Two solar energy companies announced their 2025 performance forecasts on Tuesday (13th), both projecting losses. Among them, the leading photovoltaic company, JA Solar Technology, is expected to incur a loss of 4.5 billion yuan, facing being delisted due to insolvency.
In their performance announcement, JA Solar Technology (002459.SZ) stated that the net profit attributable to the listed company’s shareholders for 2025 is expected to range from a loss of 45 billion yuan to 48 billion yuan, with a non-GAAP net profit loss of 48 billion yuan to 51 billion yuan. Adding to last year’s staggering loss of 46.56 billion yuan, the company has incurred nearly 100 billion yuan in losses over the past two years, almost equivalent to the total profit from 2019 to 2022.
Looking at individual quarters in 2025, the company reported losses of 16.38 billion yuan in Q1, 9.42 billion yuan in Q2, 9.73 billion yuan in Q3, and a projected loss of 9.47 billion yuan to 12.47 billion yuan in Q4.
According to statistics published by industry research firm PV Tech, in 2024, JA Solar Technology ranked second globally in shipments of photovoltaic modules, with JinkoSolar ranking first, followed by Trina Solar, JA Solar Technology, Longi Green Energy, Tongwei Co., Ltd, Sungrow Power Supply, Antai New Energy, United Power Technology, Xinjiang GCL and East Solar.
The hefty losses of JA Solar Technology are just a microcosm of the current predicament faced by photovoltaic module companies. Aside from JA Solar, other industry leaders such as JinkoSolar, Longi Green Energy, and Trina Solar are also struggling in the quagmire of losses.
JinkoSolar reported losses of 39.2 billion yuan for the first three quarters of 2025, with an estimated annual loss of around 50 billion yuan. Longi Green Energy incurred losses of 34 billion yuan in the first three quarters of 2025.
Regarding the reasons for the losses, JA Solar Technology explained in their announcement: “Due to the impact of the imbalance between supply and demand caused by the concentrated release of production capacity in various segments of the photovoltaic industry chain in recent years, the industry competition continues to intensify, resulting in downward pressure on product prices and profitability.”
On the same day, former leading photovoltaic module company JA Solar Energy (600537.SH) also released its 2025 annual performance forecast, predicting a net loss of at least 4.5 billion yuan for the year, with an estimated year-end net assets of -68 million yuan to -130 million yuan.
The announcement also revealed that the company’s module production capacity utilization rate in 2025 was only 35%, and the decline in photovoltaic product prices led to a decrease in gross profit margin. The company made provisions for the impairment of inventory and fixed assets accordingly.
“In 2024 and 2025, with two consecutive years of significant losses, JA Solar Energy’s net assets turned from positive to negative. The company expects its year-end net assets for 2025 to be between -13,000 million yuan and -6,800 million yuan. There is a possibility that the company’s stock may face delisting risk after the disclosure of the 2025 annual report.”
The continued losses also pushed JA Solar Energy’s debt ratio to a high level. As of the end of the third quarter of 2025, the asset-liability ratio was as high as 95.23%, ranking first in the photovoltaic sector. The company anticipates a significant increase in the asset-liability ratio due to the forecasted losses in 2025, leading to greater short-term debt repayment pressure and liquidity risks.
Additionally, JA Solar Energy is facing a series of legal cases. As of the announcement date, there were a total of 58 lawsuits and arbitrations, with a total amount of approximately 228 million yuan (some cases did not consider late payment interest, default fines, legal fees, etc.), of which cases where the company is the defendant involved around 180 million yuan. These potential payouts will further exacerbate the financial burden on the company.