China’s photovoltaic industry is facing challenges as several leading companies have recently disclosed their anticipated financial deficits for the year 2025. Companies such as Longi Green Energy, Trina Solar, and Arctech Solar have reported a collective estimated loss exceeding 30 billion Chinese Yuan.
On the evening of January 18th, three major photovoltaic companies simultaneously released their financial forecasts for 2025.
According to reports from the Securities Times, Trina Solar expects a net loss of 9 to 10 billion Yuan in 2025, making it the company with the largest disclosed deficit among those announced. The company stated that in the latter half of 2025, the growth rate of new photovoltaic installations slowed significantly, leading to continued industry oversupply issues. Additionally, lower operating rates across various segments of the industry, coupled with rising prices of core materials like silver, have contributed to a decline in product prices year-on-year.
Trina Solar revealed that its polysilicon business incurred an increased loss of approximately 900 million Yuan due to the gradual increase in production capacity and consistently low product prices. The solar cell and module business suffered an aggravated loss of around 1.2 billion Yuan year-on-year due to further declines in average selling prices. Although the polysilicon business experienced a year-on-year decrease in sales volume and average prices, it managed to achieve operational profitability in the second half of the year, reducing its overall deficit by around 600 million Yuan for the year.
Trina Solar also mentioned that they have made provisions for long-term asset impairment of about 1.5 to 2 billion Yuan, an increase of approximately 700 million to 1.2 billion Yuan compared to the previous year, mainly related to the solar cell and module business, as well as certain photovoltaic power plant projects.
Longi Green Energy anticipates a net loss of 6 to 6.5 billion Yuan in 2025. The company cited a significant increase in costs such as silver and silicon materials in the fourth quarter, leading to higher production costs amid continued price declines for their products.
Arctech Solar expects a net loss of 1.2 to 1.9 billion Yuan in 2025. The company highlighted that despite a twofold increase in sales volume for their ABC modules year-on-year, the imbalance between supply and demand caused by structural overcapacity in the industry has kept product prices at low levels.
In addition to these three companies, six other leading photovoltaic companies have also issued statements on their anticipated financial deficits for 2025 this month, including JinkoSolar, TCL Solar, JA Solar, JinDar and Daqo New Energy.
According to reports from Finance News, TCL Solar expects to incur losses of 8.2 to 9.6 billion Yuan in 2025, making it the second-largest disclosed deficit among the companies. JinkoSolar anticipates losses of 4.5 to 4.8 billion Yuan.
Moreover, companies like JA Solar and Arctech Solar, while not disclosing specific deficit amounts, have indicated that their net profits for 2025 will be negative.
The data from the released deficit announcements show that these leading photovoltaic companies are expected to collectively incur losses ranging from 28.9 billion to 32.8 billion Yuan in 2025.
Public information indicates that since the fourth quarter of 2023 when the industry began experiencing widespread losses, some photovoltaic leaders have been in a deficit state for nine consecutive quarters.
An industry professional from an integrated component company told Finance News that the continuous increase in prices of polysilicon, silver, and other key materials significantly raises component costs. Many companies have been sustaining production through losses, further squeezing the overall profit margins of the industry.