LONGi 1H-2019 semi-annual report to show financial excellence, technology leadership and scale in production

LONGi, the world’s most valuable solar technology company with its corporate headquarters in Xi’an, China, released its 2019 semi-annual report to shareholders, reporting stellar financial results and significant capacity achievements.

Strong operating performance

Operation revenue in 1H-2019 reached 14.11 billion yuan ($2081 million), a YoY increase of 41.09%. Net profit attributable to shareholders of the listed company was 2.01 billion yuan ($ 296.46 million). Basic earnings per share were 0.57 yuan (8.41 US-cents) and weighted average return on equity was 10.17%.

At the end of the reporting period, LONGi’s total assets reached 51.616 billion yuan ($7.61 billion). Its asset-liability ratio was 56.54%, down from the first quarter 2019. Compared to Q1-2019, days of inventory decreased by 18 days and accounts receivable decreased by 19 days.

In 1H-2019, LONGi shipped 2.148 billion pieces monocrystalline silicon wafers, a 183% increase over the previous year. Sales of cells and modules reached 712MW and 3,193MW respectively, a 21% YoY increase.

Significant inroads overseas 

The proportion of LONGi monocrystalline module sales to overseas markets increased significantly, with 2.423GW shipped to international markets, an increase of 252% over the previous year.

LONGi’s dedication to monocrystalline technology and leadership in the cost-performance ratio of monocrystalline modules gained traction as global monocrystalline market share continues to increase. PV InfoLink data of July 2019 projected the global market share for global monocrystalline to increase to 62% in 2019, with further growth trajectory.

Leading the industry with M6 (166mm) silicon wafer and high power Hi-MO4 module

In 1H-2019, LONGi introduced the M6 (166mm) silicon wafer that significantly improves the energy yield of cells and modules. M6 reduced the manufacturing cost per watt and is expected to become the standard size of the next generation monocrystalline silicon wafers.

Together with the launch of the M6 silicon wafer, LONGi unveiled the high power Hi-MO4 bifacial PERC module with half-cut cell technology. Based on M6 wafer with cell efficiency up to 22.5% and front power up to 440W, Hi-MO 4 would further reduce BOS cost and lower the LCOE.

To date, LONGi has received more than 2GW in its order books for Hi-MO4.

Production capacity schedule advanced for greater economies of scale

LONGi has previously stated in its three-year capacity plan that:

Monocrystalline silicon rods and silicon wafers will reach 36GW by end-2019, 50GW by end-2020 and 65GW by end-2021. 
Monocrystalline cells capacity will reach 10GW by end-2019, 15GW by end-2020 and 20GW by end-2021.
Monocrystalline modules capacity will reach 16GW by end-2019, 25GW by end-2020 and 30GW by end 2021. 

The company’s current projection is that the production capacity of silicon wafers will be reached one year ahead of schedule, achieving 65GW by the end-2020.

In the first half of 2019, LONGi successfully completed Phase 1 of its 10 GW monocrystalline silicon wafer production facility in Chuxiong, Yunnan Province. Phase 2 constructions have been accelerated, to further consolidate economies of scale and match the market demand for high efficiency monocrystalline wafers.

In additional, LONGi has also successfully commissioned a 5 GW monocrystalline module facility in Chuzhou, Anhui Province.

R&D investment and technological innovation

The report showed sustained R&D investments for the development of new technologies and products in LONGi. In 1H-2019, LONGi invested 781 million yuan($115.19 million) in R&D, accounting for 5.53% of operation revenue. At the end of the reporting period, LONGi has registered 568 patents.

LONGi further reduced the non-silicon cost of products through technological innovations, process improvement and production management. In 1H-2019, non-silicon cost decreased by 31.75% over the previous year.

LONGi will continue to invest in technology and the development of best quality product with proven reliability

Note: The USD-Chinese Yuan exchange used is 6.78, which is the rate published by the China State Administration of Foreign Exchange at the close LONGi’s 1H-2019 reporting period.

Story Source: LONGi

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