LONGi Green Energy Technology Co., Ltd. – Key Developments and Market Context (as of 12 Dec 2025)
Corporate Actions
Termination of GDR Issuance and Swiss Listing On 9 Dec 2025, LONGi’s Board of Directors approved a resolution to cancel its planned issuance of Global Depository Receipts (GDRs) and the associated listing on the SIX Swiss Exchange. The decision was based on a reassessment of external conditions and the expiration of the previously granted approval window. The company confirmed that its domestic operations remain stable and that the cancellation will not affect ongoing production or financial performance.
Initiation of Commodity Futures Hedging for 2026 On 9 Dec 2025, the company announced that it will begin using commodity futures contracts to hedge exposure to key raw‑material inputs for the 2026 fiscal year. The announcement stated that the decision had been approved by the Board at the fourth meeting of the 6th term and that no additional shareholder approval was required. The hedging strategy aims to mitigate price volatility for silicon and other critical inputs.
Market and Industry Context
Supply‑Side Reform in China’s Solar Sector Recent industry reports highlighted a landmark restructuring in the polysilicon market, led by a consortium of leading Chinese firms. The formation of a new platform company focused on consolidating polysilicon capacity is expected to reduce over‑capacity and curb “inner‑ring” competition, thereby potentially stabilising silicon prices in the medium term.
Global Demand for Energy Storage China’s leading storage companies reported that batteries and storage systems now hold 90 % and 70 % of the global market shares, respectively. While this dominance underscores China’s leadership, it also signals increased competition in overseas markets where margins are higher. LONGi’s move into hedging and its decision to postpone international GDR issuance may reflect a strategic focus on consolidating its domestic position before expanding abroad.
Rising Silver Prices and Cost Pressure Silver prices surged to record highs in early December 2025, driving up manufacturing costs for photovoltaic (PV) cells that rely on silver for electrical contacts. Analysts note that increased input costs could compress margins for PV manufacturers, including LONGi. The company’s hedging initiative may partially address this risk by locking in input prices.
Financial Snapshot (as of 10 Dec 2025)
| Metric | Value | Source |
|---|---|---|
| Close price | 17.88 CNY | Shanghai Stock Exchange |
| 52‑week high | 23.57 CNY | Market data |
| 52‑week low | 14.01 CNY | Market data |
| Market cap | 135.74 billion CNY | Company filings |
| P/E ratio | –24.69 | Company filings |
LONGi’s negative price‑earnings ratio reflects the industry’s high growth expectations and the company’s ongoing investment in capacity expansion. The recent corporate actions are likely to be closely watched by investors assessing LONGi’s risk management and capital‑raising strategy.
Strategic Implications
- Risk Management – The adoption of commodity futures hedging signals an intent to manage input price volatility, a critical factor in a sector sensitive to raw‑material costs.
- Capital‑Structure Focus – By canceling the GDR issuance, LONGi conserves capital and avoids potential dilution of domestic shareholders, while positioning itself for a more favorable external environment before attempting a new international listing.
- Industry Alignment – The company’s actions coincide with broader supply‑side reforms in China’s PV industry, suggesting a strategic alignment with national policy aimed at stabilising the market and improving cost efficiency.
Overall, LONGi Green Energy Technology Co., Ltd. is actively adjusting its capital and risk‑management strategies in response to evolving market dynamics, while maintaining a strong focus on domestic stability and long‑term growth potential.
