BUSINESS

Chart of the Day: Losses Mount in China’s Solar Price War

Published: Feb. 27, 2026 6:43 p.m. GMT+8

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China’s leading solar manufacturers may have racked up losses exceeding a combined 50 billion yuan ($7.3 billion) in 2025, according to company data compiled by Caixin, highlighting the damage wrought from a prolonged price war.

Tongwei Co. Ltd. (600438.SH), the world’s largest manufacturer of polysilicon and solar cells, estimated that it lost as much as 10 billion yuan last year, up from a 7 billion yuan loss in 2024, according to a company statement.

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China’s top solar manufacturers lost over 50 billion yuan ($7.3 billion) combined in 2025 amid a protracted price war and overcapacity.
Utilization rates stayed low (40–50%), and raw material costs rose, worsening losses for companies like Tongwei (up to 10 billion yuan) and TCL Zhonghuan (up to 9.6 billion yuan).
A joint venture bailout effort by polysilicon makers was stopped by antitrust authorities, limiting recovery attempts.

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Who’s Who

Tongwei Co. Ltd.: Tongwei Co. Ltd. (600438.SH) is the world's largest manufacturer of polysilicon and solar cells. They estimated a loss of up to 10 billion yuan in 2025, an increase from 7 billion yuan in 2024. This was primarily due to low capacity utilization rates and rising raw material costs amidst a brutal price war in China's solar sector.

TCL Zhonghuan Renewable Energy Technology Co. Ltd.: TCL Zhonghuan Renewable Energy Technology Co. Ltd. (002129.SZ) is a major wafer company. They issued a warning that their annual loss for 2025 could be as high as 9.6 billion yuan, following a 9.8 billion yuan loss reported in 2024.

Trina Solar Co. Ltd.: Trina Solar Co. Ltd. (688599.SH) is a module segment company that estimated its losses more than doubled in 2025. This was attributed to low capacity utilization rates and rising raw material costs, part of a brutal price war in China's solar sector since 2023.

Jinko Solar Co. Ltd.: Jinko Solar Co. Ltd. (688223.SH) is a module segment company that alerted investors it fell into the red in 2025. This loss is attributed to the prolonged price war and overcapacity in China's solar sector.

AI generated, for reference only