Breakingviews - Clouds gather over China’s needed solar mergers

Tongwei's Financial Struggles: Tongwei, a major player in the solar industry, reported a significant net loss of 2.3 billion yuan ($323.5 million) in Q2, with its gross profit margin dropping to a 13-year low of 5%, leading to a 40% decline in shares over the past year.

Acquisition Plans and Industry Challenges: Despite plans to acquire a controlling stake in rival Runergy for up to 5 billion yuan, challenges such as Runergy's offshore assets and potential political complications may hinder consolidation efforts in China's oversupplied solar sector.