Analysis of R&D Investment and Technology Roadmap of TCL Zhonghuan

Based on the latest data I collected, the following is a detailed analysis of

's R&D investment and technology roadmap selection:

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Year	R&D Investment Amount	Ratio of Operating Revenue	Year-on-Year Change
2024	RMB 1.102 billion	3.88%	Down 61.31% year-on-year[1]
2023	RMB 2.848 billion	4.82%	-
First Half of 2025	RMB 540 million	4.03%	-

• 2024 R&D Personnel Count
  : 1,400 people, accounting for
  9.99%
  of the company’s total workforce[1]
• R&D personnel education structure: 805 bachelor’s degree holders, 152 master’s degree holders, 5 doctoral degree holders
• R&D capitalization rate: 32.07% in 2024, an increase from 25.39% in 2023

According to the 2024 annual report, the significant decline in R&D investment is mainly due to:

• Falling prices of materials used in R&D
• Reduced R&D investment[1]

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TCL Zhonghuan’s technology development direction in the silicon wafer field is as follows:

Technology Direction	Details
Large-size	210 large-size silicon wafers, with prominent throughput advantages and obvious competitive edge
Thinning	Continuously advancing the silicon wafer thinning process to reduce LCOE (Levelized Cost of Electricity)
N-type Silicon Wafers	Completed the development of silicon wafers for TOPCon, HJT, and XBC batteries, with 100% customer coverage, and N-type products accounting for more than 80% of the overall output structure

The company’s judgment on the development path of battery technology[2]:

PERC → TOPCon → BC Battery Structure (IBC/TBC/HBC)

• Short-term
  : PERC will gradually be replaced by more efficient TOPCon technology
• Mid-to-long-term
  : Developing towards BC battery structure with higher conversion efficiency
• R&D focus
  : Double-sided Poly-TOPCon battery technology, TBC battery structure, and TBC stack exploration

is one of the company’s core competitive advantages[3]:

• In 2017, Huasheng introduced SunPower’s globally patented high-efficiency shingled module technology
• Adopting high-density packaging process to eliminate cell gaps and increase the effective light-receiving area of a single module
• The maximum module power can reach over 600W, with power generation efficiency of over 21%
• Full parallel circuit design can effectively reduce hot spot effect and module operating temperature
• Passed 6x IEC test standards, with the world’s best reliability performance

• Building smart factories based on “Industry 4.0” technology to achieve full-line automated operation of the wafer manufacturing system
• Developed “Deep Blue” + AI learning model to enhance flexible manufacturing capabilities
• Achieved large-scale free switching of process recipes to ensure product quality consistency

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According to the 2024 annual report, the company’s major R&D projects include[1]:

R&D Project	Project Objective	Progress
Research and Application of Granular Materials in Monocrystalline Silicon Preparation	Solve technical barriers of granular silicon raw materials in the monocrystalline pulling process and reduce silicon costs	Achieved mass production application of 100% granular materials replacing polycrystalline materials
N-type Product R&D Project	Develop silicon wafers suitable for high-efficiency N-type batteries	N-type products account for more than 80% of the overall output structure
Granular Silicon Application Development	Reduce the company’s silicon costs and develop carbon footprint products	In a leading position in the industry
Module 4.0 Technology Platform Development	Completed the development of 4.0 product & equipment platform and achieved mass production conversion	Completed the full-series development of 4.0 products
Next-Generation Battery Technology	Research double-sided Poly-TOPCon battery technology and TBC battery structure	Sample trial production stage

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• Seizing the opportunity of industrial technology upgrading, building a new BC cooperation ecosystem through intellectual property and patent commercialization
• Discussing the innovative development trend of BC technology with Maxeon, LONGi Green Energy, and Aiko Solar to jointly build a BC ecosystem[4]

• As of the end of the reporting period, the company’s silicon wafer production capacity reached
  200GW
  [5]
• Against the backdrop of high-purity quartz sand shortage, the company made preparations and arrangements in advance to expand its advantages in crystal pulling efficiency and production stability

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As a leading enterprise in the photovoltaic silicon wafer field, TCL Zhonghuan demonstrates the following characteristics in terms of R&D investment:

1. R&D investment ratio remains around 4%
   : 3.88% in 2024 and 4.03% in the first half of 2025, which is equivalent to the industry average level

2. Clear technology roadmap
   :
   • Silicon wafers: 210mm large-size + thinning + N-type transformation
   • Batteries: Developing towards BC battery structure
   • Modules: Building differentiated barriers with shingled module technology
   • Manufacturing: Industry 4.0 intelligent manufacturing

3. Adjustment of R&D strategy
   : Against the backdrop of overall pressure in the photovoltaic industry, the company appropriately reduced its R&D investment intensity, but focused on core technology development and intellectual property commercialization

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[1] 2024 Annual Report of TCL Zhonghuan New Energy Technology Co., Ltd. (http://file.finance.sina.com.cn/211.154.219.97:9494/MRGG/CNSESZ_STOCK/2025/2025-4/2025-04-26/11011386.PDF)

[2] Investor Relations Activity Record of TCL Zhonghuan New Energy Technology Co., Ltd. (http://static.cninfo.com.cn/finalpage/2023-10-25/1218151680.PDF)

[3] TCL Zhonghuan (002129): Silicon Wafer Leader Strengthens Advantages, Accelerates Semiconductor Business (https://pdf.dfcfw.com/pdf/H3_AP202304241585762181_1.pdf)

[4] New Photovoltaic Technology: Optimistic about BC’s Development from 1 to 10 (http://pdf.dfcfw.com/pdf/H3_AP202507061703991072_1.pdf)

[5] 2025 Half-Year Report Abstract of TCL Zhonghuan New Energy Technology Co., Ltd. (https://qxb-pdf-osscache.qixin.com/AnBaseinfo/d5be9483146943aefe97a7bda4a454e2.PDF)