Five A-Share Solar Companies Hold Performance Briefing on Tariffs, Market Outlook, and Financing Issues

On May 13, five major photovoltaic companies listed on the A-share market, namely JinkoSolar (688223.SH), LONGi Green Energy (688472.SH), AUO (688516.SH), GCL-Poly Energy (688556.SH), and Trina Solar (688599.SH), held a joint performance briefing. The management teams addressed questions from investors regarding the impacts of tariffs, market forecasts, and financing issues.

This collective performance briefing, organized by the Shanghai Stock Exchange, allowed company executives to respond to pressing concerns regarding the photovoltaic sector. Key discussion topics included the potential impacts of China-U.S. tariff policies, predictions for the future of the photovoltaic industry, advancements in solar cell technology, and the current status of corporate financing.

Impact of Tariffs on the Solar Storage Market

JinkoSolar Chairman Li Xiande noted that a easing of China-U.S. tariff policies would create a relatively stable environment for overseas trade in solar and energy storage products. He reported that the company’s 10GW high-efficiency solar cell and module project in Saudi Arabia is progressing smoothly and will enhance its supply capacity in both the Middle East and global markets.

LONGi Green Energy CEO Zhuang Yan stated that the existing tariff policies in the U.S. had previously restricted direct exports of solar products from China, which primarily shipped through Southeast Asia and local U.S. channels. Consequently, the effects of reciprocal tariffs between the U.S. and China were minimal, although Southeast Asia does face potential impacts from anti-dumping and countervailing duties, pending future rulings. He emphasized that recent tariff policy adjustments have reduced the impact on the company’s energy storage products, and they are actively communicating with customers about future order arrangements.

The Trina Solar Chairman and CEO, Gao Jifan, expressed confidence in their inventory levels in the U.S., stating that they have sufficient stock of solar modules and that their costs are not expected to be affected by the new tariffs. He added that they have additional products in transit and other supply channels to meet U.S. market demand for the remainder of the year. Furthermore, their joint venture in Indonesia, which produces TOPCon solar cells with an annual capacity of 1GW, remains unaffected by tariffs imposed on four Southeast Asian countries, giving it a competitive edge.

Gao also highlighted that companies with strong strategic foresight and global operational capabilities are better positioned to navigate the challenges posed by U.S. tariffs.

Future Trends in the Photovoltaic Market

Looking toward 2025, Li expressed optimism about global photovoltaic installation demand, predicting over 10% year-on-year growth, primarily driven by emerging markets in the Middle East, Africa, and Asia-Pacific. He noted that the peak of domestic distributed energy installations has passed, leading to more rational market pricing.

He emphasized that long-term demand for solar energy remains robust, driven by AI advancements and a growing demand for green energy. Some crossover companies are gradually exiting the market, and with ongoing supply-side reforms, the photovoltaic industry is expected to transition from losses to breakeven and eventually to profitability.

Gao mentioned that the upstream sector of the photovoltaic industry chain has seen slight price increases, indicating stabilization in industry pricing, which should be monitored in relation to supply and demand dynamics.

GCL-Poly Energy General Manager Zhang Xiutao remarked that China has established the largest photovoltaic market globally, excelling in technology and talent accumulation. Despite being in a deep adjustment phase, the global photovoltaic additions will continue to grow, indicating a bright future for the industry. He pointed out that the ongoing industry adjustment phase will lead to the elimination of outdated production capacities, paving the way for healthier industry development.

However, some companies maintain a neutral perspective on the pace of capacity clearing in the photovoltaic sector. Zhuang highlighted that there has not yet been a fundamental change in the oversupply situation within the industry. He stated that in 2025, before a significant price rebound occurs, the focus will be on balancing component shipment volumes with profitability, prioritizing high-value market orders.

Both Zhuang and Gao noted that technological advancements and economies of scale have significantly reduced costs for photovoltaic and energy storage systems, making supply and costs less of a limiting factor. They stressed the importance of enhancing absorption capacity, optimizing revenue models for power plants, and improving overall returns as intermittent renewable energy generation increases.

In regard to financing, Li confirmed that current financing channels are normal and that the company has increased long-term loans to maintain a reasonable cash reserve while actively advancing their GDR project. Gao noted that the overall banking environment has not tightened this year, with 2025 expected to exhibit characteristics of dual easing in both monetary and fiscal policy. Financial institutions are prioritizing support for leading companies in the photovoltaic sector through selective criteria.

Gao concluded that policy banks are increasing their counter-cyclical support for the entire industry chain during this adjustment period, with a continued focus on leading enterprises in the sector.