Chang Jiang Shang Bao·2025-07-06 22:33Core Viewpoint - The article highlights the urgent need for the photovoltaic (PV) industry to combat "involution," characterized by excessive competition leading to low prices and reduced profitability, as emphasized by recent government meetings and industry responses [1][18]. Industry Overview - The PV industry has experienced a dramatic shift from profitability in 2023 to significant losses in 2024, with 68 PV equipment companies collectively losing approximately 257 billion yuan, compared to a profit of 993 billion yuan in 2023 [3][9]. - Major companies like Tongwei Co., Longi Green Energy, and JinkoSolar reported substantial revenues exceeding 100 billion yuan in 2023, but faced severe losses in 2024, with Longi Green Energy and TCL Zhonghuan losing 98.18 billion yuan and 86.18 billion yuan respectively [7][8]. Competitive Landscape - The industry has seen a split performance, with some segments like PV processing equipment and inverters thriving, while others, particularly silicon wafer and module manufacturers, are struggling with massive losses [3][8]. - The aggressive expansion strategies adopted by leading firms during the high-demand years of 2022 and 2023 have contributed to structural overcapacity and price declines in 2024, leading to a situation where companies are losing money even as they increase sales [10][13]. Policy and Industry Response - The government has initiated measures to regulate low-price competition and promote product quality, with the Central Financial Committee emphasizing the need for orderly market practices [1][18]. - Industry associations and companies are advocating for self-regulation and collaboration to foster a healthier market environment, with initiatives like the "Photovoltaic Industry Cooperation Initiative" signed by nine companies in 2023 [15][16]. Technological Innovation - Companies are increasingly focusing on technological advancements and innovation to improve product quality and operational efficiency, as seen with JinkoSolar's recent achievement in achieving a record conversion efficiency for its N-type solar cells [17][18].