.042 million yuan/kg, thus continuing to solidify its leading position in the current intensifying competition of silicon quality and cost.

With the advantage of low cost and excellent product performance, Tongwei Co., Ltd. has won wide recognition in the market and ushered in a period of new substantial orders. This will continue to enhance the market expectations for the company's production capacity consumption this year. The company's performance is also expected to improve month-on-month as industry demand rebounds and prices rise.

According to recent announcements by the company, Tongwei Co., Ltd. has received multiple large orders both domestically and internationally this year. For example, in May, Tongwei Co., Ltd. announced that six of its subsidiaries had recently signed a sales contract for high-purity crystalline silicon products with Longi Green Energy Technology and its nine subsidiaries. The contract stipulates that Longi Green Energy Technology and its subsidiaries will purchase no less than 0.8624 million tons of high-purity crystalline silicon products from Tongwei Co., Ltd. from 2024 to 2026, with a total contract value of approximately RMB 39.1 billion. The photovoltaic industry has entered a downward cycle, and ensuring orders and shipments is the key to success. With the effective clearing of industry capacity and the successive delivery of new orders, Tongwei Co., Ltd. is expected to continue to consolidate and enhance its market share in the future.

During the adjustment period of the photovoltaic industry, Tongwei Co., Ltd. has demonstrated strong risk resistance with its significant advantages in continuous cost reduction, technological innovation, cash reserves, and capacity layout. In the future, Tongwei Co., Ltd. will continue to adhere to the concept of innovation-driven development, increase investment in new technologies and new capacities, consolidate and expand its leading position in the global photovoltaic market, and contribute to sustainable development.