Chart of the Day: China’s Solar Majors Fall Deeper Into the Red
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Five of China’s largest solar firms posted significant losses in the first half of 2025 as an overcapacity-fueled price war rages on.
Tongwei Co. Ltd. (600438.SH), Longi Green Energy Technology Co. Ltd. (601012.SH), TCL Zhonghuan Renewable Energy Technology Co. Ltd. (002129.SZ), Trina Solar Co. Ltd. (688599.SH) and JA Solar Technology Co. Ltd. (002459.SZ) disclosed their first-half financial reports on Friday.
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- Five top Chinese solar firms posted major H1 2025 losses, led by Tongwei’s nearly 5 billion yuan deficit, amid a capacity glut causing prices to fall below costs.
- Policy and industry moves, including government calls to curb competition and a potential joint venture to absorb 700,000 tons of surplus capacity, have begun but lack details.
- Despite these measures, polysilicon output keeps rising, up 5.7% in July and projected to increase 16% in August.
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Who’s Who
- Tongwei Co. Ltd.
- Tongwei Co. Ltd. (600438.SH) is a Chinese solar firm that reported the largest loss among five major solar companies in the first half of 2025 finding itself nearly 5 billion yuan ($700 million) in the red. This widened from a 3.1 billion yuan loss reported during the same period in 2024. The company attributes these losses to a severe oversupply in the photovoltaic industry and historically low product prices.
- Longi Green Energy Technology Co. Ltd.
- Longi Green Energy Technology Co. Ltd. (601012.SH) is a major Chinese solar firm that reported significant losses in the first half of 2025. Facing a challenging environment with prices falling below production costs, Longi managed to halve its losses compared to the previous year, attributing this to improved operational efficiency. The company highlighted the industry's "painful transition period" and called for reforms and innovation.
- TCL Zhonghuan Renewable Energy Technology Co. Ltd.
- TCL Zhonghuan Renewable Energy Technology Co. Ltd. (002129.SZ) is one of China's largest solar firms. The company reported a significant loss in the first half of 2025, with losses growing 38.5% year-on-year to 4.2 billion yuan. This substantial loss is attributed to the ongoing price war and overcapacity in the solar industry.
- Trina Solar Co. Ltd.
- Trina Solar Co. Ltd. (688599.SH) is one of China's largest solar firms. It experienced a significant financial downturn in the first half of 2025, swinging from a 526-million-yuan profit in the previous year to a 2.9-billion-yuan loss. This loss is attributed to an ongoing price war and overcapacity within the solar industry.
- JA Solar Technology Co. Ltd.
- JA Solar Technology Co. Ltd. (002459.SZ) is one of China's largest solar firms that experienced substantial financial losses in the first half of 2025. Their losses ballooned by 195% to 2.6 billion yuan, attributing to the ongoing price war and overcapacity in the photovoltaic industry.
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What Happened When
- By mid-2024：
- Prices for polysilicon, wafers, cells and modules had all fallen below production costs in China's solar industry.
- July 2025：
- The China Photovoltaic Industry Association convened a meeting of solar giants, tentatively agreeing that a group of 11 polysilicon companies would form a joint venture to acquire around 700,000 tons of excess production capacity.
- July 2025：
- Domestic polysilicon output increased 5.7% month-on-month.
- August 2025：
- Six central government departments held a symposium on the solar industry to address competition and market issues.
- Forecast for August 2025：
- Domestic polysilicon production forecast to rise an additional 16%.
- August 22, 2025：
- Tongwei, Longi, TCL Zhonghuan, Trina Solar, and JA Solar disclosed their first-half 2025 financial reports.
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