China's anti-involution efforts show limited results, solar industry enterprises incur 10 consecutive quarters of losses
China's solar industry faced pressure from falling upstream prices and sluggish demand in Q1, with several companies reporting losses for 10 consecutive quarters. Despite government calls for 'anti-involution' (curbing excessive competition), its effectiveness remains limited.
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- 📰 Published: May 5, 2026 at 16:24
- 🔍 Collected: May 5, 2026 at 16:31 (7 min after Published)
- 🤖 AI Analyzed: May 5, 2026 at 16:54 (22 min after Collected)
CENTRAL NEWS
(Taipei, May 5, CNA Reporter Li Ya-Wen) China's solar power industry faced pressure from falling upstream prices and sluggish demand in the first quarter, with several companies incurring losses for 10 consecutive quarters. From the business performance reports, it is evident that the Chinese government's call for the solar industry to implement 'anti-involution' (curbing excessive competition) has encountered complexity and requires a long-term approach.
In the first quarter of 2026, the solar power industry faced dual pressures from falling upstream prices and sluggish demand. According to a May 5 report by Yicai, leading companies such as Longi, Tongwei, and TCL Zhonghuan have reported losses for 10 consecutive quarters, indicating that the complexity of 'anti-involution' (internal friction caused by excessive competition) in the industry has exceeded expectations.
Yicai's statistical report found that the total revenue of 22 listed companies in the solar power industry in Q1 amounted to 95.856 billion RMB (approximately 440.93 billion NTD), an 11.67% year-on-year decrease from 108.516 billion RMB in Q1 last year. The total net profit attributable to parent company was a loss of 10.554 billion RMB; after deducting non-recurring gains and losses, the net profit attributable to parent company was a loss of 13.172 billion RMB.
Looking at the four core segments of the solar power industry—silicon materials, silicon wafers, cells, and modules—Q1 performance showed characteristics of 'contracted scale and continued losses in profit.' The operating fundamentals continue to face significant challenges, especially with sharp declines in silicon material and silicon wafer prices and a shrinking terminal market demand, leading to reduced corporate revenue and pressure on gross profit margins.
The Yicai report mentioned that the 'anti-involution' efforts in the solar power industry are still ongoing, including policy interventions and industry self-discipline to reduce production. The effect of these actions on improving the overall supply-demand situation in the industry remains to be seen. Currently, the overall industry situation is characterized by 'earnings pressure and continuous weakening of profitability quality.'
The China Photovoltaic Industry Association has been promoting joint production cuts and self-discipline appeals since the second half of 2024, attempting to adjust the supply-demand relationship. The Chinese government has also continuously paid attention to the problem of vicious low-price competition in the solar power industry, demanding the elimination of inefficient and outdated production capacity and preventing price wars from distorting the market.
The Ministry of Industry and Information Technology (MIIT), along with several other departments, recently held a solar power industry symposium (on April 17), reiterating the importance of 'anti-involution' work. It called for concerted efforts to advance comprehensive governance work, including capacity regulation, standard leadership, innovation-driven development, price enforcement, quality supervision, mergers and acquisitions, and intellectual property protection. (Editor: Chou Hui-Ying) 1150505
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(Taipei, May 5, CNA Reporter Li Ya-Wen) China's solar power industry faced pressure from falling upstream prices and sluggish demand in the first quarter, with several companies incurring losses for 10 consecutive quarters. From the business performance reports, it is evident that the Chinese government's call for the solar industry to implement 'anti-involution' (curbing excessive competition) has encountered complexity and requires a long-term approach.
In the first quarter of 2026, the solar power industry faced dual pressures from falling upstream prices and sluggish demand. According to a May 5 report by Yicai, leading companies such as Longi, Tongwei, and TCL Zhonghuan have reported losses for 10 consecutive quarters, indicating that the complexity of 'anti-involution' (internal friction caused by excessive competition) in the industry has exceeded expectations.
Yicai's statistical report found that the total revenue of 22 listed companies in the solar power industry in Q1 amounted to 95.856 billion RMB (approximately 440.93 billion NTD), an 11.67% year-on-year decrease from 108.516 billion RMB in Q1 last year. The total net profit attributable to parent company was a loss of 10.554 billion RMB; after deducting non-recurring gains and losses, the net profit attributable to parent company was a loss of 13.172 billion RMB.
Looking at the four core segments of the solar power industry—silicon materials, silicon wafers, cells, and modules—Q1 performance showed characteristics of 'contracted scale and continued losses in profit.' The operating fundamentals continue to face significant challenges, especially with sharp declines in silicon material and silicon wafer prices and a shrinking terminal market demand, leading to reduced corporate revenue and pressure on gross profit margins.
The Yicai report mentioned that the 'anti-involution' efforts in the solar power industry are still ongoing, including policy interventions and industry self-discipline to reduce production. The effect of these actions on improving the overall supply-demand situation in the industry remains to be seen. Currently, the overall industry situation is characterized by 'earnings pressure and continuous weakening of profitability quality.'
The China Photovoltaic Industry Association has been promoting joint production cuts and self-discipline appeals since the second half of 2024, attempting to adjust the supply-demand relationship. The Chinese government has also continuously paid attention to the problem of vicious low-price competition in the solar power industry, demanding the elimination of inefficient and outdated production capacity and preventing price wars from distorting the market.
The Ministry of Industry and Information Technology (MIIT), along with several other departments, recently held a solar power industry symposium (on April 17), reiterating the importance of 'anti-involution' work. It called for concerted efforts to advance comprehensive governance work, including capacity regulation, standard leadership, innovation-driven development, price enforcement, quality supervision, mergers and acquisitions, and intellectual property protection. (Editor: Chou Hui-Ying) 1150505
Choose to stand with facts, every sponsorship you provide is the power to protect press freedom.
Download CNA's 'Firsthand News' APP to stay updated with the latest news.
The text, images, and videos on this website may not be reproduced, publicly broadcast, or publicly transmitted and used without authorization.