Photovoltaic Companies Face Bankruptcy Again

The photovoltaic industry is shifting from rapid expansion to high-quality development.

Once again, there are bankruptcy cases in the photovoltaic sector. Recently, the “National Enterprise Bankruptcy and Reorganization Case Information Network” reported that the bankruptcy application of Ningxia Yunhao Photovoltaic Technology Co., Ltd. has been accepted, and the company has officially entered bankruptcy proceedings. Notably, this is the third photovoltaic-related company to publicly enter bankruptcy procedures in recent times. Amid industry capacity overcapacity, continuous decline in product prices, and pressure on corporate profits, some companies with weak operational foundations and limited cost control are being cleared out first. The photovoltaic industry is transitioning from rapid growth to high-quality development.

Ongoing Bankruptcy Cases

Multiple companies are entering bankruptcy procedures, drawing industry attention to the current state of the photovoltaic sector.

Public records show that Ningxia Yunhao Photovoltaic Technology Co., Ltd. was established in March 2011 with a registered capital of 20 million yuan. Its business scope includes the production, purification, and sales of high-purity crystalline silicon materials. According to judicial information, the company previously involved lease contract disputes and was listed as a dishonest person subject to enforcement, with responsible persons restricted from high consumption. In late February, its bankruptcy application was processed through legal procedures, marking the start of formal judicial bankruptcy.

In January, Hainan Development announced that its controlling subsidiary, Haikong Sanxin (Bengbu) New Energy Materials Co., Ltd., had its bankruptcy liquidation application accepted by the Longzihu District People’s Court in Bengbu City, Anhui Province. The court appointed a administrator to manage related affairs. Public information indicates that the company was founded in 2008, mainly producing photovoltaic glass. Due to overcapacity and ongoing price declines in the industry, it has suffered continuous losses since 2022, with a loss of 376 million yuan in 2024. As of June 2025, its net assets were negative 160 million yuan. In the second half of 2025, the company gradually shut down kilns and ceased production altogether, ultimately applying for bankruptcy liquidation.

Additionally, the Zhenjiang Economic Development Zone People’s Court in Jiangsu recently declared Jiangsu Yongquan Photovoltaic Technology Co., Ltd. bankrupt. The ruling states that because the company cannot repay due debts and clearly lacks the ability to do so, the court issued a bankruptcy declaration based on Article 107 of the Enterprise Bankruptcy Law of the People’s Republic of China. Prior to this, creditors had filed for bankruptcy liquidation and held the first creditors’ meeting.

Continued Industry Chain Pressure

In recent years, China’s photovoltaic industry has continued to expand in scale, with rapid capacity increases in manufacturing. Meanwhile, influenced by changes in global demand and phased supply-demand mismatches, industry chain prices have fallen sharply from high levels, squeezing corporate profit margins.

The China Photovoltaic Industry Association previously released an industry operation analysis indicating that some segments of the photovoltaic industry chain are experiencing phased supply-demand imbalances. The decline in product prices has put significant pressure on companies’ operations. Under the sustained low-price environment, companies with weaker cost control and relatively lagging technology face greater survival challenges.

For example, in the photovoltaic glass sector, recent years have seen concentrated capacity releases, coupled with intensified price competition in module components, leading to significant fluctuations in glass product prices. Haikong Sanxin (Bengbu) New Energy Materials Co., Ltd. explicitly stated in its announcement that due to overcapacity and price wars, the company has suffered continuous losses, ultimately choosing to cease production and apply for bankruptcy liquidation. Operational data shows that ongoing losses and negative net assets have substantially constrained the company’s normal operations.

The silicon material segment is also under pressure. As large-scale capacity expansion projects come online, some high-purity crystalline silicon and related material companies face rapid price declines and inventory pressures. High costs and tightening financing environments have made capital flow pressures a key reason for some companies entering bankruptcy procedures.

Bankruptcy is not simply a “withdrawal” but an important way for market mechanisms to reallocate resources. According to the Enterprise Bankruptcy Law of the People’s Republic of China, when a company cannot repay due debts and clearly lacks the ability to do so, bankruptcy liquidation or reorganization procedures are initiated in accordance with the law. This helps protect creditors’ legal rights, facilitates the orderly clearance of ineffective capacity, and creates space for high-quality capacity development.

Reflecting Industry Growing Pains in High-Quality Development

The recent bankruptcy cases of photovoltaic companies are closely related to changes in the industry development stage. Data from the National Energy Administration shows that in recent years, China’s new photovoltaic installed capacity has remained high, maintaining a leading position globally. At the same time, the pace of manufacturing expansion has accelerated significantly. The China Photovoltaic Industry Association has repeatedly warned in industry meetings and annual reports that some segments of the industry chain face increased risks of phased supply-demand imbalance. Companies are advised to invest rationally and avoid blind expansion. Industry insiders generally believe that, under intensified market competition, rapid price drops directly compress profit margins. Some small and medium-sized enterprises lack capabilities in cash flow management, technological upgrading, and market channels, making them more vulnerable to market fluctuations and more likely to exit early.

From the disclosed cases, the primary reason for companies entering bankruptcy is “inability to repay due debts and clear lack of repayment capacity.” For example, Jiangsu Yongquan Photovoltaic Technology Co., Ltd.’s bankruptcy declaration was made by the court based on Article 107 of the Enterprise Bankruptcy Law; Haikong Sanxin (Bengbu) New Energy Materials Co., Ltd. filed for bankruptcy liquidation due to continuous losses and negative net assets, with the court appointing a administrator according to law.

It is especially noteworthy that relevant authorities have repeatedly emphasized since last year the need to promote healthy and orderly development of the new energy industry and prevent low-level repetitive construction. The Ministry of Industry and Information Technology has explicitly called for strengthening industry regulation, guiding rational investment, and enhancing technological innovation and product quality. The China Photovoltaic Industry Association has also called on companies to strengthen self-discipline, optimize capacity structures, and avoid vicious price competition. As the industry shifts from rapid expansion to high-quality development, structural adjustments and the elimination of weaker players are inevitable, and this has become a consensus within the industry.

Original Title: Photovoltaic Industry Sees New Bankruptcy Cases

Author | Dong Zitong, China Energy News

Produced by | China Energy News (cnenergy)

Editor | Yan Zhiqiang