2025‑11‑07: Longi Green Energy Technology Co. Ltd. Financial Performance and Market Dynamics

Company Profile Longi Green Energy Technology Co. Ltd. (stock code 601012) is a Shanghai‑listed Chinese manufacturer of solar‑energy products, including monocrystalline silicon ingots, wafers, semiconductor materials, and solar cells. The company’s 2025‑11‑06 closing price was 22.43 CNY, within a 52‑week range of 14.01 CNY to 23.30 CNY. Its market capitalization stands at approximately 169.7 billion CNY, with a price‑earnings ratio of –30.81, indicating a loss‑generating status.

1. Third‑Quarter 2025 Results

  • Operating Revenue: CNY 50.915 billion for the nine‑month period, with Q3 revenue of CNY 18.101 billion.
  • Profitability: The company recorded a third‑quarter loss of CNY 8.30 billion, a reduction of about CNY 3 billion compared with the previous quarter.
  • Trend: The loss is the second consecutive quarter of a significantly reduced deficit, suggesting a gradual improvement in margin compression caused by price and inventory pressures.

2. Industry Context

  • Sector Performance: In the broader photovoltaic (PV) industry, several major manufacturers—including JinkoSolar and JA Solar—reported steep Q3 losses due to continued price declines and high inventory levels.
  • Price Recovery: Since July, a “reverse internal competition” strategy has led to a price recovery trend along the PV supply chain, notably at the silicon material stage. This has contributed to improved gross‑margin levels for many PV firms.
  • Competitive Position: Among 36 selected PV companies, 18 showed positive quarter‑on‑quarter net‑profit growth, while others, including Longi, have managed to reduce losses. The company’s loss reduction aligns with the industry’s overall trend of moving from losses to break‑even or modest profitability.

3. Market Activity

  • Capital Flows: On 2025‑11‑07, net inflows of foreign institutional investors (FII) into the Shanghai‑stock‑exchange sector were 1.18 % of total trade volume. Longi received significant FII interest, with a total transaction value of CNY 11.77 billion.
  • Trading Volume and Price Movement: The share price closed at 22.96 CNY on 7 November, reflecting a 5.47 % increase from the prior day. The daily turnover was 3.995 billion CNY, and the turnover ratio stood at 2.34 %.
  • Institutional Holdings: Eight funds managed by East China Investment Management purchased a combined 32.20 million shares, generating a reported unrealized gain of 38.32 million CNY.

4. Analyst Outlook

  • Margin Pressure: Despite the loss reduction, analysts note that high inventory levels and price competition continue to exert downward pressure on margins.
  • Supply‑Chain Restructuring: The industry is undergoing supply‑chain consolidation, with large players forming joint‑venture platforms for silicon procurement. Longi’s position as a leading monocrystalline silicon producer may offer resilience if it can secure stable supply contracts.
  • Growth Drivers: Longi’s diversification into photovoltaic hydrogen (PV‑H₂) projects and its role in providing systems for ground‑mounted and building‑integrated photovoltaic installations may open new revenue streams in the coming years.

5. Key Takeaways

  1. Reduced Losses: Longi’s third‑quarter loss narrowed by roughly CNY 3 billion compared with Q2, marking a continued trend of loss mitigation.
  2. Industry Trend: The PV sector is experiencing a mix of losses and margin improvement, largely driven by price stabilization in silicon materials.
  3. Investor Interest: Significant foreign capital inflows and institutional purchases have bolstered Longi’s liquidity and market presence.
  4. Strategic Position: Longi’s focus on monocrystalline silicon and expansion into PV‑H₂ positions the company to benefit from the renewable‑energy transition, although margin compression remains a risk factor.

Prepared by the financial news aggregation team. No investment advice is provided.