TCL Zhonghuan Renewable Energy Technology Co., Ltd. (002129.SZ) released its Q3 2025 financial report on the evening of October 28. The report shows that from January to September 2025, the company generated revenue of RMB 21.572 billion, while net profit attributable to shareholders stood at a loss of RMB 5.777 billion, marking a 4.70% year-on-year improvement. Notably, Q3 net loss narrowed to RMB 1.534 billion, reflecting a 34% sequential improvement and 49% year-on-year recovery. The company has now achieved three consecutive quarters of sequential revenue growth, with accelerating profit improvements signaling a positive operational trend.
In the first half of 2025, price fluctuations in the photovoltaic industry's main supply chain were driven by intense market competition. However, as anti-overcapacity measures took effect, upstream prices rebounded in Q3, gradually benefiting the silicon wafer segment and restoring profitability. Despite challenging conditions, TCL Zhonghuan demonstrated strong resilience by adhering to an "anti-overcapacity" strategy, pursuing moderate vertical integration and globalization, consolidating its competitive edge in crystal chip manufacturing, and strengthening its solar cell and module business while expanding overseas markets.
In Q3 2025, TCL Zhonghuan's new energy photovoltaic business revenue improved by 22% sequentially. Operational expansion yielded significant results, with lean management driving profitability enhancements. The photovoltaic materials segment optimized its strategy by increasing the proportion of high-efficiency and high-value-added products while reducing material and manufacturing costs. Through supply chain management, material efficiency improvements, lower energy consumption, and R&D initiatives, non-silicon costs dropped by over 40% by the end of September compared to the beginning of the year, significantly boosting profitability in Q3.
The solar cell and module business also achieved breakthroughs, forming a new "internal momentum" for sustainable growth. The company enhanced product competitiveness and differentiation, scaling up production of half-cut and back-contact (BC) modules, with BC product efficiency reaching 25%. By establishing a brand matrix centered on SUNPOWER, TCL Solar, and TCL Zhonghuan, the company further optimized its product and customer structure.
Additionally, TCL Zhonghuan secured strategic partnerships with major state-owned clients, accelerating penetration in China's distributed PV market while expanding rapidly in overseas markets such as the Middle East, Latin America, and Australia-New Zealand. The company continues to refine its globalization strategy, steadily advancing overseas operations.
Centered on market and customer needs, TCL Zhonghuan deepened organizational reforms and process optimization, establishing an agile response mechanism to accelerate profitability improvements. As a leading industry player, the company aims to set an example for high-quality development by aligning production with demand, supporting industry consolidation, and promoting healthy competition.
TCL Zhonghuan emphasized its commitment to "strategic leadership, innovation-driven growth, advanced manufacturing, and global operations." The company will closely monitor consolidation opportunities during industry downturns, addressing weaknesses and strengthening competitiveness. These measures highlight TCL Zhonghuan's strategic resolve to drive sustainable growth while facilitating the exit of outdated industry capacity and optimizing resource allocation, setting a benchmark for transitioning from price competition to technology leadership and from scale expansion to value creation.
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