Chinese solar PV companies submitted the worst performance report in history last year.

In 2024, the leading Chinese photovoltaic companies in the industry chain suffered losses exceeding 60 billion yuan (RMB), with approximately half attributed to the top companies. The losses further expanded in the fourth quarter. According to reports from mainland media, the combined estimated losses of the top 6 solar energy companies in China amounted to between 31 billion to 34.1 billion yuan last year.

Financial network reported on February 4 that many Chinese photovoltaic companies turned in their worst performance in history in 2024. As of January 26, 24 listed companies in the solar energy industry chain had announced their 2024 performance forecasts, with a total net loss attributable to the parent company ranging from about 54.6 billion to 62.3 billion yuan.

In 2023, the top 6 Chinese leading solar energy companies in terms of revenue were Tongwei Group, Longi Green Energy, JA Solar, Trina Solar, JA Solar Technology, and TCL China Star. In 2024, except for JA Solar Technology that achieved a small profit, the combined net loss attributable to the parent company of the other 5 companies reached between 31 billion and 34.1 billion yuan.

Silicon materials and wafers were hit particularly hard by the losses. TCL China Star, which mainly focuses on silicon wafer production, reported the largest estimated loss, with a net loss attributable to the parent company of about 8.2 billion to 8.9 billion yuan. Tongwei Group, the leading silicon materials manufacturer, forecasted a loss of around 7 billion to 7.5 billion yuan.

Reports indicate that the operational pressures faced by Chinese solar energy companies can be attributed to three main factors: the imbalance between supply and demand leading to price turmoil, intensified trade protection in some overseas markets, and asset depreciation brought about by technological advancements. Among these, the supply and demand imbalance is considered as the fundamental cause.

Taking the supply and demand of solar modules as an example, according to research reports from CITIC Securities, the global capacity of solar modules is 142.8 GW. Based on an estimated ratio of 1.2 in terms of capacity utilization, the demand for solar modules in 2024 is only about 56.3 GW to 72 GW, which cannot effectively support the extensive supply capacity and is expected to remain so in 2025.

Overall, regardless of whether the outlook for demand is optimistic or pessimistic, the solar energy industry is unlikely to reverse the trend of supply and demand imbalance in the short term.

Reports indicate that since the fourth quarter of 2024, the capacity utilization and production levels of various segments in the solar energy industry chain have significantly declined. According to data from research institution InfoLink, as of January 2025, the capacity utilization rates for silicon materials, wafers, cells, and modules were approximately 36%, 47%, 48%, and 35% respectively.

The Beijing Business Daily previously reported that in 2024, internal turmoil, vicious competition, and excess production capacity exacerbated issues within the photovoltaic industry.

Regarding the main reasons for the projected losses in 2024, Tongwei Group stated that during that year, the severe market environment due to the temporary supply-demand imbalance in the major manufacturing phases of the photovoltaic industry led to a significant decline in market prices. Additionally, the continued pressure of prices falling below industry cash costs, combined with an impact of approximately 1 billion yuan from long-term asset depreciation and scrapping, resulted in a loss for the company despite maintaining a positive operational cash flow throughout the year.