Photovoltaic stocks saw a broad decline. At the time of writing, LENS (06613) fell 5.9% to HKD 21.06; FLAT GLASS (06865) dropped 5.04% to HKD 8.23; XINYI GLASS (00868) decreased 2.1% to HKD 10.72; XINYI SOLAR (00968) was down 1.92% to HKD 3.06.

The news follows a recent announcement by Delixi that it has terminated a 5.5 billion yuan photovoltaic glass procurement agreement with LONGi Green Energy Technology. The announcement stated that since the second half of 2024, the price of photovoltaic glass has continued to decline, leading to a situation where selling prices have fallen below production costs, resulting in significant losses. Due to these changing circumstances, Bengbu Guangneng has suspended production as of January 2025. Delixi expects that it will not resume, restart, or engage in large-scale production related to photovoltaic glass production lines within the next two years.

Western Securities noted that the photovoltaic glass sector is under pressure. Overall, the process of capacity rationalization in the photovoltaic glass industry is relatively slow. The primary reasons are that most production lines have been in operation for a short period, signals of "anti-involution" are frequent, and manufacturers are cautious in making decisions regarding cold repairs. The industry also has a considerable amount of potential new capacity, either under construction or already built but not yet operational. It is necessary to continuously monitor the pace of manufacturers' cold repairs and the progress of "anti-involution" measures.