BEIJING (Reuters) -Losses at China’s top solar manufacturers mostly widened in the first half of 2025, but analysts said restructuring to cut oversupply could help return the industry to profitability.
In a rare bright spot, Longi Green Energy’s net loss narrowed to 2.6 billion yuan ($364 million) in the first six months of the year from 5.2 billion yuan a year earlier.
Huatai Securities analysts in a Monday note attributed the improvement to “strengthened internal management” leading to lower costs and reduced asset impairment losses, while a surge in domestic solar panel installations because of frontloading had also supported sales.
A series of meetings involving a widening circle of government ministries has signalled that authorities are taking more seriously a campaign to crack down on deflationary price wars, where companies have sold at below cost to undercut competitors.
“Progress on domestic ‘anti-involution’ measures has been smooth, which may support an industry chain profitability recovery,” the Huatai analysts said.
Other top manufacturers’ losses widened.
Jinko Solar’s first-half net loss was 2.6 billion yuan, compared with 87 million yuan a year earlier. Jinko cited falling solar module prices as a result of rising production capacity, supply-demand imbalances and trade barriers.
Trina Solar swung to a loss of 2.9 billion yuan from a year earlier net profit of 526 million yuan, as module sales increased but prices fell.
However, its energy storage business recorded its first-ever quarterly profit in the second quarter, according to Citi analysts. Signalling further expansion, Trina is making a capital injection of 800 million yuan into the subsidiary, according to a June filing.
JA Solar’s losses widened to 2.58 billion yuan from 874.2 million, while Tongwei reported the biggest loss of the five, at 5 billion yuan, up from 3.1 billion a year earlier.
Analysts including Huatai Securities and Citi maintained a “buy” rating on Tongwei on the expectation that the upstream polysilicon segment, in which Tongwei is also a major player, would benefit most from restructuring.
(Reporting by Colleen Howe; Editing by Kirsten Donovan)
