Core Viewpoint - Tongwei Co., Ltd. is planning to acquire 100% equity of Qinghai Lihua Qingneng Co., Ltd. through a combination of share issuance and cash payment, while also raising supporting funds [1][3]. Group 1: Acquisition Details - The acquisition is still in the planning stage, and there are uncertainties regarding the transaction [3]. - Tongwei's stock will be suspended from trading starting February 25, 2026, for a period not exceeding 10 trading days to ensure fair information disclosure [3]. - Lihua Qingneng specializes in the research, production, and sales of photovoltaic-grade high-purity silicon and electronic-grade polysilicon, and is a key investment project in Qinghai Province [3]. Group 2: Company Background - Lihua Qingneng has operations in both Qinghai and Sichuan, with a total planned investment of 20 billion CNY to establish a production capacity of 200,000 tons of photovoltaic-grade high-purity silicon and 2,000 tons of electronic-grade high-purity silicon [3]. - The company has also established a wholly-owned subsidiary in Yibin, Sichuan, to invest in a project with a production capacity of 200,000 tons of photovoltaic-grade high-purity silicon, 5,000 tons of electronic-grade high-purity silicon, and 250,000 tons of industrial silicon [3]. Group 3: Financial Performance - Tongwei Co., Ltd. is projected to report a loss of 9 billion to 10 billion CNY for the year 2025, making it the "loss leader" among disclosed photovoltaic companies [5]. - The company attributes the expected loss to a slowdown in the growth of new photovoltaic installations, ongoing supply surplus issues, and rising prices of core raw materials [5]. - Tongwei has also indicated that it will recognize long-term asset impairments totaling approximately 1.5 billion to 2 billion CNY, an increase of about 700 million to 1.2 billion CNY year-on-year [5].