The “anti-internal circulation” movement in the Chinese photovoltaic industry has been ongoing for nearly a year without showing results. In the first quarter of this year, amid upstream price declines and sluggish end demand, the net profits of the photovoltaic industry’s main supply chain have generally been in deficit. Leading companies such as Longi, Tongwei, and TCL China Star have recorded consecutive net losses for 10 quarters.
According to a report from “First Financial” on May 5, the combined revenue of 22 listed companies in the photovoltaic main supply chain in the first quarter totaled 95.856 billion yuan, a year-on-year decrease of 11.67% compared to 108.516 billion yuan in the first quarter of 2025. The average revenue decline in the first quarter for these 22 companies was close to 22%, with most companies experiencing declines both quarter-on-quarter and year-on-year.
For instance, Longi Green Energy saw a revenue decline of 18.03% in the first quarter, with a total operating income of 11.192 billion yuan, marking the lowest quarterly revenue since the first quarter of 2020; Tongwei Corporation registered a revenue decline of 23.9% in the first quarter, also hitting a new five-year low in quarterly operating income.
The report mentioned that while the revenue scale of companies in the main supply chain is shrinking, net profits continue to be in deficit across the board.
The combined net profit attributable to shareholders of the 22 companies amounted to a loss of 10.554 billion yuan in the first quarter, compared to 11.726 billion yuan in the same period last year. When looking at the adjusted net profit figures that better reflect the actual financial capability of companies, the deficit for the first quarter for these 22 companies amounted to 13.172 billion yuan, roughly in line with the same period last year.
Five companies reported quarterly losses exceeding 1 billion yuan, namely Tongwei Corporation, Longi Green Energy, TCL China Star, JA Solar, and Jinko Solar; 13 companies saw an expansion in year-on-year adjusted net profit losses, indicating that the profitability of their main operations has not significantly improved.
By the end of the first quarter of this year, leading companies like Tongwei Corporation, Longi Green Energy, and TCL China Star had already recorded 10 consecutive quarters of net losses.
The first quarter saw the photovoltaic main supply chain (covering silicon materials, silicon wafers, cells, and modules) showing characteristics of “shrinking scale and continued profit losses.” The sectors of silicon wafers and silicon materials are the “hardest hit areas” in terms of industry losses, as significant price declines have led to simultaneous reductions in revenue and profits for companies. This performance report reflects the complexity and long-term nature of the photovoltaic industry’s “anti-internal circulation” process.