TCL Central Loss of 9.2 Billion, No Dividends in Two Years, New Energy Photovoltaic Gross Profit Margin -12.9%, Debt Ratio 66.7%

Changjiang Business Reporter Xu Jia

The industry remains at the bottom of the cycle, with TCL Zhonghuan (002129.SZ) reporting another large loss.

On the evening of March 24, TCL Zhonghuan released its annual report for 2025. The company achieved operating revenue of 29.05 billion yuan, a year-on-year increase of 2.22%. Net profit attributable to shareholders of the listed company (hereinafter referred to as “net profit attributable to the parent”) was a loss of 9.264 billion yuan. After deducting non-recurring gains and losses, the net profit (hereinafter “deducted non-recurring net profit”) was a loss of 9.768 billion yuan, a decrease in loss of 5.65% and 10.39% respectively, still at a high loss level.

Due to the ongoing imbalance between supply and demand in the photovoltaic industry, the industry continues to hover at the bottom of the cycle. Product prices along the main industry chain are adjusting at low levels with insufficient transmission, putting continued pressure on TCL Zhonghuan’s operations.

Notably, in 2025, TCL Zhonghuan’s new energy photovoltaic gross profit margin was -12.9%. Specifically, the gross profit margins for photovoltaic silicon wafers and modules were -19.44% and -6.22%, respectively. Moreover, in 2025, TCL Zhonghuan recognized asset impairment losses totaling 3.911 billion yuan, further burdening the company’s performance.

Due to consecutive large losses over two years, TCL Zhonghuan did not distribute dividends in 2024 and 2025.

As of the end of 2025, TCL Zhonghuan’s total assets amounted to 117.997 billion yuan, with the asset-liability ratio rising further to 66.73%.

Industry supply and demand imbalance continues, resulting in nine consecutive quarters of losses

The annual report shows that in 2025, TCL Zhonghuan achieved operating revenue of 29.05 billion yuan, up 2.22% year-on-year; net profit attributable to the parent was a loss of 9.264 billion yuan, and deducted non-recurring net profit was a loss of 9.768 billion yuan, decreasing losses by 5.65% and 10.39%, respectively.

Regarding the over 9 billion yuan loss in 2025, TCL Zhonghuan stated that during the reporting period, the newly installed capacity of photovoltaic was still growing, but overall supply and demand remained unbalanced. The industry continued to hover at the bottom of the cycle, with product prices along the main industry chain adjusting at low levels with insufficient transmission, and operational pressure persisted.

Quarterly, in 2025, TCL Zhonghuan’s revenue was 6.101 billion yuan, 7.297 billion yuan, 8.174 billion yuan, and 7.479 billion yuan, respectively, with year-on-year changes of -38.58%, 16.18%, 28.34%, and 28.14%. Net losses were 1.906 billion yuan, 2.336 billion yuan, 1.534 billion yuan, and 3.487 billion yuan, with year-on-year changes of -116.67%, -6.97%, +48.82%, and +7.18%. Deducted non-recurring net profit was -1.976 billion yuan, -2.5 billion yuan, -1.557 billion yuan, and -3.735 billion yuan, with changes of -90.26%, -2.04%, +54.64%, and +6.12%.

Since Q4 2023, TCL Zhonghuan has experienced nine consecutive quarters of losses.

The company admits that in 2025, the supply-demand imbalance in the photovoltaic industry persisted. The terminal market’s rush to install brought temporary disturbances to industry demand. Efforts to counteract internal competition led to a rebound in silicon material and wafer prices in the third quarter. However, weak demand, insufficient price transmission, and the lack of substantial improvement in new scenarios and applications have expanded operational pressures in the fourth quarter.

Due to performance losses, TCL Zhonghuan does not plan to distribute profits in 2025 to strengthen its risk resistance in the industry cycle, optimize its capital structure, and ensure long-term stable operation. The company has not paid dividends for two consecutive years in 2024 and 2025.

Asset impairment provisions total 3.911 billion yuan

Competitive “involution” persists in the industry, and TCL Zhonghuan’s photovoltaic gross profit margin has yet to turn positive, dragging down performance.

The annual report shows that in 2025, TCL Zhonghuan’s new energy photovoltaic business achieved sales revenue of 22.725 billion yuan, a slight decrease of 0.28% year-on-year.

Specifically, the photovoltaic materials segment generated revenue of 12.238 billion yuan, down 26.49% year-on-year, with the company’s market share of silicon wafers remaining first in the industry.

During the reporting period, due to sharp increases in upstream raw material prices and insufficient downstream transmission, TCL Zhonghuan optimized supply chain structure, promoted internal cost reduction and efficiency improvements, and restored EBITDA. The company’s silicon wafer manufacturing costs decreased by over 40% year-on-year.

In the photovoltaic module segment, in 2025, TCL Zhonghuan’s revenue was 9.324 billion yuan, up 60.45% year-on-year, accounting for 32.10% of total revenue, with photovoltaic module shipments reaching 15.1 GW.

The Changjiang Business Reporter notes that in 2025, TCL Zhonghuan’s new energy photovoltaic gross profit margin was -12.9%, an increase of 1.69 percentage points year-on-year. The gross profit margin for silicon wafers was -19.44%, an improvement of 1.1 percentage points, while the gross profit margin for modules was -6.22%, a decline of 5.36 percentage points.

In the semiconductor materials segment, in 2025, TCL Zhonghuan shipped over 1200 million units, achieving revenue of 5.707 billion yuan, up 21.75% year-on-year; gross margin was 18.94%, an increase of 5.7 percentage points.

Despite ongoing losses in the photovoltaic sector, large asset impairment provisions have increased TCL Zhonghuan’s performance burden.

In 2025, TCL Zhonghuan recognized a total impairment loss of 4.622 billion yuan, including 3.185 billion yuan for inventory write-downs, 502 million yuan for fixed asset impairments, and 107 million yuan for bad debts.

Additionally, due to continued supply-demand imbalance, sluggish market demand, policy changes in target markets, and the lack of significant operational improvement by Maxeon Solar Technologies, Ltd., its production nearly stagnated in 2025. TCL Zhonghuan recognized goodwill impairment of 560 million yuan for this reason.

In total, TCL Zhonghuan recorded impairment losses of 3.911 billion yuan in 2025, with 2.125 billion yuan attributable to photovoltaic products, 459 million yuan for semiconductor materials, and 633 million yuan for photovoltaic power stations.

As of the end of 2025, TCL Zhonghuan’s total assets were 117.997 billion yuan, with an asset-liability ratio of 66.73%, an increase of 3.73 percentage points from the end of 2024. This marks two consecutive years of increase and the first time since 2018 that the ratio has exceeded 60% again after six years.

Facing the current “involution” competition, TCL Zhonghuan states that it will continue to strengthen the competitiveness of its photovoltaic materials business, enhance the competitiveness of new energy battery modules, optimize its overseas business layout and global marketing capabilities, and focus on technological innovation, product development, and quality improvement to enhance overall competitiveness. The company aims for significant operational improvement by 2026.

In 2025, TCL Zhonghuan invested 1.06 billion yuan in R&D, accounting for 3.65% of operating revenue. By the end of 2025, the company held 4,763 valid authorized patents, including 606 domestic invention patents, 1,812 utility models, 24 design patents, 277 trademarks, 52 software copyrights, and 1,992 foreign patents.