Core Viewpoint - Longi Green Energy, a major player in the photovoltaic industry, is facing significant challenges amid a deep industry adjustment, highlighted by a recent share reduction announcement from its second-largest shareholder, Hillhouse Capital [1][2]. Group 1: Shareholder Actions - Hillhouse Capital's HHLR Management plans to reduce its holdings by up to 37.89 million shares, representing no more than 0.5% of Longi's total shares [3]. - Following this reduction, HHLR's shareholding will drop to just below 5%, which would exempt it from future disclosure requirements for further reductions [3]. - This marks HHLR's first reduction in its holdings since acquiring shares over four years ago, with the initial purchase price being 70 yuan per share, totaling approximately 15.84 billion yuan [3][4]. Group 2: Company Performance and Management Changes - Longi Green Energy has recently undergone significant management changes, with CEO Li Zhenguo resigning from his executive roles to focus on R&D and technology management [2][5]. - The company's market capitalization has plummeted to 109.7 billion yuan, only 20% of its peak value, reflecting a substantial decline in stock performance [2][5]. - Longi has reported a staggering loss of 8.618 billion yuan in 2024, marking its first loss in nearly a decade, attributed to intensified industry competition and declining product margins [6]. Group 3: Future Outlook - The company is expected to focus on the BC technology route, with Li Zhenguo expressing optimism that 2025 will be a pivotal year for BC production capacity [7]. - Market attention is on whether Longi can navigate through the current industry downturn by leveraging its commitment to BC technology [7].

Core Viewpoint - The photovoltaic industry is facing significant challenges in 2024, with a price drop exceeding 29% for major materials, leading to substantial losses for many companies, including leading firms like LONGi Green Energy [2][3] Group 1: Industry Performance - Nearly half of the 80 listed photovoltaic manufacturing companies in A-shares are experiencing losses, with LONGi Green Energy describing 2024 as its most difficult year since its listing [2] - Major integrated companies like JinkoSolar and LONGi Green Energy have seen revenue declines of over 20%, with JinkoSolar's net profit plummeting by 98.67% and LONGi Green Energy reporting a net loss of 8.618 billion [3][6] - The top 10 photovoltaic companies show a mixed performance, with only Sungrow Power Supply achieving growth in both revenue and net profit [3][4] Group 2: Employment Trends - Many A-share photovoltaic companies are reducing their workforce, with ST Lingda cutting 86.67% of its staff, and other companies like ST Quan reducing their workforce by nearly 52% [2] - LONGi Green Energy has the highest total number of layoffs at 49.57%, reducing its workforce from approximately 75,000 to under 38,000 [3][5] - The reduction in workforce is correlated with the companies' financial performance, with those experiencing significant profit declines also showing higher layoff rates [2][4] Group 3: Cost Management - LONGi Green Energy's reduction in workforce has led to a 7.16% decrease in direct labor costs, while total employee compensation dropped by 33.53% to 1.574 billion [6] - The company has also seen a significant reduction in management expenses by 30.22%, although R&D expenses have decreased by 20.48% [6][7] - The overall trend indicates that while companies are cutting costs, the speed of cost reduction is not keeping pace with the decline in prices and revenues [6][7] Group 4: Future Outlook - Despite the current challenges, some companies are beginning to show signs of recovery in early 2025, although concerns remain about potential demand weakness in the latter half of the year [9] - The international trade environment is becoming increasingly challenging, particularly for companies with overseas operations, as tariffs and trade barriers impact their business [9][10] - Companies are likely to continue optimizing their workforce to maintain competitiveness in a rapidly changing market [7][9]

Industry Overview - In 2024, global photovoltaic (PV) installed capacity increased by 35.9% year-on-year, driven by improved efficiency and reduced costs in solar power generation [2][4]. - The global PV market is experiencing high growth, with emerging markets developing independent value systems and a trend towards localized PV supply chains [3]. Company Performance - In 2024, the company achieved a battery product shipment of 33.74 GW, a year-on-year increase of 12.62%, with N-type battery shipments reaching 30.99 GW, accounting for over 90% of total shipments and growing by 50.58% [5][6]. - The company's revenue for 2024 was 9.952 billion yuan, with a net loss of 0.591 billion yuan due to industry-wide price declines during the capacity reduction cycle [6]. Technological Advancements - The company improved battery conversion efficiency by over 0.5% and reduced non-silicon costs by approximately 30% through various technical enhancements [6]. - The company is advancing TOPCon battery technology and has achieved a laboratory efficiency of 31% for perovskite tandem batteries, leading the industry [6][10]. Market Expansion - The company's overseas sales ratio increased significantly from 4.69% in 2023 to 23.85% in 2024, with leading market shares in India, Turkey, and Europe [7][9]. - The company plans to establish overseas production capacity and aims for an H-share listing in Hong Kong to support its global expansion strategy [7][15]. Future Outlook - The company anticipates continued growth in the PV industry in 2025, with improved supply-demand balance in the battery segment [8][13]. - The company will focus on enhancing its global sales network and exploring diverse models for overseas production capacity to meet rising demand [13][14].