Tongwei has set a share price of RMB 15.20 for its planned acquisition of 100% equity in Qinghai Lihao Clean Energy
Funds raised through share issuance will not exceed the value of the assets being acquired, and new shares will be capped at 30% of Tongwei’s post-transaction share capital
The deal is expected to lift Tongwei’s polysilicon capacity beyond 1 million MT, up from 910,000 MT in 2024, strengthening its position in the global market
Tongwei Co., Ltd., the world’s largest supplier of polysilicon to the solar PV industry, has set a share price of RMB 15.20 for its planned acquisition of 100% equity in fellow Chinese polysilicon manufacturer and domestic rival Qinghai Lihao Clean Energy. It intends to complete the acquisition through a combination of share issuance and cash payment.
Funds raised through share issuance will be limited to the purchase price of the asset purchase. New shares issued cannot exceed 30% of the company’s total share capital after the transaction.
If the transaction closes within a year, the asset seller will receive newly issued shares. Those shares, however, will be locked up for 36 months and cannot be publicly traded, although private transfers may still be allowed under certain conditions.
The target company currently has 57 shareholders, but according to Tongwei’s proposed fundraising plan, the polysilicon manufacturer plans to issue shares to no more than 35 specific qualified investors to raise matching funds. The final value of the deal has yet to be determined, as audit and valuation work are still underway.
Tongwei says that upon completion, this acquisition will strengthen its position in the high-purity crystalline silicon segment, expand its production capacity, and further improve its global market influence. Tongwei’s total polysilicon production capacity will increase to over 1 million metric tons (MT), since it produced 910,000 MT in 2024 (see China Dominates 2024 Global Polysilicon Production).
Tongwei is following up on its February 2026 announcement to acquire Qinghai Lihao Clean Energy amid murmurs of consolidation in the Chinese market to curb overcapacity, which led to polysilicon prices plummeting to record lows last year.
Several Chinese manufacturers expect to be in the red due to lower polysilicon ASPs, including Tongwei, which projects a net loss of RMB 9.0 billion to RMB 10.0 billion in 2025 (see Top Chinese Module Makers Expect Losses To Continue In 2025).
To curb overcapacity in the polysilicon space, 9 leading Chinese polysilicon manufacturers launched a joint venture, called Beijing Guanghe Qiancheng Technology, in December 2025. The aim of the JV is to address market expansion and cost rationalization. Tongwei is its largest shareholder (see Chinese Polysilicon Makers Join Hands Amid Overcapacity Concerns).
However, earlier this year, China’s antitrust regulator warned the manufacturers against joint actions on pricing, production, and sales that could create monopolies (see China Warns Polysilicon Firms Over Monopoly Risks).
