consolidation

TCL Zhonghuan expects H1 2024 net losses of 4-4.5 billion yuan ($550-620 million), significantly wider than the previous year’s loss. The Chinese solar giant cited plunging prices and inventory writedowns driven by severe oversupply across the manufacturing chain. Although global PV demand remains resilient, inventory buildup and cooling demand caused sharp reversals after a temporary surge. As a key industry player, its financial distress reflects the solar sector’s turmoil after excessive expansion—current capacity is ~80% above demand, triggering failures and consolidation. Regulatory efforts aim to curb disorderly pricing and retire obsolete capacity, potentially strengthening the sector long-term.