TCL Zhonghuan responds to rumors of base production suspension: It is still producing and operating normally, and there are currently no plans to reduce production lines

According to news from this website on August 21, there are recent market rumors that a major silicon wafer manufacturer’s Tianjin and Yixing bases may cease production. The industry speculates that the rumors allude to TCL Central.
On August 21, TCL Central responded to the Daily Economic News that it has not received any news of production suspension, the relevant bases are still producing and operating normally, and the company currently has no plans to suspend production or reduce production lines.
TCL Zhonghuan’s domestic production capacity layout mainly involves Tianjin, Inner Mongolia, Ningxia, Jiangsu and other places. In the past two years, affected by changes in the supply and demand structure, the photovoltaic industry has entered a period of deep adjustment, with product prices falling and backward production capacity being cleared at an accelerated pace. TCL Central chose to buck the trend and increase production. According to TCL Central's annual report, the company's crystal production capacity reached 183GW by the end of 2023, an increase of 31% from the beginning of the period.
Inquiries on this site revealed that TCL Central achieved revenue of 9.933 billion yuan in the first quarter of 2024, a year-on-year drop of 43.62%; a loss of 879 million yuan, turning from profit to loss. On August 2, TCL Central announced the resignation of CEO Shen Haoping, citing "due to work needs and personal energy considerations." TCL boss Li Dongsheng will temporarily assume the CEO responsibilities and will complete the recruitment process of the new CEO in accordance with relevant regulations.
According to sources, there are signs of turmoil within Central, with plans for a "replacement" of mid- to high-level personnel and a change in the previous attitude of operating at full capacity. TCL Central insiders also said that there are indeed some changes in the start of construction. Compared with before, the operating rate has dropped by 5%-10%, but this is an operation under normal production scheduling adjustments. Others in the photovoltaic industry believe that Shen Haoping's resignation may be due to wrong market judgment in the first and second quarters of this year. Zhonghuan was aggressively arranged to produce at full capacity in the early stage, resulting in billions of silicon wafer inventories and large price fluctuations in the silicon wafer market. It also caused huge price losses.

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