On 26 September 2023, Tongwei Co., Ltd. (SH：600438), announced that it will terminate the 16 billion yuan share issuance to specific objects for the construction of a high purity silicon production project in China with an expected annual output of 200,000 tonnes.

The Silicon Material Project was announced on 24 April 2023 that Tongwei Solar planned to issue not more than 900,391,165 A ordinary shares (inclusive) to not more than 35 specific investors to raise funds of not more than 16 billion yuan (inclusive) for the production of high purity silicon material projects in Inner Mongolia and Yunnan Province, China. The project in Inner Mongolia aims to produce 200,000 tonnes of high purity silicon per year with a total investment of 10.108 billion yuan, of which 9.4 billion yuan is the fund to be raised. The project is expected to be completed within 18 months and then achieve an operating income of 13,640,120,200 yuan and a net profit of 3,470,540,000 yuan after operation. And the Yunnan project is the second phase of the silicon production project, which is also designed to produce 200,000MT of high-purity silicon, with a total investment of 10,079 billion yuan, of which 6.6 billion yuan is self-funded. It is estimated to achieve an operating income of 13,640,120,200 yuan and a net profit of 3,231,940,000 yuan after 18 months of completion.

The projects are underway. However, the private placement will be terminated due to the unstable capital market as well as the underestimated value of Tongwei, the company said. The company’s own funds, loans from financial institutions and other financial resources will be used for the investment and construction of the silicon projects in Inner Mongolia and Yunnan, China, in order to ensure Tongwei’s high-quality development and safeguard the interests of all shareholders. In addition, the reasonable use of the funds will ensure that Tongwei’s expansion and development plans for 2020-2023 and 2024-2026 will be completed on schedule, Tongwei said.

（Picture: Veer）