Since 2024, severe overcapacity (exceeding 1,100GW against global demand of 530GW) has triggered intense price wars, with  prices of PV modules plunging 60% from their 2020 peak, plunging the industry into "its darkest hour". In Q1 2025, 31 A-share photovoltaic companies reported combined losses of 125.8 billion yuan, with the "Five Tigers" leaders recording 17.8 billion yuan in net losses for the first half.

Anhui’s Solution: M&A Policy Takes Effect

On September 3, 2025, the Anhui Provincial Government Office released the "Anhui Action Plan for Promoting High-End, Intelligent and Green Development of Manufacturing Through New Technology Transformation", proposing support for qualified enterprises to conduct mergers and acquisitions. The plan promotes M&A restructuring in key industries like automotive, photovoltaics, energy storage, as well as state-owned enterprises and listed companies, aiming to integrate industrial chains, attract social capital investment, and enhance core competitiveness and industrial chain leadership.Previously, Anhui had phased out 80GW of inefficient capacity while focusing on cutting-edge technologies like perovskite to shift the industry from "competing on scale" to "competing on technology".