(Yicai) Nov. 3 -- The Chinese photovoltaic sector seems to have turned the page, as its operating results have improved in the third quarter. Still, solar giants recorded a cumulative net loss of about CNY25 billion (USD3.7 billion) in the first three quarters.

Tongwei reported the largest net loss of nearly 6.8 billion (USD1 billion) in the nine months ended Sept. 30, widening 28 percent from a year earlier. However, its net loss shrank 39 percent to CNY1.6 billion in the third quarter from the second one.

Longi Green Energy Technology saw its net loss expand 38 percent to CNY4.7 billion in the first three quarters from the same period last year, but in the third quarter, it shrank 42 percent to CNY1 billion from the previous quarter.

JA Solar’s net loss widened just 2.3 percent to CNY3.6 billion in the first nine months of the year from a year ago. It shrank 39 percent to CNY974 million (USD164 million) in the third quarter from the second one.

TCL Zhonghuan Renewable Energy Technology posted a net loss of CNY4.6 billion in the first three quarters, down over 21 percent from the same period last year. Its third-quarter net loss shrank 13 percent to CNY1.4 billion from the second quarter.

Jinko Solar saw its net loss narrow both in the first three quarters and in the third quarter, down 14 percent to CNY3.4 billion from a year earlier and 76 percent to CNY170 million from the second quarter, respectively.

The only exception among the major Chinese solar companies was Trina Solar. Its net loss shrank 54 percent to CNY1.9 billion in the first three quarters from the same period last year, despite turning a CNY13.2 million (USD2 million) net profit in the second quarter into a CNY1.7 billion net loss in the third quarter.

Cash flow also improved for these companies. Jinko Solar’s net cash generated from operating activities reached CNY3.1 billion in the third quarter, setting a new quarterly record this year. Tongwei recorded positive net operating cash flow for the second consecutive quarter, while Longi turned its operating cash flow from negative to positive.

The six above companies still carry elevated debt-to-asset ratios. Longi had a relatively lower ratio of 67.2 percent as of Sept. 30, while the remaining five all had figures surpassing 75 percent. Jinko Solar had the highest debt-to-asset ratio of 79.95 percent, while Tongwei had the lowest among the five of 75.60 percent.

“The PV sector remains in a bottoming-out adjustment phase, with prices of core products fluctuating narrowly around cash costs,” TCL Zhonghuan said in its third-quarter financial report.

The company also predicted that gradual demand recovery, new application scenarios, and mergers, acquisitions, and consolidation activities among leading players will accelerate the exit of inefficient capacity, putting the overall industry back on a healthier growth track.

Trina Solar also expressed a relatively optimistic view about the sector recovery. An executive told institutional investors last month that solar module prices are expected to rise in the second half of the year with the arrival of the traditional peak demand season and ongoing efforts to curb excessive competition, which will help narrow losses for the module business.

Editors: Tang Shihua, Futura Costaglione