LONGi Green Energy Technology Co Ltd Faces Challenging Year

In a candid admission, LONGi Green Energy Technology Co Ltd, a leading Chinese solar energy company, has described 2024 as its most challenging year since its IPO in 2012. The company, which specializes in manufacturing solar energy products such as monocrystalline silicon ingots, wafers, and solar cells, reported a significant downturn in its financial performance.

According to the latest financial report, LONGi’s revenue for 2024 was 825.82 billion CNH, marking a 36.23% decrease from the previous year. This decline was primarily attributed to falling prices for key products like components and silicon wafers. The company’s net profit attributable to shareholders plummeted to a loss of 86.18 billion CNH, a stark contrast to the 107.51 billion CNH profit recorded in 2023.

In his letter to shareholders, Chairman Zong Baoshan highlighted several external factors contributing to the downturn. These included an imbalance in industry supply and demand, low utilization rates, and a continuous decline in photovoltaic product prices. Additionally, rapid technological advancements and the phasing out of PERC (Passivated Emitter and Rear Cell) production capacity led to asset impairments.

The broader industry context also reflects these challenges, with data indicating a significant drop in prices across the photovoltaic supply chain. Notably, multi-crystalline silicon prices fell by over 39%, while wafer prices decreased by more than 50%.

Despite these setbacks, LONGi remains a key player in the solar energy sector, listed on the Shanghai Stock Exchange with a market capitalization of 111.47 billion CNH. The company continues to navigate the evolving landscape of the solar industry, focusing on innovation and adaptation to emerging technologies.

In related industry news, LONGi has shown interest in expanding its manufacturing capabilities to Algeria, aiming to support the country’s domestic solar market. This move aligns with global trends towards increasing solar energy production and the development of new manufacturing facilities.

As the solar industry continues to evolve, LONGi’s strategic decisions and adaptability will be crucial in overcoming current challenges and capitalizing on future opportunities.