China’s photovoltaic industry continues to suffer expanding losses. Five listed companies, including Longi Green Energy and Trina Solar, are expected to collectively incur losses between 11.943 billion and 13.68 billion yuan in the first half of 2026. The losses have spread to cover the manufacturing sectors such as silicon materials, silicon wafers, components, and photovoltaic glass, with downstream power station operations also seeing companies transitioning from profit to loss.
According to a report by “21st Century Business Herald” on July 15, Longi Green Energy expects a net loss attributable to shareholders of the listed company between 3.4 billion and 3.8 billion yuan in the first half of this year, further expanding from the 2.569 billion yuan loss in the same period last year. Excluding non-recurring gains and losses, the expected loss is estimated to reach between 3.7 billion and 4.2 billion yuan.
Longi Green Energy stated that the supply-demand situation in the photovoltaic industry has not significantly improved. Due to insufficient consumption of new energy electricity and factors like the comparatively high base caused by “grid-connection rush” in the same period last year (i.e., completing projects before policy adjustments), China’s new photovoltaic installed capacity in the first half of the year saw a significant temporary decline.
With the decrease in installation demand, Longi Green Energy’s module sales and revenue have decreased year-on-year, the production line operating rate is insufficient, and the gross profit margin continues to remain low. Meanwhile, investment losses from affiliated enterprises and foreign exchange losses resulting from the appreciation of the renminbi have further dragged down the company’s performance.
Another leading photovoltaic company, Trina Solar, anticipates a net loss of 4.8 billion to 5.4 billion yuan in the first half of the year, as opposed to a 4.955 billion yuan loss in the same period last year.
Trina Solar stated that the operating rates in various segments of the photovoltaic industry chain continue to decline, where although capacities with weaker competitiveness are exiting, the overall oversupply situation remains unchanged, and the prices of main products continue to operate at low levels.
Only Longi Green Energy and Trina Solar, with a combined expected loss of 8.2 billion to 9.2 billion yuan in the first half of the year, reflect the challenges faced by the sector.
Hongyuan Green Energy, a photovoltaic enterprise, forecasts a loss of 590 million to 690 million yuan in the first half of the year, significantly wider than the 297 million yuan loss in the same period last year.
The company disclosed that from the beginning of the year to the end of the first half, the average price of polysilicon dense material dropped from 52 yuan/kg to 32.5 yuan/kg, a cumulative decline of 37.5%; the average price of N-type silicon wafers also fell from 1.40 yuan/piece to 0.88 yuan/piece, down by 37.14%. The continuous decline in raw material and silicon wafer prices further squeezes the company’s profit margins.
Solar component company JA Solar Technology anticipates a loss of 2.4 to 2.9 billion yuan in the first half of the year. The company stated that the long-term oversupply in the photovoltaic industry chain, intensifying market competition, and ongoing losses in the component business continue to impact the company’s financial performance.
In addition to the industry’s sluggish prices, the cancellation of export tax rebates has increased corporate tax burdens, international trade frictions and geopolitical conflicts have disrupted logistics, and overseas orders have led to performance drag due to contractual claim issues.
Photovoltaic glass company Xinyi Solar Energy forecasts a loss of 753 million to 890 million yuan in the first half of the year. Along with Longi Green Energy, Trina Solar, JA Solar Technology, and Hongyuan Green Energy, the five companies are expected to collectively incur losses between 11.943 billion and 13.68 billion yuan in the first half of the year.
Xinyi Solar Energy cited weak demand in the photovoltaic glass market, prolonged low product prices, and the need to make impairment provisions for assets showing signs of impairment.
Another photovoltaic glass company, Flat Glass, expects a loss of 300 million to 400 million yuan in the first half of the year, while still making a profit of 261 million yuan in the same period last year. The company stated that the imbalance of supply and demand and the decline in product prices are the main reasons for the performance turning from profit to loss; asset impairments for cooling glass furnaces and some photovoltaic glass inventory further increased the losses.
According to a report by the “Securities Times” on July 14, the losses are spreading downstream in the industry chain. Photovoltaic power station operator JA Solar Technology expects a loss of 177 million to 246 million yuan in the first half of the year, compared to a profit of 123 million yuan in the same period last year. The company mentioned that weaker sunlight resources in some regions compared to the same period last year, coupled with the decline in new energy settlement electricity prices and restricted power consumption, have led to a year-on-year reduction in photovoltaic power station electricity generation and revenue.
Chinese economic issues expert Li Tingqian, in an interview with a reporter from “Epoch Times,” mentioned that from July 14 to 15, several listed photovoltaic companies successively released performance forecasts for the first half of 2026, indicating that the photovoltaic industry is still in a trough across the entire industry chain. Losses are no longer limited to the manufacturing segments like silicon materials, silicon wafers, and components but continue to spread to photovoltaic glass, power station operations, and other upstream and downstream sectors.
“The performance forecasts of the aforementioned companies for the first half of the year all mentioned ‘supply-demand imbalance.'” Li Tingqian explained. “In simple terms, it means overcapacity in production.”
Li Tingqian noted that Hongyuan Green Energy disclosed that in the first half of the year, prices of polysilicon and silicon wafers once again dropped significantly by over 30%, further narrowing the profit margins of companies.
While the photovoltaic companies are generally facing losses and continuous product price declines, new projects are still being pushed forward. According to statistics from Huaneng Energy Network, as of January 2025, 23 projects along the entire photovoltaic industry chain in China are at the announcement, contract signing, construction, or project stages, with a total capacity of nearly 175 GW and a total investment exceeding 87.5 billion yuan.
A report from Huaneng Energy Network in February 2025 mentioned that photovoltaic enterprises are continuously expanding production capacities, driven by local government investments and capital injections. By methods such as constructing factories on behalf of companies, acquiring equipment on behalf of companies, and providing subsidies, some local governments are reducing the self-owned capital required for companies to expand their production capacity.
An analysis released by the American investment research firm Morningstar on April 17 of this year showed that the existing production capacity in China’s photovoltaic industry chain already exceeds the firm’s predicted global demand for 2026 by twice.
Li Tingqian stated, “Losses have spread from the manufacturing end to photovoltaic glass, power station operations, and other supporting sectors. China’s photovoltaic industry has the world’s largest production capacity, but profitability continues to deteriorate, and the process of capacity clearance is lengthy.”