XI’AN, China : In the first half of 2022, LONGi’s operating performance steadily increased, reaching consolidated operating income of 50.417 billion yuan, an increase of 43.64% over the previous year.
last year Net profit attributable to shareholders of the listed company was 6.481 billion yuan, an increase of 29.79% over the previous year, among which the net profit attributable to shareholders of the listed company, excluding non-recurring gains and losses, was of 6.405 billion yuan, an increase of 30.58% over the previous year, and basic earnings per share stood at 0.86 yuan , an increase of 30.3% over the previous year.
Enhanced product competitiveness and rapid growth in overseas revenue
In the first half of 2022, LONGi shipped 39.62GW of monocrystalline silicon wafer, of which 20.15GW was sold externally and 19.47GW for internal use. Shipments of monocrystalline modules reached 18.02GW, of which 17.70GW were sold externally (including 87.35MW of BIPV modules) and 0.32GW for internal use. Although the US market is impacted by the WRO (Withhold and Release Order) and the increase in storage costs, the company has timely adjusted its operational strategy by shifting its sales focus to other key markets such as Europe. With a high quality product, brand recognition and long-term channel development, LONGi has maintained good competitiveness and its overseas business has also developed rapidly.
The data show that in the last three years (2019-2021), LONGi’s revenue growth abroad was 38.38%, 39.32% and 46.89% respectively, and the foreign market has become an important field of sales for the company. This year, the European Commission formally launched the “RE Power EU” plan, which aims to increase the share of renewable energy in the energy structure from 40% to 45% by 2030, double installed solar PV capacity to over 320GW by 2025 and close of 600GW by 2030. Meanwhile, the Indian market imported almost as many modules in the first quarter alone as during the whole of 2021.
Increased operating cash flow and more sustainability
LONGi’s operating activities generated a net cash flow of 10.698 billion Yuan, an increase of 1162.43% over the same period, as a result of expanding market scale, improving performance and increasing the settlement of notes payable. . Meanwhile, the company’s asset-liability ratio is 57.91%, and its asset-liability ratio is always below 60%. LONGi’s ability to recover funds and repay debt reinforces the company’s ability to finance production expansion and withstand cyclical risks. Since last year, the price of raw materials has been increasing continuously. Under cost pressure, LONGi took the initiative to place long-term orders with strategic customers in order to ensure benefits and value for customers. The company has accelerated the upgrade and smart manufacturing capability, constantly improved production efficiency and smart manufacturing level and reduced operating costs. In the first half of 2022, the company’s comprehensive gross profit margin was 17.61%, and the weighted average return on equity was 12.64%.
On April 24, LONGi officially launched the “Supply Chain Green Partner Empowerment Plan” at the company’s 2022 supplier conference. This conference aims to encourage suppliers to initiate energy conservation and emission reduction actions through training training in carbon management. In June 2022, LONGi launched the industry’s first “Sustainability Week” to promote the philosophy of green, low-carbon development. During this Sustainability Week, LONGi virtually launched its 2021 Sustainability Report worldwide, highlighting the company’s achievements in responding to climate change, pursuing an environmentally friendly attitude and contributing to a carbon-free future. .
Just a day before the reporting period, Fortune released the “2022 China ESG Influence List” and Forbes China also released the “2022 ESG 50 China List”. LONGi earned the top spot on both lists thanks to its consistent efforts and outstanding performance in the field of Environment, Social and Governance (ESG).
Environmental, Social and Governance (ESG), as a system of business structure and philosophy that comprehensively focuses on the business environment, society and governance performance, is regarded as a new path for human beings to achieve sustainable development. . This concept of business value is in line with the social development trend and is fast becoming an important criterion for determining whether a company has social responsibility and sufficient capacity for sustainable development.
Driving innovation in the industry with increased investments in R&D
According to the report, LONGi has developed and registered a variety of new high-efficiency cell and module technologies, seeking advancements in various technologies such as TOPCon type N, TOPCon type P, HJT type N and HJT type P and the company also creatively developed the HPBC (Hybrid Passited Back Contact) cell, continuing to promote the mass production and transformation of new high-efficiency cells and modules. On June 23, LONGi announced a new world record conversion efficiency of 26.5% for its HJT (Silicon heterojunction – HJT) photovoltaic cells. The new record, validated in tests carried out by the Institute for Solar Energy Research (ISFH) in Hamelin, Germany, was achieved on full-size M6 (274.4cm2) monocrystalline silicon wafers,
Regarding the silicon wafer performance requirements demanded by new photovoltaic cell technologies, the company carried out compatible production of raw materials, equipment, auxiliary materials and other links, thus ensuring sufficient technical reserves and guarantee of mass production for the silicon wafer supply for new photovoltaic cell technology.
On July 25, 2022, LONGi’s Central R&D Institute officially started operations at its global headquarters. The LONGi Central R&D Institute is a world-class facility for the company to conduct research and development in the photovoltaic industry. The significance of the company’s R&D project lies in its ability to attract top-notch scientific research talent, advance the transformation and application of scientific research achievements, and accelerate the expansion of the green energy industry.
The company believes that the LONGi Central R&D Institute will attract more than 4000 top scientific research talent, with more than 85% of staff holding a master’s or doctoral degree, and about 20% of staff being leading new energy researchers.
As of the first half of 2022, LONGi has obtained 1,808 authorized patents of various types and invested 3.670 billion yuan in research and development, accounting for 7.28% of operating income. During the reporting period, the loss of fixed assets amounted to 472 million yuan, maintaining the company’s industry-leading quality of equipment and assets.
About LONGi
Founded in 2000, LONGi is a company committed to being the world’s leading solar technology company, focusing on customer-oriented value creation for the total transformation of the energy landscape.
Under its mission of ‘Using Solar Energy, Building a Green World ‘ and brand philosophy ‘Steadfast and Reliable Technology Leadership’, LONGi has dedicated itself to technological innovation and established five business sectors, covering mono-silicon wafers, cells and modules, commercial and industrial distributed solar solutions, green energy solutions and hydrogen equipment. The company has honed its competencies to provide green energy and, more recently, has also adopted green hydrogen products and solutions to support global zero-carbon development.
