Di Yi Cai Jing·2026-01-29 06:08Core Viewpoint - The Chinese photovoltaic industry is undergoing a governance initiative to combat "involution" and promote rational competition, with the government emphasizing the need for coordinated efforts across various departments to address issues such as overcapacity, low-price competition, and quality control [1][3]. Group 1: Industry Governance and Regulation - The Ministry of Industry and Information Technology (MIIT) held a meeting on January 28, 2026, to discuss the "anti-involution" measures in the photovoltaic sector, highlighting the need for collaboration among departments to ensure a return to healthy competition [1]. - The MIIT aims to utilize market-oriented and legal methods to regulate the industry, including capacity control, standard setting, quality supervision, and intellectual property protection [1][3]. - The government has initiated multiple actions since the second half of 2025 to address the chaotic state of the photovoltaic industry, including a meeting on August 19, 2025, to emphasize capacity regulation and support industry self-discipline [3]. Group 2: Industry Performance and Financial Impact - The domestic photovoltaic manufacturing output value surged from 750 billion yuan in 2021 to 1.75 trillion yuan in 2023, with expectations to maintain over 1 trillion yuan in 2024 [1]. - However, the industry faces significant challenges, including a supply-demand mismatch and severe low-price competition, leading to widespread losses since the fourth quarter of 2023 [2]. - Major companies like Longi Green Energy, JinkoSolar, and Tongwei Co. are projected to incur substantial losses in 2025, with estimates ranging from 60 billion to 100 billion yuan [2]. Group 3: Quality and Compliance Issues - The photovoltaic industry has seen a decline in product quality, with the overall qualification rate of photovoltaic modules dropping from 100% in 2019 to 62.9% in 2024, indicating that over one-third of products have quality issues [2]. - In 2025, nearly 16% of the components tested from 36 companies were found to be non-compliant, with significant issues related to mechanical load and power misrepresentation [2]. Group 4: Market Recovery and Profitability - The ongoing "anti-involution" efforts are beginning to show positive effects, with the profitability of the main photovoltaic industry chain improving in the first three quarters of 2025, despite a total loss of 310.39 billion yuan among 31 companies [4]. - The gross profit margin for the main industry chain reached 5.61% in the third quarter of 2025, an increase from 3.64% in the previous quarters [4]. - By November 2025, the average prices of polysilicon, silicon wafers, battery cells, and modules had increased by 38.9%, 2.2%, 0.4%, and 2.3%, respectively, compared to the beginning of the year [4].