From pv magazine Global
Several leading Chinese PV companies have released their financial forecasts for the first half of 2024, indicating widespread industry losses.
Longi announced a projected net loss for shareholders of CNY 4.8 billion ($980 million) to CNY 5.5 billion, compared to a net profit of CNY 9.178 billion in the same period of 2023. The company attributed the expected losses to significant price declines across the industry supply chain, resulting in inventory writedowns of CNY 4.5 billion to CNY 4.8 billion.
Tongwei said it expects a net loss of approximately CNY 3 billion to CNY 3.3 billion for the first half of the year, from a net profit of CNY 13.27 billion in the first half of 2023. Despite substantial growth in polysilicon material sales, Tongwei’s profitability declined sharply due to falling prices.
TCL Zhonghuan has forecasted a net loss of about CNY 2.9 billion to 3.2 billion for the first half of 2024, compared to a net profit of CNY 4.54 billion in the same period last year. The wafer manufacturer cited rapid price declines across the polysilicon material, wafers, and cell segments, pushing sales prices below cost levels by the second quarter and resulting in 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 back-contact technology specialist said that higher manufacturing costs and increased marketing expenses have dragged down profitability, compounded by significant provisions for inventory writedowns.
By the end of last week, 21 China-listed PV companies had disclosed their 2024 interim report guidance. In addition to the aforementioned companies, most of the remaining 16 companies – including Shuangliang, JYT, Eging PV, and HY Solar – expect to post losses.
Earlier last week, JA Solar said it expects a net loss between CNY 800 million and CNY 1.2 billion for the first half of 2024, from a CNY 4.8 billion net profit in the first six months of last year. The company attributed the anticipated loss to heightened competition in the solar market, resulting in continuous price declines, decreased gross profit from core operations, and significant provisions for inventory depreciation. Earlier quarterly reports showed a 22% year-on-year revenue decline to CNY 15.971 billion, with a quarterly net loss of CNY 483 million.
Author: Vincent Shaw
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