GCL TECH (03800) rose nearly 5% in afternoon trading. At the time of writing, the stock was up 4.96% to HK$1.27, with a turnover of HK$357 million. The move follows an announcement from Tongwei Co.,Ltd. that it is planning to acquire a 100% equity stake in Qinghai Lihao Qingneng Co., Ltd. through a combination of share issuance and cash payment. Public information indicates that Qinghai Lihao ranks sixth in the industry in terms of silicon material production capacity. Tongwei's acquisition plan is seen as a landmark event, signaling leading companies' proactive efforts to consolidate silicon material capacity amid current industry conditions. Analysts noted that as the state further tightens control over new capacity and promotes the exit of outdated capacity, new polysilicon production capacity in China is expected to face strict limitations for an extended period. With ongoing tightening of national energy consumption standards, structural adjustments in polysilicon capacity have become inevitable.