On May 11th, according to a research report by CITIC Securities, the profitability of the photovoltaic industry has significantly declined based on the 2024 annual report and the first quarter report of 2025. But the current research report believes that the bottom of the photovoltaic industry’s financial statements has already appeared, with a large number of fixed asset impairments in the fourth quarter and the impact of the Southeast Asian double reverse in the first quarter reflected in the reports. It is expected that the probability of further deterioration in profitability is relatively small. From the perspective of production capacity, the industry’s willingness to expand production has significantly decreased due to the impact of low profits. The growth rate of fixed assets is expected to fall sharply in the next year, but the existing production capacity is still significantly higher than demand. The research report suggests that the industry needs to focus on the progress of upstream destocking and capacity clearance in the future. At present, there are still certain technological iterations in the battery industry, and cash strapped enterprises are unable to carry out TOPCon transformation and upgrading or BC production capacity construction in the future. TOPCon production capacity that cannot be upgraded will gradually become difficult to obtain orders and be eliminated from the market, thus achieving the clearance of production capacity in the battery industry.
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