According to Zhiting Financial APP, solar stocks dropped again. As of the time of writing, flat glass (06865) is down 3.29% at 12.34 HKD; xinyi solar (00968) has fallen 3% to 3.23 HKD; xinyi glass (00868) decreased by 3% to 7.76 HKD; and xinte energy (01799) fell by 1.76% to 7.81 HKD.

Research reports from htsc indicate that the industry is experiencing volume increases but price reductions, putting operational pressure on companies. In the first three quarters of 2024, the output value of photovoltaic manufacturing dropped by more than 44.7%. Among 121 listed photovoltaic companies, 39 reported net losses. Additionally, on December 5th, the CPIA held a symposium on promoting the high-quality and sustainable development of the photovoltaic industry, with dozens of companies including Jinko, JA Solar, Tongwei, Longi, and Xiexin signing a self-discipline agreement, reaching a consensus to curb internal competition. It is anticipated that future capacity and shipments will be calculated based on a quota system to reduce excess capacity supply. The sector remains bullish on the photovoltaic sector and suggests investment in energy consumption, new technologies, and overseas expansions.

Donghai Securities has stated that supply and demand issues in the industry are leading to overall weak production schedules. Meanwhile, prices along the industry chain are below cost, pressuring the performance of the main industry chain. The firm believes that the association's leadership will accelerate self-discipline in the industry. Major photovoltaic companies are expected to reach a consensus quickly, forming systematic and documented measures for industry self-discipline, promoting a gradual exit from vicious competition and achieving stable capacity clearance from the bottom up, moving towards high-quality development.