Core Viewpoint - Longi Green Energy has undergone significant management changes, with founder Li Zhenguo resigning from his positions as director, general manager, and legal representative, while Chairman Zhong Baoshan will take over as general manager and legal representative [1][6][7] Management Changes - Li Zhenguo will focus on research and technology management as the head of the Central Research Institute and Chief Technology Officer, while Zhong Baoshan's new role aims to enhance decision-making and execution efficiency [4][6][11] - The management restructuring is designed to optimize decision-making processes and ensure strategic goals are effectively implemented [6][13] Financial Performance - As of May 26, Longi Green Energy's stock price was 14.99 yuan per share, with a market capitalization of 113.6 billion yuan [3] - The company has faced significant losses in 2024, with a 61% and 39% year-on-year decline in the prices of its main products, silicon wafers and modules, respectively, leading to an asset impairment loss of 8.7 billion yuan [14] - In the first quarter of 2024, the company reported a net loss of 1.436 billion yuan, although this represented a reduction in losses compared to previous periods [14] Industry Context - The photovoltaic industry is currently experiencing a deep adjustment phase, with many manufacturers, including Longi Green Energy, facing ongoing losses [5][14] - Longi Green Energy is betting on BC (Back Contact) battery technology during this technological iteration phase, which poses challenges for the company's leadership [5][11] - The company anticipates that the photovoltaic market will enter a phase of moderate growth from 2025 to 2026, with demand expected to remain stable or slightly increase compared to the previous year [15] Governance Structure - The new board of directors will include several new members, including Li Zhenguo's daughter, Li Shuxuan, which is expected to enhance the company's governance and decision-making capabilities [8][9] - The restructuring of the board aims to broaden decision-making perspectives and provide diversified support in a complex competitive environment [9]

Investment Rating - The industry investment rating is maintained as "Add" [4] Core Insights - In April 2025, inverter exports reached USD 809 million, showing a year-on-year increase of 16.71% and a month-on-month increase of 27.8%. Cumulative exports from January to April 2025 totaled USD 2.509 billion, up 8.76% year-on-year. In contrast, battery component exports in April were USD 2.249 billion, down 21.14% year-on-year and 8.68% month-on-month, with cumulative exports from January to April at USD 8.664 billion, down 27.29% year-on-year [1] - In May 2025, the production of silicon wafers and batteries decreased, with domestic silicon wafer production around 55+ GW and global production approximately 58 GW+, both declining from April. Global photovoltaic cell production was 60-61 GW, a reduction of about 7.20% from April. The demand for batteries weakened, leading to inventory accumulation among companies [1] - The average bidding price for photovoltaic modules decreased, with the weighted average price at RMB 0.71 per watt, down RMB 0.05 from the previous week. The total procurement capacity for the week was 29.55 MW, a decrease of 234.22 MW from the previous week [2] Summary by Sections Export Data - In April 2025, inverter exports were USD 809 million, up 16.71% year-on-year and 27.8% month-on-month. Cumulative exports from January to April were USD 2.509 billion, up 8.76% year-on-year. Battery component exports were USD 2.249 billion in April, down 21.14% year-on-year and 8.68% month-on-month, with cumulative exports at USD 8.664 billion, down 27.29% year-on-year [1] Production Insights - In May 2025, production in the silicon and battery segments decreased, with domestic silicon wafer production at approximately 55+ GW and global production at around 58 GW+, both lower than April. Global photovoltaic cell production was 60-61 GW, down about 7.20% from April, indicating weakened battery demand and potential inventory accumulation [1] Pricing Trends - The average bidding price for photovoltaic modules fell to RMB 0.71 per watt, a decrease of RMB 0.05 from the previous week, with total procurement capacity for the week at 29.55 MW, down 234.22 MW from the previous week [2] Investment Recommendations - The report continues to favor companies benefiting from technological advancements and cost reductions, specifically mentioning companies such as GCL-Poly Energy, LONGi Green Energy, Junda Co., and JinkoSolar [3]

Performance Summary - In 2024, the company achieved a revenue of 2.01 billion yuan, representing a year-on-year growth of 25.2%, and a net profit attributable to shareholders of 530 million yuan, up 14.4% year-on-year [1] - For Q1 2025, the company reported a revenue of 560 million yuan, a year-on-year increase of 24.6%, and a net profit of 160 million yuan, growing 20.8% year-on-year [3] Profitability - The gross margin for 2024 was 46.9%, a decrease of 1.5 percentage points year-on-year, primarily due to changes in accounting standards related to sales expenses; the net margin was 26.2%, down 2.5 percentage points due to impairments, but overall maintained a high level [1] - In Q1 2025, the gross margin was 47.9%, a decline of 0.75 percentage points year-on-year, while the net margin was 29.1%, down 0.9 percentage points [4] Orders and Contracts - As of the end of 2024, the company's contract liabilities reached 1.76 billion yuan, a year-on-year decrease of 10.1%. The company secured significant orders for laser-induced sintering (LIF) equipment for TOPCon and 1.23 billion yuan in orders for back-contact battery laser micro-etching equipment [1] - By the end of Q1 2025, contract liabilities were 1.75 billion yuan, reflecting an 11.4% year-on-year decline [5] Research and Development - In 2024, R&D expenses amounted to 280 million yuan, a year-on-year increase of 12.7%, accounting for 14% of revenue. The company developed laser selective thinning TCP equipment to enhance the stability of TOPCon battery mass production [2] - For Q1 2025, R&D expenses were 60 million yuan, a decrease of 10.1% year-on-year, representing 11.1% of revenue [6] Technology and Market Position - The company is a leader in photovoltaic laser equipment, benefiting from the iteration of technologies such as xBC, which simplifies processes and reduces costs. It has secured orders from leading customers and anticipates continued growth [7] - The company’s TOPCon laser doping (TCSE) and LIF equipment have achieved mass production orders, driven by the expansion demand in the TOPCon industry, with LIF equipment improving efficiency by over 0.3% and reducing silver consumption by over 20% [7] - The HJT laser repair equipment enhances conversion efficiency and has received orders from European clients [8] Future Outlook - The company is expected to see significant growth in net profit from 630 million yuan in 2025 to 880 million yuan in 2027, with year-on-year growth rates of 19%, 15%, and 22% respectively, corresponding to PE ratios of 24, 21, and 17 times [9]