Leading panel manufacturer in the third quarter of 2024 Longi Green Energy Technology reported its fourth consecutive quarterly net loss of 1.26 billion yuan ($177 million). In the same period last year, the panel manufacturer had a profit of 2.5 billion yuan, Bloomberg reminds.
Other competitors also suffer losses. They were also in the red in the third quarter of this year Tongwei and Trina Solarwhile JA Solar Technology recorded a decline in net income, a Jinko Solar only made a minimal profit.
By Longi Green Energy Technology The company’s disastrous results are the result of a long-standing mismatch between supply and demandwhich led to a significant drop in product prices. According to the statement, the company reduced production to mitigate losses.
Companies are cutting their wrists
After a sharp increase in production capacity, Chinese solar companies were forced to selling their products below costto power China’s renewable energy boom.
Companies cut their wrists to maintain market shareand most of them are likely to post losses this year, BloombergNEF said in a report earlier this month. Consolidation has already led to bankruptcy or takeover of some smaller players by larger companies.
Centrally controlled market?
China’s main solar industry association earlier this month called for rational pricing and urged companies to be more disciplined in bidding for projects. In the summer it stated that struggling producers should exit the market as soon as possible. Increased scrutiny could help eliminate capacity and accelerate consolidation, Jinko CEO Li Xiande said on a conference call Wednesday.
“We believe that with increased supervision by related departments, domestic prices will eventually return to reasonable levels,” Li said.
