What is Growth Strategy and Future Prospects of Longi Green Energy Technology Company?

In 2024, the company allocated CNY 5.014 billion to research and development, representing 6% of its total revenue. This substantial investment underscores its commitment to technological leadership.

The company holds over 3,300 patents, with more than 400 specifically focused on Back Contact (BC) technology. This extensive patent portfolio highlights its innovative output.

A primary innovation focus is the development and mass production of high-efficiency solar cells using BC technology. This includes achieving world-record conversion efficiencies.

In April 2025, a world record of 27.81% conversion efficiency was achieved for its HIBC crystalline silicon solar cell, verified by ISFH. This builds on a previous record of 27.3% from May 2024.

The company also set a new world record of 34.85% efficiency for crystalline silicon-perovskite tandem solar cells, certified by NREL in April 2025. This technology is key for future ultra-high-efficiency cells.

Globally shipped HPBC 2.0 modules now lead in mass production efficiency, reaching up to 24.8%. Future projections aim for BC cell efficiency to reach 28.5% and module efficiency over 26% within 3-5 years.

In the first quarter of 2025, Longi reported revenue of CNY 13.652 billion, with a net loss of CNY 1.436 billion. This indicates a continued, though potentially narrowing, financial challenge as the company works through its recovery strategy.

Longi's commitment to cost efficiency is demonstrated through its implementation of zero-based budgeting and numerous cost-reduction initiatives. These efforts have positioned the company to achieve industry-leading cost efficiency across its product lines, a key factor in its long-term growth strategy.

A critical component of Longi's financial recovery involves enhanced inventory management. By reducing inventory impairment losses, the company aims to stabilize its financial position and improve overall profitability, supporting its future prospects in the solar market.

The strategic emphasis on BC modules, which are expected to constitute over 25% of total shipments in 2025, highlights Longi's focus on high-value products. This product mix shift is intended to bolster revenue and improve margins as part of its long-term growth strategy.

The company's ambitious shipping targets for silicon wafers and PV modules in 2025 underscore its confidence in market demand and its manufacturing capabilities. These projections are vital for understanding Longi solar growth predictions and its competitive positioning.

Longi's strategic initiatives align with the broader trends in the renewable energy market, positioning it to capitalize on the future of solar energy technology. Its ability to adapt and innovate will be key to its sustained expansion and market share growth.

The solar panel manufacturing sector, particularly in China, has experienced substantial overcapacity. This led to a collective industry loss in 2024, the first since 2016. Longi itself projected losses of up to $1.2 billion for 2024 due to this imbalance and falling product prices.

Changes in international trade policies, such as increased tariffs in key markets like the United States, create uncertainty and raise costs. Previous investments in Vietnam to serve the U.S. market were significantly impacted by evolving U.S. duty policies, leading to production suspensions.

Rapid technological advancements in solar energy, while beneficial overall, can render older production technologies obsolete. This necessitates continuous investment in upgrades and can lead to asset impairments for older manufacturing capacities, such as PERC technology.

Internal factors, including resource constraints and management decisions, have also presented challenges. Underperformance of new products and the need to navigate an industry-wide 'deep adjustment' period have been acknowledged by the company.

The company's 2024 annual report indicated a significant year-on-year decline in revenue and a substantial net loss. These results were directly attributed to the prevailing market conditions, including insufficient capacity utilization and the sustained drop in photovoltaic product prices.

Management views 2024 as a particularly challenging year for the industry. The company is implementing an 'asset-light strategy' and focusing on technological enhancements to overcome these difficulties and prepare for anticipated industry growth in 2025.