Major Chinese Solar Companies Report Over 8 Billion Yuan Losses in Q1 as Industry Struggles Continue

The photovoltaic industry continues to struggle despite a surge in installation demand, with major companies reporting significant losses. The financial results for the first quarter reveal that the five leading firms in the sector collectively incurred losses exceeding 8 billion yuan.

JinkoSolar (688223.SH), the largest in terms of module shipments, reported first-quarter revenues of 13.843 billion yuan, marking a 40.03% year-on-year decline. The company’s net loss reached nearly 1.39 billion yuan, worsening compared to a loss in the fourth quarter of the previous year, while in the same period last year, they had a net profit of 1.176 billion yuan. JinkoSolar attributed the losses to low prices across the industry’s supply chain and changing overseas trade policies affecting demand. As an integrated company with a global market presence, they noted that their average module delivery price and profitability have declined year-on-year. In the first quarter, total shipments amounted to 19,130 MW, of which 17,504 MW were modules, while the shipment of wafers and battery cells was 1,626 MW, reflecting a 12.68% decrease compared to the same period last year. The company anticipates module shipments of 20-25 GW for the second quarter while balancing shipment scale and profitability.

LONGi Green Energy (601012.SH) reported first-quarter revenues of 13.652 billion yuan, down 22.75% year-on-year. The company’s net loss was 1.436 billion yuan, showing a reduction compared to previous losses. During an earnings conference on April 30, the company noted that while prices for photovoltaic products increased in March, they remained below production costs throughout the quarter, continuing to exert pressure on profitability. In this reporting period, silicon wafer shipments totaled 23.46 GW, and battery module shipments reached 16.93 GW, including 4.32 GW of Bifacial (BC) modules.

Among the four major module manufacturers, JA Solar (002459.SZ) suffered the largest loss in the first quarter, with a net loss of 1.638 billion yuan. However, this represented a significant improvement compared to a net loss of 4.172 billion yuan in the fourth quarter of the previous year. The company reported battery module shipments of 15.65 GW (including 33 MW for self-use), with approximately 45% of shipments being exported.

Trina Solar (688599.SH) reported a net loss of 1.32 billion yuan, reversing from profit compared to the same period last year, but showing a reduction of over 1.2 billion yuan from the previous fourth quarter. Company executives shared during the April 30 earnings conference that their strategy aims to maintain a leading position in major markets without aggressively pursuing absolute market share. They plan to balance volume and profitability while increasing market share in regions with better profit margins, such as Europe and Australia, with an annual shipment target of 70-75 GW.

Tongwei Co. (600438.SH), a leader in polysilicon, has seen its shipment ranking rise sharply since entering the module segment, set to replace Canadian Solar as the fifth-largest global module shipper in 2024. However, the sharp decline in module prices has also put pressure on Tongwei’s performance, which reported a net loss of 2.593 billion yuan in the first quarter. Although this marked a reduction in losses from previous quarters, it was the company’s worst quarterly report ever, marking the sixth consecutive quarter of losses.

In 2024, significant price declines across the photovoltaic industry have severely compressed profit margins, and challenges continue to mount. Although there has been a short-term boost from the installation rush this year, signs of the industry’s winter ending remain elusive. LONGi Green Energy’s Chairman, Zhong Baoshen, expressed caution regarding the pace of industry recovery during the April 30 conference, noting that the average module delivery price dropped from 1 yuan per watt in the first quarter of last year to 0.7 yuan this year. He warned that if this price trend continues, the industry could face a revenue drop of 90 billion yuan, leading to even larger losses compared to last year. Given the current conditions, he expressed uncertainty about potential changes in the industry environment and acknowledged that operational conditions vary significantly among companies.

Regarding new installations, Zhong predicted that 2025 might not see any growth, suggesting that domestic photovoltaic demand could remain flat or slightly increase compared to 2024. He forecasted that demand would return to a growth trajectory in 2026 as the electrical system improves its capacity to absorb renewable energy.

Recently, the U.S. Department of Commerce reached a positive final ruling on the anti-dumping and countervailing duty investigations concerning crystalline silicon photovoltaic cells originating from Cambodia, Malaysia, Thailand, and Vietnam, whether or not assembled into modules. According to the ruling, the anti-dumping duties for these Southeast Asian countries range from 0% to 271.28%, while countervailing duties range from 14.64% to 3,403.96%, with significant variations depending on the country of origin and manufacturers. Industry experts indicated that this effectively closes the channel for Chinese companies to export photovoltaic products to the U.S. through Southeast Asia.

Trina Solar anticipates that global market demand will see a moderate increase this year, with emerging markets expected to grow rapidly. The Middle East and Africa are projected to grow by more than 30%, while the Asia-Pacific region is also expected to see double-digit growth. China is anticipated to have positive growth, while the U.S. market remains uncertain due to tariff impacts.

The company noted that the U.S. market faces operational uncertainties this year due to tariffs imposed by the U.S. government. The high double-reverse duty rates contribute to this uncertainty. On one hand, the company will closely monitor changes in U.S. policies and adjust shipment volumes accordingly. On the other hand, its TOPCon battery module factory in Indonesia, with an annual capacity of 1 GW, is not affected by the double-reverse duties applied to the four Southeast Asian countries. Currently, the tax rate for Indonesia appears relatively low, providing a competitive advantage amid uncertainties in the U.S. market.