Abalance Corporation

Business Details

Vietnam Sunergy Joint Stock Company (VSUN) in Vietnam manufactures and sells solar panels, while TOYO SOLAR Company Limited, under TOYO Co., Ltd., handles the upstream processes of cells, ingots, and wafers. The two companies collaborate to build a global supply chain. Sales destinations are diversified across the US, India, Asia, Europe, and other regions, and the company is expanding production bases in Ethiopia (cell plant) and Texas, US (panel plant). For the first half of FY2026 (ending March 2026), net sales were ¥53,645 million and segment profit was ¥5,827 million.

Recent Overview

Both sales and profit exceeded plan, driven by the start-up of the new Ethiopia and US plants

In H1 FY2026 (ending March 2026) (April to September 2025), net sales of ¥53,645 million and segment profit of ¥5,827 million were recorded, both exceeding plan. Production at the Ethiopia cell plant (total 4GW) expanded smoothly, and sales to the US and Asia remained solid. Sales from VSUN and TOYO SOLAR to Asian customers, mainly in India, also performed well. The new Texas plant in the US (Phase 1: 1GW) started production in October 2025, and its results are expected to be reflected from the cumulative Q4 consolidated period. The company is promoting supply chain resilience through a three-region structure of Vietnam, Ethiopia, and the US.

Key Products

Growth Drivers

• Expansion of production capacity at the Ethiopia cell plant (total 4GW in operation across Phase 1 and Phase 2), increasing supply of low-tariff products for the US (10% reciprocal tariff) and expanding sales to external customers
• Full-scale operation of the new Texas plant in the US (Phase 1: 1GW, production started October 2025) and capturing strong demand from large-scale solar power development companies through application of US government tax incentives
• Diversification of sales destinations to India, Asia, Europe, and other regions, reducing dependence on the US and stabilizing the sales base
• Strengthening global fundraising capability by leveraging TOYO Co., Ltd.'s listing on the US Nasdaq (July 2024)
• Strengthening supply chain resilience through the three-region structure of Vietnam, Ethiopia, and the US, and improving the ability to respond neutrally to changes in US import tariff policy
• Strengthening cost competitiveness of the global supply chain through collaboration between VSUN and TOYO SOLAR in Vietnam and the Ethiopia plant

Risks

• Risk of additional AD duties, CVD duties, and reciprocal tariffs imposed by the US government (reciprocal tariffs of 20% on Vietnam-made products and 10% on Ethiopia-made products already imposed) and risk of further changes in tariff policy
• Risk of market softening and decline in average selling prices due to a global oversupply of solar-related products
• Risk of tax non-deductibility of export duties for VSUN and TOYO SOLAR in Vietnam (potential for additional corporate tax depending on the results of investigations by local tax authorities)
• Uncertainty regarding the impact on business performance from a lawsuit filed by a solar panel manufacturer in December 2024 (8 consolidated subsidiaries are parties, in the US District Court for the Northern District of California)
• Financial and credit risk arising from suspected inappropriate accounting treatment related to past consignment-supply transactions (third-party committee investigation report received as of December 17, 2025)
• Risk of rising manufacturing costs due to increased upfront investment costs at the new US plant and Ethiopia plant (tangible fixed asset acquisition expenditure of ¥17,410 million) and fluctuations in capacity utilization