Core Viewpoint - The photovoltaic industry is facing significant challenges due to falling market prices below cost levels, leading to a situation where companies are increasing output without corresponding revenue growth. Longi Green Energy has managed to reduce losses significantly through operational efficiency improvements and technological innovation, particularly with its differentiated BC technology [1][2]. Industry Overview - In the first half of 2025, the national photovoltaic installed capacity increased by 212.21 GW, a year-on-year growth of 107%. However, the manufacturing sector is under pressure, with battery and module production growth rates dropping below 15%, and some segments like polysilicon and wafers experiencing negative growth. The industry is characterized by structural overcapacity and homogeneous competition, leading to a vicious cycle of "expansion-price reduction-loss" [2]. - The industry is currently in a state of overall loss, with frequent occurrences of low-price bidding and misleading power ratings disrupting market order and hindering technological innovation and sustainable development [2]. Company Performance - Longi Green Energy achieved an operating revenue of 32.813 billion yuan in the first half of 2025, significantly reducing losses by 2.661 billion yuan compared to the previous year. This improvement is attributed to a substantial decrease in sales and management expenses, as well as a reduction in asset impairment losses [1]. - The company shipped approximately 4 GW of its second-generation BC modules globally, particularly excelling in high-value markets such as Europe and Asia-Pacific [2]. Technological Innovation - Longi's HPBC 2.0 technology has reached full-scale production, with module conversion efficiency at 24.8% and a stable yield above 97%. The HIBC module has achieved a production efficiency of 25.9%, breaking the 700W power threshold, making it the highest efficiency industrial photovoltaic product globally [4]. - The company has invested significantly in R&D, holding over 3,500 patents, including 480 related to BC technology, covering key areas such as passivated contact technology and metallization [2][4]. Cost Reduction and Efficiency Improvement - Longi has implemented management streamlining and process efficiency improvements, resulting in a significant reduction in sales and management expenses by 37% and 23%, respectively. The company has also focused on agile product development, reducing inventory turnover days by 26 days [6]. - The company has maintained a high safety margin in financial reserves, with a debt-to-asset ratio of 60.72% and a interest-bearing debt ratio of 21.45%, showcasing its financial health and resilience in navigating industry challenges [7]. Policy and Market Direction - Recent government discussions have emphasized the need to regulate low-price competition and promote product quality, indicating a shift from quantity growth to quality breakthroughs in the photovoltaic industry. Longi Green Energy, with its differentiated BC technology, is positioned as a strong supporter of high-quality development in the sector [7].

Core Viewpoint - Longi Green Energy reported a significant reduction in losses for the first half of 2025, with a net profit loss of 2.569 billion yuan, an improvement of over 50% compared to the previous year's loss of 5.231 billion yuan, primarily due to operational efficiency and reduced asset impairment losses [1] Group 1: Financial Performance - The company achieved operating revenue of 32.813 billion yuan, a year-on-year decrease of 14.83% [1] - The net profit attributable to shareholders was -2.569 billion yuan, showing a substantial reduction in losses compared to the previous year [1] Group 2: Technological Advancements - Longi Green Energy's BC technology has established a global reputation for being "efficient, aesthetically pleasing, and reliable," with HPBC 2.0 technology achieving a conversion efficiency of 24.8% and stable yield rates above 97% [2] - The HIBC components have reached a mass production efficiency of 25.9%, with power output exceeding 700W, making it the highest efficiency industrial photovoltaic product globally [2] - The company has over 3,500 authorized patents, including 480 related to BC technology, covering key areas such as passivated contact technology and metallization [2] Group 3: Industry Context - The photovoltaic industry is currently facing challenges due to price declines and a difficult operating environment, with a need for differentiation and technological innovation to overcome the "involution" phenomenon [1][3] - Recent policy signals indicate a shift towards quality breakthroughs in the photovoltaic sector, aiming to curb low-price competition and promote technological innovation [3]