AIKO Solar (600732.SH) recently released its financial results for the first three quarters of 2026, reporting net profit attributable to shareholders of the parent company of RMB 44.57 million in the third quarter. The result marks a return to profitability on both a year-on-year and quarter-on-quarter basis.
As a leading player in Back Contact (BC) technology, AIKO has achieved an early recovery in profitability through the differentiated competitive advantages of its All Back Contact (ABC) modules, despite the photovoltaic (PV) industry remaining in a period of supply-demand adjustment. The turnaround demonstrates the critical role of technological innovation in navigating industry cycles.
Key Operating Indicators Improve, Delivering Strongest Profitability Since BC Transition
AIKO's financial results show consistent improvements across several key operating indicators over three consecutive quarters.
Revenue increased from RMB 4.437 billion in the first quarter to RMB 4.745 billion in the second quarter, reaching RMB 5.289 billion in the third quarter.
Net profit attributable to shareholders of the parent company also improved steadily. After recording a loss of RMB 440 million in the first quarter and RMB 314 million in the second quarter, the company returned to positive earnings in the third quarter.
Operational efficiency also continued to strengthen. Inventory turnover days declined from 54 days in the first quarter to 46 days in the second quarter and 41 days in the third quarter, reflecting ongoing improvements in supply chain management.
Meanwhile, operating cash flow remained positive. During the first nine months of the year, AIKO generated cumulative net cash inflows from operating activities of nearly RMB 2 billion, further strengthening its liquidity position and financial resilience.
Order Backlog Extends into H1 2027 as High-Premium Overseas Markets Gain Importance
Since the beginning of 2026, the PV industry has faced several challenges, including a temporary decline in domestic installations in China and adjustments to export tax rebate rates.
Despite these headwinds, AIKO has achieved growth against the broader industry trend, supported by its early strategic commitment to BC technology.
With globally leading module efficiency and differentiated product positioning, the company has been able to move beyond the intense price competition associated with increasingly commoditised PV products. These technological advantages have laid a solid foundation for its earlier return to profitability.
In TaiyangNews' global ranking of commercially produced PV module efficiencies, AIKO's ABC modules have held the top position for 44 consecutive months. The efficiency of commercially delivered modules has exceeded 25%.
According to research by EUPD Research, AIKO has received Top Brand PV recognition in five major European markets: Germany, Italy, Spain, Switzerland and the United Kingdom. AIKO has consequently become one of the module brands most highly regarded by European installers.
The company's product differentiation is also reflected in its pricing. In overseas markets, ABC modules command a price premium of 10% to 50% compared with conventional TOPCon products.
In terms of manufacturing capacity utilisation, AIKO also stands apart from other companies across the main segments of the PV value chain. Supported by strong order coverage and sustained product demand, the company has maintained full production capacity utilisation throughout the year.
During its half-year financial results briefing, AIKO stated:
"Demand for our ABC modules remains strong. Our current module order backlog stands at approximately 15 GW. Customers' intended purchases continue to exceed our production capacity, with relevant product orders already scheduled through the first half of 2027."
The company further noted:
"In the European residential rooftop market, where PV modules deliver particularly high product value, our ABC modules have achieved a market share exceeding 20%, placing us in a clear industry-leading position."
The continued improvement in the composition of its order backlog, together with a growing proportion of sales in overseas markets that command higher price premiums, has therefore become a major driver of AIKO's earnings recovery.
Capacity Expansion and Manufacturing Upgrades Create Further Growth Potential
Looking ahead, AIKO is progressing with both the construction of new advanced ABC manufacturing capacity and the technological upgrading of existing solar cell production facilities in line with its development plans.
These initiatives are expected to provide sustained momentum for future earnings growth.
At its Jinan manufacturing base, AIKO will introduce its latest-generation silver-free coating technology, designed to deliver greater overall competitiveness than its existing ABC production capacity.
As of September, the first phase of the Jinan facility, comprising 3 GW of module manufacturing capacity, had been fully commissioned.
Some of the associated solar cell production lines have also gradually entered operation and are currently ramping up production. The remaining construction and commissioning activities are expected to be completed in the fourth quarter.
The upgrading of existing manufacturing facilities is also progressing according to schedule.
In Yiwu, the conversion of former PERC cell production capacity to ABC technology has entered its final stage and is expected to begin contributing additional capacity in the fourth quarter.
In Chuzhou, the conversion of existing TOPCon cell manufacturing capacity to ABC technology is expected to enter operation in the fourth quarter, contributing to the company's financial performance from 2027 onwards.
In addition, AIKO has initiated plans to upgrade its remaining conventional cell manufacturing capacity. These technological upgrades will be implemented at appropriate stages in line with business development, further expanding the company's advanced ABC production capacity.
Evolving PV Industry Policies Favour High-Efficiency Technologies Such as BC
At the industry level, early signs of improvement are emerging in the balance between PV supply and demand.
On the demand side, higher global energy prices are contributing to rising electricity prices across several regions.
In Europe, natural gas prices remain elevated and volatile, while electricity prices in several countries have increased significantly since the beginning of the year. These developments are further strengthening the economic attractiveness of solar PV and energy storage solutions.
In China, the gap between peak and off-peak electricity tariffs is gradually widening in certain provinces. At the same time, competitive bidding under electricity pricing mechanisms for 2027 has shown notable price increases in several provinces, suggesting a potential recovery in demand for new PV installations.
Meanwhile, emerging markets, including the Middle East and Latin America, continue to experience rapid growth in demand for new PV installations.
On the supply side, regulatory requirements across the PV industry are becoming increasingly stringent.
Three mandatory national standards covering energy consumption and energy efficiency in the PV sector, officially published in July, will take effect on 1 January 2027.
These standards will establish new product-level market access requirements. PV modules that fail to meet the prescribed efficiency thresholds will no longer be permitted to be manufactured or sold.
In October, China's Ministry of Industry and Information Technology (MIIT) also published a draft for public consultation on revised regulatory conditions and administrative procedures for the PV manufacturing industry.
The draft proposes higher efficiency thresholds for newly constructed, expanded and upgraded manufacturing capacity, aiming to further standardise and guide industry development through production-side requirements.
As these supply-side policies take effect, the phase-out of outdated and less efficient manufacturing capacity is expected to accelerate. Leading manufacturers with high-efficiency solar cell and module technologies are likely to benefit from an improving competitive landscape.
For AIKO, the increasing market penetration of ABC modules across different application segments, combined with the gradual commissioning of new manufacturing capacity, will strengthen its ability to meet demand for high-efficiency PV products.
As production volumes increase, economies of scale associated with ABC products are expected to become more pronounced, supporting further reductions in unit manufacturing costs.
Together with a potential recovery in industry pricing as the balance between supply and demand improves, these developments could further strengthen AIKO's earnings resilience and expand its long-term growth potential.
