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.
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.
Ingot and Wafer: Key quality indicators continue to be optimized, with non-silicon costs further reduced and quality for large size and N type wafers enhanced.
Solar cell and module: Cell conversion efficiency for mass production reached top level. The development and mass production of Hi-MO5 series products has been achieved, with module efficiency reaching 21% in mass production.
Other innovations: LONGi launched the Intelligration Pro+5.0 Solution for utility projects and released a roof product for BIPV.
The rapid progress of newly built facilities ensured advanced product supply and significant increase of global market share
Despite the impact of the epidemic 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.
Awards validate LONGi’s world renowned brand and product quality
According to PV Tech’s ModuleTech Bankability rankings, LONGi has been the sole AAA-rated module supplier for four consecutive years. The company also holds the highest score in BloombergNEF’s Altman-Z chart for module manufacturers.
In 2020, the company was awarded “PV Top Brand” status by EuPD Research in Australia, Spain and the Netherlands.
In RETC’s “PV Module Index Report 2020”, LONGi was recognized as “Overall High Achiever” and was the only company to achieve excellent results in 8 individual tests.
In 2020, LONGi initiated the “Zero Carbon Solar” concept, becoming the first company in the PV industry to join the global RE100, EV100, EP100 and SBTi initiatives.
Looking into the future, LONGi will assume increasing responsibility for global sustainability
In 2021, LONGi will retain its business policy of “Advanced Products, Efficient Operation, Realistic Collaboration & Stable Management.” The company will also improve management efficiency and create new opportunities by using digital transformation, enhancing competitiveness of the industrial chain by focusing on collaborative innovation.
**Notes: The financial figures in the FY2020 and Q1 2021 reports are denominated in Chinese Yuan (CNY). The converted USD amount is for reference only.
1. USD-Chinese Yuan exchange rate of 1:6.4853 is used in the 2020 Annual Report
2. USD-Chinese Yuan exchange rate of 1:6.5713 is used in the Q1 2021 report