China’s biggest solar manufacturers lost almost 7 billion yuan in the third quarter as relentless overcapacity and weak demand kept prices pinned near or below cost, underscoring how the world’s largest solar supply chain remains stuck in a prolonged slump.
China Solar Manufacturers Report Q3 Losses
Economic Growth Targets
The six leading producers — Trina Solar, Tongwei, TCL Zhonghuan, Longi, JA Solar and Jinko Solar — widened combined losses from about 5.9 billion yuan a year earlier, showing that cost cuts and product mix changes are not yet enough to offset the industry’s supply glut.
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The scale of the problem is now systemic. Roughly 40 listed solar companies have lost nearly 130 billion yuan over 2024 and 2025 after years of aggressive capacity additions, and China now has enough manufacturing capacity to supply nearly twice global demand. By the end of 2025, the country held more than 3.5 million metric tons of annual polysilicon capacity, 1,500 GW of wafer capacity, 1,400 GW of solar-cell capacity and 1,100 GW of module capacity, according to the China Photovoltaic Industry Association.
That dominance matters because it sets global pricing. China accounts for more than 90% of worldwide polysilicon, wafer and cell capacity and more than 80% of module capacity, so any cutback or inventory overhang in China quickly ripples through the rest of the market.
Demand has not been strong enough to absorb the excess. China exported about 180.8 GW of modules in the first nine months of 2026, down 12% from a year earlier, while domestic installations dropped nearly 54% to 110.8 GW as developers rushed to complete projects in 2025 and then faced weaker returns under market-based power pricing.
The pressure is most acute upstream. Tongwei posted the second-largest quarterly loss among the six, and N-type polysilicon prices were about 43,000 yuan a metric ton in late October, roughly 28% below their early-year highs and close to estimated full cost. Industry operating rates in polysilicon fell to about 35% in October as producers tried to work through inventories and stem the cash burn.
Some companies are improving results, but mostly through self-help rather than a turnaround. Jinko Solar narrowed its loss on lower manufacturing costs, higher-power products and a growing energy-storage business, while TCL Zhonghuan benefited from lower wafer costs. Jinko still said a single quarter does not mark a turning point and flagged 2027 as another difficult year.
For investors, the message is clear: the solar sector’s recovery depends less on demand growth than on capacity rationalization, margin repair and further consolidation. Until then, the industry remains a source of earnings pressure for Chinese manufacturers and a continuing drag on global solar pricing.
| Entity | Gains | Losses |
|---|---|---|
| High-volume Chinese module buyers | ▲Lower equipment prices | ▼Industry stability |
| Chinese solar manufacturers | ▲Cost-cutting leaders, storage sellers | ▼Margins, earnings |
| Polysilicon producers | ▲Production discipline if output cuts stick | ▼Cash flow, pricing power |
| Global solar developers | ▲Cheaper modules | ▼Supplier reliability amid turmoil |
