Longi(SH:601012) He Xun Wang·2025-04-30 07:51Core Viewpoint - Longi Green Energy reported a significant decline in revenue and net profit for 2024, primarily due to falling prices of key products like solar modules and silicon wafers, marking the first annual loss since 2013 [2][4]. Financial Performance - In 2024, Longi Green Energy achieved operating revenue of 82.58 billion yuan, a year-on-year decrease of 36.23% [3]. - The company reported a net profit attributable to shareholders of -8.62 billion yuan, compared to a profit of 10.75 billion yuan in the previous year, representing a decline of 180.15% [3][12]. - The gross profit margin for the main business decreased to 7.44%, down nearly 11 percentage points from the previous year [12]. Industry Context - The solar industry faced severe supply-demand imbalances and price declines, with many leading companies, including JinkoSolar and Tongwei, also reporting significant revenue and profit drops [4][6]. - The average price of polysilicon dropped by 40% from 65 yuan/kg to 39 yuan/kg, while the price of mainstream N-type silicon wafers fell by over 50% [7]. - The overall price decline across various segments of the solar industry ranged from 60% to 80% compared to the 2023 peak, leading to widespread losses in the second half of 2024 [7][10]. Strategic Challenges - Longi Green Energy attributed its poor performance to irrational price competition and operational missteps, including a mismatch between production and market demand [12][13]. - The company faced significant inventory write-downs and increased credit impairment losses, with inventory losses amounting to 6.13 billion yuan [13]. - The operational model of "production based on sales" led to a severe disconnect in product launches, resulting in excess inventory and subsequent losses [13]. Future Outlook - Despite the challenges, Longi Green Energy has begun to implement reforms aimed at enhancing product competitiveness and optimizing cost management [13][14]. - The company reported a slight recovery in the first quarter of 2025, with revenue of 13.65 billion yuan, a year-on-year decrease of 22.75%, but a narrowing of net losses to -1.44 billion yuan [16]. - The industry anticipates that solar prices may remain low in the short term, with potential improvements expected by the end of 2025 as capacity adjustments take place [15][18].