Yingli Green Energy Holding and JA Solar Holdings, two of China’s top four solar cell makers, cut forecasts for shipments after losses widened and prices of their products plunged.
Yingli said it expects photovoltaic shipments of 2,100 megawatts to 2,200 megawatts, down from at least 2,400 megawatts previously forecast. JA Solar forecasts 1,500 megawatts to 1,800 megawatts, a reduction from its previous guidance for as much as 2,000 megawatts this year.
Chinese companies that dominate manufacturing of solar panels ramped up production, forcing down prices as governments across Europe reduced incentives for the technology. The result increased losses and debt, adding to speculation some companies will need bailouts or bankruptcy protection to survive.
“The downward pressure on pricing continued,” JA Solar Chief Executive Officer Peng Fang said in a statement today. “In light of this, we focused on sustaining a healthy balance sheet and building our footprint in key growth markets.”
JA Solar, based in Shanghai, said its net loss doubled to 457.8 million yuan ($72.1 million) in the second quarter from 228.9 million yuan in the same period of 2011. Shipments in the period rose 4.2 percent to 418 megawatts over the same period. In the third quarter, JA solar predicted cell and module shipments to total 350 megawatts to 370 megawatts.
Yingli, which is based in Baoding, said it had a loss of 573 million yuan compared with net income of 375.6 million yuan in the second quarter of 2011. It expects an increase in demand in China in the second half and said shipments rose 13.7 percent compared to the first quarter.
Liansheng Miao, chairman of Yingli, said cuts in feed-in- tariffs along with excess module supply and “the ongoing anti- dumping and countervailing investigations in the US” continue to depress margins.
“Despite the continued challenging market conditions in the second quarter, we managed to keep our growing momentum as we increased module shipment volumes by 13.7 percent over the previous quarter and achieved a gross margin of 4.6 percent,” he said.
