1 GW offshore PV project approved in Shandong Province; LONGi forecasts H1 2024 net loss of up to RMB 5.5B; AIKO to report up to RMB 2B net loss; multiple firms establish new PV company; Tongwei's H1 net loss to total up to RMB 3.3B; HY Solar forecasts net loss of up to RMB 1.1B.
1 GW offshore PV project to come up in Shandong Province: The Guohua HG14 1GW offshore solar PV project located in the offshore area of Dongying, Shandong Province, has been approved by the State Council and subsequently by the Ministry of Natural Resources. It is set to be the first offshore PV project in Shandong Province with approved 3-dimensional rights. To be built for an investment of RMB 8 billion ($1.1 million), it will also be China's first large-scale offshore steel truss platform-based fixed-pile PV project. Its 1,322.24 MWp (DC) / 1,000 MWp (AC) capacity will be built using 2,319,720 dual-glass n-type bifacial modules with 570 Wp of power output. Covering an area of 1,222.70 hectares on the sea surface, the project's 3-dimensional model will see a synergistic blend of aquaculture and PV power generation.
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LONGi forecasts up to RMB 5.5B net loss for H1 2024: Releasing its financial forecast for the first half of 2024, vertically integrated solar company LONGi has announced it expects to report a net loss of RMB 4.8 billion to RMB 5.5 billion ($660 million to $756 million) for the period. For the same period in 2023, the company reported a profit of RMB 9.178 billion ($1.26 billion). LONGi says it has increased investment in PV end-market products and services, leading to a Year-over-Year (YoY) increase in module sales. Its revenues lagged, however, due to a mismatch between supply and demand across the industry, along with significant declines in market prices. Additionally, reduced investment returns from affiliated silicon material companies and an expected inventory impairment provision of RMB 4.5 billion to RMB 4.8 billion ($619 million to $660 million) further pressured short-term earnings, the company said.
LONGi believes the year 2024 is going to be a difficult year for the company as well as the PV industry (see LONGi: 2024 Difficult Year For Company & Industry).
LONGi's latest Hi-MO 9 module was launched in H1 2024, based on HPBC 2.0 cell technology and featuring its TaiRay N-type silicon wafers and advanced passivation techniques. These modules, with up to 660 W of power and a conversion efficiency of up to 24.43%, are set to start mass delivery in Q4 of this year.
AIKO to report H1 2024 net loss of up to RMB 2B: Solar cell and module manufacturer AIKO has released its financial forecast for H1 2024. The company expects to report a net loss of RMB 1.4 billion to RMB 2 billion ($192.55 million to $275.07 million) for the period. This compares to a profit of RMB 1.31 billion ($180.00 million) for the same period last year. The company cites increased market competition declining product prices, and significant increases in inventory devaluation as the main reasons for the negative results.
At Intersolar Europe 2024, AIKO signed an ABC module procurement contract with Germany's HDG Technik GmbH (HDG) (see China Solar PV News Snippets).
Multiple companies establish new PV company: Integrated solar PV manufacturer Tongwei Solar, along with a set of other companies, has established the Sichuan Tongwei Crystalline Photovoltaic Industry Innovation Co., Ltd. Tongwei is the largest shareholder with a 51% stake in the company that has a registered capital of RMB 100 million ($13.74 million). Other shareholders include solar material suppliers Cybrid and Fusion Materials, solar cell and module equipment supplier LEAD, solar laser equipment manufacturer DR Laser, and solar cell equipment manufacturer Laplace, holding a 5% stake each. The company will focus on the sales of PV equipment and components, non-metallic minerals and products, and sales and R&D of electronic materials.
Tongwei to report up to RMB 3.3B net loss for H1 2024: Tongwei Solar's parent company, Tongwei Co., Ltd., as part of its financial forecast for H1 2024, has announced that it expects to incur losses of RMB 3 billion to RMB 3.3 billion ($412.33 million to $453.84 million) for the period. This is in stark contrast to the RMB 13.27 billion ($1.82 billion) profit it reported for H1 2023. Tongwei pointed out a significant growth in sales volumes of high-purity crystalline silicon and solar modules, while sales of solar cells remained steady due to upgrades in some production capacities. However, its PV business suffered losses due to a substantial and prolonged drop in market prices across the industry.
Last month, Tongwei was named the top brand for aquatic products and photovoltaics by the World Brand Lab (see China Solar PV News Snippets).
HY Solar forecasts H1 2024 net loss of up to RMB 1.1B: As part of its financial forecast for H1 2024, solar module manufacturer HY Solar has announced it expects to report a net loss of RMB 800 million to RMB 1.1 billion ($110 million to $151 million). In H1 2023, the company had reported a profit of RMB 1,109 million ($152.40 million). The company attributes the losses to structural adjustments within the PV industry, resulting in intensified market competition and reduced profitability due to pricing pressures.