Solar tech company LONGi posts continued revenue, production growth in 2020 despite pandemic

LONGi, the world leading solar technology company, has released its 2020 annual report to shareholders worldwide, showing continued revenue growth and significant increase in global shipments. 

During 2020, the company continued with its customer value-oriented approach, providing reliable and efficient products and services to the market. 

LONGi is a manufacturer of PV products and solar power technology solutions. It is the exclusive module supplier of the 232MW integrated wind and solar power plant in Ilocos Norte, the largest in the Philippines, as well as for another 50MW project to be completed in 2021.

According to the annual report, LONGi achieved 2020 operating revenue of 54.583 billion yuan ($8.416 billion), a year-on-year increase of 65.92%. Net profit attributable to the parent company during the period was 8.552 billion yuan ($1.319 billion), a year-on-year increase of 61.99%, while net profit attributable to the shareholders of the listed company after deduction of non-recurring gains and losses was 8.143 billion yuan ($1.256 billion), a year-on-year increase of 59.87%. 

In Q1 2021, LONGi reported operating revenue of 15.854 billion yuan ($2.413 billion), up 84.36% from 8.599 billion yuan ($1.309 billion) in the same period last year. Net profit was 2.502 billion yuan ($0.381 billion), up 34.24% compared with 1.864 billion yuan ($0.284 billion) in the equivalent period in 2020. Net profit, excluding non-recurring gains and losses (referred to as non-net profit deduction) was 2.421 billion yuan ($0.368 billion), up 37.46% year on year.

Globalization strategy accelerated overseas business expansion and sales performance 

In 2020, based on the pillars of quality, cost and brand, LONGi fulfilled market demand for mono products. Sales of mono wafers and modules increased significantly year on year, with steady growth in operating revenue and profits.

1. Wafer production and sales have grown steadily and shipment levels remain No.1 globally

In 2020, as a result of long-term orders, improving supply and production capacity and appropriate price adjustments, LONGi achieved wafer shipments of 58.15GW, with external sales of 31.84GW and 26.31GW for internal use, a year-on-year growth of 25.65%.  The company maintained its position as the world's largest silicon wafer supplier with a market share of around 46% and retained its status as the world's largest mono-crystalline PV manufacturer. According to the China Photovoltaic Industry Development Roadmap (2020 Edition) published by the Chinese Photovoltaic (CPIA), the share of monocrystalline in 2020 has risen to 90.2%, up more than 20 percentage points from 2019.

2. Module production and sales have increased significantly and shipments rank No.1 globally

LONGi achieved shipments of 24.53GW for its mono-crystalline modules, of which external sales accounted for 23.96GW, up 223.98% year on year. Internal use was 0.57GW. According to PV InfoLink, the company’s shipments placed it No.1 in the world, with a market share of 19%, an increase of 11% from 2019.

Technical Innovations in line with product leading strategy and heavy investment in R&D

In 2020, LONGi invested 2.592 billion yuan in R&D, accounting for 4.75% of revenue and has secured a cumulative total of 1,001 authorized patents. The company has an R&D team of more than 800 people.

The rapid progress of newly built facilities ensured advanced product supply and significant increase of global market share

Despite the impact of the pandemic and the imbalance between supply and demand, LONGi accelerated its growth in production capacity. The annual report highlighted that, by the end of 2020, the company’s monocrystalline wafer, cell and module production capacities had reached 85GW, 30GW and 50GW respectively. The company estimates that its wafer, cell and module production capacities will reach 105GW, 38GW and 65GW in 2021.

Wafer and module production capacity both ranked first in the world. According to BloombergNEF statistics, at the end of 2020 wafer production capacity had accounted for 41% of the world's total capacity.