Longi Green Energy Technology announced that it plans to publicly issue RMB 10 billion enterprise bonds. As of the end of the first quarter of this year, Longi Green Energy Technology still had RMB 57.314 billion in monetary funds. The company's chairman mentioned that 2024 will be the most difficult year for Longi in the past decade.
On the evening of June 6th, photovoltaic component leader Longi Green Energy (601012.SH) announced that it plans to publicly issue RMB 10 billion in corporate bonds, with the funds mainly used to meet the company's operational needs, supplement working capital, repay interest-bearing debts, support project development and operation, equity contributions, and other purposes permitted by applicable laws and regulations.
According to the consolidated balance sheet, as of the end of the first quarter of this year, Longi Green Energy had RMB 57.314 billion in cash and cash equivalents, an increase from 2023. However, the company's debt scale has gradually increased, with a total debt of RMB 50.148 billion, RMB 77.301 billion, RMB 93.257 billion and RMB 99.924 billion respectively over the past three years and the end of the first quarter.
In terms of debt structure, the proportion of current liabilities to total liabilities was 84.76%, 78.30%, 76.73%, and 71.51% respectively. Longi Green Energy mentioned that with the expansion of the company's operating scale, operating liabilities and bank loans have increased accordingly, leading to a corresponding increase in the total debt scale of the company.
Longi Green Energy is a photovoltaic component leader, with the highest component shipments for three consecutive years from 2020 to 2021. In 2023, the company's component shipments were 67.52GW, second to JinkoSolar (688223.SH). In addition to facing the operational strategy of the irrational decline in the industry chain prices, the company also did not choose the more mainstream TOPCon technology, which is considered to be an important reason.
Longi Green Energy chooses to bet on BC technology. In today's announcement, the company also disclosed its future development goals and business plans, planning to achieve an annual production capacity of monocrystalline silicon wafers of 200GW in the next three years, with the "Tairui" silicon wafer capacity accounting for more than 80%, the BC battery annual production capacity will reach 100GW, and the monocrystalline module annual production capacity will reach 150GW.
In March of this year, Longi Green Energy Chairman Zhong Baoshen said in an interview with the media that 2024 is the most difficult year for Longi in the past decade, facing the challenges of industry overcapacity and great profit pressure. As for the loss of profits in the first quarter, he attributed it to a lack of the high-profit US market.
Affected by the resumption of the "double reverse" policy in the United States, on ****, Longi Green Energy was reported to have gradually shut down its component factory in Malaysia this week, and the five battery cell production lines in its Vietnamese factory had all been shut down earlier last week.
In response, the company stated in a reply to a Caixin reporter that it has taken various measures such as cross-site support and rotating rest schedules to minimize the impact of production adjustments on employees, and has legally protected employees' lawful rights and interests. Subsequently, the company will adjust production schedules according to market changes and upgrading progress in a timely manner.
It is worth mentioning that Longi Green Energy previously announced a plan for overseas financing in June of last year, intending to issue GDR (Global Depositary Receipts) to raise no more than RMB 19.996 billion, and list them on the Swiss Stock Exchange, with the funds mainly used for overseas production capacity construction. However, the progress of the plan has not been disclosed as of now.