The second major consolidation in the photovoltaic sector in 2026! The leading silicon material company plans to acquire all shares of peer Lihua Qingneng

China Times (chinatimes.net.cn) Reporter Li Jiajia and Li Weilai Beijing Report

On the evening of February 24, the silicon material giant Tongwei Co., Ltd. (hereinafter referred to as “Tongwei Co.”), stock code 600438.SH, released an important announcement. The company stated that it is planning to acquire 100% equity of Qinghai Lihao Qingneng Co., Ltd. (hereinafter referred to as “Lihao Qingneng”) through issuing shares and paying cash, and is raising supporting funds.

Notably, this acquisition is not the first major consolidation in the photovoltaic industry in 2026. As early as January 16, the silicon wafer giant TCL Zhonghuan announced plans to invest in module “dark horse” Yidao New Energy to leverage advantages in technology, scale, and efficiency to accelerate the company’s moderate integration strategy.

SMM Silicon Photovoltaic Business Unit analyst Chen Jiahui told Huaxia Times that this round of Tongwei Co.'s acquisition is most likely a “counter-cyclical bottom-fishing.” As early as the 2018 “531” policy significantly cut subsidies, strictly controlled new capacity, and demand in the industry plummeted, Tongwei had a brilliant record of counter-cyclical bottom-fishing, and from 2018 to 2020, it quickly became the world’s largest silicon material producer. Besides expanding photovoltaic-grade polysilicon capacity, an important aspect of this acquisition is its semiconductor-grade polysilicon, which will play a vital role in China’s next chip revolution. This is also a typical example of differentiated transformation among current photovoltaic companies.

Still in Planning Stage

According to the announcement, this transaction is still in the planning stage. The parties have not yet signed a formal agreement, and the specific transaction plan is still under discussion and verification. Audit, valuation, and due diligence work have not been completed, and related matters remain uncertain. The specific transaction method and plan will be disclosed in subsequent announcements.

Tongwei Co. pointed out that this transaction will not lead to changes in the company’s controlling shareholder or actual controller, does not constitute an associated transaction, and is not expected to constitute a major asset restructuring.

To ensure fair information disclosure, protect investors’ interests, and avoid significant impacts on the company’s stock price, according to the relevant regulations of the Shanghai Stock Exchange, upon application by the company, Tongwei Co.'s stock, convertible bonds, and bond conversions will be suspended from the market opening on February 25, 2026 (Wednesday), with an expected suspension period of no more than 10 trading days.

It is understood that Tongwei Co. mainly focuses on agriculture and new energy, forming a resource integration and collaborative development model of “agriculture (fishery) + photovoltaics.”

In agriculture and animal husbandry, the company focuses on the professional and large-scale development of feed business, with an annual feed production capacity exceeding 13 million tons. Its production and sales network covers most parts of China and Southeast Asian countries such as Vietnam, Bangladesh, and Indonesia, making it a leading global aquaculture feed enterprise and an important livestock and poultry feed producer.

In photovoltaics, the 2025 semi-annual report shows that the company has formed an annual production capacity of over 900,000 tons of high-purity crystalline silicon, over 150 GW of solar cell capacity, and over 90 GW of module capacity. The company’s high-purity crystalline silicon output has ranked first globally for four consecutive years, with a global market share of about 30%. The company’s solar cell shipments have maintained the top position worldwide for eight years and it is the industry’s first company to have shipped over 300 GW of solar cells. The company’s module business started relatively late but has grown rapidly since the second half of 2022, with annual shipments now ranking in the top five globally.

Silicon Material “Dark Horse”

It is reported that Lihao Qingneng was established in April 2021 with a registered capital of over 1 billion yuan. The company mainly engages in the research, production, and sales of photovoltaic-grade high-purity crystalline silicon and electronic-grade polysilicon, located in Nanchuan Industrial Park, Xining Economic and Technological Development Zone, Qinghai. Its official website shows that the company covers an area of 2,600 acres, with a planned total investment of 20 billion yuan, constructing an annual capacity of 200,000 tons of photovoltaic-grade high-purity crystalline silicon and 2,000 tons of electronic-grade high-purity crystalline silicon, with an expected annual output value of about 20 billion yuan.

As a rising star, Lihao Qingneng has grown rapidly, reaching a polysilicon capacity of 150,000 tons in less than three years, and has become the sixth-largest silicon material giant globally, a typical “dark horse.”

Lihao Qingneng’s rapid rise is supported by capital. Tianyancha data shows that it has 49 shareholders, including Chint New Energy, Aiko, Jing Sheng Investment, as well as financial institutions like Haisong Capital, Yangtze Innovation Investment, IDG Capital, and Jinyu Maowu.

Chint New Energy is the largest shareholder, holding 10.0767%; Hainan Zhuoyue Enterprise Management Partnership (Limited Partnership) and Hainan Haoyue Enterprise Management Partnership (Limited Partnership) are the second and fourth largest shareholders, with holdings of 9.5716% and 8.8538%, respectively; Duan Yong directly holds 4.7858% of Lihao Qingneng.

It is learned that Tongwei Co. has signed an “Intention Agreement” for equity acquisition with the transaction intention parties Duan Yong, Hainan Zhuoyue Enterprise Management Partnership (Limited Partnership), and Hainan Haoyue Enterprise Management Partnership (Limited Partnership). When contacted, Tongwei staff stated they had just learned of the matter, and specific details have not yet been disclosed.

Accelerating Silicon Capacity Integration

In December last year, Tongwei Co., GCL Technology, Daqo New Energy, Xinte Energy, East Hope, and Asia Silicon jointly established Beijing Guanghe Qiancheng Technology Co., Ltd.

Soon after, there were reports that on January 6, the State Administration for Market Regulation held a meeting with the Photovoltaic Industry Association and several leading PV companies. The meeting mainly involved reporting on monopoly risks, proposing clear rectification opinions, and requiring companies to implement rectification measures. At that time, market sentiment was pessimistic, and polysilicon futures and silicon material stocks experienced a brief plunge.

Notably, on January 29, the Ministry of Industry and Information Technology held another symposium with PV industry entrepreneurs, emphasizing the importance of “anti-involution.” The meeting pointed out that under current circumstances, “anti-involution” is the main contradiction in regulating the PV industry. Departments should strengthen coordination, work in the same direction, and use measures such as capacity regulation, standard guidance, quality supervision, price law enforcement, risk prevention of monopoly, intellectual property protection, and technological progress to promote the industry’s return to healthy competition and rational development through market-oriented and legal means.

Silicon material is the core upstream link of the PV industry. Currently, the PV sector is in a critical stage of deep industry chain adjustment and industry-wide pressure. Tongwei Co.'s acquisition of Lihao Qingneng in the same track not only demonstrates its ambition to further consolidate silicon capacity but also will significantly strengthen its leading position in the polysilicon field. At the same time, this move is seen by industry insiders as an important signal of “anti-involution” in the PV industry, which may accelerate upstream capacity optimization and industry consolidation.

Editor: Li Weilai Chief Editor: Zhang Yuning

【Source: Huaxia Times】