Tongwei suspends trading in Shanghai

Tongwei suspends trading in Shanghai

Tongwei Co., Ltd. Suspends Trading in Shanghai Ahead of Proposed Acquisition
February 24, 2026

Tongwei Co., Ltd. (600438.SH) announced on February 24 that trading of its shares, convertible bonds, and convertible bond conversion will be suspended starting February 25, 2026, pending the completion of a proposed asset acquisition. The suspension, which will last no more than 10 trading days, follows the company's announcement of plans to acquire 100% equity in Qinghai Lihao Qingneng, a polysilicon producer, through a combination of share issuance and cash payment.

The transaction, still in the planning stage, is not expected to alter Tongwei's controlling shareholder or constitute a major asset restructuring. Lihao Qingneng, established in 2021, specializes in the production of photovoltaic (PV)-grade and electronic-grade polysilicon, with an annual capacity of approximately 150,000 metric tons. The acquisition aligns with Tongwei's strategy to strengthen its upstream supply chain in the solar energy sector.

Market observers note that Tongwei's recent financial performance has been challenging. Earlier this year, the company temporarily halted production at three key facilities in Sichuan, Yunnan, and Inner Mongolia amid a $1.4 billion loss. The production shutdown, linked to declining polysilicon prices and rising operational costs, reflects broader industry pressures as firms navigate oversupply and margin compression.

The trading suspension underscores regulatory requirements for transparency during material corporate actions. Tongwei emphasized that uncertainties remain regarding the Lihao Qingneng deal, including regulatory approvals and financing arrangements. Investors are advised to monitor updates as the company works to finalize terms.

This development follows Tongwei's earlier termination of a $5 billion acquisition plan for Jiangsu Runyang New Energy in February 2025, which collapsed due to unresolved commercial terms and operational risks. The company's focus on strategic acquisitions highlights ongoing efforts to consolidate market share amid a competitive and volatile industry landscape.

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