Major Chinese solar manufacturers report losses in H1 2024 due to increased competition

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LONGi headquarters
LONGi will increase product supply in the fourth quarter in 2024. financial Image: LONGi

Three Chinese solar manufacturers – LONGi, Tongwei, and Aiko Solar – have reported losses in the first half of the year due to increased competition.

In its financial results for the first half of 2024, Chinese module manufacturer LONGi has recorded a net loss of up to RMB5.5 billion (US$760 million).

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In a statement, the company said its projected net loss for H1 2024 will be between RMB4.8 billion and RMB 5.5 billion, a drop from a net income of RMB9.18 billion in H1 2023.

The company said the net loss was due to the overall supply and demand mismatch in the solar PV industry and the significant decline in selling prices of major products in various segments. Moreover, LONGi’s short-term profitability will be under pressure with an inventory write-down of RMB4.5 billion to RMB4.8 billion.

LONGi added that it would continue to focus on back-contact (BC) technology and will accelerate supplying new products launched this year in the fourth quarter of 2024, aiming to build “long-term sustainable competitiveness”.

Tongwei

As of 30 June, Tongwei registered a net loss between RMB3 billion and RMB 3.3 billion, a drop from a net income of RMB13.27 billion in H1 2023. The company said product prices declined sharply due to increased competition in the market which greatly affected the company’s profitability, despite substantial growth in polysilicon and module sales.

However, the company launched new products during H1 2024. For example, at Intersolar Europe 2024, Tongwei showcased its TNC-G12/G12R series modules, which feature a number of advantages, including high efficiency, low temperature coefficient and minimal degradation. Based on strict control over incoming material quality, the modules adopt Tongwei’s self-developed cells.

Aiko Solar

Chinese solar PV manufacturer Aiko Solar said it expected its net loss for H1 2024 to be between RMB1.4 billion and RMB2 billion, decreasing from a net income of RMB1.3 billion in H1 2023.

The company attributed the loss to intensified competition in the solar PV market and the price drop of solar PV products, in addition to inventory write-down. Aiko Solar added that it had increased the development of its all-back contact (ABC) products during the first half of the year, while also increasing the expense in marketing and sales operations.

Furthermore, Aiko Solar was sued by Singapore-headquartered solar manufacturer Maxeon Solar Technologies for patent infringement, during H1 2024. In a statement, Maxeon said it had initiated a patent infringement lawsuit in the Düsseldorf Local Division of the Court of First Instance of Unified Patent Court (UPC), alleging that Aiko Solar and its European partners, including Memodo, Libra, VDH, PowerDeal and Coenergia, had infringed a Maxeon patent relating to solar cell technology.

Before this, Maxeon filed an appeal regarding a preliminary injunction decision in the Netherlands relating to its ongoing patent dispute with Aiko Solar.

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