Chinese solar component makers fall into the red. US trade war also weighs on profitability

China has long dominated the global market for photovoltaic panel manufacturing. However, manufacturers there are facing a difficult situation that is weighing on their financial results. Leading Chinese suppliers of components for solar power plants have reported losses running into billions of yuan for the first quarter.

Chinese suppliers of components for solar power plants, particularly photovoltaic panel manufacturers, are falling into the red. According to Reuters, they are being hit hard by measures taken by US President Donald Trump and the resulting trade war. Chinese manufacturers have already been grappling with low panel prices and tariffs on imports into the US for some time.

According to the news agency, both Longi Green Energy and JinkoSolar reported net losses of 1.4 billion yuan for the first quarter of this year. Other companies were similarly hard hit, including JA Solar and Trina Solar, which reported losses of 1.6 billion and 1.3 billion yuan, respectively.

Longi Green Energy had already reported a relatively large loss for last year as a whole, amounting to 8.6 billion yuan. Company representatives told analysts at a briefing, according to the agency, that they do not expect demand for solar components to grow this year.

"During the period under review, prices across the solar industry supply chain remained low. Combined with foreign trade policies affecting demand, this put pressure on every segment of the industry," Jinko said. Its loss widened further compared with the fourth quarter of last year.

In addition to components for solar power plants, US tariffs are also making it harder for companies to supply battery systems to the US market.