Some US listed photovoltaic companies' interim reports show performance declines during the second quarter. The decline is believed to be influenced by shrinking demand in the European market, China Business News reported Monday.

Other costs also rose in the second quarter after several companies were left with high inventories due to incorrect predictions about how much they could sell before the quarter began.

JA Solar Holdings Co Ltd's $35.4 million net loss in the second quarter is largely from the low delivery and low average selling price, the report said, citing a senior executive from the company.

JA Solar had an inventory provision of $27.7 million in the second quarter, which contributed to the sales costs, but the installed capacity slumped by 50 percent during the period from March to May, the sources said.

China Sunergy realized a net loss of $16.9 million in the second quarter and Financial Controller John Wong cited high inventory as one of the causes.

Sources in photovoltaic companies said they have been facing some challenges recently and they are in search of various solutions for performance in the long run.

CEO of China Sunergy Cai Zhifang said the urgent issue is to reduce the costs of amorphous silicon and raw materials, and to increase the utilization rate of raw materials.

Some companies may explore new markets as alternatives. The Chairman of the Board of JinkoSolar Holding Co Ltd found the US market has been recovering during July and August. He estimates the company's export may climb to 230 megawatts (MW) or even 250 MW in the third quarter.