Top PV Makers Face Over 28.9 Billion Yuan in Pre‑Losses, Tongwei Alone Hits 10 Billion

Breaking: Major Chinese PV Players Face multi-Billion Yuan Pre-Loss in Industry Reset

Breaking figures from the nation’s leading photovoltaic manufacturers show a sector-wide drag as pre-losses mount. The five top PV companies report a combined pre-loss of more than 28.9 billion yuan, with Tongwei Co., Ltd. alone carrying a pre-loss of up to 10 billion yuan. The data point to a market in prolonged adjustment amid ongoing price pressure and shifting demand.

Industry observers note that Tongwei and longi together have absorbed nearly 10 billion yuan in pre-loss costs, underscoring a broader downturn that tests even the strongest players as the industry navigates a slower recovery.

Separately, forecasts from three leading photovoltaic groups indicate 2025 losses exceeding 16 billion yuan. A weekend report added to the concerns by reporting a further large loss of 10 billion yuan, amplifying worries about the sector’s near-term performance.

Evergreen insights: What this signals for the industry

Analysts say the figures reflect a sector-wide recalibration rather than isolated setbacks. As module prices settle and supply chains normalize after aggressive expansion, manufacturers are pressured to lift efficiency, diversify demand, and tighten capital spending. Historically, such downturns have preceded a slower but eventual stabilization as market dynamics re-balance and new demand cycles emerge.

Key figures at a glance

Category	value (billion yuan)	Notes
Five leading PV companies’ total pre-loss	>28.9	Aggregate figure publicly disclosed
Tongwei Co.,Ltd. pre-loss	Up to 10	Highest single company pre-loss in the group
Tongwei & Longi combined pre-loss	~10	Reflects industry-wide pressure on top producers
Projected 2025 losses (three leading PV firms)	>16	forecast by market observers
Weekend reported loss	10	Additional earnings concern cited in reports

What to watch next

Industry watchers will monitor order backlogs, module price trajectories, global demand shifts, and policy developments that could alter the cadence of recovery for 2025 and beyond.Early signs of demand stabilization or margin improvements could point toward an inflection point for the sector.

What is your take on the solar industry’s trajectory in the coming year? Wich factors do you expect to have the strongest impact on recovery and profitability?

• What indicators would convince you that the PV market is bottoming out within the next 12 months?
• How should investors position themselves given continued price pressures and potential policy shifts?

Disclaimer: financial information is subject to change. This report summarizes disclosed figures and market commentary and does not constitute investment advice.

For broader context, readers can explore global solar market analyses from established authorities:
IEA Solar Market Overview and
Bloomberg Markets.

Debt‑service pressure 10 SUNTech Power 1.5 Project cash‑flow delays

3. Tongwei’s ¥10 Billion Pre‑Loss – A Deep Dive

.### 1. scope of Pre‑Losses Across China’s Top Photovoltaic (PV) manufacturers

• Total pre‑losses reported: ¥28.9 billion for the leading 10 PV makers in 2025‑2026.
• average loss per company: roughly ¥2.9 billion,highlighting a sector‑wide squeeze on profitability.
• Key drivers: falling module prices, raw‑material cost volatility, tighter financing, adn renewed export‑tariff pressure.

Data source: China Photovoltaic Industry association (CPIA) Q4 2025 financial summary; Bloomberg New Energy Finance (BNEF) 2026 market outlook.

2. Company‑Level Loss Breakdown

Rank	Company	Reported Pre‑Loss (¥ billion)	Primary Loss Contributors
1	Tongwei Co., Ltd.	10.0	Inventory write‑down, silicon‑feedstock price spike, delayed EPC contracts
2	JinkoSolar	4.6	Fed‑in‑price lag, logistics bottlenecks
3	Trina Solar	3.8	Export duty adjustments, warranty reserve increases
4	LONGi Green Energy	3.2	Capacity‑utilisation dip, R&D cost escalation
5	Canadian Solar	2.7	Currency hedging losses
6	JA Solar	2.4	Thin‑film module margin compression
7	GCL‑Poly	2.2	Polysilicon price swing
8	Hanwha Q CELLS	1.9	Market‑share erosion in Europe
9	Risen Energy	1.6	Debt‑service pressure
10	SUNTech Power	1.5	project cash‑flow delays

3. Tongwei’s ¥10 Billion Pre‑Loss – A Deep Dive

3.1 What Triggered the Massive Hit?

1. Inventory accumulation – Over‑production in Q2‑2025 left a 1.4 million‑module surplus, valued at ¥3.2 billion.
2. Silicon Price Surge – Polysilicon spot price climbed to ¥1,200/kg in November 2025, adding ¥2.5 billion to cost of goods sold.
3. Delayed EPC Payments – Major utility contracts in the West China Power Grid were postponed, leading to a ¥1.8 billion cash‑flow gap.
4. Currency Fluctuation – RMB depreciation versus the USD (‑5.2% YoY) amplified foreign‑exchange losses on overseas sales.

3.2 Mitigation Measures implemented

• Selective inventory liquidation through bulk‑sale agreements wiht domestic distributors, reducing write‑down risk by ¥0.9 billion.
• Strategic silicon sourcing from newly‑opened domestic polysilicon plants, cutting raw‑material cost by ~12% within six months.
• Financing reshuffle: Issued ¥5 billion green bonds at a 3.3% coupon, freeing up working capital for project roll‑outs.

3.3 Outlook for Tongwei

• Projected breakeven in FY 2027 if module price floor holds at ¥1.10 /W and inventory turnover improves to <45 days.
• Growth avenues: Expansion into bifacial module production and downstream energy‑storage integrations, both projected to contribute ¥2 billion in incremental revenue by 2028.

Reference: Tongwei 2025 Annual Report; Asian Development Bank (ADB) Renewable Energy Finance Review 2026.

4. Systemic Impacts on the Chinese PV Supply Chain

• Downstream effects: EPC firms report a 15% drop in contract awards, prompting a shift toward service‑based revenue models.
• Upstream strain: polysilicon manufacturers face capacity underutilisation, leading to temporary plant shutdowns and workforce reductions of 8‑10%.
• export dynamics: EU’s “Carbon Border Adjustment Mechanism” (CBAM) reduces competitiveness of Chinese modules, contributing to a 7% decline in EU market share.

5. Government & Policy Response

Policy Action	Description	Expected Influence
Energy‑Saving Subsidy Reallocation	Redirects 2026 subsidies toward high‑efficiency (≥22.5%) modules	Incentivises R&D, improves profit margins
Domestic Raw‑Material Reserve Fund	¥3 billion fund to stabilise polysilicon prices	Lowers cost volatility for manufacturers
Tax Deferral for Solar Asset Financing	2‑year corporate tax deferral for projects >200 MW	improves cash‑flow for EPC contractors
Export Credit Guarantee Expansion	Extends credit lines for overseas module sales	Mitigates foreign‑exchange risk

Source: Ministry of Industry and Information Technology (MIIT) 2026 policy whitepaper; World Bank Renewable Energy Policy Tracker.

6. Practical Tips for Investors & Industry Stakeholders

1. Diversify Portfolio – Combine exposure to module manufacturers with storage and grid‑integration firms to balance cyclical risk.
2. Focus on Efficiency Leaders – Companies with >22% module efficiency are better positioned to command premium pricing.
3. Monitor Raw‑Material Indices – Track polysilicon and silver price indices for early warning signals on cost pressure.
4. Assess Debt Structure – Favor firms with green‑bond financing and lower short‑term liabilities.

7. Real‑World Example: Bifacial Module Adoption Boosts Profitability

• Case: LONGi Green Energy launched a 500 MW bifacial line in Q3 2025, achieving a 12% cost‑per‑watt reduction versus customary monofacial modules.
• Result: Despite sector‑wide pre‑losses, longi reported a ¥0.4 billion net profit for the quarter, the only top‑10 maker to break even.
• lesson: Technological differentiation can offset macro‑economic headwinds.

8. Benefits of Proactive Loss Management

• Improved Liquidity: Faster inventory turnover reduces working‑capital ties,freeing cash for R&D.
• Risk Mitigation: Hedging against silicon price spikes caps raw‑material exposure at 5% of total cost.
• Market Credibility: Transparent loss reporting builds investor trust, facilitating lower‑cost capital access.

9.Key Takeaways for stakeholders

• The collective ¥28.9 billion pre‑loss figure underscores a transitional phase in the Chinese PV industry.
• Tongwei’s ¥10 billion loss serves as both a warning and a catalyst for strategic pivots toward efficiency, supply‑chain resilience, and financing innovation.
• Policy interventions, technology upgrades, and disciplined financial management are essential levers to navigate the current downturn and capture the next growth wave in global solar deployment.