LONGi Improved 2019 Revenues By Close To 50%

Growing Net Profit & Revenues For 2019 On Annual Basis, LONGi Green Energy Expects Over 75 GW Monocrystalline Silicon Wafer Production Capacity By 2020-End
07:12 AM (Beijing Time) - 24. April 2020
Presentation1

The year 2019 turned out to be a good one for LONGi Green Energy - it increased both its revenues as well as net profit. Even the year 2020 has started on a healthy note as the vertically integrated module maker improved both revenues and profit on an annual basis in Q1/2020. (Source: LONGi Green Energy Technology)

Key Takeaways

  • LONGi Green Energy’s revenues in 2019 grew close to 50% YoY with total solar cell and module shipment of over 9 GW
  • Q1/2020 revenues went up 50.60% and net profit increased by a whopping 205.07%
  • Management has guided for annual revenues of RMB 49.6 billion in 2020
  • Monocrystalline wafer production capacity till 2019-end reached RMB 42 GW and the company expects it to exceed 75 GW by the end of 2020
  • Module production capacity of 14 GW till the end of last year is planned to go beyond 30 GW by the end of 2020

LONGi Green Energy Technology ended the year 2019 with a monocrystalline wafer production capacity of 42 GW, which is just 3 GW shy of its previously provided 45 GW goal for this technology to be achieved by 2020. It later revised this target to 65 GW of ingot/wafer capacity by the end of 2021.

The Chinese company now says it expects its monocrystalline silicon wafer production capacity to reach over 75 GW by the end of 2020, and hitherto 14 GW module production capacity will exceed 30 GW of which 166 mm large size high-efficiency modules will exceed 20 GW. The company is doing away with mass production of M2 wafer sizes, instead going in for larger wafer formats showing its preference for M6 wafers (see LONGi Stops Mass Production Of M2 Wafer Size).

For its monocrystalline wafers, LONGi refers to third-party data to claim the company accounted for 40% of global production capacity last year.

The company said it shipped 9.08 GW of solar cells and modules in 2019 and 6.548 billion pieces of mono wafers, improving its performance by 28% and 88% YoY, respectively. LONGi states, “Overseas shipment share of monocrystalline modules reached over 60%, rising by more than 154.59% year-on-year to 4.99GW, accounting for more than half of total shipment.”

On the financial front, LONGi reported annual growth of 49.6% in revenues to a total of RMB 32.897 billion ($4.66 billion) with net profit of RMB 5.28 billion ($747 million). The net profit was close to the higher end of its guidance offered in January 2020 of up to RMB 5.3 billion (see LONGi Revises Net Profit Guidance For 2019).

In Q1/2020, LONGi’s revenues grew 50.6% YoY to RMB 8.599 billion ($1.2 billion) with net profit going up 205% over the same period to RMB 1.864 billion ($263.7 million). The company invested RMB 1.677 billion ($237 million) in research and development activities last year.

LONGi Green Energy has guided for its 2020 revenues to reach RMB 49.6 billion ($7.02 billion).

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews

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Anu Bhambhani