Vertically integrated solar PV manufacturer from China, LONGi Green Energy Technology improved operating income, net profits and its total solar module shipments in H1/2022 to 18.02 GW, up from 17.01 GW during the same period in 2021, however admits to some impact from US trade policies and investigations.
Of the 18.02 GW module shipments, 17.70 GW was sold externally including 87.35 MW sales of building integrated PV (BIPV) modules, and 320 MW for own use. The world's largest solar wafer manufacturer, LONGi shipped 39.62 GW monocrystalline silicon wafers in H1/2022 with 20.15 GW sold externally and 19.47 GW for self-use.
Its total operating income during the reporting period was RMB 50.4 billion having gone up 43.64% annually, while net profit rose 29.79% to RMB 6.48 billion, settling at the same levels as shared by the company on a preliminary basis (see Good Financial Results For LONGi In H1/2022).
High polysilicon prices and fluctuation in downstream demand affected the business as well.
In a stock exchange announcement to share the results, LONGi blamed the anti-circumvention investigation in the US, which finally ended happily for all manufacturers shipping to the country from Southeast Asia, and the impact of Uyghur Forced Labor Prevention Act (UFLPA) as reasons for its Hong Kong warehousing costs increasing and reaching RMB 465 million.
The management explained, "It was disturbing to come extent, but the company adjusted its business strategy in a timely manner and shifted its sales focus to other important markets such as Europe."
Pointing at the current trend of long term solar module supply contracts, LONGi reflected on global supply chain disruption that can make it difficult for a company to fulfil its commitments especially since prices and logistics efficiency cannot be guaranteed. In addition, some supply chain companies have had to shut shop due to the impact of COVID-19 pandemic.
"Logistics has been greatly restricted, and logistics and procurement costs have risen sharply, which has increased management difficulties for production organization and product transportation," explained LONGi. "Therefore, if a company cannot establish a competitive supply chain management capability, it may face the risk of supply chain volatility."
The Chinese manufacturer has not shared any updates regarding its annual production capacity that was reported at the end of 2021 as 105 GW for wafers, 37 GW cells and 60 GW modules. By the end of 2022, it has plans to increase the same to 150 GW, 60 GW and 85 GW respectively (see LONGi Shipped 38.52 GW Solar Modules In 2021).
Recently, the company updated its 20 GW monocrystalline silicon wafer capacity addition plans to 46 GW in Inner Mongolia's Ordos (see LONGi Expanding Ingot & Wafer Capacity By 26 GW).