TCL Central: Holding an earnings briefing on April 2nd, with participation from multiple institutions including China Asset Management and Changjiang Securities

News from Securities Star: On April 2, 2026, TCL Zhonghuan (002129) released an announcement stating that on April 2, 2026, the company held a performance briefing session. Huaxia Fund, China Yangtze Securities, Soochow Securities, Guojin Securities, Zheshang Securities, CITIC Company, BOC Securities, Invesco Great Wall, BOC Fund, West China Premium, Chuangjin Hexin, Zhengyuan Fund, Morgan Stanley, Nomura International, and Haitai Securities participated.

The specific content is as follows:

Q: Company business overview

A: II. Communication Q&A

Q1 How to look ahead to the market demand situation in 2026?

In terms of the domestic market, due to the impact of rush installations, the 2026 installed capacity demand is expected to decline slightly year-on-year quarter-over-quarter compared with 2025; overseas, growth will still be in the double digits. At present, the photovoltaic industry has some new scenario-based demand, and the trend toward high-power and high-efficiency modules is fairly clear. The company still looks favorably on the long-term demand in the photovoltaic industry, and the company is also preparing high-power and high-efficiency products and related technologies internally in connection with medium- and long-term demand.

Q2 How does the company internally assess future operating conditions, and how will it achieve loss reduction and turnaround?

The company still has long-term confidence in the photovoltaic industry. In the short term, the industry remains in the bottom phase of the cycle; uncertainty in policy has increased, and capacity clearance and optimization of the competitive landscape still require joint efforts from the industry. Against this backdrop, the company’s focus will be to strengthen core competitiveness around the appropriate integrated and globalization strategy. The company will leverage the exemplary role of leading enterprises, adhere to flexible production based on demand, actively promote industrial integration and the healthy development of the industry, continuously optimize organizational processes, innovate business models, ensure financial soundness, and achieve high-quality, sustainable development. The company also believes that with the rollout of its various strategies and their execution, the operating conditions in 2026 are expected to improve.

Q3 After the company acquires Dao Yi, how will it achieve synergy with the main business?

Investing in Dao Yi New Energy is a strategic initiative to seize opportunities for photovoltaic industry integration and to respond to the requirements for high-quality development of the industry. This transaction further improves the company’s “silicon wafer–cells–modules” integrated industrial chain layout, strengthens synergy between upstream and downstream, and is beneficial for the company to complement and strengthen its chain and enhance its level of key technologies. On the other hand, this transaction will strengthen industrial integration, improve the efficiency and quality of industrial development, and enhance resource allocation efficiency. After the transaction is completed, both parties will gradually eliminate inefficient and outdated production capacity, build an industrial ecosystem of new technologies and applications, and plan to improve the operating situation through empowerment, synergy, and other methods to help the healthy development of the industry.

Q4 How does the company look ahead to the future trend of asset impairment?

Inventory impairment is affected by product price fluctuations, and impairment provisions or write-offs are accounted for on a monthly basis. For impairment of fixed assets, the company always adheres to the principles of prudent compliance, strictly follows the asset impairment provisions in the Accounting Standards for Enterprises, and conducts systematic assessments of fixed assets.

Q5 In 2025 H2, the silicon wafer gross margin improved significantly quarter over quarter. How to look ahead to the silicon wafer gross margin level in the future?

With the advancement of last year’s cost-reduction work and internal R&D and quality improvement initiatives, the operating conditions of silicon wafers in the second half of the year improved quite noticeably. These improvements mainly rely on internal technology R&D projects and extreme cost-efficiency initiatives. These projects will continue to be advanced in 2026, and new technological innovation work will also be added. With the changes in silicon costs this year, as well as cost reductions in non-silicon and the technological retrofitting work for polysilicon, along with the progression of fine-line implementation, silicon wafer operations are expected to improve.

Q6 What will be the future module shipment target?

First, after the company’s acquisition of Dao Yi, together with the company’s own business expansion, it hopes to achieve a bigger breakthrough in the business of central and state-owned enterprises. The company will make major breakthroughs in orders from central and state-owned enterprises based on its existing local energy foundation. Some progress has already been made in the first quarter. Second, we believe that as the company’s scenario-based application capabilities become increasingly stronger in the future, growth in distributed orders will also be higher than in 2025. Third, in addition to growth in existing emerging markets, after the company acquires Dao Yi, it will achieve some breakthroughs in the European market and in high-premium markets. Overall, the module shipment outlook for 2026 is expected to be higher than that of 2025.

TCL Zhonghuan (002129) principal business: R&D, production and sales of monocrystalline silicon rods and silicon wafers, cells and modules, as well as semiconductor materials and devices, and the development and operation business of photovoltaic power stations, etc.

TCL Zhonghuan’s 2025 annual report shows that for the year, the company’s main operating revenue was 29.05 billion yuan, up 2.22% year-on-year; net profit attributable to shareholders was -9.26B yuan, up 5.65% year-on-year; net profit after deducting non-recurring items was -9.77B yuan, up 10.39% year-on-year. Among them, in the fourth quarter of 2025, the company’s single-quarter main operating revenue was 7.48B yuan, up 28.14% year-on-year; net profit attributable to shareholders in a single quarter was -3.49B yuan, up 7.18% year-on-year; net profit after deducting non-recurring items in a single quarter was -3.74B yuan, up 6.12% year-on-year. The liability ratio was 66.73%; investment income was -20.1985 million yuan; financial expenses were 1.58B yuan; gross margin was -6.36%.

In the most recent 90 days, a total of 5 institutions have issued ratings for the stock: 3 “Buy” ratings and 2 “Increase Holdings” ratings; within the past 90 days, the institutions’ target price average was 11.93.

The following are detailed earnings forecast information:

Margin trading and securities lending data show that over the past 3 months, the stock saw a net outflow of margin financing of 241 million yuan, and the margin financing balance decreased; the stock saw a net outflow of securities lending of 1.2182 million yuan, and the securities lending balance decreased.

The above content has been compiled from publicly available information by Securities Star and generated by an AI algorithm (Network Information Security filing No. 310104345710301240019). It does not constitute investment advice.