Recently, Bowei Alloy issued an announcement stating that it has completed and disclosed itemized responses to the relevant questions raised in the Shanghai Stock Exchange (SSE) Regulatory Work Letter regarding the performance forecast of Ningbo Bowei Alloy Materials Co., Ltd.
It is understood that Bowei Alloy previously announced on January 23, 2026, its expected net profit attributable to shareholders for 2025 to be RMB 100-150 million, representing a year-on-year decrease of 88.92%-92.61%; and non-net profit after deducting non-recurring gains and losses to be RMB 105-155 million, a year-on-year decline of 88.30%-92.08%. The core reason was the provision of RMB 303 million for inventory write-downs in the new energy sector and RMB 703 million for asset impairment provisions related to the 3GW solar cell project in Haiyang, Vietnam, totaling RMB 1.006 billion in impairments. The SSE subsequently issued a special inquiry regarding this matter.
Bowei Alloy disclosed that the impairments were primarily caused by U.S. policy impacts. Specifically, the U.S. imposed high anti-dumping and countervailing duties of 307.78% on Vietnamese photovoltaic products in 2025. Furthermore, with the implementation of the "Big and Beautiful Act" in July 2025, the company's wholly-owned U.S. subsidiary became ineligible for federal subsidies due to non-compliant shareholding ratios, leading to projected losses for related production capacity and orders.
In detail, the total inventory impairment amounted to RMB 303 million, of which RMB 266 million was provided for assets related to the U.S. North Carolina factory and California warehouse. The two Vietnamese factories accounted for a combined RMB 36.74 million, including RMB 3.087 million for cells and RMB 8.0744 million for modules at the Bac Giang factory (mentioning 182mm & 210mm cell/module formats, and 156mm & 158mm cell/module formats, etc., for which impairment had been substantially fully provided in previous periods, resulting in a small additional provision in the current period), and RMB 25.5786 million for cells at the Haiyang factory (products commissioned in March-April 2025, originally planned for shipment to the U.S. for assembly and sale. Due to policy impacts and the delayed finalization of the relocation joint venture plan, a decision was made to halt progress in December 2025, leading to the impairment provision). The company stated that the impairment tests complied with accounting standards, the provisions were made accurately and prudently, and there were no unrecorded impairments from prior periods. Tianjian Certified Public Accountants has issued a clear opinion on this matter.
Regarding fixed asset impairment, the carrying value of assets related to the Vietnamese Haiyang project was RMB 870 million, with a recoverable amount of approximately RMB 167 million, resulting in an impairment provision of RMB 703 million. As for U.S. related projects, since asset sales are currently underway (in the negotiation stage), no fixed asset impairment has been provisioned for the time being, and there are no circumstances requiring unrecorded provisions.
Against this backdrop, Bowei Alloy has decided to sell its U.S. photovoltaic production capacity, exit the new energy business, and refocus on its core new materials business.
Regarding the current progress of the sale, Bowei Alloy established a special task force in July 2025 and appointed J.P. Morgan as its financial advisor to facilitate the sale. As of February 2026, the company has entered the stage of in-depth negotiation on transaction terms, with 3-4 potential buyers quoting no less than the net asset value. The Chairman is leading the negotiations, aiming to complete the transfer in the first quarter of 2026.
It should be noted that no legally binding formal agreement has been signed yet, and there is uncertainty regarding future progress. The company stated that it has actively responded to policy changes, fully disclosed relevant risks, and will continue to promote the disposal of U.S. assets and timely disclose progress in accordance with regulatory requirements.
Source：EnergyTren
