Nan Fang Du Shi Bao·2026-01-13 03:37Core Viewpoint - The Ministry of Finance announced the cancellation of export VAT rebates for photovoltaic products starting April 1, 2026, affecting 249 products, which may accelerate the exit of weaker companies and optimize industry capacity structure [1] Group 1: Market Reaction - The A-share "photovoltaic equipment" sector surged by 2.72% following the announcement, with notable increases in stock prices for major companies such as JinkoSolar (3.56%), LONGi Green Energy (4.57%), JA Solar (3.4%), Trina Solar (8.62%), and Tongwei Co. (2.11%) [1] Group 2: Financial Health of Leading Companies - Leading photovoltaic companies exhibit high asset-liability ratios, with JinkoSolar, JA Solar, Trina Solar, and Tongwei Co. all exceeding 70%, and JA Solar and Trina Solar nearing 78% [2] - As of Q3 2025, JinkoSolar reported an asset-liability ratio of 74.48%, LONGi Green Energy at 62.43%, JA Solar at 77.9%, Trina Solar at 77.99%, and Tongwei Co. at 71.95% [3] - JinkoSolar had cash and cash equivalents of 22.18 billion, with 5 billion restricted for guarantees, while LONGi Green Energy maintained a lower short-term borrowing of 300 million [5] Group 3: Accounts Receivable and Payable - The five leading companies collectively had accounts payable nearing 200 billion, with accounts receivable totaling approximately 72.3 billion, resulting in a significant payment demand [8] - The accounts receivable turnover days increased for several companies, with LONGi Green Energy at 69.31 days, JA Solar at 67.02 days, and Trina Solar at 82.38 days [7] Group 4: Profitability Challenges - All leading companies faced significant losses in the first three quarters of 2025, with JinkoSolar, LONGi Green Energy, JA Solar, Trina Solar, and Tongwei Co. reporting net losses of 4.543 billion, 4.454 billion, 3.453 billion, 4.315 billion, and 5.471 billion respectively [10] - The gross profit margins varied, with Trina Solar at 5.09% and JA Solar at -2.6%, indicating a wide disparity in profitability [11] Group 5: Debt Structure and Financing - Tongwei Co. had a notably high long-term debt of 53.78 billion, while JinkoSolar's financial expenses were relatively low due to favorable foreign exchange gains [12] - The actual controllers of LONGi Green Energy and Tongwei Co. had some share pledges, with LONGi at 14.62% and Tongwei at 28.36%, indicating potential financial constraints [14]