Chinese PV Industry Brief: Daqo, Tongwei, Aiko Solar Post Q1 Losses

Why It Matters

The results highlight persistent margin compression across the Chinese solar supply chain and signal that cash‑rich firms may drive consolidation while price stabilization could revive production incentives.

Key Takeaways

• Daqo's output rose 75% while sales fell 84%, widening loss.
• Tongwei kept $2.9B cash, positioning for consolidation opportunities.
• Aiko Solar improved gross margin to 7.2% and secured 10 GW contracts.
• Deli Holdings ends $765M glass supply deal amid sector oversupply.
• Polysilicon prices hover near $4,880/ton, hinting at market bottom.

Pulse Analysis

The first quarter of 2026 underscored the fragility of China’s photovoltaic sector. Daqo New Energy saw revenue plunge 79% to $26 million and a net loss of $111 million, driven by a steep drop in polysilicon sales and a $94 million inventory write‑down, even as output climbed 75% to 43,400 tons. Tongwei’s top line slipped 24% to $1.68 billion, but its loss narrowed to $337 million, reflecting modest margin improvement and a robust cash pile of $2.94 billion. Aiko Solar managed a 7% revenue rise to $614 million and lifted its gross margin to 7.2%, yet foreign‑exchange headwinds pushed its loss to $61 million, while the firm secured nearly 10 GW of state‑owned power‑grid contracts.

These divergent results are reshaping the competitive landscape. Companies with deep liquidity, such as Tongwei, are better positioned to absorb price shocks and pursue strategic acquisitions, potentially accelerating the wave of consolidation that analysts have long expected. Aiko’s newly awarded contracts illustrate how state‑backed procurement can provide a foothold for manufacturers willing to navigate currency volatility. Conversely, Deli Holdings’ decision to walk away from a $765 million glass supply deal with Longi subsidiaries signals that oversupply is forcing even vertically integrated players to prune unprofitable agreements.

Polysilicon pricing appears to be stabilizing, with N‑type material trading around $4,880 per ton, a level that many industry observers believe may represent a bottom. The China Nonferrous Metals Industry Association reports steady wafer operating rates and an expected May output of roughly 83,000 tons, suggesting that production capacity is finally aligning with demand. If demand from utility‑scale projects and emerging storage applications picks up, the modest price floor could restore profitability for upstream producers and support a gradual rebound in module margins across the Chinese PV value chain.