Flash | 24 Aug 2025 17:06:33 ET │ 14 pages Trina Solar (688599.SS) Loss Reported for 2Q25; Prefer Polysilicon Makers on Potential Gains from Anti-involution Policy CITI'S TAKE Trina reported Rmb2,918m net loss in 1H25 (vs. Rmb526m net profits in 1H24), including Rmb1,598m net loss in 2Q25 – not a surprise in view of low solar module market price during the period. Its operating cash inflow was Rmb1,843m in 1H25, comprising Rmb2,679m in 2Q25. Regarding the anti-involution policy, the company stated that ever ...

Major solar module companies are reporting diverging 1H25 results so far, with LONGi and Trina (largely in line with profit warning) reporting better QoQ operating income while Trina Solar worsened. From the results briefing so far, CSI Solar cut 3Q25 module shipment target to 5-5.3GW from 2Q 8GW to reduce production, and expects more small companies to exit in 2026. Trina Solar thinks there is strong policy support on anti- involution and expects prices rising above total cost in 2H25. Both companies are r ...

本届大会以"光储同辉 融合赋能 智创未来"为主题，聚焦光伏与储能行业新能源、新材料、新装备，汇 聚全球顶尖资源、技术与人才，共谋产业发展新蓝海。 如今，历经七年发展，大会已成为全球三大光伏与储能盛会之一，不仅是全球能源转型的风向标，更是 企业布局万亿级增量市场的战略平台。 第七届大会启动仪式 作为第八届光储大会的合作伙伴，大成产经将全景报道此次大会，如有意参加展会可以联系我们，我们 将提供一站式全程服务。 全球精英云集，共襄行业顶级盛会 自2018年以来，中国国际光伏与储能产业大会已连续成功举办七届，致力于推动全球光伏与储能产业可 持续发展，深度吸引各国政府机构、企业及专家学者参与，跃居全球三大光储行业盛会之列。 仅2024年大会就曾吸引海内外逾3.4万名嘉宾参会，促成60余个全产业链合作项目落地，签约总额突破 300亿元，覆盖高效电池、智慧能源等核心领域。 本届大会规模预计将再创历史新高，规划展览展示面积超6万平方米，举办各类同期活动超30余场，预 计吸引参展参会企业超5000家，专业观众超5万人次。 2025年11月17日至20日，第八届中国国际光伏与储能产业大会（PESIC 2025）将在成都举行。 第 ...

Core Viewpoint - The photovoltaic industry is facing significant losses across the supply chain, with major manufacturers reporting substantial deficits in their financial results for the first half of the year [1][4][6]. Financial Performance - The top five manufacturers in terms of module shipments reported a combined loss of approximately 160 billion yuan in the first half of the year [1][6]. - JinkoSolar reported a revenue of 31.83 billion yuan, a year-on-year decrease of 32.63%, with a net loss of 2.91 billion yuan, a year-on-year increase in losses of 342.4% [4]. - Longi Green Energy's revenue was 32.81 billion yuan, down 14.83% year-on-year, with a net loss of 2.57 billion yuan, a reduction in losses of 26.61% compared to the previous year [4]. - Trina Solar and JA Solar both reported significant revenue declines and net losses, with Trina Solar's revenue at 31.06 billion yuan (down 27.72%) and a net loss of 2.92 billion yuan (up 654.47%) [4]. - Tongwei Co. achieved a revenue of 40.51 billion yuan, down 7.51%, with a net loss of 4.96 billion yuan, an increase in losses of 58.35% [5]. Cash Flow Health - Cash flow has emerged as a critical indicator of survival for photovoltaic companies, with several firms reporting improvements in cash flow despite overall losses [8][9]. - TCL Zhonghuan reported a net cash flow from operating activities of 523 million yuan, a year-on-year increase of 308.4% [9]. - Trina Solar's net cash flow was 1.843 billion yuan, with a second-quarter figure of 2.679 billion yuan [9]. - However, companies like Daqo New Energy reported negative cash flow, with a net cash flow of -1.608 billion yuan [9]. Industry Pricing and Competition - The photovoltaic industry is undergoing a "reverse involution" movement, with a reduction in low-price sales and fierce competition [1][10]. - Regulatory bodies have initiated measures to combat low-price, disorderly competition, emphasizing the need for quality improvement and the orderly exit of outdated production capacity [11]. - Recent trends indicate a recovery in prices across various segments of the supply chain, with manufacturers expressing hope for prices to stabilize above cost levels [11][12].

Core Viewpoint - The photovoltaic industry is facing significant losses across the supply chain, with major manufacturers reporting substantial deficits in their financial results for the first half of the year [1][3][4]. Financial Performance - The top five manufacturers in terms of module shipments reported a combined loss of approximately 160 billion yuan in the first half of the year [1][4]. - JinkoSolar reported a revenue of 31.83 billion yuan, a year-on-year decrease of 32.63%, with a net loss of 2.91 billion yuan, a year-on-year increase in losses of 342.4% [3]. - Longi Green Energy's revenue was 32.81 billion yuan, down 14.83%, with a net loss of 2.57 billion yuan, a reduction in losses of 26.61% compared to the previous year [3]. - Trina Solar's revenue was 31.06 billion yuan, down 27.72%, with a net loss of 2.92 billion yuan, a year-on-year increase in losses of 654.47% [3]. - JA Solar reported revenue of 23.90 billion yuan, down 36.01%, with a net loss of 2.58 billion yuan, an increase in losses of 195.13% [3][4]. - Tongwei Co. achieved revenue of 40.51 billion yuan, down 7.51%, with a net loss of 4.96 billion yuan, an increase in losses of 58.35% [4]. Cash Flow Health - Cash flow has become a critical indicator of survival for photovoltaic companies, with some firms reporting improved cash flow despite overall losses [5][6]. - TCL Zhonghuan reported a net cash flow from operating activities of 0.523 billion yuan, a year-on-year increase of 308.40% [5]. - Trina Solar's net cash flow from operating activities was 1.843 billion yuan, with a second-quarter figure of 2.679 billion yuan [5]. - Canadian Solar reported a net cash flow from operating activities of 3.78 billion yuan, a year-on-year increase of over 150% [5]. - However, companies like Daqo New Energy reported a negative cash flow of -1.608 billion yuan [6]. Industry Pricing and Policy - The photovoltaic industry is undergoing a "reverse involution" movement, with a reduction in low-price sales and fierce competition [1][7][8]. - The Chinese government has initiated measures to combat low-price, disorderly competition, emphasizing the need for quality improvement and the orderly exit of outdated production capacity [7]. - Recent meetings and legislative changes have aimed to regulate below-cost sales practices, indicating a shift towards maintaining stable pricing in the industry [7][8].

Core Viewpoint - The photovoltaic industry is facing significant losses across the supply chain, with major manufacturers reporting substantial financial setbacks in the first half of the year, despite some signs of cash flow improvement and a reduction in aggressive price competition [1][2][3][4]. Financial Performance - The top five global manufacturers of photovoltaic modules, including JinkoSolar, LONGi Green Energy, Trina Solar, JA Solar, and Tongwei Co., all reported losses in the first half of the year, with a combined loss of approximately 160 billion yuan [2][3]. - JinkoSolar's revenue decreased by 32.63% to 31.83 billion yuan, with a net loss of 2.91 billion yuan, a decline of 342.4% year-on-year [2]. - LONGi Green Energy's revenue fell by 14.83% to 32.81 billion yuan, resulting in a net loss of 2.57 billion yuan, although this was an improvement compared to the previous year [2]. - Trina Solar's revenue dropped by 27.72% to 31.06 billion yuan, with a net loss of 2.92 billion yuan, marking a shift from profit to loss [2]. - JA Solar reported a revenue decline of 36.01% to 23.90 billion yuan, with a net loss of 2.58 billion yuan, an increase in loss of 195.13% [2]. - Tongwei Co. achieved a revenue of 40.51 billion yuan, down 7.51%, with a net loss of 4.96 billion yuan, an increase in loss of 58.35% [3]. Cash Flow Situation - Cash flow health is critical for the survival of photovoltaic companies, with some firms reporting improved cash flow despite overall losses [4]. - TCL Zhonghuan reported a net cash flow of 523 million yuan, an increase of 308.40% year-on-year [4]. - Trina Solar's net cash flow was 1.843 billion yuan, with a second-quarter cash flow of 2.679 billion yuan [4]. - Canadian Solar reported a net cash flow of 3.78 billion yuan, an increase of over 150% [4]. - However, companies like Daqo Energy reported negative cash flow of -1.608 billion yuan, and JinkoSolar, Tongwei, and LONGi Green Energy also reported negative cash flows [4]. Industry Trends - The photovoltaic industry is undergoing a "reverse involution" movement, with efforts to reduce low-price competition and improve product quality [6][7]. - The Chinese government has initiated measures to regulate low-price competition, including new laws to classify below-cost sales as illegal [6]. - Industry associations have called for enhanced self-regulation to maintain fair competition and promote the exit of outdated production capacity [6][7]. - Recent trends indicate a recovery in prices across various segments of the supply chain, with manufacturers hopeful for a return to sustainable pricing [6][7].

Core Insights - The National Federation of Industry and Commerce released the lists of the top 500 private enterprises in China for 2025, with Jiangsu province having 90, 82, and 15 companies in the respective categories of overall private enterprises, manufacturing private enterprises, and service private enterprises, showing increases from the previous year [1][2]. Group 1: Jiangsu's Economic Contribution - Jiangsu's private economy contributed a value-added of 7.98 trillion yuan in 2024, accounting for 58.2% of the province's GDP, highlighting its significant role in the economy [1]. - Jiangsu ranked second nationally in the number of companies included in the 2025 top 500 private enterprises list, with 71 from southern Jiangsu, 11 from central Jiangsu, and 8 from northern Jiangsu [1]. Group 2: Company Performance - Among the top 500 private enterprises, 11 companies in Jiangsu reported revenues exceeding 100 billion yuan, an increase of one from the previous year [1]. - The total R&D investment of the listed companies reached 75.17 billion yuan, with 83,000 R&D personnel and 24,000 effective domestic invention patents, representing increases of 7.5%, 5.1%, and 32.6% respectively compared to the previous year [1]. Group 3: Tax Contributions and Employment - The total tax contribution of the listed companies amounted to 135.36 billion yuan, with 28 companies paying over 1 billion yuan in taxes annually [1]. - The total employment generated by these companies reached 1.306 million [1].

Investment Rating - The industry investment rating is "Overweight" [70] Core Viewpoints - The photovoltaic support structure is a crucial component of photovoltaic power generation systems, directly impacting the efficiency and investment returns of solar power plants [6][16] - The global photovoltaic market is experiencing significant growth, with an expected increase in global installed capacity to approximately 530 GW in 2024, representing a year-on-year growth of 35.9% [50] - The domestic market for tracking supports is anticipated to benefit from the development of centralized photovoltaic power plants, with a notable increase in installed capacity [32] Summary by Sections 1. Photovoltaic Support Structures - Fixed supports are the primary application type in domestic photovoltaic power plants, while tracking supports are gaining traction due to their ability to adjust to the sun's angle, enhancing energy capture [30][32] - The market for tracking supports is expected to grow significantly, with a projected compound annual growth rate (CAGR) of approximately 13.4% from 2024 to 2027 [54] 2. Global Photovoltaic Development - The global demand for tracking supports is driven by the increasing installation of large ground-mounted photovoltaic power plants, with a projected market size of approximately 797 billion yuan in 2024 [54] - The penetration rate of tracking supports is expected to rise from 52% in 2024 to 64% by 2027, indicating a growing acceptance of this technology [54] 3. Key Companies - The report highlights the competitive landscape, noting that domestic companies like Zhongxinbo and Trina Solar are enhancing their international competitiveness and market positions [64][68] - Zhongxinbo is positioned as a leading global provider of photovoltaic support systems, with a strong focus on technological innovation and market expansion [66][68]

Core Viewpoint - The photovoltaic industry continues to face significant losses, with only one out of eight leading companies reporting profitability in the first half of 2025, while the others are struggling with expanding losses [3][4]. Financial Performance - Among the eight leading photovoltaic companies, only Aters maintained profitability, while the others reported losses, with Longi Green Energy and Aiko Solar showing reduced losses of 50% and 80% respectively [3][4]. - Total revenues for the companies showed a decline, with Tongwei Co. reporting 40.51 billion yuan, down 7.51%, and JinkoSolar reporting 31.83 billion yuan, down 32.72% [4]. - The overall net loss for 31 A-share listed photovoltaic companies reached 12.58 billion yuan in Q1 2025, a year-on-year increase of 274.3% [7]. Employee Compensation and Management Costs - Employee compensation across the leading companies has generally decreased, with Tongwei's employee compensation dropping from 2.025 billion yuan to 1.342 billion yuan, leading to a 37.33% reduction in management costs [8][9]. - Key management personnel compensation also saw reductions, with Longi Green Energy's key management remuneration decreasing from 7.03 million yuan to 5.80 million yuan [10][11]. Strategic Shifts and New Growth Areas - Companies are increasingly focusing on energy storage as a new growth area, with Aters reporting a significant increase in its energy storage sales, achieving 3.1 GWh in the first half of 2025, a 19.23% year-on-year increase [13][14]. - Trina Solar is also pivoting towards energy storage, with a notable increase in its second-quarter shipments [14]. Market Dynamics and Future Outlook - The industry is experiencing a shift towards quality, technology, and service competition rather than price wars, as indicated by TCL Zhonghuan's management [15]. - Despite the ongoing challenges, there are signs of price recovery in the supply chain, with recent bidding prices for components showing an upward trend [15].

Core Viewpoint - Brazil's energy storage industry is on the verge of explosive growth, driven by the implementation of regulatory frameworks and increasing demand for solar energy storage solutions [2][3]. Group 1: Market Overview - Brazil's solar power generation is expected to increase its share in the total energy mix from 22.2% at the end of 2024 to 32.9% by 2029, with installed capacity rising from 51.7 GW to 88.2 GW, a net increase of 36.5 GW [2]. - The Brazilian Energy Storage Association (ABSAE) predicts that the solar energy storage sector will attract approximately 44 billion Brazilian Reais (around 8.46 billion USD) in investments by 2030, with off-grid systems, grid-level projects, and commercial/industrial storage each accounting for one-third of total investments [2]. - In 2024, battery storage demand in Brazil surged by 89%, with some regions experiencing over 190 hours of power outages annually, highlighting the urgent need for storage solutions among households and agricultural users [2]. Group 2: Regulatory and Policy Environment - The urgency of integrating battery storage systems into Brazil's electricity structure was emphasized by Rodrigo Sauaia, Executive Chairman of the Brazilian Solar Energy Association (ABSOLAR), noting that approximately 1 billion Brazilian Reais of renewable energy in the Northeast market remains unused due to a lack of infrastructure and planning [3]. - The development of storage solutions is currently hindered by pending regulatory policies, but the market is expected to flourish once these policies are established [3]. Group 3: Company Developments - CATL showcased its TENER Stack, a 9MWh modular energy storage system that improves land use efficiency by 45% and energy density by 50% compared to traditional systems [6]. - Trina Solar presented its Elementa series, which combines components, brackets, and storage to address grid stability challenges in Latin America, with a total shipment of 9 GW in Brazil and 19 GW in Latin America [10]. - Risen Energy introduced its Risen Sunease system and Risen Stack1, emphasizing safety and rapid deployment capabilities [12]. - Kehua Tech displayed its 1500V energy storage solution, designed to operate reliably in diverse climatic conditions across South America [15]. - Sungrow launched its integrated solar-storage solutions, addressing the structural electricity shortages in Brazil [17]. Group 4: Strategic Collaborations - During the exhibition, several companies, including Sungrow and DONG Energy, signed strategic cooperation agreements with local renewable energy firms to deepen collaboration in the storage sector [20].