Report Industry Investment Rating - Not provided in the content Core Viewpoints - The silicon price of industrial silicon may maintain high-level consolidation in the short term, and attention should be paid to the support level of 8,300 yuan/ton. The price of polysilicon fluctuates and is prone to rise but difficult to fall, and attention should be paid to the pressure level of 55,000 - 56,000 yuan/ton [1] - For industrial silicon, the supply side is increasing steadily, while the demand side has both positive and negative factors, and the price may be under pressure again. For polysilicon, the fundamental situation is supply - strong and demand - weak, and the price support is insufficient [1] Summary by Related Catalogs Industrial Silicon - **Price Changes**: The average price of industrial silicon non - oxygenated 553 (East China) remained flat at 8,950 yuan/ton, and the average price of 421 (East China) remained flat at 9,400 yuan/ton. The closing price of the futures main contract fell 0.29% to 8,470 yuan/ton [1] - **Supply Side**: As the silicon price continues to rise, some previously overhauled silicon plants in Xinjiang have resumed production. The southwest production area has entered the wet season, with lower power costs and a steady increase in enterprise start - up rates [1] - **Demand Side**: Polysilicon enterprises maintain a production - reduction trend, and some silicon material plants have复产 arrangements, bringing some demand increments. For organic silicon, a large factory stopped for rectification due to an accident, and the supply is tightened stage - by - stage. Recently, monomer plant enterprises have recovered, and the market supply pressure has increased. Silicon alloy enterprises purchase according to demand [1] - **Investment Strategy**: The silicon price may maintain high - level consolidation in the short term, and attention should be paid to the support level of 8,300 yuan/ton. Follow - up attention should be paid to the production dynamics of silicon enterprises [1] Polysilicon - **Price Changes**: The price of N - type dense material rose 4.17% to 50 yuan/kg, the price of N - type re - feeding material rose 5.10% to 51.5 yuan/kg, the price of N - type mixed material rose 4.26% to 49 yuan/kg, and the price of N - type granular silicon rose 5.43% to 48.5 yuan/kg. The closing price of the futures main contract fell 0.78% to 51,875 yuan/ton [1] - **Supply Side**: Polysilicon enterprises maintain a production - reduction trend, and some silicon material plants may have new production capacity put into operation. After offsetting, the output is expected to increase slightly. It is expected that the output in July will approach 110,000 tons, and the output in August will increase to about 130,000 tons month - on - month [1] - **Demand Side**: According to the current latest polysilicon price, the silicon wafer quotation still cannot cover the full cost. The price of battery cells has loosened, and the terminal's acceptance of high prices is low [1] - **Investment Strategy**: The price of polysilicon fluctuates and is prone to rise but difficult to fall. Attention should be paid to the pressure level of 55,000 - 56,000 yuan/ton. Follow - up attention should be paid to the implementation of industrial policies and the evolution of macro - emotions [1] Other Information - **Company News**: On September 1, Longi Green Energy held a performance briefing for the first half of 2025. The company's HIBC battery technology has matured for large - scale mass production and has been gradually introduced to the distributed photovoltaic market [1] - **Market News**: Recently, domestic component enterprises have started negotiations on the Q4 procurement plan. Some silicone factories have finalized orders, and the trading volume has increased significantly. The average price of photovoltaic glue is expected to rise slightly [1]

Investment Rating - The report maintains a "Recommendation" rating for Longi Green Energy, indicating an expectation for the stock to outperform the market by 10% to 20% over the next six months [10]. Core Views - The financial condition of Longi Green Energy remains robust, with anticipated growth in BC (Back Contact) technology production, which is expected to enhance profitability [7][8]. - Despite a decline in revenue and ongoing pressure on profit margins due to falling product prices, the company has shown improvements in operational efficiency, leading to a significant reduction in losses [7][8]. - The report highlights the company's advanced HPBC2.0 technology, which is projected to account for over 60% of production capacity by the end of 2025, potentially driving profitability [7][8]. Financial Summary - For the first half of 2025, Longi Green Energy reported revenue of 32.813 billion yuan, a year-on-year decrease of 14.83%, while the net profit attributable to shareholders was a loss of 2.569 billion yuan, an increase of 50.88% year-on-year [4]. - The company's silicon wafer shipment reached 52.08 GW, a year-on-year increase of 17.2%, and battery module shipments totaled 41.85 GW, with a growth of 26.3% [7]. - The report projects revenues for 2025 to be 69.937 billion yuan, with net profits expected to improve to -3.667 billion yuan, followed by a recovery in subsequent years [6][8]. Operational Efficiency - The report notes a significant reduction in asset impairment losses and a decrease in selling and administrative expenses by 37% and 23%, respectively, contributing to improved operational efficiency [7]. - Inventory turnover days decreased by 26 days, indicating better inventory management [7]. Technology and Product Development - Longi Green Energy is focusing on high-value HPBC2.0 technology, which has achieved a conversion efficiency of 24.8% and a production yield of 97% [7]. - The company has developed innovative products such as the HIBC (High and Low Temperature Composite Passivation Back Contact Technology) module, achieving a power output of over 700W and an efficiency of 25.9% [8]. Future Outlook - The report anticipates that the company's advanced technology and product offerings will create a strong competitive advantage, helping it navigate through industry challenges and improve profitability in the coming years [8].

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 Insights - Longi Green Energy reported a revenue of 32.813 billion yuan for the first half of 2025, a year-on-year decrease of 14.83% [1] - The company recorded a net profit attributable to shareholders of -2.569 billion yuan, although this represents a significant reduction in losses by 2.661 billion yuan compared to the same period last year [1] - The primary reason for the losses was the decline in prices of key products such as modules and silicon wafers [1] Group 1: Technology and Innovation - Longi Green Energy has strengthened its R&D efforts, achieving over 3,500 authorized patents, including 480 related to Back Contact (BC) technology [1] - The company has seen rapid development in BC technology, with approximately 4 GW of second-generation BC modules shipped globally, particularly excelling in high-value markets in Europe and Asia-Pacific [1] - The HPBC2.0 technology has achieved mass production with a module conversion efficiency of 24.8% and a stable yield of over 97% [2] Group 2: Production Capacity and Collaboration - The self-owned battery capacity for HPBC2.0 has reached 24 GW, with production gradually commencing in Shaanxi province [2] - Collaborative production capacities with partners such as Yingfa Derui and Pingmei Longi have started to be released [2] - Longi Green Energy is focused on building a BC technology ecosystem through a combination of industry collaboration, patent layout, and confidentiality protection [1]

Core Viewpoint - The photovoltaic industry is facing significant challenges due to falling sales prices below cost levels, leading to widespread operational losses among companies, despite some improvements in specific firms like Longi Green Energy [1][2]. Group 1: Company Performance - Longi Green Energy reported a 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, primarily due to improved operational efficiency and reduced asset impairment losses [1]. - The company achieved a silicon wafer shipment of 52.08 GW and a battery module shipment of 41.85 GW during the same period, demonstrating strong sales performance despite industry-wide challenges [6]. Group 2: Technological Innovation - Longi Green Energy has leveraged its differentiated BC technology to stand out in the global market, with approximately 4 GW of BC second-generation modules shipped to over 70 countries, particularly excelling in high-value markets like Europe and Asia-Pacific [2][4]. - The company has invested heavily in R&D, holding over 3,500 patents, including 480 related to BC technology, which covers key areas such as passivated contact technology and metallization [2]. Group 3: Operational Efficiency - Longi Green Energy has significantly reduced sales and management expenses by 37% and 23% year-on-year, respectively, while also decreasing inventory turnover days by 26 days, indicating improved operational efficiency [6]. - The company maintains a healthy financial position with a debt-to-asset ratio of 60.72% and a debt ratio of 21.45%, showcasing resilience and risk management capabilities in a challenging market [6]. Group 4: Industry Context - The photovoltaic industry is currently experiencing structural overcapacity and homogeneous competition, leading to a cycle of price cuts and losses, which has been exacerbated by issues such as low-price bidding and misleading power ratings [2][4]. - Recent government discussions have emphasized the need for the industry to shift from quantity growth to quality breakthroughs, indicating a clear policy direction towards enhancing product quality and phasing out outdated capacity [6].

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]

Core Insights - Longi Green Energy reported a significant reduction in net loss for the first half of the year, achieving a net loss of 2.569 billion yuan, a decrease of 50.9% compared to the previous year's loss of 5.231 billion yuan [1][3] - The company's operating revenue decreased by 14.83% year-on-year to 32.813 billion yuan, reflecting the ongoing challenges in the photovoltaic industry [1][2] - The improvement in financial performance is attributed to a substantial reduction in sales and management expenses, as well as a significant decrease in asset impairment losses [3] Financial Performance - Revenue for the first half of the year was 32.813 billion yuan, down from 38.529 billion yuan in the same period last year [2] - The net loss attributable to shareholders was 2.569 billion yuan, compared to a loss of 5.231 billion yuan in the previous year [2] - The net cash outflow from operating activities was 484 million yuan, a significant improvement from a net outflow of 6.413 billion yuan in the same period last year [3] Operational Efficiency - The company achieved a silicon wafer shipment of 52.08 GW, with external sales of 24.72 GW, and a battery module shipment of 41.85 GW [2] - Sales expenses decreased by 37% and management expenses decreased by 23%, indicating improved operational efficiency [3] - The company is focusing on the BC technology route, with HPBC2.0 product shipments reaching approximately 4 GW and a conversion efficiency of 24.8% [3] Market Expansion - Longi Green Energy has seen a significant increase in overseas silicon wafer sales, with a year-on-year growth of over 70% in markets such as Spain, Australia, and Romania [4] - The company is adapting to the complex international trade environment by adjusting its global layout and shifting focus to emerging markets to mitigate risks [4] - The penetration rate of Tai Rui silicon wafers in the export of N-type silicon wafers has reached 90% [4]

Core Viewpoint - Longi Green Energy Technology Co., Ltd. expects a net loss of 2.4 billion to 2.8 billion yuan for the first half of 2025, but this represents a reduction in loss by 2.443 billion to 2.843 billion yuan year-on-year [2] Group 1: Financial Performance - The main reason for the reduced loss is the decline in unit costs, sales expenses, management expenses, and asset impairment losses, despite the ongoing losses due to the photovoltaic industry's product prices falling below cost [2] - Longi Green Energy's BC second-generation products have gained market recognition, leading to increased order volume and shipment [2][3] Group 2: Technological Advancements - Longi Green Energy has positioned BC battery technology as its core future direction, having started its development as early as 2017, with over 4,000 patents related to BC technology [2][3] - The company has achieved a battery yield rate of 97% for its BC second-generation production line, with significant production targets set for the coming months [3] Group 3: Market Position and Strategy - Longi Green Energy's BC products have received positive market feedback, with high-quality components in high demand [3] - The company aims to reshape its competitive edge through innovative technologies, emphasizing the importance of maintaining a leading position in the market [5] - The industry is witnessing a shift towards high-efficiency, low-energy consumption technologies, with policies promoting a return to healthy development [5]

Core Viewpoint - The Chinese photovoltaic (PV) industry is facing a critical supply-side reform, with expectations of production cuts and stricter policies to curb below-cost sales, aiming to improve industry profitability and stability [3][4][5]. Industry Summary - A significant decline was observed in the A-share market on June 19, with a total trading volume of 1.28 trillion yuan and over 4,600 stocks falling [1]. - The photovoltaic sector, particularly low-fee ETFs, experienced a downturn, with the leading ETF (516290) dropping by 1.49% [1][6]. - Major companies in the PV sector, such as 阳光电源 (Sungrow Power), 德业股份 (Deye), and 晶澳科技 (JA Solar), reported declines exceeding 3% in their stock prices [6]. Production and Policy Changes - The China Photovoltaic Industry Association held a meeting focusing on "production limits to maintain prices," indicating a projected reduction in operating rates by 10%-15% in Q3 [2][3]. - A third-party audit group will conduct comprehensive audits to identify evidence of below-cost sales, with various measures planned against non-compliant companies [2][3]. Technological Advancements - The industry is witnessing a push for supply-side reform, with leading companies advocating for market-driven consolidation and technological upgrades to phase out outdated capacities [4][5]. - New technologies, such as TOPCon and perovskite, are gaining attention, with several companies showcasing advancements in efficiency and production capabilities at the SNEC conference [5]. Market Outlook - The PV sector is expected to experience a fundamental recovery, with signs of a potential turning point in market sentiment as production cuts and technological advancements take effect [7]. - The low-fee photovoltaic ETF (516290) is highlighted as a favorable investment option, with management fees significantly lower than the market average [7].