China’s leading solar manufacturers remained under heavy financial pressure in the first half of 2026, as persistent oversupply and weak prices continued to weigh on the polysilicon, wafer and module segments.
Results from Longi, TCL Zhonghuan, GCL Technology, Daqo New Energy and Xinte Energy indicate that profitability has yet to recover materially across much of the upstream and integrated solar supply chain. Operating trends are beginning to diverge, however, with some companies reporting narrower losses, stronger cash flow, or growth in overseas and non-PV businesses.
Longi reported first-half revenue of CNY 27.05 billion, down 17.6% year on year, while its net loss attributable to shareholders widened 43.4% to CNY 3.68 billion. Operating cash flow swung to an outflow of CNY 5.82 billion. The company shipped 48.91 GW of wafers, including 18.98 GW to external customers, and 29.93 GW of modules. Overseas module sales rose by more than 26%, with international markets accounting for more than 65% of module revenue. Longi attributed its losses to continued oversupply, low capacity utilization, higher silver costs and foreign exchange effects. It also signed more than 3 GWh of energy storage orders during the period.
TCL Zhonghuan showed clearer signs of stabilization. Revenue increased 6.8% to CNY 14.31 billion, while its net loss narrowed 24.5% to CNY 3.20 billion. Operating cash flow remained positive at CNY 321 million. Wafer shipments reached 53.9 GW, while module shipments rose 29% year on year. Revenue from cells and modules increased by about 47% to CNY 5.29 billion, reflecting the company’s shift toward a more integrated product portfolio. Overseas markets accounted for around 25% of revenue.
Upstream polysilicon producers remained under greater pressure.
GCL Technology recorded revenue of CNY 5.78 billion, broadly flat year on year, while its attributable net loss widened 17.2% to CNY 2.08 billion. Its gross loss, however, narrowed 38.1% to CNY 434 million. The company had 480,000 metric tons of annual granular polysilicon production capacity at the end of June. Its average external selling price was CNY 31.97/kg, compared with an average cash production cost of CNY 25.23/kg. GCL is also diversifying into new materials, with a 200,000-metric-ton lithium iron phosphate cathode material plant starting production in June.
Daqo New Energy reported the steepest revenue decline among the five companies. First-half revenue fell 57.6% to CNY 623 million, while its attributable net loss widened 39.1% to CNY 1.60 billion. Polysilicon production rose 71.3% to 87,077 metric tons, but sales fell 57.4% to 19,672 metric tons as Daqo restricted deliveries amid depressed prices. Its average selling price fell to CNY 30.63/kg, below its cash production cost of CNY 34.75/kg. The company booked around CNY 1.03 billion in inventory impairment charges but retained approximately CNY 10.42 billion in cash and cash-like assets, with no interest-bearing debt.
Xinte Energy reported the strongest improvement among the five companies. Revenue rose 38.9% to CNY 10.15 billion, while its attributable net loss narrowed 17.3% to CNY 212 million. Gross margin increased to 13.13% from 9.14%, while operating cash flow turned positive at CNY 84 million. Polysilicon revenue nearly quadrupled to CNY 3.89 billion on higher sales volumes, while wind and solar project construction contributed CNY 3.40 billion. Revenue from electrical equipment, including energy storage systems, rose 8.9% to CNY 1.59 billion.
Taken together, the results show that China’s solar manufacturing sector remains caught between excess production capacity and weak pricing. Longi, GCL Technology and Daqo remained deeply in the red, while TCL Zhonghuan and Xinte Energy showed clearer signs of stabilization.
The results also point to a broader strategic shift, with leading manufacturers placing greater emphasis on cash flow, overseas sales, product mix and diversification rather than shipment growth alone. Although some operating indicators are improving, a broad recovery in profitability across China’s solar manufacturing sector has yet to materialize.
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