Longi says it expects a net loss of CNY4.8 billion ($660.2 million) for the first half of 2024, while Tongwei is bracing for a loss of CNY3 billion. Aiko Solar and TCL Zhonghuan, meanwhile, forecast losses of CNY2.9 billion and CNY1.4 billion, respectively.
Several leading Chinese PV companies this week released their financial forecasts for the first half of 2024, pointing to widespread losses in the sector.
Long announced an expected net loss to shareholders of CNY4.8 billion ($660.2 million) to CNY5.5 billion, compared with a net profit of CNY9.178 billion in the same period of 2023. The company attributed the expected losses to significant price declines throughout the supply sector. chain, resulting in inventory write-offs of CNY 4.5 billion to CNY 4.8 billion.
Tongwei said it expects a net loss of about CNY3 billion to CNY3.3 billion for the first half of the year, on a net profit of CNY13.27 billion in the first half of 2023. Despite substantial growth in sales of polysilicon materials Tongwei’s profitability fell sharply due to falling prices.
TCL Zhonghuan has forecast a net loss of around CNY2.9 billion to CNY3.2 billion for the first half of 2024, compared with a net profit of CNY4.54 billion in the same period last year. The wafer maker cited rapid price declines in its polysilicon material, wafer and cell segments, pushing sales prices below cost levels in the second quarter and leading to widespread losses.
Aiko Solar said it expects a net loss of CNY 1.4 billion to 2 billion for the first half of 2024. The backcontact technology specialist said higher production costs and higher marketing costs have weighed on profitability, exacerbated by significant inventory write-off provisions.
By mid-week, 21 China-listed PV companies had released their 2024 interim report guidance. In addition to the above-mentioned companies, most of the remaining 16 companies – including Shuangliang, JYT, Eging PV and HY Solar – expect to post losses.
Earlier this week, YES solar energy said it expects a net loss of between CNY800 million and CNY1.2 billion for the first half of 2024, down from a net profit of CNY4.8 billion in the first six months of last year. The company attributed the expected loss to increased competition in the solar market, which resulted in continued price declines, lower gross profit from core operations and significant inventory depreciation provisions. Previous quarterly reports showed a 22% year-on-year revenue decline to CNY15.971 billion, with a net quarterly loss of CNY483 million.
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