TCL Zhonghuan Posts Massive Net Loss of 9.264 Billion Yuan in 2025, Slight Revenue Growth Fails to Mask Operational Pressure

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On March 24, TCL Zhonghuan (002129) released its 2025 annual report, delivering a performance report under significant pressure. The report shows that the company achieved an operating revenue of 29.05 billion yuan for the year, a year-on-year increase of 2.22%. Although there was a slight growth trend, profitability declined sharply, with net profit attributable to shareholders of listed companies at a loss of 9.264 billion yuan, setting a significant loss record. At the same time, the company announced that it will not distribute cash dividends, issue bonus shares, or convert reserves into share capital in 2025, reflecting the current operational pressures.

Looking at quarterly performance trends, TCL Zhonghuan’s losses persisted throughout 2025, with losses expanding each quarter. In the first quarter, net loss attributable to shareholders was 1.906 billion yuan, with basic earnings per share of -0.4774 yuan; by the end of the second quarter, cumulative net loss widened to 4.242 billion yuan; by the end of the third quarter, losses further increased to 5.777 billion yuan, and the annual loss was finally fixed at 9.264 billion yuan, with the scale of losses continuing to grow, indicating worsening operational difficulties.

Profit and loss statements show that TCL Zhonghuan’s losses are closely related to high operating costs. In the first three quarters of 2025, the company’s operating revenue was 21.572 billion yuan, while operating costs reached 22.917 billion yuan, with a gross profit margin of -6.24% and a net sales profit margin of -30.44%. The net sales profit margins in the first and second quarters were even -36.93% and -36.10%, respectively. Cost pressures have become the core factor dragging down the company’s profitability.

As a core enterprise in the photovoltaic industry, TCL Zhonghuan’s performance is also closely related to industry conditions. In 2025, the photovoltaic industry index showed a fluctuating downward trend, with the total market value at the end of the year falling back from the year’s high. The industry faced pressures such as supply-demand adjustments and price fluctuations, which also impacted TCL Zhonghuan’s operational results. Under industry pressure, the company achieved slight revenue growth but failed to effectively control costs, ultimately leading to significant losses.

The company’s announcement of no profit distribution aligns with its current operational situation and is a rational choice to cope with losses and focus on its development. As for future operational plans, TCL Zhonghuan has not disclosed specific measures. The market is generally concerned about how the company will respond to industry pressures and improve profitability. The subsequent recovery of performance remains to be seen.