TZE(SZ:002129) Di Yi Cai Jing·2025-04-26 12:06Core Viewpoint - TCL Zhonghuan reported a significant loss of nearly 10 billion yuan in 2024, exceeding previous forecasts, primarily due to industry downturns, strategic missteps, and operational inefficiencies [1][2]. Financial Performance - In 2024, TCL Zhonghuan achieved revenue of 28.419 billion yuan, a year-on-year decrease of 51.95%, and a net loss attributable to shareholders of 9.818 billion yuan, compared to a profit of 3.416 billion yuan in the previous year [1]. - The company's revenue grew from 16.9 billion yuan in 2019 to 59.1 billion yuan in 2023, with a compound annual growth rate (CAGR) of 37%, while net profit increased from 0.9 billion yuan to 3.416 billion yuan, with a CAGR of 39% [2]. Industry Context - The photovoltaic silicon wafer industry is characterized by a duopoly between LONGi Green Energy and TCL Zhonghuan, which together hold approximately 60% of the market share, with TCL Zhonghuan accounting for about 30% [2]. - In 2024, the industry faced a supply-demand mismatch, leading to prices falling below cash costs, which negatively impacted the company's profitability [2][3]. Business Segment Analysis - The silicon wafer business, which constitutes about 60% of TCL Zhonghuan's operations, reported a gross margin of -20.53% in 2024, a significant decline from 22% in 2023, representing a year-on-year decrease of 42.32% [3]. - The photovoltaic battery and module segment generated revenue of 5.811 billion yuan, a year-on-year decrease of 37.57%, with module shipments of 8.3 GW [3]. Strategic Adjustments - TCL Zhonghuan plans to restructure its component production lines and aims to upgrade to Topcon and BC component capacities by 2025 [3]. - The company has initiated adjustments to its production and sales strategies since the third quarter of 2024, leading to a gradual improvement in operational performance [5]. Globalization Strategy - Despite recent challenges, TCL Zhonghuan remains committed to its globalization strategy, focusing on investments in the Middle East and controlling Maxeon to expand into the U.S. market [6]. - The company has partnered with Saudi Arabia's Public Investment Fund to establish a large-scale crystal wafer factory, with a total investment of 2.08 billion USD (approximately 15.158 billion yuan) [6][7]. Future Outlook - TCL Zhonghuan expressed confidence in achieving improved operational performance in 2025, with a focus on transforming its business model and enhancing its global supply chain [8].