Core Viewpoint - The photovoltaic industry is facing significant losses, with major companies like Longi Green Energy, Tongwei Co., and Aiko Solar all forecasting substantial net losses for 2025, indicating a challenging market environment driven by overcapacity and rising raw material costs [1][2]. Group 1: Company Performance - Longi Green Energy expects a net loss of approximately 60 billion to 65 billion yuan for 2025, citing increased costs of silver paste and silicon materials as key factors [1]. - Tongwei Co. is projected to incur a net loss of 82 billion to 96 billion yuan for 2025, with product prices remaining low and insufficient cost transmission impacting profitability [1]. - Aiko Solar anticipates a net loss of 45 billion to 48 billion yuan for 2025, while TCL Zhonghuan expects a loss of 12 billion to 19 billion yuan, both companies highlighting the impact of structural overcapacity on their operations [2]. Group 2: Industry Trends - The photovoltaic sector has experienced nine consecutive quarters of losses since Q4 2023, with ongoing supply-demand imbalances exacerbating the situation [2]. - Industry experts emphasize the need for capacity clearing and structural optimization, suggesting that companies must move beyond simple production cuts to enhance competitive advantages through technology and product differentiation [2]. - TCL Zhonghuan's acquisition of Yida Energy marks a significant step towards industry consolidation, aiming to optimize resources and foster collaboration, which could help the sector transition from low-level competition to value co-creation [2].

Investment Rating - The industry investment rating is Attractive [4]. Core Insights - Solar glass prices have dropped below cash cost levels, with reported prices in June for 2.0mm products at Rmb12-12.5/sqm and actual executed prices ranging from Rmb10.8-11/sqm, indicating industry-wide losses at cash levels [2][7]. - The rebound in solar glass prices in March and April led to the initiation of 11.3kt/d new capacities and the resumption of one 850/t line in the past three months, with the industry operating capacity at approximately 100kt/d, supporting around 54GW monthly production [7]. Summary by Sections Price Trends - Solar glass prices rebounded in March and April to Rmb14-14.5/sqm due to better-than-expected demand, but have since fallen to Rmb12-12.5/sqm in June, with actual prices for smaller players even lower [2][7]. Production Capacity - Approximately 97% of the operating capacity commenced production in 2021 and later, making it difficult to suspend production quickly. There are still around 10kt/d of smaller lines that may exit the market first due to higher costs [3]. Market Dynamics - The lower profit margins are expected to trigger production line blockages or suspensions, with companies like CNBM, Flat Glass, IRICO, and Almaden planning maintenance in the near term [3].