LONGi Expecting Major Boost In Net Profit For 2020

LONGi Green Energy Technology Releases Earnings Forecast For 2020: Expects Annual Increase Of 55.30% To 62.88% In Net Profit Worth RMB 8.2 Billion To RMB 8.6 Billion
11:43 PM (Beijing Time) - 01. February 2021
Presentation1

Having shipped over 20 GW of solar modules during 2020, LONGi said its monocrystalline silicon wafer business also grew its production as well as sales last year, leading to a healthy 2020 financially. Pictured is a solar project in Bangladesh that LONGi shipped solar modules for. (Photo Credit: LONGi Solar)

Key Takeaways

  • LONGi Green Energy management expects group’s net profit for 2020 to have increased on annual basis by 55.30% to 62.88%
  • Its total net profit for the year is expected to have reached between RMB 8.2 billion to RMB 8.6 billion
  • It attributes the reason for this expected growth to increased module demand both domestically and globally as well as its wafers and modules selling well

LONGi Green Energy Technology Co., Ltd. expects its annual net profit attributable to shareholders of listed companies for the year 2020 to increase by 55.30% to 62.88% in an earnings forecast released by the Chinese integrated solar PV manufacturer in a stock exchange filing.

Total net profit of the group is guided to reach anywhere between RMB 8.2 billion to RMB 8.6 billion ($1.27 billion to $1.33 billion) for 2020.

Management attributes this expected increase to the increase in global demand for new PV installations globally along with improved demand in the domestic market. LONGi said during the reporting period, production and sales of the group’s monocrystalline silicon wafers and modules went up significantly though it wouldn’t reveal how much. This in turn brought it steady growth in operating income and profits.

In August 2020, LONGi said its H1/2020 business improved on all fronts with the domestic market accounting for 62% of its operating revenues. It had warned of module supply constraints due to a polysilicon shortage pushing up module prices (see LONGi’s H1/2020 Net Profit Improved Over 104.83%).

The year 2020, despite the COVID-19 pandemic, turned out to be an eventual one for LONGi as it shipped more than 20 GW modules in a single year, replacing JinkoSolar as the top module supplier for the year on PV InfoLink’s top 10 ranking (see LONGi Largest Solar Module Supplier In 2020).

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews

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Anu Bhambhani