(Yicai) Aug. 26 -- Longi Green Energy, Tongwei, Trina Solar, JA Solar Technology, and TCL Zhonghuan Renewable Energy reported a combined loss of CNY17.3 billion (USD2.4 billion) in the first half of this year after prices plunged due to a severe imbalance between supply and demand.

Longi's net loss narrowed 51 percent to CNY2.6 billion (USD360 million) in the six months ended June 30 from a year earlier, making it the only one of the five solar giants to see an improvement, the Xi'an-based firm said in a financial report on Aug. 23.

Tongwei's loss expanded 59 percent to CNY5 billion, Trina swung into the red with a loss of CNY2.9 billion from a net profit of CNY526 million (USD74 million) a year ago, its first loss since going public in 2020, JA Solar's loss grew 195 percent to CNY2.6 billion, and TCL Zhonghuan's loss climbed 38 percent to CNY4.2 billion, according to their earnings reports released on the same day.

The widespread losses stem from a severe market supply-demand imbalance that has caused steep price drops across the photovoltaic supply chain.

Solar cell and module production growth slowed to below 15 percent in the first half, while polysilicon and wafer output declined, according to data from the China PV Industry Association. The average price of main products in each segment tumbled 88 percent, 90 percent, 81 percent, and 66 percent, respectively, compared to their peaks since 2020.

The association's incomplete statistics show that more than 40 companies have exited the market, gone bankrupt, or undergone mergers and acquisitions since the start of last year.

In addition, as the renewable energy sector grows rapidly, some traditional solar markets are grappling with grid absorption constraints, subsidy phase-outs, and low electricity prices. Policy risks and uncertainties from regulatory changes have also emerged as key concerns highlighted by several firms.

For example, JA Solar flagged uncertainties arising from potential reforms in renewable energy feed-in tariffs in its report, while Trina Solar warned that if the imbalance between supply and demand worsens in the second half of this year, it could lead to continued volatility or a further drop in its operating performance.

However, some companies rode the trend, with the first-half net profit of Hefei-based Sungrow Power Supply surging 56 percent to CNY7.7 billion from a year earlier, according to its financial report released on Aug. 26. In addition, Canadian Solar said in its Aug. 21 earnings report that profit rose 5 percent to CNY3.2 billion.

The Ministry of Industry and Information Technology and other Chinese regulators had another round of meetings with solar companies on Aug. 19, aimed at reversing persistent unhealthy competition that has eroded profits.

Insiders told Yicai that the exact new measures could be finalized within days, with the meeting's key themes including strengthening regulations, scrutinizing new investment projects, and phasing out outdated capacity. Firms also discussed measures to curb disorderly price competition, such as stricter price monitoring and cracking down on below-cost sales and misleading marketing, the insiders pointed out.

Editor: Martin Kadiev