In 2025, China’s photovoltaic industry is undergoing a significant reshuffle, with over 50 photovoltaic companies facing bankruptcy, liquidation, and restructuring processes. Some companies have chosen to transfer ownership and exit the market. This turmoil is a result of the industry’s average capacity utilization rate falling below the critical line of 58%, leading to plummeting prices of photovoltaic components from being affordable to actually costing companies money. The industry is caught in a vicious cycle of “the more you produce, the more you lose.”
On Tuesday, August 19, the Ministry of Industry and Information Technology of the Communist Party of China, along with six other departments, held a symposium on the photovoltaic industry to address the orderly exit of outdated capacity and curb low-price disorderly competition. However, compared to the industry’s 58% capacity utilization rate, this symposium seems to be lagging behind by a significant margin.
According to a report by China Energy Network, in the first half of 2025, the average capacity utilization rate of domestic photovoltaic components had dropped below the 58% caution line. Some leading companies even had a capacity utilization rate of less than 50%, plunging the industry into a situation where the more they produce, the more they lose.
The overcapacity has resulted in a fierce price war, with the price of polycrystalline silicon plummeting from 300 yuan per kilogram to 50 yuan per kilogram, and component prices slashed to 0.7 yuan per watt. This drastic drop in prices has severely eroded the profits of the entire industry chain.
The price war has already triggered a wave of industry reshuffling, with bankruptcy and restructuring cases emerging one after another among photovoltaic companies.
For example, on August 14, it was disclosed that Anhui’s Shuntian Textile Co., Ltd. had filed for the bankruptcy liquidation of Henshan Guoan Photovoltaic Power Generation Co., Ltd. This company was engaged in activities related to the construction and maintenance of photovoltaic power stations and electricity sales.
Furthermore, several companies are choosing to exit the photovoltaic industry. For instance, on July 26, *ST Green Kang announced that three of its subsidiaries would be transferred to Jiangxi Raoxin New Energy Materials Co., Ltd. at a total price of 0 yuan, marking their exit from the photovoltaic adhesive business.
As of June 25, it has been reported that over 50 photovoltaic companies across the country have applied for bankruptcy liquidation. Through business information checks, it has been found that 11 companies already have had their business licenses revoked or canceled, indicating an accelerated industry consolidation.
It’s not just small and medium-sized photovoltaic companies facing bankruptcy. Even major listed photovoltaic companies are struggling. By the end of the second quarter of 2025, only 3 out of the 21 listed companies in China’s photovoltaic main industry chain were profitable. Companies like Tongwei Corporation reported a quarterly loss of 2.61 billion yuan and TCL New Energy and Longi Green Energy both faced nearly 2 billion yuan in losses.
In 2024, five photovoltaic companies including ST Yangguang, ST Yili, ST Aikang, ST Hangao, and ST Xudian were delisted from the market. Currently, several other photovoltaic companies are facing the risk of being delisted, such as *ST Green Kang, *ST Haiyuan, *ST Jingang, *ST Mubang, *ST Quanwei, *ST Lingda, and *ST Jingang. These companies are grappling with persistent losses and internal control issues.
According to a report by China Energy Network on Tuesday, August 19, since 2022, at least 108 listed companies have declared their foray into the photovoltaic field. However, by 2025, over 20 companies have failed, leading to exits through delisting, bankruptcies, or project terminations.
In the first half of 2025 alone, more than 8 companies have chosen to exit the market, with over 30GW of projects being halted. What started as a massive cross-border movement has turned into a collective “photovoltaic holdup.”
The withdrawal of cross-border participants in the photovoltaic industry appears to be a result of economic downturn and market competition on the surface. However, the underlying reasons lie in the systematic underestimation of the complexity of the photovoltaic industry, resulting in the inevitable collapse of these companies.
Based on analysis from industry insiders, three main reasons have been identified for the widespread bankruptcy and liquidation of photovoltaic companies: overcapacity leading to shrinking demand, severe homogenized competition resulting in varying product quality, and a broken funding chain making financing difficult.
In conclusion, the photovoltaic industry in China is facing unprecedented challenges, with many companies grappling with losses, bankruptcy, and restructuring. The situation underscores the importance of strategic planning, innovation, and adaptability in navigating the rapidly evolving landscape of the photovoltaic market.