Longi(SH:601012) Xin Lang Cai Jing·2025-12-11 11:17Core Viewpoint - The termination of LONGi Green Energy's GDR issuance plan signifies a significant setback for the company amidst a challenging market environment, reflecting broader issues within the photovoltaic industry [2][5][19]. Group 1: GDR Issuance and Market Conditions - LONGi Green Energy announced the termination of its GDR issuance plan, which was expected to raise approximately 19.996 billion RMB [2][5]. - The GDR, once a favored method for Chinese companies to access international capital, has faced significant challenges, with no successful cases since late 2022 [8][28]. - The tightening of domestic IPO and refinancing policies has pushed companies to seek international funding, but the current market conditions have made this increasingly difficult [2][5][28]. Group 2: Industry Challenges and Company Performance - The photovoltaic industry is experiencing a severe downturn, with many companies, including LONGi, facing significant operational challenges [3][6][29]. - LONGi's financial performance has deteriorated sharply, with a reported loss of 3.403 billion RMB in the first three quarters of 2025 and a debt ratio of 62.43%, the highest in five years [11][31]. - The shift in market dynamics has led to a collapse in valuation logic, making it unattractive for LONGi to issue GDRs at this time [11][31]. Group 3: Geopolitical Factors and Strategic Shifts - Geopolitical tensions have disrupted LONGi's plans to invest in Southeast Asia, particularly in Vietnam, where production lines have been halted due to external pressures [15][35]. - In response to the changing landscape, LONGi is pivoting towards technology advancements, focusing on energy storage and HPBC (Back Contact) battery technology [17][36]. - The company has significant cash reserves, approximately 50 billion RMB, which it plans to invest in new technologies rather than traditional expansion [16][37]. Group 4: Future Outlook and Industry Trends - Despite the challenges faced by LONGi, other companies like JinkoSolar are still pursuing GDR listings, indicating that the desire for international financing remains strong within the industry [19][20]. - The Frankfurt Stock Exchange is seen as a potential new avenue for Chinese photovoltaic companies, although skepticism remains regarding investor appetite in the current market climate [20][38]. - LONGi's strategic retreat from GDR issuance may allow it to avoid diluting its equity at a low valuation, but it also means missing out on potential funding opportunities during a critical period [19][38].