Tongwei Co., Ltd.'s long-term issuer credit rating and the credit rating for its "Tong22 Convertible Bond" have been affirmed at AAA by Lianhe Credit Rating Co., Ltd., with the outlook remaining stable. The decision was announced in a tracking rating report dated June 29, 2026, reference number Lianhe [2026] No. 5081.
The report highlighted Tongwei's prominent position as a listed company with dual main businesses of "agriculture (fishery) + photovoltaics." However, during the tracking period, the photovoltaic manufacturing industry entered a deep adjustment, causing declines in both product prices and capacity utilization. This led to a further drop in photovoltaic business revenue and losses in gross profit for the segment. Meanwhile, the company's feed business remained stable, with product prices fluctuating in tandem with raw material costs and a relatively steady gross margin, contributing to overall profitability. Financially, the company's total assets slightly decreased, but cash assets remained ample. However, inventory continued to rise, tying up capital and posing significant risk of impairment. The decline in photovoltaic industry chain prices widened the company's losses. Although capital expenditure has been significantly reduced, insufficient internal cash generation led to ongoing high external financing needs, pushing total debt higher and resulting in a relatively heavy debt burden. Thanks to ample cash reserves and historical surpluses, the company's solvency indicators remain strong. Lianhe Ratings assessed that overall operating risk is very low and financial risk is very low, with very strong debt repayment capacity. Operating cash inflows and EBITDA provide high coverage for the "Tong22 Convertible Bond," and the probability of default remains very low.
No individual or external support adjustments were made in this rating action. The report noted that the supply-demand imbalance in the photovoltaic manufacturing industry has not fundamentally reversed, and profitability and cash flows across the industry chain will remain under pressure in the short term, exposing the company to the risk of continued underutilization of capacity. However, Tongwei's strong market competitiveness, refined management, cost control, and technological R&D capabilities help maintain its industry status. Ample cash assets and smooth financing channels are expected to support stable overall creditworthiness. Factors that could lead to a downgrade include intensified industry competition leading to persistent losses and substantial net operating cash outflows, capital expenditure exceeding expectations with a significant increase in debt burden weakening solvency, major adverse changes in the company's ownership structure leading to a change of control, or major credit events involving significant shareholders or the ultimate controller that materially affect operations and financing. Sensitivity factors for an upgrade are not applicable.
As of the end of March 2026, Tongwei's cash assets amounted to RMB 34.227 billion. The company had obtained bank credit lines totaling RMB 144.689 billion, of which RMB 51.299 billion was unused, indicating smooth indirect financing channels. As an A-share listed company, it also has access to direct financing channels. In 2025, the company reported total operating revenue of RMB 84.128 billion and a total loss of RMB 11.671 billion. In the first quarter of 2026, total operating revenue was RMB 12.125 billion with a total loss of RMB 3.545 billion. At the end of 2025, total debt was RMB 109.610 billion, up 6.55% from the previous year, with the asset-liability ratio and total debt-to-capitalization ratio rising to 72.63% and 68.08%, respectively.
The "Tong22 Convertible Bond" was issued for RMB 12.00 billion, with a remaining balance of RMB 11.98309 billion as of the end of May 2026. It was issued on February 24, 2022, with a maturity of six years. The proceeds have been fully used for the Leshan Phase II high-purity polysilicon project, Baotou Phase II high-purity polysilicon project, 15 GW monocrystalline silicon rod cutting project, and supplementary working capital. The report cautioned that if the company's share price remains low and the conversion price is not sufficiently adjusted downward, bondholders may choose to hold to maturity, exposing the company to significant concentrated repayment pressure.
Tongwei Co., Ltd. was formerly known as Sichuan Tongwei Feed Co., Ltd. and was listed on the Shanghai Stock Exchange in 2004. Its controlling shareholder is Tongwei Group Co., Ltd., and the ultimate controller is Liu Hanyuan. The company's main businesses cover feed, food, and photovoltaic new energy, forming a synergistic model of "agriculture (fishery) + photovoltaics." In photovoltaics, the company is a global leader in high-purity polysilicon, solar cells, and modules. In 2025, its shipments of high-purity polysilicon and solar cells continued to rank first globally, and module shipments ranked among the top five globally. In agriculture, it is a world-leading aquaculture feed producer and an important livestock and poultry feed producer, with an annual feed production capacity exceeding 13 million tons.