Despite COVID-19 impacting businesses in the first half of 2020, vertically integrated solar company LONGi managed to increase its net profit of RMB 4.116 billion ($598 million) by 104.83% on an annual basis. A year back, the Chinese company’s net profit was RMB 2.01. billion (see LONGi Earned RMB 2.01Bn Net Profit In H1/2019).

Its revenues during the period added up to RMB 20.14 billion ($2.93 billion), increasing by 42.73% over previous year. Domestic revenues accounted for 62% of operating revenues of LONGi while overseas revenues represented 38%. It invested RMB 1.06 billion ($155 million) in research and development that accounted for 5.29% of its current operating income.

According to the management, the company scored during the reporting quarter due to its monocrystalline production capacity coming online and strong demand for its high efficiency products. End of June, it introduced a new module product – HiMO5 based on 182 mm wafers above 500 W, which presented at the recent TaiyangNews 500W+ Conference (see TaiyangNews 500W+ Conference: LONGi Solar). It also managed to increase its monocrystalline module and wafer sales compared to previous year.

The company’s external sales of monocrystalline silicon wafers was 14.98% with 2,469 billion pieces sold and monocrystalline modules worth 6.578 GW were sold externally representing growth of 106.04% over previous year. It sold 338 MW monocrystalline solar cells externally.

LONGi increased the production of wafers in H1/2020 by 54.14% with a total of 4.4 billion pieces and by 124.59% for monocrystalline modules manufacturing over 8 GW.

At the end of June 2020, its annual production capacity of monocrystalline silicon wafers was about 55 GW and that of monocrystalline modules around 25 GW – that’s 31% and 79% more than end of last year. It completed the acquisition of PV cells and modules capacity in Vietnam to increase its overseas production capacity and  also avoid the foreign trade barriers in the global PV industry to improve its overall competitiveness.

Digital newspaper El Periodico de la Energia referred to a statement issued by LONGi Solar to say the company has warned solar developers to prepare for module supply constraints and short-term price volatility in the coming quarter with tight supply situation of polysilicon globally due to Tongwei, Daqo New Energy and GCL-Poly affected by accidents. LONGi recently increased wafer prices several times in a row (see China PV News Snippets: LONGi, Zhonghuan Solar)

LONGi Vice President Dennis She said since most large scale PV projects place their module orders 6 months before delivery, so the ones expecting their supplies in late 2020 or early 2021 may have to reassess their project budgets to account for current increases. Or else projects may be pushed back.

It is echoing the sentiments of Daqo New Energy that recently said polysilicon demand is likely to outstrip supply over 15 months to 18 months (see Daqo Sold More Polysilicon Than Guided In Q2/2020).