Core Viewpoint - Longi Green Energy is strategically focusing on Back Contact (BC) technology, which is expected to play a crucial role in the future of the photovoltaic industry [3][4]. Group 1: BC Technology Development - Longi Green Energy has established BC technology as the core product line for future development, emphasizing its competitive advantages such as higher power output and efficiency [4][5]. - The company has reported that the maximum mass production power of its HPBC second-generation components has reached 670W, which is over 30W higher than the mainstream TOPCon components [4][5]. - Longi's commitment to R&D is evident, with a planned investment of 5 billion yuan in 2024, representing 6.07% of its revenue, focusing on BC batteries and other advanced technologies [5][11]. Group 2: Industry Challenges and Responses - The photovoltaic industry is currently facing significant challenges, including a price war that has led to a more than 40% drop in component prices and a squeeze on profit margins [4]. - Longi Green Energy views the current crisis as an opportunity for transformation, launching deep structural changes in product, cost, and capacity investments [4][10]. Group 3: BC Ecosystem and Collaboration - Longi Green Energy has initiated the construction of a BC innovation ecosystem, aiming for open collaboration and mutual benefits with partners [7][9]. - The establishment of the Global BC Collaborative Innovation Center is intended to enhance cooperation and accelerate technological breakthroughs within the industry [10][11]. - The "Crowd Walker Plan" has attracted multiple partners, including Laplace and Shaanxi Xingbei New Energy Technology, to collaborate on R&D and production [8][9]. Group 4: Future Outlook - The BC technology is projected to have significant growth potential, with estimates suggesting that the domestic production capacity could increase from 25GW last year to 45-50GW this year [11]. - Experts believe that there is still over ten times the development space for BC technology, indicating a promising future for companies that can capitalize on this trend [11].

Core Viewpoint - Longi Green Energy has announced the termination of its 2021 convertible bond project in favor of investing in a new high-efficiency monocrystalline battery project, reflecting a shift from scale expansion to technology-driven growth in the photovoltaic industry [1][2]. Group 1: Company Adjustments - Longi Green Energy will redirect 1.08 billion yuan to the "Copper River Longi 12GW High-Efficiency Monocrystalline Battery Project" due to supply-demand imbalances in the photovoltaic industry and the need for commercializing BC (Back Contact) battery technology [1]. - The company faces significant challenges in 2024, projecting revenues of 82.582 billion yuan, a year-on-year decline of 36.23%, and a record net loss of 8.618 billion yuan [1][2]. Group 2: Financial Performance - Longi's asset impairment for the year reached 8.7 billion yuan, with inventory write-downs of 6.128 billion yuan and fixed asset impairment losses of 2.299 billion yuan [2]. - The gross margin plummeted from 18.26% in 2023 to 7.44% in 2024, a drop of 10.82 percentage points [2]. Group 3: Production Capacity and Utilization - Longi's production capacity for silicon wafers, batteries, and modules in the first half of 2024 was 170GW, 80GW, and 120GW, respectively, but actual shipments were only 44.44GW for silicon wafers and 31.34GW for modules, indicating underutilization [2]. - The company is experiencing pressure on asset impairment due to technological iterations, with fixed asset impairment losses of 1.6 billion yuan in 2023 and an additional 5.784 billion yuan in the first half of 2024 [2][3]. Group 4: Technological Challenges - The promotion of BC technology faces challenges, including initial mass production delays and higher costs compared to TOPCon technology, which may affect market acceptance [3]. - Longi's founder, Li Zhenguo, has stepped down from executive roles to focus on technology research, raising concerns about family governance [3]. Group 5: Market Dynamics - Longi's recent strategic missteps, including pricing strategies during silicon material price fluctuations, have negatively impacted its market share and profitability [3]. - The photovoltaic industry is undergoing a transition from overcapacity and asset impairment to a focus on technological advancement, with the future success of Longi hinging on the commercialization of BC technology and the development of new energy sectors like hydrogen [3].