China's PV companies' debts surged by 70.1 billion yuan in three years
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July 22 00:05:59, 2025
The photovoltaic giant Wuxi Suntech recently filed for bankruptcy, reigniting public attention on the solar energy industry. The mounting debt of PV-listed companies has now become a major concern. According to Beijing Business Daily Investment Weekly, after analyzing 58 annual reports from listed solar companies, it was found that total liabilities increased from 255 billion yuan in 2010 to 325.1 billion yuan last year—an increase of 70.1 billion yuan over three years. This represents an average annual growth rate of 13.7%. However, more than half of the companies in the sector have not released their annual reports, suggesting that the actual debt situation is even more severe.
As of now, 58 solar energy-related listed companies have officially disclosed their financial statements. Their combined liabilities now stand at 325.1 billion yuan, up from 304.6 billion yuan in the previous year and 255 billion yuan in 2010. Meanwhile, net profits of these companies have been on a downward trend. In 2012, the total net profit of the 58 companies was only 13 billion yuan, compared to 21.7 billion yuan in 2011 and 23.6 billion yuan in 2010. This clear decline in profitability highlights the growing challenges faced by the industry.
While the solar sector once attracted massive investment and saw rapid expansion, many companies expanded production capacity without considering long-term sustainability. This speculative approach led to overcapacity and rising debts. As a result, many firms are now struggling with financial pressure and operational difficulties.
According to iFinD data, the average non-current liabilities of these 58 listed PV companies account for about 25% of total liabilities. This means that a significant portion of the debt is not easily convertible into cash within a short period or during the business cycle.
Some industry insiders warn that more than 50% of the companies may face higher bankruptcy risks than others. However, others argue that assessing bankruptcy risk solely based on debt levels or liability breakdowns is not sufficient. A comprehensive evaluation of financial health, market conditions, and future prospects is essential for a more accurate assessment.