Longi(SH:601012) Jing Ji Guan Cha Wang·2025-04-30 12:38Financial Performance - In 2024, Longi Green Energy reported revenue of approximately 82.6 billion yuan, a year-on-year decrease of about 36.23%, and a loss of approximately 8.6 billion yuan compared to a profit of 10.8 billion yuan in the same period last year [2] - For Q1 2025, the company achieved revenue of about 13.7 billion yuan, a year-on-year decrease of 22.75%, with a loss of approximately 1.4 billion yuan, compared to a loss of 2.3 billion yuan in the same quarter last year [2] - The significant decline in revenue is attributed to a drastic drop in prices across the photovoltaic supply chain, with silicon material prices falling from around 70,000 yuan/ton to over 20,000 yuan/ton, and module prices dropping from about 1 yuan/W to approximately 0.7 yuan/W [2] Business Segments - The silicon wafer business was the primary reason for the profit decline in 2024, with revenue from silicon wafer and silicon rod business dropping by 66.53% to approximately 8.2 billion yuan, and a gross margin of -14.31% [2] - Revenue from the module and battery business was approximately 66.3 billion yuan, a year-on-year decrease of 33%, with a gross margin of 6.27%, down 12.11% from the previous year [2] Asset Impairment - Due to the continuous decline in prices within the photovoltaic industry, Longi Green Energy announced an asset impairment provision of up to 8.7 billion yuan [3] Future Outlook - The chairman of Longi Green Energy, Zhong Baoshen, indicated that if external conditions remain unchanged, the overall losses in the photovoltaic industry could increase by several hundred billion yuan this year due to persistently low prices [3] - Zhong Baoshen expects that by the third quarter of this year, Longi Green Energy could achieve a break-even point or even turn a profit [4] Product Development and Strategy - Longi Green Energy plans to focus on the BC (Back Contact) battery technology, aiming to establish approximately 25 GW of production capacity by the end of the year [6] - The company reported a shipment of over 17 GW of BC products in 2024, but faced significant inventory losses due to a mismatch in production and sales of the HPBC1.0 product [7] - Longi Green Energy has developed the Hi-MO 9 and Hi-MO 10 products tailored for ground-mounted and distributed power stations, respectively, with pricing strategies based on customer needs [11] Market Position and Collaboration - Currently, the market share of BC products is only 13%, while TOPCon technology remains dominant [10] - Longi Green Energy is seeking partnerships to expand BC production capacity, including a strategic cooperation agreement with Yingfa Ruineng for a 16 GW HPBC cell project [10][12]