In the year 2024, the Chinese photovoltaic main industry chain has been experiencing continuous price declines, leading the entire industry into losses. Since the beginning of the year, the total market value of the entire sector has evaporated by approximately 557.3 billion yuan. Currently, it seems that the entire photovoltaic industry has entered an era of overcapacity, and tough times may continue for a while.
According to reports from “First Financial” and Economic Observer Network, in the afternoon of July 8th, the decline of LONGi Green Energy slightly expanded, closing at 13.09 yuan/share with a total market value of 98.2 billion yuan. The company has taken 33 months from reaching its peak market value of around 550 billion yuan to falling below the 100 billion yuan mark.
Longi Green Energy incurred a net loss of 2.35 billion yuan in the first quarter of this year, signaling that the industry has entered a “shuffle deep water area.” In the fourth quarter of last year, the company had a net loss of 942 million yuan, marking the first quarter of continuous losses since the first quarter of 2013.
Not only Longi Green Energy, but also other leading companies in the photovoltaic industry like TCL CNBM, JA Solar, and Tongwei Co., Ltd. have seen their stock prices in the first half of the year fall more than the full-year decline of the previous year. The total market value of the entire sector has decreased by about 557.3 billion yuan since the beginning of the year.
As reported by The Paper, as of July 3rd, the total market value of Tongwei Co., Ltd. was only 80.68 billion yuan, significantly lower than its peak in 2020. The stock price of Tongwei Co., Ltd. has seen a decrease of over 200 billion yuan.
As a silicon material giant, in the past two years, Tongwei Co., Ltd. chose to expand against the trend during the industry downturn, leading to a substantial burden of excess capacity. Influenced by the sluggish market environment, in the first quarter of this year, Tongwei Co., Ltd. experienced a net loss of 787 million yuan, a sharp decline of 109.15% compared to the same period last year.
Since the beginning of this year, the Chinese photovoltaic main industry chain (silicon material, silicon wafers, battery cells, modules) has been continuously decreasing in price, causing the entire industry to suffer losses. Publicly listed companies such as JA Solar, JA Solar Technology, Artes Renewable Energy, and Xinte Energy Co. are facing continuous declines in stock prices.
Recently, JA Solar Technology has released a mid-year performance forecast, exacerbating the market’s pessimistic expectations for the photovoltaic mid-year report. JA Solar Technology expects a net loss of 800 million to 1.2 billion yuan in the first half of the year, compared to a profit of 4.813 billion yuan in the same period last year.
Affected by this performance forecast, on July 8th, JA Solar Technology’s stock price hit a new low, closing at 9.89 yuan/share, marking a cumulative decline of 50.55% since the beginning of the year.
According to data from Zhongyuan Securities Research Report, as of the end of the first quarter of 2024, the combined holdings of photovoltaic companies held by public funds totaled 4.097 billion shares, a decrease of 41.80% from the end of 2023; with a total market value of 104.332 billion yuan, down 40.66% from the end of 2023.