On the evening of February 24, Tongwei Co., Ltd. issued an announcement stating that the company is planning to acquire a 100% equity stake in Qinghai Lihao Clean Energy Co., Ltd. through the issuance of shares and cash payments, while simultaneously raising matching funds.
At present, Tongwei has signed a Letter of Intent regarding the equity acquisition with the prospective transaction parties: Duan Yong, Hainan Zhuoyue Enterprise Management Partnership (Limited Partnership), and Hainan Haoyue Enterprise Management Partnership (Limited Partnership).
As this matter remains in the planning stage, to ensure fair information disclosure and safeguard investors' interests, trading of the company's stock (Tongwei Co., Ltd.) and convertible bonds (Tong 22 Convertible Bond) will be suspended from the market opening on February 25, 2026. The trading suspension is expected to last no more than 10 trading days.
The target of this transaction, Lihao Clean Energy, was established in April 2021 with a registered capital of approximately 1.006 billion RMB. Public information indicates that the company previously unveiled a massive capacity expansion blueprint with a projected total investment of up to 73 billion RMB and a total planned capacity of 750,000 tons. This includes 600,000 tons of polysilicon capacity across three major domestic bases in Xining (Qinghai), Yibin (Sichuan), and Baotou (Inner Mongolia), as well as a 150,000-ton overseas project in Angola.
In terms of actual progress, the construction timeline of the Xining base in Qinghai is the most clearly defined; by the end of 2023, it had completed 150,000 tons of capacity, accounting for 25% of its planned domestic capacity. In contrast, other projects have experienced varying degrees of stagnation and delays. The Yibin project in Sichuan, with a planned total investment of 11 billion RMB, was originally scheduled to commence production in August 2024, but there has been no public information confirming its official commissioning to date. The Baotou project in Inner Mongolia, announced in April 2024 with a total investment of 25 billion RMB, has seen no construction updates since its initiation. Furthermore, following the disclosure of the 150,000-ton overseas project in Angola, specific investment figures and a construction timeline have yet to be announced.
Tongwei cautioned in its announcement that the specific transaction plan still requires further discussion and validation, and the relevant auditing, valuation, and due diligence processes have not yet been completed. In addition, this matter is subject to necessary internal decision-making procedures and must receive approval from competent regulatory authorities before implementation. Therefore, uncertainties remain as to whether the transaction will ultimately materialize.
Source：EnergyTrend
