Jingao suffers huge losses, and the photovoltaic industry is still waiting for a "savior".
The photovoltaic industry has transitioned from a phase of frenzied expansion to a brutal reshuffle. The fate of photovoltaic enterprises like JA Solar Technology Co., Ltd. is akin to the components in the desert - they must endure the scorching of ultraviolet rays and resist the erosion of sandstorms, demonstrating their durability in harsh environments.
This long - established domestic photovoltaic enterprise is rapidly losing its luster.
Recently, JA Solar Technology Co., Ltd. (hereinafter referred to as JA Solar Technology) released its performance forecast for the first half of 2025, indicating that it is expected to have a net profit attributable to the parent company ranging from -3 billion to -2.5 billion yuan in the first half of this year, with an increasing loss compared to the same period last year.
Regarding the reasons for the performance change, JA Solar Technology stated that affected by the concentrated release of production capacity in each link of the main photovoltaic industry chain in recent years, which has led to a phased imbalance between supply and demand, industry competition has continued to intensify. The prices of major products in each link have been under overall downward pressure compared to the same period. Meanwhile, the intensification of international trade protection policies has led to a decline in the company's average selling price of components and profitability compared to the same period, resulting in a phased loss in operating performance.
JA Solar Technology's financial report shows that in 2023, its revenue exceeded 80 billion yuan, and its net profit exceeded 7 billion yuan. However, in 2024, JA Solar Technology's performance collapsed. Its revenue dropped to 70.1 billion yuan, and its net profit suffered a huge loss of more than 4.6 billion yuan, a year - on - year plunge of 166.14%. In the first quarter of 2025, its predicament was even more evident. It suffered a net loss of 1.638 billion yuan, a year - on - year drop of 239.35%.
In addition, as of the first quarter of 2025, JA Solar Technology's notes payable and accounts payable remained at a high level, reaching 22.837 billion yuan. It should be noted that its revenue in the same period was only 10.672 billion yuan.
The reaction of the capital market was swift and harsh. On November 22, 2021, after JA Solar Technology's stock price reached a high of 103 yuan per share, it continued to fluctuate at a high level for about half a year and then tumbled. As of May 3 this year, its stock price dropped to 9.05 yuan. The huge decline was astonishing. Recently, JA Solar Technology's stock price has been fluctuating around 11 yuan.
No wonder some netizens joked in the stock bar: "Although there is a bottom, it seems this thing still wants to keep going down!" Of course, a few netizens believe that JA Solar Technology's stock price has "reached the bottom." However, with the continuous decline in the semi - annual report forecast, it's hard to tell how strong this "bottom" really is?
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JA Solar Technology's difficulties reflect the collective challenges of the entire photovoltaic industry. In recent years, the industry has continuously experienced an imbalance between supply and demand, and the prices of the industrial chain have continued to plummet. Statistics from the China Photovoltaic Industry Association show that in 2024, the price of polysilicon dropped by more than 39%, silicon wafers by more than 50%, solar cells by more than 30%, and components by more than 29%. The rapid decline in prices has severely compressed the profit margins of enterprises, and the loss - making area of the industry has continued to expand. Some small and medium - sized enterprises have declared bankruptcy.
The latest semi - annual report forecast data of photovoltaic enterprises more intuitively reflects the current situation. For example, GCL System Integration Technology Co., Ltd. expects to achieve a net profit attributable to the parent company of -350 million to -250 million yuan in the first half of the year, turning from profit to loss compared to the same period last year. LONGi Green Energy Technology Co., Ltd. expects a net loss of 2.4 billion - 2.8 billion yuan in the first half of the year, and Tongwei Co., Ltd. expects a maximum net loss of 5.2 billion yuan in the first half of the year, with an increasing loss compared to the same period last year.
What's urgent is whether JA Solar Technology can significantly reduce losses or turn losses into profits. If the global photovoltaic environment continues to be sluggish, how can photovoltaic enterprises, including JA Solar Technology, save themselves?
Public information shows that JA Solar Technology is a long - established domestic photovoltaic enterprise. Since 2010, it has started to develop in depth towards the upstream and downstream of the photovoltaic industry from a single battery link. Currently, it has built three major business groups: photovoltaic and energy storage, smart energy, materials, and equipment. Its main business covers the R & D, production, and sales of photovoltaic silicon wafers, batteries, components, and energy storage systems, the development, construction, and operation of photovoltaic power stations, as well as the R & D, production, and sales of photovoltaic materials and equipment.
In recent years, JA Solar Technology's photovoltaic module shipment volume has ranked among the top three globally. In 2024, JA Solar Technology's battery module shipment volume increased significantly year - on - year, reaching 79.447GW (including 1.544GW for self - use), of which the overseas shipment volume accounted for about 49%. However, the increase in volume did not bring about an increase in profit. The gross profit margin of its photovoltaic module business was only 4.82%, a sharp drop of 13.46 percentage points compared to 2023. The gross profit margin in the domestic market was as low as -7.98%, and in the European market, it was -3.51%. Only the American market maintained a high gross profit margin of 31.43%.
It should be noted that in 2024, JA Solar Technology made a total of 3.329 billion yuan in impairment provisions for various assets, accounting for 71.49% of the audited net loss attributable to shareholders of the listed company in 2024. Specifically, it includes a long - term asset impairment loss of 3.03 billion yuan (including a fixed - asset impairment loss of 2.857 billion yuan), an inventory write - down loss of 124 million yuan, and a credit impairment loss of 170 million yuan for accounts receivable, etc.
The change in management has also raised market concerns. In March 2025, Wu Tingdong left his positions as the deputy general manager and the secretary of the board of directors of JA Solar Technology due to work transfer. Jin Junmiao and Jin Junhui, daughters of the founder Jin Baofang, have appeared in the company's core management, serving as directors and the president of the China region of the regional operation center respectively. The company's governance will face the test of the transition period of "second - generation succession."
Of course, these company - level issues are minor problems in the face of the industry's difficulties. "Daily Capital Theory" believes that in the face of severe industry challenges and profound changes, Chinese photovoltaic enterprises, including JA Solar Technology, need to adopt a systematic self - rescue strategy and build a multi - dimensional breakthrough path from five dimensions: technological innovation, production capacity optimization, market development, financial management, and policy coordination.
First of all, it is necessary to build core competitiveness through disruptive innovation and break through the efficiency bottleneck. Enterprises should concentrate their R & D resources on high - efficiency and differentiated technology routes and avoid being crowded in the mature technology fields. Using forward - looking technology layout to make products in short supply is the key to reducing losses.
Layout disruptive technologies. In addition to incremental innovation, enterprises need to focus on the next - generation disruptive technologies. Although it is difficult to mass - produce perovskite, tandem cells, and other directions in the short term, they represent the future of the industry. At the same time, it is necessary to increase innovation across the entire industrial chain. Technological innovation should run through the entire chain of materials, processes, and products. Enterprises should cooperate with universities and research institutions to form innovation alliances to reduce R & D risks. Through this model, the process of technology from the laboratory to industrialization can be accelerated.
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Secondly, it is necessary to combine active optimization with industry integration. Industry enterprises should actively reduce production and relieve burdens. Facing the serious over - capacity, enterprises need to actively adjust the production rhythm to avoid the vicious cycle of "producing more while losing more." Industry self - discipline also helps to restore price order and gain time for technological upgrading.
Eliminating backward production capacity is extremely urgent. Enterprises need to have the determination to eliminate backward production capacity and focus on high - efficiency production capacity. The new regulations of the Ministry of Industry and Information Technology in 2024 require that the power consumption of new silicon material production capacity should be ≤53kWh/kg (the current is 57kWh/kg), forcing high - energy - consuming production capacity to exit. Enterprises should actively shut down production lines with backward technology and high costs and concentrate resources to ensure the operation of high - efficiency production capacity.
It is worth mentioning that the industry's cold winter is also an opportunity for mergers, acquisitions, and integration. Enterprises can explore the "platform company acquisition and storage" model, that is, leading enterprises jointly establish a platform company to acquire excess production capacity through debt - bearing acquisitions. Although the actual operation is complex (such as problems in equity distribution, debt handling, and production capacity disposal), it can avoid the systematic risks brought about by the disorderly clearance of the entire industry. At the same time, the backward production capacity indicators can be replaced with high - efficiency new production capacity. This replacement not only reduces the total production capacity but also optimizes the production capacity structure, achieving "quantity reduction and quality improvement."
It should also be noted that the reconstruction of demand and the exploration of diverse scenarios and emerging markets are important. Enterprises can expand the domestic distributed market by focusing on developing application scenarios such as rooftop photovoltaics, municipal engineering photovoltaics, and photovoltaic - energy storage - charging integration. Tap the potential of "photovoltaic +" innovative applications - combined with different scenario requirements, develop innovative models such as "photovoltaic + hydrogen and ammonia production," "photovoltaic + agricultural products," and "photovoltaic + communication base stations." Basic telecommunications enterprises are also building photovoltaic - energy storage integrated communication base stations in areas difficult to cover by the power grid.
Explore overseas incremental markets. Focus on high - growth emerging markets to reduce dependence on traditional markets. The installed capacity in the Middle East is expected to increase by 87% in 2025, and the growth rate in Latin America will reach 60%. Enterprises can adopt a dual - track strategy of "local production + local marketing" to avoid trade barriers and deeply cultivate regional markets.
Promote the integrated development of computing and electricity. Seize the opportunity of the integration of the digital economy and green energy, and promote the implementation of a new model of "green electricity aggregation supply" with nearby access to the main power grid for power supply, aggregated trading, and local consumption, and accelerate the layout and construction of green computing facilities. This model not only solves the high - energy - consumption problem of data centers but also promotes the local consumption of photovoltaic power, achieving a win - win situation.
The current in - depth adjustment faced by the photovoltaic industry is an inevitable stage for the industry to shift from extensive expansion to high - quality development. Although short - term pain is inevitable, it will also promote the industry to shift from price competition to value competition and from scale - oriented to innovation - driven. This also means that the photovoltaic industry has gone from a frenzy of expansion to a brutal reshuffle. The fate of photovoltaic enterprises such as JA Solar Technology is just like the components in the desert - they have to withstand the scorching of ultraviolet rays and resist the erosion of sandstorms, demonstrating their durability in harsh environments.
[This article is for communication only and is not an investment advice. Please pay attention to investment risks.]
This article is from the WeChat official account "Daily Capital Theory," written by Baikaishui's Thinking. It is published by 36Kr with authorization.