China’s Top Three Solar Power Companies Recorded a Loss of 8.8 Billion Last Year

Several Chinese photovoltaic companies recently released their financial reports for 2024, revealing a combined net loss of 8.8 billion yuan. Leading companies in the industry such as JinkoSolar, JA Solar, and Trina Solar reported substantial losses. The outlook for these companies in 2025 remains uncertain.

On the evening of February 27th, multiple Chinese photovoltaic companies issued their preliminary financial results for 2024.

JinkoSolar announced that its operating revenue for 2024 was 92.621 billion yuan, a decrease of 21.96% compared to the previous year. The company reported a net profit attributable to shareholders of 90.5409 million yuan, down by 98.78%, with a non-GAAP net loss of 1.012 billion yuan.

Trina Solar’s statement showed a total operating revenue of 80.334 billion yuan for the reporting period, a 29.15% decrease from the previous year. The company incurred a net loss of 3.455 billion yuan, down by 162.46%, with a non-GAAP net loss of 2.638 billion yuan.

The companies attributed their losses to a decline in industry prices. Trina Solar noted, “In 2024, the domestic polysilicon industry continued to face imbalances in supply and demand, with prices falling below cash costs, leading to industry-wide losses.”

JA Solar mentioned, “Due to the continued decline in prices of photovoltaic modules during the reporting period, the profitability of the module business declined, resulting in an annual operating loss.”

Furthermore, Trina Solar stated, “Affected by continuous low industry prices and short-term factors such as outdated capacity elimination and fire accidents, the company witnessed a significant year-on-year decline in operational performance.”

According to reports from the Energy website, many Chinese photovoltaic companies anticipate losses in their 2024 financial performance, mainly due to pricing factors. The top 10 companies with the highest losses collectively exceeded 50 billion yuan in losses.

The decline in prices was significant in 2024, with polysilicon prices decreasing by over 39%, wafers by over 50%, cells by over 30%, and modules by over 29%, as revealed by Wang Bohua, Honorary Chairman of the Chinese Photovoltaic Industry Association.

A report from a financial news source indicated that among the 60 photovoltaic listed companies that issued their 2024 financial forecasts, the vast majority project losses. The collective net loss for these companies potentially surpasses 55.6 billion yuan, with 33 of them expecting losses exceeding 100 million yuan, totaling a projected deficit of 63.7 billion yuan.

Infolink, a leading renewable energy and technology research consulting firm, disclosed that the average price of polysilicon chunk material currently stands at 39 yuan per kilogram, still below the announced fourth-quarter 2024 sales cost of Trina Solar. This suggests that except for a few firms achieving significant cost reductions, most polysilicon manufacturers are still operating at a loss.

As the industry faces continued challenges in 2024 and uncertainties loom over whether photovoltaic companies can reverse their losses in 2025, the path ahead remains unclear.