In 2024, issues such as vicious competition and overcapacity have worsened in the Chinese photovoltaic industry. At least 26 companies have disclosed their 2024 performance forecasts, with over 70% showing expected net losses. This includes industry giants like Longi Green Energy, and several longstanding photovoltaic companies have reported their first losses since going public.
According to reports from Caixin, on the evening of January 23, JinkoSolar, known for its stability in the industry, announced its anticipated 2024 performance, expecting losses of between 4.5 to 5.2 billion yuan.
JinkoSolar attributed the losses to the continuous impact of the mismatch between supply and demand in the photovoltaic industry, intensified market competition, significant price drops for key products in the market, and the increasingly challenging international trade environment, leading to a decline in the company’s profitability in the reporting period.
JinkoSolar is a vertically integrated manufacturer of photovoltaic modules, with production capacity covering silicon wafers, cells, and modules. According to research by Sobre Consultancy, the company shipped 75-80GW of modules in 2024, ranking second in the industry. However, despite the increase in volume, the company did not see a corresponding increase in profits due to the impact of extremely low prices in the industry chain.
The Beijing Business Daily reported that in 2024, issues such as vicious competition and overcapacity continued to intensify within the photovoltaic industry, reflecting in the annual performance forecasts of various photovoltaic stocks for 2024.
As of January 22, 26 companies in the photovoltaic industry (excluding JinkoSolar mentioned above) have disclosed their 2024 performance forecasts, with 20 of them showing over 70% expected net profit losses. This includes industry giants like Longi Green Energy. Additionally, longstanding photovoltaic companies like Shuangliang Energy and Tongwei Co., Ltd. have reported their first net losses in over 20 years since going public.
According to data from Tonghuashun iFinD, among the companies that have disclosed their 2024 performance forecasts, only Zhongxin Bo and Deye Co., Ltd. have reported profits and expected net profit increases.
Statistics indicate that among the photovoltaic companies predicting the most losses for 2024, Longi Green Energy is expected to incur a net loss of 8.2 to 8.8 billion yuan. Tongwei Co., Ltd. and East Sunrise are ranked second and third, with expected losses of 7 to 7.5 billion yuan and 2.7 to 3.5 billion yuan, respectively.
Apart from these three companies, there are four other companies that are also forecasted to incur net losses exceeding 1 billion yuan in 2024, including Daquan Energy, Sunrise Green Energy, Eging Optoelectronics, and Shuangliang Energy. Additionally, thirteen other companies, including Sinovel Energy, are also expected to record net losses in 2024.
Combining reports from China Economic Net and First Financial, Daquan Energy is expected to incur a net loss of 2.6 to 3.1 billion yuan in 2024; Sunrise Green Energy is estimated to have losses of 2.5 to 2.7 billion yuan; Eging Optoelectronics is expected to lose 1.9 to 2.3 billion yuan; Shuangliang Energy is forecasted to have losses of 1.98 to 1.68 billion yuan; Sinovel Energy is anticipated to incur losses of 730 to 610 million yuan; Yiceng New Energy is estimated to report losses of 600 to 700 million yuan; and Haiyou New Materials is projected to record losses of 480 to 580 million yuan.
Based on calculations by The Epoch Times, the total losses for the photovoltaic companies that have disclosed their 2024 performance forecasts exceeded 30 billion yuan.
Currently, the Chinese photovoltaic industry is undergoing its fourth adjustment cycle, characterized by industry executives and experts as the coldest winter in history. Within this adjustment cycle, several photovoltaic stocks have experienced their first losses since going public.
Among the 26 photovoltaic companies that have disclosed their 2024 performance forecasts, seven are at risk of recording their first annual net losses, including longstanding companies like Shuangliang Energy and Tongwei Co., Ltd. Additionally, companies like Sairtech Technology, Ou Jing Technology, Sinovel Energy, Sunrise Green Energy, and Daquan Energy are also expected to report their first net losses after going public.
Regarding the main reasons for the anticipated losses in 2024, Tongwei Co., Ltd. stated that the severe market environment in 2024, characterized by imbalances in supply and demand in the primary manufacturing sectors of the photovoltaic industry, resulted in significant price drops in various segments of the photovoltaic industry chain. Despite maintaining a positive operational cash flow, challenges such as about 1 billion yuan in long-term asset impairment and scrapping expenses throughout the year led to a net loss for the company.