Source: Bloomberg
China's solar manufacturers have just experienced the baptism of the financial report season. However, the initial sign shows that the huge supply problem that plagues the industry may begin to relieve.
Longji Green Energy and five other leading companies in the photovoltaic industry lost a total of 2 billion US dollars (S $ 2.6 billion) in the first half of the year. The construction boom of factory construction in the past few years has led to overcapyward capacity, and the price of product prices has fallen to a record low.Some smaller companies have been forced to reorganize, and the tension with the United States and Europe has intensified, which may face risks.
The pain of financial experience seems to be buried to the seeds to laid seeds, but it may have to wait until next year.Goldman Sachs Group expects that a wave of factory closure will help the market to restore balance. Morgan Stanley also believes that equipment prices have bottomed out.
Longji Green Energy has raised the price of solar silicon wafers this week. The company expressed his hope to help promote the industry to come out of the quagmire of low -cost competition.According to Chinese media reports, TCL Central New Energy also said this week also stated that it will increase the price of three types of silicon wafers.
Trivium CHINA analyst Cosimo Ries in Shanghai said that this year will still be a very difficult year, and the capacity of production capacity may take longer.
The dilemma of China's solar industry can be traced back to three years ago. At that time, the demand for battery boards surged, pushed up the price, and released an ambitious expansion plan, which also led to overcontracting.
China's solar industry accounts for about 80%of the global output, and its healthy development is essential to respond to climate change.Its pain highlights how difficult it is to match the production needs in many rapid growth industries related to energy transformation.
The intensified competition in the United States and China has also made the days of Chinese manufacturers more difficult.Washington plans to increase the import tariffs on Chinese solar equipment to double to 50%.
The trade relations between China and the European Union are also deteriorating, and the EU is the main market for solar equipment in China.The disputes around subsidies have become more and more intensive. Started disputes starting from electric vehicles to the fields of pork, dairy products and Bailan land.
Goldman Sachs analyst Trina Chen et al. In a report from this month, Chinese manufacturers are responding to poor profitability and uncertainty caused by the restrictions on European and American market access.China's solar industry is entering the final stage of the downward cycle, and it may be bottomed out in 2025.
performance loss
Longji Green Energy's profits have received the greatest impact. The net loss in the first six months of this year reached 5.2 billion yuan (S $ 957 million), and the net profit was 9.3 billion yuan in 2023.Tongwei and TCL's new energy in Central recorded losses of more than 3 billion yuan, respectively. Jing'ao Solar Energy, Xinjiang Da New Energy and GCL Technology also recorded losses.
Longji Green Energy stated in the financial report that in the face of the rapid expansion of industry capacity in the past two years and a complex global trade environment, the industry has entered a period of in -depth adjustment.
Several senior executives of China's top enterprises have requested the central government to intervene to help the industry re -stabilize. The proposed suggestions include regulating the construction of new factories, factories with low strike efficiency, restricting price reductions and promoting integration.
