Country is experiencing a “price war” after the expansion of the sector hit the deceleration of demand
The over -capacity -powered price war caused 5 of China’s largest solar companies to register significant losses in the first half of 2025. Tongwei Co. Ltd. (-1.97 %), Longi Green Energy Technology Co. Ltd. (-1.78 %), TCl Zhonghuan Renewable Energy Technology Co. Ltd. (-1,30 %), Trina Solar Co. Ltd. (-3.29 %) and JA SOLAR TECHNOLOGY CO. LTD. (-3.35 %) disclosed their semiannual financial reports on Friday (22.ago.2025).
Among them, Tongwei reported the biggest loss – just below 5 billion yuans (about $ 3.80 billion in the current conversion) – enabling the negative result of 3.1 billion yuans ($ 2.35 billion) in the same period as 2024.
“The serious excess of supply in the photovoltaic industry has not yet been fully resolved”The company said in its semiannual balance, adding that key products have fallen to historical levels.
TCL Zhonghuan’s losses grew 38.5% year by year, reaching 4.2 billion yuans (about R $ 3.19 billion). Ja Solar recorded a 195%leap, reaching 2.6 billion yuans (about R $ 1.98 billion). The solar trine came out of a profit of 526 million yuans (about R $ 400.6 million) in the previous year to a loss of 2.9 billion yuans (about R $ 2.20 billion).
Longi was able to reduce its loss in half compared to 2024, which has partly attributed to the improvement of operational efficiency that reduced sales and administrative costs. The company, however, follows in red because of the competitive environment, in which market prices have fallen below the sector’s cost line.
Chinese solar energy manufacturers, who have been the forefront of the country’s ambitions in clean energy, are trapped in a war of wear. The enormous expansion of production capacity collided with the slowdown of demand, triggering devastating price dispute.
By mid -204, polysilicio, wafers, cells and modules prices had already fallen below production costs, eliminating profits throughout the chain.
The sector crosses a “painful transitional period”, Marked by the imbalance between supply and demand, fierce competition and a recent change in policy that ended the guaranteed purchase of renewable energy by state network operators, Longi told its report.
The company defended reforms on the side of technological supply and innovation to replace industry in a sustainable trajectory.
Beijing intervened. This month, 6 China Central Government bodies held a Symposium on the Solar Sector, which advocated the end of the disordered competition, the reinforcement in price monitoring and measures against practices such as sales below cost and misleading advertising.
The industry actors themselves are also moving. THE CAIXIN It found, along with several sources, that in July the China’s Photovoltaic Industry Association summoned a meeting with large companies in the sector, which reached a preliminary agreement for 11 polysilicio companies to form a joint venture designed to acquire about 700,000 tons of surplus capacity of competitors. The goal is to remove this volume of circulation and prevent it from entering the market.
However, the meeting produced only an initial sketch. Crucial details – as the acquisition price and the stock structure of joint venture – have not yet been defined, according to the CAIXIN.
And the situation is complicated because capacity continues to grow. A recent report from the Silicon Division of the China non -Ferrous Metal Industry Association showed that polysilicio domestic production increased by 5.7% in July, compared to the previous month, and is expected to grow another 16% in August.
This report was originally in English by the global cash on 26.ago.2025. Was translated and republished by Poder360 under mutual content sharing agreement.
