The leader in polysilicon, Tongwei Co., plans to acquire the industry’s sixth-largest player, whose shareholders include a豪华 lineup of IDG, Chint, and Aisuo.

A major merger and acquisition in the polycrystalline silicon sector of photovoltaics is underway.

On the evening of February 24, leading company in the entire photovoltaic industry chain, Tongwei Co., Ltd. (600438.SH), announced that it is planning to acquire 100% equity of Qinghai Lihao Qingneng Co., Ltd. (hereinafter referred to as “Lihao Qingneng”) through a combination of share issuance and cash payment, while simultaneously raising supporting funds. Trading of the company’s stock, convertible bonds, and convertible bond conversions will be suspended starting today (February 25).

As the leader in the photovoltaic polycrystalline silicon field, Tongwei Co., Ltd. is the acquirer, while Lihao Qingneng, founded less than five years ago, has already become a major player in the industry. The company and its founder, Duan Yong, have deep ties with Tongwei. Since its establishment, Lihao Qingneng has attracted investments from many well-known capital sources and photovoltaic industry giants. This capital operation is expected to bring returns to many investors.

Founded by former Tongwei executives

Lihao Qingneng was established in April 2021, mainly engaged in R&D, production, and sales of photovoltaic-grade high-purity silicon and electronic-grade polycrystalline silicon. Tongwei Co., Ltd. stated in its announcement that since the transaction is still in the planning stage, there are uncertainties involved.

Public information shows that Lihao Qingneng’s silicon material capacity ranks sixth in the industry, located behind Tongwei Co., Ltd., GCL Technology (03800.HK), Daqo New Energy (688303.SH), Xinte Energy (01799.HK), and Oriental Hope.

Tongwei disclosed that it has signed a letter of intent for equity acquisition with the transaction intention parties, Duan Yong, and Hainan Zhuoyue Enterprise Management Partnership (Limited Partnership) (hereinafter referred to as Hainan Zhuoyue), as well as Hainan Haoyue Enterprise Management Partnership (Limited Partnership) (hereinafter referred to as Hainan Haoyue). The final transaction will be based on the information disclosed in the restructuring plan or restructuring report.

Lihao Qingneng was founded by Duan Yong, who is currently the chairman of the company. Duan Yong previously worked at Tongwei for many years and served as a director of Tongwei and chairman of Yongxiang Co., Ltd., a core company in Tongwei’s polysilicon business. Earlier, he also worked at Oriental Hope Group.

According to Lihao Qingneng’s official website, the company mainly focuses on R&D, production, and sales of semiconductor materials such as photovoltaic-grade high-purity silicon and electronic-grade polycrystalline silicon. It is a key investment project in Qinghai Province. The company is located in Nanchuan Industrial Park, Xining Economic and Technological Development Zone, Qinghai, covering an area of 2,600 acres, with a planned total investment of 20 billion yuan, and aims to build an annual production capacity of 200,000 tons of photovoltaic-grade high-purity silicon and 2,000 tons of electronic-grade high-purity silicon.

Lihao Qingneng has grown rapidly. Just one year after its founding, its first phase of 50,000 tons of polycrystalline silicon was officially put into production. Public information also shows that by the end of 2025, Lihao Qingneng will have over 200,000 tons of high-purity silicon capacity in operation, with an additional 100,000 tons under construction.

Tongwei Co., Ltd. is undoubtedly the “number one” in the polycrystalline silicon field. Its 2025 semi-annual report disclosed that in the first half of that year, the company sold 161,300 tons of polycrystalline silicon, with a global market share of about 30%, ranking first in the industry. In its 2024 annual report, the company stated that it had formed an annual capacity of over 900,000 tons of high-purity silicon, over 150 GW of solar cell capacity, and over 90 GW of module capacity.

The proposed acquisition of Lihao Qingneng by Tongwei Co., Ltd. is expected to further strengthen its advantages in the polycrystalline silicon sector. Some analysts believe that the current silicon material industry urgently needs market-driven capacity cleanup, and mergers and acquisitions are an important way to achieve this.

Impressive shareholder lineup

Since its establishment, Lihao Qingneng has quickly risen to the forefront of the industry, thanks to support from various capital sources.

According to public information, Lihao Qingneng completed Series A financing in December 2021, with investors including Chint and other industry capital, as well as IDG Capital, Jinyu Maowu, and other financial investors.

In September 2022, Lihao Qingneng announced the completion of a 2.2 billion yuan Series B financing round. At that time, reports indicated that China Three Gorges Group’s Changjiang Securities Innovation Investment, Haisong Capital, Yunhui Capital, China-Belgium Direct Equity Investment Fund, China-US Green Fund, Jiawo Capital, and Zhejiang Min Investment participated in the investment, with existing shareholders Chint, IDG Capital, and Jinyu Maowu also increasing their stakes.

In December 2022, photovoltaic cell and module company Aisuo Co., Ltd. (600732.SH) disclosed that its subsidiary planned to invest 385 million yuan to participate in Lihao Qingneng’s capital increase, acquiring a 2.78% stake. Based on this, Lihao Qingneng’s overall valuation at that time was estimated at 13.8 billion yuan.

Public information shows that after 2023, Lihao Qingneng has raised two additional rounds of financing, involving investors such as Guangyuan Growth Fund and others.

What is the current ownership structure of Lihao Qingneng? Business registration data indicates that Lihao Qingneng has a total of 49 shareholders. Among them, founder Duan Yong directly holds 4.7858%, while Hainan Zhuoyue and Hainan Haoyue hold 9.5716% and 8.8538%, respectively. Duan Yong is also an investor behind these two companies.

Currently, Chint New Energy Technology Co., Ltd. (hereinafter referred to as Chint New Energy) is the largest shareholder of Lihao Qingneng, holding over 10%. Chint New Energy is a subsidiary of Chint Group, focusing on manufacturing photovoltaic modules. It is one of the earliest private enterprises in China to enter the photovoltaic field, specializing in R&D, production, and sales of high-efficiency crystalline silicon solar cells and modules.

Shareholder Zhejiang Aisuo Solar Technology Co., Ltd., which holds about 4% of Lihao Qingneng, is the largest shareholder of Jingsheng Electromechanical (300316.SZ), a photovoltaic equipment company.

Currently, Lihao Qingneng is poised to be acquired by Tongwei Co., Ltd., and many of its investors are expected to see returns.