As of November 3rd, over sixty photovoltaic companies in China have released their third-quarter reports, revealing a complex landscape within the solar industryThough a number of these companies have reported substantial revenues, signs of financial strain are increasingly evident across the sector.

In the first three quarters of this year, 17 companies surpassed the 10 billion yuan revenue markHowever, only two companies—Tongwei Co., Ltdand Longi Green Energy—managed to break past the 10 billion yuan net profit thresholdMeanwhile, 14 companies faced negative net profit growth compared to the previous year, with five reporting steep declines exceeding 50%.

Major Players Experience Turbulence

The companies that topped the revenue charts were led by Tongwei, bringing in 111.42 billion yuan and followed closely by Longi Green Energy, which reported 94.1 billion yuan

Other notable firms included JinkoSolar (85.1 billion yuan), Trina Solar (81.1 billion yuan), and JA Solar (59.98 billion yuan). Notably, TCL Zhonghuan and Sungrow Power Supply also made the list, recording revenues of 48.65 billion and 46.4 billion yuan, respectively.

However, among these top revenue earners, two showed a decline in performance compared to last year: TCL Zhonghuan's revenue fell by 2.39%, and Aiko Solar's revenue shrank by 12.4%. Tongwei and Longi had relatively slow revenue growth rates at 9% and 8.5%. While Tongwei's net profit decreased by 20%, Longi's net profit grew marginally by just 6%. In contrast, significant revenue and profit increases were noted at Sungrow and JinkoSolar, with Sungrow reporting an impressive 108.9% revenue increase year-on-year, leading to a net profit surge of 244.5%. Similarly, JinkoSolar achieved a 61% revenue growth, solidifying its status as a powerhouse in the industry.

Examining the quarterly data, the performance of leading firms sharply declined in the third quarter—Longi reported an 18.9% drop in revenue, while Tongwei and TCL Zhonghuan experienced declines of 10% and 24.2% respectively

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For net profit, Tongwei's dipped substantially by 67.8%. A pattern of declining fortunes has triggered concern among market analysts.

Industry experts attribute much of this slowdown to overcapacity and falling silicon prices, which have dramatically impacted upstream companies that have borne the brunt of price fluctuationsTongwei and Daqo New Energy exemplify the challenges facing producers of silicon materials.

Based on their third-quarter reports, Tongwei achieved revenues of 1114.21 billion yuan but saw a notable decrease in net profit to 163.02 billion yuan—a stark drop of nearly 25%. Similarly, Daqo reported revenue declines of approximately 47.81% and a staggering 66.09% in net profit.

Daqo also reported the lowest quarterly revenue since 2022, with revenues slumping to 35.53 billion yuan, a drop of 57.38%. Amidst these challenges, it postponed a major production project, further raising eyebrows across the industry.

Longi Green Energy, once a juggernaut in the industry, has significantly struggled recently, with their third-quarter revenue down to 294.5 billion yuan and a net profit decrease of 44%. The firm cited factors such as reduced investment income, inventory depreciation losses, and heightened research and development expenses as major contributors to their financial downturn

This has severely impacted their stock price, with shares plummeting nearly 70% from their 2021 peak.

On the front of silicon wafer production, TCL Zhonghuan has also faced challenges despite maintaining marginal net profit growthNonetheless, third-quarter figures reflected a worrying trend, with revenues falling by over 24% and significant asset impairment losses complicating the pictureThis has led many to question whether the firm’s rapid expansion aligns with actual market demand.

Growing Risks Amid Overcapacity

In stark contrast to their counterparts, a few firms have managed to find success in this turbulent environment

For instance, JinkoSolar and Trina Solar have successfully capitalized on the growing market for TOPCon cells, demonstrating how early investment in technology can lead to substantial benefits for the companies that pursue this path.

JinkoSolar boasted third-quarter revenue of 314.7 billion yuan, with a remarkable net profit increase of 225.79% year-on-yearTrina Solar also reported strong financials, with a 39.38% increase in revenue to 811.19 billion yuan during the first three quarters.

In a similarly positive vein, JA Solar reported net profits that doubled over the past year, positioning the company well within the competitive ecosystemEven with a reduction in growth rates, they remain healthy in the larger landscape.

Despite some companies performing well, the overall picture remains complex