The photovoltaic industry is cold, and all links in the industrial chain are not spared.

Integrated leader Tongwei Co., Ltd. (600438. SH) announced on the evening of January 17 that it is expected that the net profit attributable to the owners of the parent company in 2024 will be about -7 billion to -7.5 billion yuan, which will be a loss compared with the same period last year.

In 2023, Tongwei's net profit attributable to the parent company will be 13.574 billion yuan. Its highest profit in history will appear in 2022, earning 25.726 billion yuan for the whole year.

Tongwei Co., Ltd. said that under the impact of the sharp decline in market prices in all links of the photovoltaic industry chain last year, and even continued to be lower than the industry's cash costs, and the impact of the impairment and scrapping of long-term assets of about 1 billion yuan throughout the year, the company maintained a net inflow of operating cash flow, but still recorded a loss for the whole year.

According to financial data, this is the first annual loss for Tongwei since 2000.

Throughout 2024, the PV industry will be more volatile than the industry expects. Liu Hanyuan, chairman of the board of directors of Tongwei Group, previously said that if the annual performance is still lost, it will be the first loss of Tongwei in the 23 years since it was listed on the A-share market, and it will also be the first loss in the 42 years since its establishment.

Since the unveiling of the annual report performance forecast, a number of photovoltaic companies have handed over the worst annual reports in history.

LONGi Green Energy (601012. SH) announced on January 16 that it expects to achieve a net loss attributable to shareholders of listed companies of 8.2 billion yuan to 8.8 billion yuan in 2024.

In 2023, the company will achieve a net profit attributable to the parent company of 10.751 billion yuan. In 2022, the high boom cycle of photovoltaics, LONGi's net profit attributable to the parent company will be as high as 14.812 billion yuan.

According to data over the years, the net loss of more than 8 billion yuan is the second annual loss of LONGi Green Energy since 2007 and the largest annual loss in its history. Previously, in 2012, when the net profit of more than eighty percent of photovoltaic companies declined, LONGi Green Energy had a net loss of 54.6722 million yuan.

On the upstream raw material side, Daqo Energy (688303. SH) announced on the 17th that it is expected that the net profit attributable to the owners of the parent company in 2024 will be a loss compared with the same period last year, and the net loss attributable to the owners of the parent company will be 2.6 billion to 3.1 billion yuan.

Daqo Energy explained that in 2024, the mismatch between supply and demand in the domestic polysilicon market will intensify, product prices will continue to fall, and even fall below the industry's cash costs, and the overall gross profit and profitability of the industry will decline significantly. As a core player in the industry, the company directly suffered from the eroding pressure of falling prices on profitability, and its performance decreased significantly compared with the same period last year. In addition, based on the principle of prudence, the Company made provision for inventory decline, conducted impairment tests on non-current assets such as fixed assets, and made corresponding asset impairment provisions, which had a great impact on the performance of the reporting period.

Daqo Energy was founded in February 2011, and its net loss in 2024 was its worst performance in more than a decade. In the era of windfall profits in the polysilicon industry, Daqo Energy will make a big profit of 19.121 billion yuan in 2022.

Photovoltaic equipment manufacturer and "silicon wafer upstart" Hongyuan Green Energy (603185. SH) announced on the 17th that it expects to achieve a net profit attributable to the owners of the parent company of -2.5 billion to -2.7 billion yuan in 2024. In 2023, the company's net profit attributable to the parent company will be about 741 million yuan.

Hongyuan Green Energy said that during the reporting period, the market competition in the photovoltaic industry in which the company is located was fierce, and the price of products in the photovoltaic industry chain continued to be at a low level due to factors such as overcapacity and intensified competition in the industry. Compared with the same period, the company's product prices declined, and sales revenue declined, resulting in a decline in the company's profitability.

The Paper noted that this is the first time since 2009 that Hongyuan Green Energy has suffered an annual net profit loss attributable to the parent company. The company, formerly known as Shangji CNC, is one of the first photovoltaic special equipment manufacturers in the industry, and then cut into the silicon wafer link and extended to the entire photovoltaic industry chain such as industrial silicon, silicon materials, cells, modules, and power stations.

However, when the downward cycle of the industry comes, the longer the front, the more vertically integrated enterprises tend to lose more.

Photovoltaic material manufacturers also saw their profits plummet and fell into losses. Photovoltaic backsheet faucet Cybrid Technology (603212. SH) released a performance forecast on January 16, and according to the preliminary calculation of the financial department, it is expected that the net profit attributable to the owners of the parent company in 2024 will be -250 million to -200 million yuan, and there will be a loss compared with the same period last year. In 2023, its net profit attributable to the parent company will be about 104 million yuan.

Cybrid Technologies was founded in 2008 and listed on the Shanghai Stock Exchange in April 2020. In the global photovoltaic backsheet segment, the company has won the sales championship for six consecutive years since 2014. The above earnings forecast means that Cybrid Technologies will post its first annual net loss since 2014. In the first three quarters of last year, Cybrid Technology had a net loss of 95.5273 million yuan and accounts receivable of 1.255 billion yuan. As a result, the company's loss in the fourth quarter of last year widened sequentially.

Cybrid Technology said that the pre-loss was mainly affected by the photovoltaic materials business. During the reporting period, affected by the changes in the supply and demand relationship of the photovoltaic industry, the transmission of price reduction pressure in the industrial chain, and the intensification of market competition, the demand and unit price of photovoltaic backsheets declined, and the sales volume of photovoltaic film was basically flat but the unit price of products decreased, resulting in a year-on-year decline in the company's operating income and a decline in product profitability. In accordance with the provisions of the Accounting Standards for Business Enterprises, the Company made corresponding provisions for inventory price decline based on the principle of prudence. During the reporting period, the credit risk of some customers increased, and the company made corresponding provisions for bad debts of accounts receivable based on the principle of prudence in accordance with the provisions of the accounting standards for business enterprises, which further affected the overall operating performance.

EGing Optoelectronics (600537. SH) disclosed on the evening of January 14 that it is expected to achieve attributable net profit of -1.9 billion yuan to -2.3 billion yuan in 2024, with a decline in profitability compared with the same period last year and a loss. EGing Optoelectronics is known as the "first photovoltaic stock" in A-shares, and the scale of this loss is also the largest in the company's history.

"The scale of losses caused by this industry fluctuation far exceeds the previous three industry fluctuations (referring to the 2008 financial crisis, the 2012 'double anti', and the 2018 industry policy adjustment)." Wang Bohua, honorary chairman of the China Photovoltaic Industry Association, introduced at the industry forum in early December last year that from January to October last year, the photovoltaic industry moved forward in adversity, while the manufacturing end, application end and export volume expanded, the price of the industrial chain, the output value of the manufacturing end and the export volume declined significantly. The prices of each link will drop by 60%-80% compared with the high point in 2023, and most links will operate at a loss in the second half of 2024; In the first three quarters, the output value of photovoltaic manufacturing fell by more than 44.7%, exceeding 570 billion yuan; The loss of photovoltaic enterprises continued to expand, and 39 of the 121 listed photovoltaic enterprises suffered net profit losses, and the losses of leading enterprises were even more serious.