Overcapacity and drastic fluctuations in product prices.
The photovoltaic industry is experiencing drastic fluctuations in product prices, and the industry may be facing a new round of reshuffling. Since the second half of this year, nearly 10 cross-industry photovoltaic listed companies have successively terminated photovoltaic-related projects and refinancing plans.
Financial Situation: Overcapacity and significant fluctuations in product prices have led to the suspension of refinancing for many cross-industry photovoltaic enterprises, with several listed companies terminating photovoltaic-related projects and refinancing plans. Among the 33 companies in the Shenzhen Photovoltaic Equipment Industry, 20 companies experienced negative year-on-year revenue growth in the third quarter of 2023, and the net profit of 23 companies declined year-on-year.
Operational Status: The photovoltaic industry is currently transitioning from P-type cells to N-type cells, posing high technological barriers and challenges for cross-industry companies. Expansion plans at various stages of the photovoltaic supply chain have led to rapid overcapacity, causing a significant decline in overall supply chain prices this year. The price of silicon material, at upstream of the industry, has dropped from over 300 yuan per kilogram at the end of last year to around 69 yuan per kilogram. Component prices directly impacting end demand have also significantly decreased. Some leading photovoltaic companies believe that although short-term supply and demand imbalances won’t affect the long-term development of the industry, the photovoltaic industry can still achieve high growth in the future.
The photovoltaic industry is constantly changing with unpredictable price fluctuations, making it challenging for cross-industry companies to establish a stable position. However, this might be a new round of reshuffling, offering a bright future for industry leaders.
The photovoltaic industry is one of the emerging sectors with the highest growth rate in the application of mobile robots in recent years. As industry demand continues to rise, the photovoltaic industry is becoming a competitive arena for major mobile robot players. For companies in this field, although the photovoltaic industry presents significant market potential, any industry is subject to certain cyclicality. Therefore, enterprises should always monitor industry trends and potential issues to better adjust their market strategies.
