Longi(SH:601012) Zhong Guo Jing Ying Bao·2025-05-02 05:41Core Viewpoint - Longi Green Energy, once hailed as the "king of photovoltaics," is currently navigating through a challenging period in the solar industry, facing significant losses due to supply-demand mismatches and price declines [1][3]. Financial Performance - Longi reported losses of 8.617 billion yuan for the fiscal year 2024 and 1.436 billion yuan for Q1 2025 [1]. - In 2024, the company’s operating costs were 76.44 billion yuan, a decrease of 27.54% year-on-year, with management expenses dropping to 3.43 billion yuan, down 30.22% from 4.915 billion yuan in 2023 [5]. Industry Context - The solar industry is experiencing its most challenging period in nearly a decade, with over 500 billion yuan in combined losses reported by 30 listed solar companies in 2024 [3]. - The market is characterized by intense competition and price declines, with many companies facing operational challenges, including production cuts and layoffs [4]. Strategic Initiatives - Longi has committed to developing BC technology as the mainstream for silicon solar cells over the next 5-6 years, launching several upgraded BC products in 2024 [1][7]. - The company has undergone organizational restructuring and efficiency reforms to enhance its operational capabilities and customer focus [5][6]. Market Position - Despite the industry's downturn, Longi remains a leader in global silicon wafer and module production, with shipments of 108.46 GW of silicon wafers and 82.32 GW of solar modules in 2024 [4]. - The company has accumulated orders of 30 GW for its HPBC series components, with a target of 80-90 GW in total shipments by 2025, expecting over 25% of that to be BC components [8][10]. Future Outlook - Longi's leadership anticipates a turnaround in 2025, with expectations of returning to profitability by Q3 2025, driven by advancements in BC technology and organizational improvements [12][14]. - The company is focusing on maintaining financial stability, with a debt ratio of 59.83% and cash reserves of 53.157 billion yuan, positioning itself favorably against competitors [6][14].