During an investor briefing for the first half of 2026 held on the evening of August 29, Li Dongsheng, founder and chairman of TCL, responded to questions about the prolonged downturn in the photovoltaic industry, the operational crisis Tcl Zhonghuan Renewable Energy Technology Co.,Ltd. previously faced, and the measures implemented over the past two years to address these challenges. Li expressed strong confidence in the company's long-term development prospects.
The photovoltaic industry has bottomed out and is now on a recovery path. While the exact timing for industry-wide profitability is difficult to predict with precision, the process of capacity elimination is accelerating under the combined influence of industrial policy guidance and market adjustments. With the iteration of next-generation photovoltaic technologies and the continuous expansion of diverse application scenarios, the long-term development value and strategic importance of photovoltaics as a core clean energy source have been firmly established. Emerging use cases such as space-based solar, flexible solar panels, floating solar installations, and building-integrated photovoltaics are set to unlock further growth potential.
After more than two years of deep structural reform, the trend toward operational improvement at Tcl Zhonghuan Renewable Energy Technology Co.,Ltd. has now been confirmed. Moving forward, the company will further solidify its relative competitiveness, with BC (Back Contact) new technology set to become a key growth engine. Additionally, leveraging the global resources of the TCL ecosystem will accelerate the expansion of overseas operations.
The operational crisis that hit Tcl Zhonghuan Renewable Energy Technology Co.,Ltd. in 2024 was driven both by external factors—such as the concentrated release of industry capacity and deteriorating supply-demand dynamics—and by internal issues including an overly narrow business structure, low organizational efficiency, misjudgments in operations, and a lack of global capabilities. In August 2024, Li Dongsheng took over as acting CEO of Tcl Zhonghuan Renewable Energy Technology Co.,Ltd. After conducting industry trend analysis, competitor assessments, and internal benchmarking reviews, he initiated organizational and business reforms centered on an integrated and globalized strategy.
The first priority was reshaping corporate culture and driving organizational and process transformation. A corporate culture emphasizing transformation, innovation, accountability, and excellence was established, alongside simplified processes and a digitalized operational system that enables real-time visibility into the company's actual performance. Second, the company shifted its operational philosophy by restructuring organizational and business processes, insisting on a customer-oriented approach, production based on demand, and end-to-end accountability. Organizational capabilities in processes, mechanisms, and digitalization were established, while market-driven marketing, R&D, and internationalization capabilities were strengthened.
Third, the company clarified its operational strategy and adjusted its business structure. Tcl Zhonghuan Renewable Energy Technology Co.,Ltd. had proposed plans for cell and module business expansion and global deployment as early as 2021, but these were never fully implemented. This failure meant that in 2024, as integrated companies continued to increase their internal wafer supply, Zhonghuan's addressable market for wafers shrank further. By the first half of this year, the module business had achieved a breakthrough, with a plan to reach a production capacity ratio of 4:1:2 for wafers, cells, and modules by 2027. Overseas shipments grew fourfold year-on-year, but remain at an early stage, and the company will continue to enhance its global capabilities.
As these internal reform measures have taken effect, the first half of 2026 saw phased positive results in company operations. During this period, domestic new PV installations declined 66% year-on-year, while overseas demand remained stable. Despite this, Tcl Zhonghuan Renewable Energy Technology Co.,Ltd. achieved a 29% increase in module shipments against the broader market trend, with overseas shipments growing fourfold and overseas wafer sales rising 3.7 times. Revenue for the first half reached RMB 14.31 billion, up 6.8% year-on-year, while net loss attributable to shareholders stood at RMB -3.20 billion, an improvement of 24.5% compared to the same period last year. Both the first and second quarters delivered year-on-year and sequential improvements in net profit attributable to shareholders.