Financial Services Association, January 31 (Reporter Liu Mengran) The photovoltaic sector continued to adjust this week due to the “cold” performance of many leading companies. Recently, Longji Green Energy (601012.SH) and TCL Central (002129.SZ) have successively launched holdings increase/repurchase plans to enhance investor confidence.

Tonight this evening, Tongwei Co., Ltd. (600438.SH), which has yet to release a performance forecast, announced that the controlling shareholder Tongwei Group plans to increase the company's shares by no less than 1 billion yuan to no more than 2 billion yuan. A Financial Services News reporter noticed that as of the close of January 31, the company's latest stock price was 23.30 yuan/share. This week it has already fallen 10.80%, and the latest market value is 104.8 billion yuan.

Tongwei Co., Ltd. is a leader in polysilicon and battery cells in the photovoltaic industry chain, and the module business is also growing. In the previous two years, in the upward polysilicon price cycle, the company relied on leading cost control and market advantages to become one of the most profitable listed companies in the photovoltaic sector. In 2022, the company achieved net profit attributable to shareholders of listed companies of 25.726 billion yuan.

However, as new polysilicon production capacity was released one after another, leading to a year-on-year decline in product prices, the company achieved operating income of about 111,421 billion yuan in the first three quarters of last year, an increase of 9.15% over the previous year, but net profit attributable to shareholders of listed companies was about 16.302 billion yuan, a year-on-year decrease of 24.98%.

According to the latest news from the Silicon Industry Branch, the prices of various types of silicon materials have risen slightly this week. Among them, the average price of n-type silicon was 71,900 yuan/ton, up 1.41% month on month, and the average price of monocrystalline dense material was 59,300 yuan/ton, up 1.19% month on month.

The Silicon Industry Branch mentioned in its analysis that some companies have clear bullish expectations. After early exploratory price increases, centralized transactions were carried out at market-acceptable prices this week. However, new production capacity for polysilicon will soon be launched in March. The specific market price will largely depend on changes in downstream construction and the progress of the release of additional production capacity.

Although no performance forecasts have been disclosed, Tongwei Co., Ltd. has already joined the “market protection” army ahead of schedule to stabilize market confidence. Prior to this increase in holdings, Tongwei Group held about 1,974 billion unrestricted tradable shares of Tongwei Co., Ltd., accounting for 43.85% of the company's total share capital of about 4.502 billion shares. For the purpose of increasing its holdings, Tongwei Group plans to implement this plan to increase its holdings based on firm confidence in the company's development prospects and recognition of the company's long-term investment value.

It is worth mentioning that poor stock prices in the photovoltaic sector may be related to recent performance forecasts. Silicon chip leader TCL Zhonghuan previously disclosed a performance forecast and is expected to deduct non-net profit of 3.1 billion yuan to 3.6 billion yuan, a year-on-year decrease of 44.47% to 52.18%. Combined with the three quarterly report data, the company's loss in Q4 reached 1,388 million yuan to 988 million yuan.

In addition, performance forecasts disclosed by leading companies such as Jinko Energy (688223.SH) and Trina Solar (688599.SH) also showed a risk of a month-on-month decline in Q4 net profit.

Yesterday evening, TCL Central announced that it would spend 62.558 million yuan to buy back nearly 5 million shares. According to the announcement, on January 30, the company repurchased 499,9968 shares of the company's shares for the first time through the Shenzhen Stock Exchange trading system, accounting for 0.1237% of the company's total share capital. The highest price of the repurchase transaction was 12.57 yuan/share, the lowest price was 12.47 yuan/share, and the total transaction amount was 62558044.45 yuan (excluding transaction fees such as stamp duty and transaction commissions).

LONGI GREEN ENERGY is also taking action. On January 30, Zhong Baoshen, the chairman of the company, increased his holdings of the company's shares by 300,000 shares, accounting for 0.0040% of the company's total share capital, to an increase of 6.141,000 yuan. The announcement stated that the plan to increase his holdings has not yet been completed, and Mr. Zhong Baoshen will continue to increase his holdings in the company in accordance with this holdings increase plan in the future.