Top Chinese PV players’ combined deficit tops RMB10 billion in H1 2026
Listed Chinese PV companies have taken a heavy hit from persistent overcapacity across the industry chain in H1 2026.
PV Tech5 min read38 views
At the same time, ongoing reductions in production costs, improvements in operational efficiency, the fast expansion of shipments for high-efficiency back-contact (BC) products, and stronger profitability in auxiliary materials are beginning to stand out. While the photovoltaic industry remains in the midst of an extensive restructuring cycle, structural differences between companies are becoming increasingly visible, with the first indications of a longer-term recovery also beginning to emerge.
China's publicly listed photovoltaic companies are currently entering the busiest phase for announcing their interim earnings forecasts. Based on the guidance released so far, every major segment of the industry's core manufacturing chain—from polysilicon production through to module manufacturing—is experiencing widespread profitability challenges. Leading companies across the sector are all forecasting substantial net losses.
Tongwei, which holds a leading position in both the polysilicon and solar cell markets, expects a net loss attributable to shareholders of between RMB4.8 billion and RMB5.4 billion (US$0.7 billion to US$0.79 billion) during the first half of 2026. The company said that although older, less efficient production capacity is gradually being eliminated, the imbalance between supply and demand throughout the manufacturing chain has yet to be resolved. Continued weakness in prices for products across both upstream and downstream segments continues to place significant pressure on profit margins.
Top module manufacturers are also encountering increasing business challenges. JA Solar forecasts a net loss attributable to parent shareholders ranging from RMB2.4 billion to RMB2.9 billion for the first half of 2026. The company identified its overseas operations as a significant factor weighing on financial performance. The cancellation of export VAT rebates has increased tax-related costs, while expanding global trade restrictions—combined with geopolitical disruptions affecting international logistics—have delayed deliveries of overseas projects and resulted in contractual penalty claims. Together, these external pressures have significantly reduced corporate profitability.
LONGi Green, one of the industry's leading vertically integrated wafer and module producers, forecasts a net loss attributable to parent shareholders of RMB3.4 billion to RMB3.8 billion for the first half of 2026, while recurring net losses are expected to widen further to between RMB3.7 billion and RMB4.2 billion. According to the company, the larger losses mainly reflect the continuing imbalance between industry supply and demand. Additional pressure resulted from limited grid capacity to absorb newly installed renewable energy projects, together with the surge in installations ahead of last year's policy deadline, both of which contributed to a sharp decline in new domestic photovoltaic installations during the first half of 2026.
Further adding to these difficulties were weaker module sales, reduced factory operating rates, tighter gross profit margins, investment losses from affiliated companies, and foreign-exchange losses caused by fluctuations in the value of the renminbi. Collectively, these factors contributed to a deeper overall loss.
The challenges have extended beyond module manufacturing to the midstream cell segment and the photovoltaic glass industry. N-type cell producer Drinda New Energy Technology expects to report a first-half 2026 net loss of between RMB180 million and RMB270 million. Meanwhile, Flat Group, one of the leading suppliers of PV glass, is preparing to post its first loss since becoming publicly listed, forecasting a deficit of RMB300 million to RMB400 million. The company attributed this primarily to excessive glass production capacity and persistently falling prices, conditions that have pushed the entire PV glass sector into loss-making territory.
Even as losses remain widespread across the industry, differences in company performance have become increasingly apparent. Several leading manufacturers have reduced the size of their losses by focusing on cost control, upgrading product portfolios, and expanding international operations. At the same time, certain specialised market segments have established their own independent growth momentum.
TCL Zhonghuan has demonstrated notable progress, forecasting a first-half loss of RMB3 billion to RMB3.3 billion, representing a substantial year-on-year improvement. The company also expects its second-quarter performance to continue recovering from the first quarter. Costs excluding silicon for wafer production declined by more than 13% compared with the previous year. Shipments of high-efficiency BC products and half-cut modules accounted for more than 15% of total production, while overseas module shipments increased fourfold. Strong growth in international revenue helped compensate for weaker domestic demand, and the combined effects of economies of scale and an improved product mix contributed to narrowing overall losses.
Aiko, which is among the leading manufacturers of BC solar cells, has likewise reported modest improvement. Although the company continues to forecast a first-half net loss of between RMB680 million and RMB790 million, quarterly losses have declined significantly. It also noted that temporary challenges, including adjustments to export tax rebates and fluctuations in exchange rates, are gradually being absorbed.
Trina Solar has also begun showing signs of a financial recovery. Its forecast for the first half projects a net loss attributable to shareholders of between RMB180 million and RMB360 million, representing a sharp year-on-year reduction of 88% to 94% compared with the RMB2.92 billion loss recorded during the corresponding period last year.
Looking specifically at quarterly performance, Trina Solar expects its second-quarter net result to range from a loss of RMB77 million to a profit of RMB103 million. This represents a significant improvement from the RMB283 million loss reported in the first quarter. The company could achieve quarterly break-even as early as the second quarter and currently stands as the smallest loss-making company among the world's five largest module manufacturers.
Trina Solar said the stronger performance has been driven by two primary factors. Within its module business, the company has expanded its presence in premium-value markets, steadily increasing the share of orders for higher-quality modules. At the same time, its energy storage operations and decentralised photovoltaic system business have generated strong profits, providing important support for overall group earnings.
As the industry continues its restructuring process, specialised auxiliary material businesses have taken the lead in generating profit growth. One of the strongest performers has been First Applied Material, a major supplier of photovoltaic encapsulation films. The company expects to achieve a net profit of RMB869 million during the first half of 2026, representing a year-on-year increase of 75.35%. Higher prices for PV resin feedstocks pushed up encapsulation film selling prices, strengthening earnings from its core photovoltaic operations. At the same time, its newly established PCB dry-film photoresist business has expanded rapidly, creating a second engine of growth that helps offset the cyclical challenges affecting its PV manufacturing activities.
High-efficiency BC back-contact technology has increasingly become a major point of differentiation that is widening profitability differences among photovoltaic manufacturers.
LONGi Green recorded a significant increase in the proportion of overseas sales for its BC modules during the first half of 2026. GCL-SI secured premium-priced overseas contracts by converting existing production lines to manufacture BC products. Equipment manufacturer DR Laser forecasts that both new and upgraded BC cell production capacity will total between 40GW and 50GW during 2026, with ongoing technological upgrades expected to maintain steady demand for manufacturing equipment.
A growing number of institutional analysts point out that high-power BC modules continue to command reliable price premiums. Companies that move early in converting production capacity are expected to reach quarterly profitability more quickly while also accelerating the retirement of outdated, low-efficiency manufacturing facilities. This process is expected to contribute to restoring balance between industry supply and demand. Despite the prolonged downturn across the sector, major photovoltaic manufacturers have all established clear medium- and long-term operating strategies.
Drinda New Energy Technology believes that mandatory national safety and energy-efficiency standards for photovoltaic modules will accelerate the removal of obsolete low-end production capacity. As supply and demand gradually return to balance, the company expects product prices and profit margins to stabilise before recovering.
Leading photovoltaic companies, including Tongwei and JA Solar, are pursuing a two-pronged strategy centred on reducing costs and improving efficiency while simultaneously expanding their international presence. By broadening their geographic market exposure, these companies aim to reduce the impact of trade disputes and geopolitical uncertainties, providing greater resilience against the cyclical nature of the industry.
At the same time, TCL Zhonghuan and Flat Group continue investing in upgrades for high-efficiency BC production capacity, seeking to strengthen their competitive position through greater product differentiation.
