Major Solar Companies Report Over 8 Billion Yuan Losses in Q1, Signaling Ongoing Industry Struggles

Five Major Photovoltaic Leaders Report Over 8 Billion Yuan Loss in Q1, Industry Winter Continues

Despite the frenzy of installations, the photovoltaic industry is still struggling, with almost all major companies reporting losses. The financial reports from the five leading companies in the sector indicate a combined loss exceeding 8 billion yuan for the first quarter. JinkoSolar (688223.SH), the largest in terms of module shipments, reported a revenue of 13.843 billion yuan, down 40.03% year-on-year, with a net loss of nearly 1.39 billion yuan, widening compared to the previous quarter’s losses. This time last year, the company had a net profit of 1.176 billion yuan. JinkoSolar attributed its struggles to low prices across the entire industry chain and changing international trade policies affecting demand, which have compressed profit levels throughout the integrated segments of the industry. The company’s total shipment volume was 19,130 MW, with 17,504 MW in module shipments, and a year-on-year decrease of 12.68% overall. For the second quarter, JinkoSolar anticipates module shipments of 20-25 GW while balancing shipment scale and profitability.

Longi Green Energy (601012.SH) reported revenue of 13.652 billion yuan, a 22.75% decrease year-on-year, along with a net loss of 1.436 billion yuan, showing an improvement compared to previous losses. At a performance meeting on April 30, the company noted that while prices for photovoltaic products increased in March, they still remained below production costs, putting continued pressure on profits. During the reporting period, silicon wafer shipments reached 23.46 GW, and module shipments were 16.93 GW, including 4.32 GW of BC module shipments.

JA Solar (002459.SZ) suffered the largest loss among the top four module manufacturers, with a net loss of 1.638 billion yuan, though this was a significant improvement from a loss of 4.172 billion yuan in the previous quarter. In Q1, the company’s battery module shipments totaled 15.65 GW, with overseas shipments accounting for about 45% of this volume. Trina Solar (688599.SH) reported a net loss of 1.32 billion yuan, transitioning from profit to loss year-on-year, but reducing losses by over 1.2 billion yuan compared to the previous quarter. During a meeting on April 30, Trina’s executives discussed their sales strategy for the year, emphasizing maintaining a leading position in major markets while not necessarily chasing absolute market share. They plan to achieve a shipment target of 70-75 GW this year, focusing on markets with better profit margins, such as Europe and Australia.

Tongwei Co., Ltd. (600438.SH), a leading player in polysilicon, has seen rapid growth in module shipments since entering this segment, ranking fifth globally in 2024, surpassing long-time competitor Canadian Solar. However, significant drops in module prices have also pressured Tongwei’s performance, resulting in a net loss of 2.593 billion yuan in Q1. This marks the sixth consecutive quarter of losses for the company.

The dramatic decline in prices across the photovoltaic supply chain has severely compressed profit margins, with challenges persisting in both domestic and international markets. Although there has been a short-term boost from installation surges this year, signs of an industry recovery remain elusive. Longi’s chairman, Zhong Baoshen, expressed caution regarding the industry’s recovery pace during the April 30 meeting, noting that the average module delivery price dropped from 1 yuan per watt last year to 0.7 yuan this year. He warned that if the current pricing trend continues, the industry could face a loss of approximately 90 billion yuan compared to last year, making it difficult to predict changes in the industry environment.

In addition, the U.S. Department of Commerce recently ruled affirmatively on anti-dumping and countervailing duty investigations concerning crystalline silicon photovoltaic cells from Cambodia, Malaysia, Thailand, and Vietnam. The imposed anti-dumping rates range from 0% to 271.28%, with countervailing duties between 14.64% and 3403.96%, resulting in significant discrepancies based on origin and manufacturer. Industry experts indicate that this effectively closes the channel for Chinese companies to export photovoltaic products to the U.S. via Southeast Asia.

Trina Solar forecasts a modest increase in global market demand this year, particularly in emerging markets, with expectations for over 30% growth in regions like the Middle East and Africa, as well as double-digit growth in the Asia-Pacific region. However, uncertainty remains for the U.S. market due to tariff impacts.