Di Yi Cai Jing·2025-12-20 12:01Core Viewpoint - The photovoltaic industry is undergoing significant changes to address severe supply-demand imbalances and "involution" issues, with a focus on capacity consolidation and high-quality development by 2025 [1][8]. Group 1: Industry Challenges - The photovoltaic industry faced unprecedented losses in the first half of 2025, with 31 A-share listed companies reporting a total net loss of 12.58 billion yuan, a year-on-year increase of 274.3% [2]. - Major companies such as Longi Green Energy, Tongwei Co., and TCL Zhonghuan reported substantial losses, with a combined loss of 17.26 billion yuan in the first half of 2025 [2][3]. - The industry has seen over 40 companies announce delistings, bankruptcies, or mergers since 2024 due to chaotic capacity expansion and severe supply-demand imbalances [2]. Group 2: Policy and Regulatory Developments - The establishment of the polysilicon capacity consolidation acquisition platform, "Guanghe Qiancheng," aims to address the industry's "involution" through market-oriented and legal mechanisms [1]. - The Chinese government has initiated various measures to combat low-price competition, including the passing of the Anti-Unfair Competition Law, which has positively impacted prices from July to October 2025 [5][8]. - The Ministry of Industry and Information Technology (MIIT) has emphasized the need for industry self-regulation and has organized discussions to address low-price competition [4]. Group 3: Market Recovery and Future Outlook - By the second half of 2025, prices across the photovoltaic supply chain began to recover due to industry self-regulation and reduced production, leading to improved profitability for some upstream companies [4][6]. - The photovoltaic industry is expected to enter a sustained capacity clearing cycle in 2026, with a focus on improving product quality and market entry standards [9]. - Industry leaders stress the importance of achieving profitability across all segments of the supply chain, not just in the upstream polysilicon sector, to ensure a healthy and sustainable market [9].