In the current situation, 60 photovoltaic listed companies in China have successively released their performance forecasts for 2024. Due to individual stocks performing poorly, the total net profit lower limit of the 60 companies amounts to a loss of 55.6 billion RMB. Some media outlets believe that in the trend of declining cycles and simultaneous decreases in volume and price, the larger the production capacity of leading Chinese companies, the more losses they incur.
On January 25th, Guodian Technology Co., Ltd., a Chinese photovoltaic equipment manufacturing company, disclosed its performance forecast for 2024. The company expects to incur a net profit loss of 52 to 65 million RMB for the year, marking its first annual net loss since going public.
Regarding the performance loss, Guodian Technology attributed it to a significant year-on-year decline in overseas sales of its higher-margin inverters and batteries.
Additionally, photovoltaic giant Longi Green Energy had previously disclosed its 2024 performance forecast in mid-January, anticipating a net loss of 8.2 to 8.8 billion RMB for the previous year. The company has been dubbed the “loss king” of the industry.
However, as the annual performance forecasts of the photovoltaic industry are nearing completion, a new “loss king” has emerged.
TCL New Energy Technology Co., Ltd., a leading silicon wafer manufacturer in China, disclosed its 2024 performance forecast on January 24th, revealing dismal results for the large state-owned enterprise in Tianjin.
According to the forecast, TCL New Energy expects a net profit loss attributable to shareholders of 8.2 to 8.9 billion RMB in 2024. The post-“dehydration” performance, which is the net profit after deducting non-recurring gains and losses, is even bleaker, with TCL New Energy anticipating a loss of 9.2 to 9.9 billion RMB in 2024.
Mainland website “Ofweek Vico Net” commented that TCL New Energy’s pursuit of the ultimate silicon wafer production capacity and the “full production” strategy has come at a steep cost. While the company has achieved the world’s highest silicon wafer production capacity and comprehensive market share through extensive expansion, it has made significant profit sacrifices, akin to “subsidizing” to attract customers, which is not sustainable.
Based on the performance forecasts for 2024 revealed so far, TCL New Energy ranks at the top in terms of loss amount within the industry.
Furthermore, numerous companies have forecasted significant losses in 2024.
Companies with losses exceeding 1 billion RMB include: Tongwei forecasted a loss of 7 to 7.5 billion RMB; Arctech Solar forecasted a loss of 4.75 to 5.85 billion RMB; JA Solar forecasted a loss of 4.5 to 5.2 billion RMB; Xinchen forecasted a loss of 3.8 to 4.1 billion RMB; Tianhe Solar forecasted a loss of 3.8 to 3.2 billion RMB; Trina Solar forecasted a loss of 2.7 to 3.5 billion RMB; Daqo Energy forecasted a loss of 2.6 to 3.1 billion RMB; GCL forecasted a loss of 2.5 to 2.7 billion RMB; Jinko Solar forecasted a loss of 1.9 to 2.3 billion RMB; and Shunfeng forecasted a loss of 1.68 to 2.45 billion RMB.
According to statistics from “China Business News,” as of January 26th, out of 96 photovoltaic listed companies, 60 have released their performance forecasts for 2024. Apart from 5 companies, such as Zhongxin Bo, that forecast an increase in performance, the rest are either expecting initial losses, continued losses, or reductions. Due to individual stocks performing poorly, these 60 companies have a combined total net profit lower limit loss of 55.6 billion RMB.
Based on the forecasted net profit lower limit, 33 photovoltaic listed companies expect a net loss of over 100 million RMB in 2024, totaling 63.7 billion RMB in losses. Among them, 13 companies anticipate losses exceeding 1 billion RMB, mainly top silicon material, component, battery, and wafer manufacturers who, in the trend of declining cycles and price decreases, the larger the production capacity of leading companies, the greater the losses incurred.