Capacity clearance accelerates; several listed companies in the photovoltaic industry chain have recently announced the termination or sale of related projects.

Since January of this year, publicly listed companies in the photovoltaic industry have been frequently releasing performance forecasts for 2025. A review by the Daily Economic News reporter found that many industry leaders are continuing to report losses in 2025, with losses showing an increasing trend.

Among them, leading companies such as JinkoSolar (SH688223, stock price 7.59 yuan, market value 75.94 billion yuan) forecast a net loss attributable to parent company of 5.9 billion to 6.9 billion yuan in 2025; Trina Solar (SH688599, stock price 19.56 yuan, market value 45.82 billion yuan) expects a net loss attributable to parent of 6.5 billion to 7.5 billion yuan; and Tongwei Co., Ltd. (SH600438, stock price 18.16 yuan, market value 81.76 billion yuan) projects a net loss attributable to parent of 9 billion to 10 billion yuan in 2025.

Notably, behind these losses, some recent announcements from companies along the industry chain indicate termination, postponement, sale, or adjustment of related projects. Reasons cited include significant drops in product prices across various segments, project progress below expectations, and efforts to avoid increasing overall operational costs.

For example, on January 24, Trina Solar announced plans to terminate the second phase of its 35 GW monocrystalline silicon wafer project (15 GW portion), and to redirect 1.7 billion yuan of remaining fundraising funds into the “Distributed Smart Photovoltaic Power Station Construction Project.” On the same day, TCL Zhonghuan (SZ002129, stock price 10.40 yuan, market value 42.05 billion yuan) announced plans to sell its Malaysian photovoltaic factory under Maxeon for $51 million. On February 8, Mingguan New Materials (SH688560, stock price 18.92 yuan, market value 3.809 billion yuan) disclosed plans to terminate a 5 billion yuan investment in a solar backsheet and functional membrane production base in Feidong County, and to relocate the first phase of capacity—50 million square meters of backsheet and functional membrane—to Yichun, Jiangxi. The company plans to build a new special functional membrane project for battery packaging with an annual capacity of 350 million square meters, with a total investment of 290 million yuan.

The Daily Economic News noted that Mingguan New Materials stated in its announcement that since Q4 2023, product price competition along the photovoltaic industry chain has intensified, and the industry is in a period of adjustment. The company expects that in 2024 and 2025, the photovoltaic industry will generally incur losses. Based on careful analysis of market changes and cautious judgment, management believes that increased industry competition has gradually eroded the profitability of photovoltaic encapsulation materials. Coupled with intense competition and cyclical adjustments in 2025, continuing to advance the Mingguan Hefei project would inevitably raise the company’s overall operating costs.

In 2025, Mingguan New Materials forecasts a net loss attributable to parent of 125 million to 160 million yuan, representing an 86.35% to 138.53% increase in loss year-over-year. The company explained that the backsheet business has seen reduced shipments due to shrinking market demand; the adhesive film business has also been affected by intensified supply-side competition, leading to falling product prices and increased losses compared to the previous year.

On February 24, Mingguan New Materials’ legal representative told the Daily Economic News that the backsheet and monolithic glass modules are related. As the market share of double-glass modules rises, it encroaches on the single-glass module market. “Continuing to invest in backsheets in Hefei would contradict market trends and significantly increase fixed investment. The company needs to control costs and avoid blind investment. Fortunately, existing facilities in Yichun, Jiangxi, can be used to produce specialized functional membranes, which can save costs.”

According to the company, Mingguan New Materials previously focused on backsheets, adhesive films, and aluminum-plastic films. Recently, it has adjusted its product lineup to focus on adhesive films, aluminum-plastic films, and specialized functional membranes. Among these, the 0BB functional membrane (smart grid membrane) has gained recognition from key clients such as BC module manufacturers.

(Source: Daily Economic News)