Xinyi Solar's stock plummeted 5.41% intraday on Monday, reflecting a broad decline across the photovoltaic sector.

The downturn is primarily driven by the upcoming comprehensive cancellation of the 9% value-added tax export rebate for solar products, effective April 1. Contrary to industry expectations, there was no last-minute surge in export shipments ahead of the policy change. Concurrently, key material prices have continued to fall, with polysilicon hitting a new low of 40,000 yuan per ton, and wafer and cell prices also declining, underscoring persistently weak market sentiment and a lack of recovery in end-demand.

Industry analysis suggests the combined impact of the rebate removal, low product prices, and a cautious wait-and-see attitude from end-users could lead to disappointing financial results for solar companies in the second quarter. The recent rapid price declines across the supply chain have failed to stimulate demand and have instead heightened market caution, with a true recovery contingent on a definitive inventory reduction and a substantial rebound in end-user demand—neither of which has materialized yet.