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China's Oversupplied Solar Sector Sees Hints Of Stabilization

The leading solar cell maker is looking for capital support from a Hong Kong listing to tide it over while it waits for recovery in its oversupplied sector

Key Takeaways:

Solar Space has filed for a Hong Kong IPO, reporting it swung from a profit in 2023 to a 1.29 billion yuan loss last year

The entire solar sector is suffering from oversupply, but saw hints of stabilization as PV module prices ticked up in February for the first time in 30 months

While Chinese companies have dominated the global market for photovoltaic (PV) products, the fiercely competitive group has created its own overheated space by building up too much capacity, causing prices to plunge. That's sent most companies into the red, forcing them to rely on their own cash reserves or raise new money until the air clears.

One of the last non-listed majors, SolarSpace Technology Co. Ltd., is turning to the latter option, hoping investors will look past its sea of red ink to buy into its story of better times ahead for a leader that was the world's second-largest PV cell producer in 2024.

SolarSpace previously applied and was approved to list on Shenzhen's Nasdaq-style ChiNext Market in 2023. But it withdrew that application in June last year, after falling into the red in the year's first quarter amid strong sector headwinds and a weak domestic stock market. The company has pivoted to Hong Kong this year, boasting an A-list of domestic underwriters including Haitong Securities, China Securities International and Citic Securities.

Founded in 2011, SolarSpace is a leading manufacturer of solar cells that are at the core of each electricity-producing solar panel. It has broadened its scope in recent years to include PV modules as well. According to third-party market data in the listing application filed earlier this month, SolarSpace ranked second among PV cell makers globally in ...