① Longi Green Energy Technology's losses in the first half of the year exceeded 5 billion yuan, with a single-season loss of 2.893 billion yuan in the second quarter, setting the largest single-season loss in recent years; ② The company's HPBC2.0 product will be launched on a large scale at the end of this year. In its plan, the company will return to the growth track by 2025, leading the solar industry into a state of recovery ahead of time.
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On August 30, Caixin reporters (Liu Mengran) reported that Longi Green Energy Technology (601012.SH) incurred losses of over 5 billion yuan in the first half of the year, with a single-season loss of 2.893 billion yuan in the second quarter, marking the largest single-season loss in recent years. In this round of battery technology iteration, Longi Green Energy Technology is focusing on BC products, and the much-anticipated HPBC2.0 product will be launched on a large scale at the end of this year. According to the company's plan, it will return to the growth track by 2025, leading the solar industry into a state of recovery ahead of time.
The latest financial report shows that the company achieved a revenue of 38.529 billion yuan in the first half of the year, a year-on-year decrease of 40.41%; the net profit attributable to shareholders of the listed company was -5.243 billion yuan. Looking at the quarters, the company had a net loss of 2.35 billion yuan in Q1, and 2.893 billion yuan in Q2, a decrease of 152.21% year-on-year.
In terms of shipments, the company's silicon wafer shipments in the first half of the year were 44.44GW (21.96GW for external sales); battery external sales were 2.66GW; and component shipments were 31.34GW, with the BC series component shipments accounting for about 10GW. In terms of rankings, Longi Green Energy Technology still ranks in the top four of the component shipment list, but the gap from JinkoSolar (43.8GW), the top shipper, has widened.
Since the fourth quarter of last year, the prices of the photovoltaic industry chain have continued to decline, falling below the cost line of many photovoltaic companies. Longi Green Energy Technology has turned from profit to loss since the fourth quarter of last year. Data from the China Photovoltaic Industry Association shows that as of June 30, 2024, domestic polycrystalline silicon and silicon wafer prices have dropped by over 40%. Component bid prices have oscillated at the same frequency, with battery component prices dropping by over 15%, maintaining a range of 0.7 yuan/W-0.8 yuan/W.
The decline in industry chain prices has led to significant inventory markdown losses for photovoltaic companies across the board.
In the first half of the year, Longi Green Energy Technology conducted impairment testing on assets with signs of impairment, proposing to make an impairment provision of 5.784 billion yuan, mainly including inventory provisions of 4.87 billion yuan due to the continued decline in prices of main products, as well as impairment provisions of 0.859 billion yuan for fixed assets and other long-term assets, and 55.4489 million yuan for contractual assets.
After offsetting the provision for inventory depreciation, it actually affected the current period profit by 1.38 billion yuan. In comparison, Longi Green Energy had the largest amount of asset impairment losses among the first four integrated component manufacturers, with a loss of 0.584 billion yuan for JinkoSolar (688223.SH) and a loss of 0.516 billion yuan for Trina Solar Co., Ltd. (688599.SH), and a loss of 0.434 billion yuan for JA Solar Technology (002459.SZ).
Longi Green Energy is one of the few leading companies that adhere to the BC product. Currently, BC products are still in the early stages of market introduction. In the first half of the year, Longi Green Energy launched the double-sided module product Hi-MO9 based on HPBC2.0 battery technology, with a mass production power of 660W, which is more than 30W higher than TOPCon module, and the photoelectric conversion efficiency has been improved to 24.43%.
According to the latest financial report, the company has achieved mass production breakthrough in HPBC2.0 technology, and the battery production line is fully connected, and the technology cost is fully compliant. Based on the BC technology platform, it has formed a product layout that covers centralized and distributed scenarios.
In terms of production capacity planning, the company stated that the annual production capacity of monocrystalline silicon wafers will reach 200GW in the next three years, with the 'Tairui' silicon wafer accounting for more than 80% of the capacity; the annual production capacity of BC batteries will reach 100GW; and the annual production capacity of monocrystalline modules will reach 150GW. The production capacity of HPBC2.0 products will reach approximately 50GW by 2025.