On April 30, Hesheng Silicon Industry released its first quarter performance report for 2026. In the first quarter of this year, the company's revenue reached 5 billion 6 million yuan , down 4.25% from the same period last year ; Net profit was 77 million yuan , down 70.21% year on year; Non-net profit loss 0.
For the decline in profits, Hesheng Silicon Industry explained that it was due to the decline in the sales price of industrial silicon products and the increase in the provision for impairment of inventory in the photovoltaic industry. Affected
by the same reason, the performance of Hesheng Silicon Industry in 2025 suffered a heavy blow.
According to the annual report of Hesheng Silicon Industry in 2025, the company achieved a revenue of 20.499 billion yuan last year, down 23.2% year-on-year, and a net profit loss of 2.991 billion yuan, turning from profit to loss ;
As for the sharp decline in performance in 2025, Hesheng Silicon explained that it was due to the decline in prices of major products and the impairment of inventories and long-term assets that led to a decrease in profits. At the same time, the company further indicated that the main reason for the performance loss was concentrated in the photovoltaic business sector . "Although the polysilicon industry is gradually repaired under the synergy of policy and market, it still faces challenges such as insufficient short-term demand and high inventory.". In this context, The company's photovoltaic business is affected by the shutdown of polysilicon production line and photovoltaic Digital New Energy DataBM.
However, with the sudden change of the situation and the arrival of the industry cycle, Hesheng Silicon Industry spent tens of billions of yuan in four years, but finally it still "stood outside the circle".On December 12,
2021, the official of the office of the Management Committee of the Party and Labor Committee of Ganquanbao Economic and Technological Development Zone in Urumqi, Xinjiang, announced that the Urumqi Municipal People's Government and Hesheng Silicon Industry had formally signed a strategic cooperation framework. The silicon-based new material industry integration project with an investment of 35.5 billion yuan will start construction in March 2022 in Ganquanbao Economic and Technological Development Zone, Urumqi, and is expected to be completed and put into operation in 2024.
"The project will invest in the construction of new silicon-based materials, single crystal slices, battery components, photovoltaic power generation and other projects.."
This means that Hesheng Silicon Industry has officially entered the photovoltaic industry and started the integration process of "industrial silicon-polycrystalline silicon-silicon wafer-battery-module". The whole industry chain project of 10 billion yuan is enough to show the ambition of Hesheng Silicon Industry, not just to share a cup of industry dividends.
42.455 billion yuan to build 200000 tons of polysilicon, 20GW silicon rods, 20GW slices, 20GW batteries, 20GW modules and 1.5 million tons of photovoltaic glass production capacity in Ganquanbao Economic Development Zone; Planned investment in Shanshan County, Turpan 176.
At that time, integration was also gradually becoming the consensus of the photovoltaic industry, leading enterprises were spending a lot of money to expand production and improve the layout, and the photovoltaic industry set off a wave of "integration" in 2022-2023. Data show that in 2022, the investment scale of photovoltaic industry chain manufacturing industry is nearly trillion yuan , and the expansion scale is more than 1500 GW .
In this way, the layout of Hesheng Silicon Industry also conformed to the industry trend at that time.
However, Hesheng Silicon Industry, which spent thousands of yuan in the photovoltaic industry, was in a dilemma of "increasing income without increasing profits" at that time. Data show that in 2021-2023, the company's operating income was 21.343 billion yuan, 23.657 billion yuan and 26.584 billion yuan respectively, while its net profit in the same period was 8.212 billion yuan, 5.148 billion yuan and 26. The performance "scissors gap" gradually expanded.
Obviously, at that time, Hesheng Silicon Industry wanted to break the performance cycle of "paper wealth" by extending the whole industry chain vertically and horizontally and relying on its industrial advantages.
Therefore, in the next year's business plan in the annual reports of 2022 and 2023, Hesheng Silicon Industry has made it clear that it will promote the construction of photovoltaic integration projects. On October 14,
2023, the whole photovoltaic industry chain of Hesheng Silicon Industry was completed and the component offline ceremony was held. With the first photovoltaic module product of Ganquanbao Base officially offline, it marks that the company's "polycrystalline silicon-single crystal slice-battery module-photovoltaic glass-photovoltaic power generation" integrated industry chain park has been officially connected, and the most complete photovoltaic industry chain in the world has been born. On March 1,
2024, Hesheng Silicon announced that the whole series of photovoltaic products had been sold to the outside world.It took Hesheng Silicon Industry less than two years to
"plant"
from signing the contract to linking up. Quick layout was supposed to be an early dividend, but the result was never "on the table". Behind the "carnival" of photovoltaic integration mentioned
above is the industry crisis of oversupply. In 2023, the price of polysilicon started the "slump mode" and entered the single-digit era .
According to the statistics of Digital New Energy DataBM. Com, the average price of single crystal re-feeding, single crystal dense material and single crystal cauliflower material dropped by more than 70% in 2023. The decline in
industrial prices has led investors to question and worry about the massive expansion of Hesheng Silicon Industry. But at that time , Luo Liguo , chairman of Hesheng Silicon Industry, was still full of confidence, saying at the shareholders'meeting in early May 2023, " Even if (polysilicon) sells 780000, we can still make money.". I have a line of 100,000 tons, while others have a line of 10,000 tons. My operating cost is 10,000 to 20,000 yuan/ton cheaper than it. I can still support it when it closes. This is the calculation.
From the perspective of latecomers, Luo Liguo obviously "underestimated the enemy" at that time. Since
2023, the price of photovoltaic industry chain has continued to grind to the bottom, construction projects have been delayed and terminated, enterprises have fallen into the quagmire of losses, falling down batch after batch, and now no one can guarantee that they will live to the end.
In this context, the over 10 billion projects of Hesheng Silicon Industry have to be stalled.
As mentioned above, in March 2024, Hesheng Silicon announced that the whole series of photovoltaic products had been sold to the outside world.
However, digital new energy DataBM.
Hesheng Silicon said that it would moderately shrink its investment in photovoltaic business, focus more on the silicon-based main industry, develop the comprehensive utilization of organic silicon by-products horizontally, continue to invest in cutting-edge technology research and development, promote industrial upgrading with technological progress, and realize the efficient integration of silicon-based industry chain and value chain.
Since the cross-border layout of photovoltaic has been more than four years, Hesheng Silicon Industry has moved from large-scale expansion to passive contraction, and truly realized the cruel cycle pains of the photovoltaic industry. Who Is to Blame for the
"Great Cause of Photovoltaic"? This also means that Hesheng Silicon Industry wants not only to expand its photovoltaic business to add luster to its performance, but also to open up the whole industry chain upstream and downstream, firmly control the core links, so as to establish a deep competitive barrier and become the first echelon of the industry.
In the photovoltaic industry, the heavy warehouse layout of the whole industry chain is not uncommon, such as in the upward stage of the industry boom or still acceptable, but the increase of Hesheng Silicon Industry coincides with the downward cycle of the industry, the whole industry chain is losing money, so the layout will make the business risk of enterprises increase sharply.
Taking seven A-share photovoltaic head listed companies as an example, in the first quarter of 2024-2026, Longji Green Energy lost 16.958 billion yuan . Tongwei shares have a total loss of 19.036 billion yuan , TCL Central has a total loss of 20.729 billion yuan , and Jingao Technologies has a total loss of 10.331 billion yuan . Trina Solar has accumulated a loss of 10.757 billion yuan . Accumulated losses of JinkoSolar after offsetting profits and losses 81. The above enterprises are typical photovoltaic industry chain , https://www.databm.
Daquan Energy, which is deeply engaged in the single track of silicon materials, The accumulated loss within the above time frame is only 46.
In addition, as a new photovoltaic entrant, Hesheng Silicon is precisely betting on the N-type TOPCon technology outlet. However, it has fallen into the quagmire of homogeneous competition.
Although it has the advantages of cost and industrial chain, it lacks certain accumulation in sales channels and brand recognition, and then superimposes its own scale burden of "turning around in a big ship", its photovoltaic business is difficult, and every step is more and more heavy.
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