Tongwei set for six-fold profit leap after polysilicon, solar cell prices stay high

Facebook
Twitter
LinkedIn
Reddit
Email
Tongwei’s booth at SNEC 2021 in China. Image: PV Tech.

Solar manufacturer Tongwei is forecasting for a six-fold increase in net profit for Q1 2022, highlighting the impact pricing spikes are having on upstream manufacturer fortunes.

In a statement to the Shanghai Stock Exchange earlier this week, Tongwei confirmed it expected net profit in Q1 2022 to fall in the range of RMB4.9 – 5.2 billion (US$771 – 818 million), an increase of between 478 – 514% year-on-year.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

Tongwei noted that, in effect, the manufacturer would be making between RMB4 billion and RMB4.35 billion more than it did in the opening quarter in 2021.

It attributed this increase to installed capacity in the reporting period exceeding expectations, leading to a greater than expected demand for upstream solar products which has, in turn, maintained higher prices.

Furthermore, Tongwei said it had been able to capitalise on new production capacity that had come onstream since Q1 2021, profiting further from the maintained elevation of material and component prices.

Market prices for polysilicon in particular remain higher than anticipated, trading at RMB245/kg (inclusive of China’s 20% sales tax) in recent weeks.

Last month, Tongwei reported that its revenue had increased by more than 50% in 2021 whilst suggesting that tight material supply meant that high prices were very much here to stay, at least in the short term.

PV Tech’s head of market research Finlay Colville has meanwhile also mused that Tongwei could become the industry’s leading PV module supplier by 2025 should it pursue a vertically-integrated product strategy that would see it become the sector’s first polysilicon-to-module manufacturing entity.

Read Next

September 4, 2025
US polysilicon company Highland Materials has aimed to begin construction at its polysilicon plant in the second half of 2026.
Premium
September 4, 2025
PV Talk: Highland Materials' CEO Richard Rast explains how the company aims to compete in the polysilicon landscape through US innovation.
September 4, 2025
ARENA has launched the second funding round of its AU$1 billion Solar Sunshot programme, making AU$150 million available.
September 3, 2025
LONGi, Jinko Solar, Trina Solar and JA Solar posted combined net losses of nearly RMB11 billion (US$1.54 billion) in H1 2025.
August 28, 2025
Bahraini, Chinese, Egyptian and Emirati groups have agreed to develop a new solar and storage manufacturing facility in Egypt
August 28, 2025
Boviet Solar has completed exterior construction work on its 3GW PV cell manufacturing facility in Greenville, Pitt County, North Carolina. 

Subscribe to Newsletter

Upcoming Events

Solar Media Events
September 16, 2025
Athens, Greece
Solar Media Events
September 30, 2025
Seattle, USA
Solar Media Events
October 1, 2025
London, UK
Solar Media Events
October 2, 2025
London,UK
Solar Media Events
October 7, 2025
Manila, Philippines