Longi(SH:601012) Mei Ri Jing Ji Xin Wen·2025-08-21 00:13Core Viewpoint - The photovoltaic industry is currently facing significant challenges due to price competition and quality issues, prompting government intervention to regulate the market and promote high-quality development [1][2][4][7]. Group 1: Industry Challenges - The photovoltaic industry has experienced a continuous decline in prices over the past two years, leading to widespread losses across the supply chain, particularly in the downstream component sector starting from Q4 2023 [2][3]. - By June 2025, the price of polysilicon fell below 40,000 yuan per ton, which is below the cash cost for many manufacturers, exacerbating the industry's financial difficulties [2][4]. - The industry has seen a drop in the qualification rate of photovoltaic components to 69.4% in August 2024, down from 93%-94% in previous years, indicating a significant decline in product quality [9]. Group 2: Government Intervention - A series of meetings led by various government departments, including the Ministry of Industry and Information Technology, have been held to address issues of low-price competition and to promote quality standards within the industry [3][6][7]. - The government has proposed measures to strengthen industry regulation, including the management of project investments and the elimination of outdated production capacity [7][8]. Group 3: Market Dynamics - The "anti-involution" movement in the photovoltaic industry has led to rising prices in the polysilicon market, while downstream prices for battery cells and components have not yet adjusted due to insufficient demand [4][6]. - Companies are increasingly relying on OEM production due to insufficient order volumes, which has led to a reliance on lower-cost production methods [1][8]. - The industry is witnessing a shift towards value competition based on technology innovation and quality improvement, moving away from the previous focus on low-cost competition [9][10].