TONGWEI CO.,LTD(SH:600438) Mei Ri Jing Ji Xin Wen·2025-03-28 14:25Core Viewpoint - Tongwei Co., Ltd. plans to introduce strategic investors for its subsidiary, Yongxiang Co., Ltd., aiming to raise up to 10 billion yuan through a capital increase, which will enhance its capital structure and support high-quality development [1][2]. Group 1: Strategic Investment Details - Yongxiang Co., Ltd. intends to raise no more than 10 billion yuan from strategic investors, who will collectively hold no more than 27.03% of the company post-investment [2]. - The investment is based on an asset-based valuation method, with Yongxiang's total equity valued at 28.215 billion yuan as of September 30, 2024, reflecting a 9.82% appreciation [2]. - The strategic investors primarily consist of financial institutions, with a complete list expected by April [3]. Group 2: Financial Performance and Projections - Yongxiang Co., Ltd. reported a net profit loss in the first three quarters of 2023, despite a positive operating cash flow [4]. - As of December 31, 2023, Yongxiang's total assets were 66.48 billion yuan, with total liabilities of 24.57 billion yuan [4]. - Tongwei Co., Ltd. anticipates a net loss of approximately 7 to 7.5 billion yuan for 2024 due to significant price declines in the photovoltaic industry and long-term asset impairments [4]. Group 3: Competitive Position - Yongxiang Co., Ltd. is a leading global producer of high-purity silicon, with a production capacity exceeding 900,000 tons and a consistent market share leadership [5]. - The company has achieved a reduction in comprehensive electricity consumption to below 50 kWh and silicon consumption to 1.04 kg/kg-Si [6]. - The average production cost of high-purity silicon products for 2023 has decreased to below 42,000 yuan per ton, maintaining a competitive edge in the industry [6].