LONGi profits increase despite ‘moderate’ capacity utilisation rate adjustments in H1

While downstream demand remained ‘under pressure’, LONGi reported more favourable conditions in its upstream solar segment. Image: LONGi.

LONGi Solar recorded a 21% leap in net profit in the first half of the year despite what it described as a “moderate” adjustment to capacity utilisation rates in the wake of market demand.

The ‘Solar Module Super League’ (SMSL) manufacturer reported total module shipments in the first half of the year of 17GW, but said it had adjusted the capacity utilisation rate of its facility and adapted total output in order to meet much-discussed market demand.

As upstream raw material and component pricing – along with shipping and logistic costs – has soared since the start of the year, end market demand has contracted somewhat with many developers reporting project pushbacks in anticipation of normalised pricing. However recent weeks have seen costs increase slightly once more, with demand expected to rebound from September onwards.

Reporting its H1 2021 results today, LONGi said downstream demand remained “under pressure”, causing the SMSL member to respond by adjusting its output.

Demand upstream, however, remained strong, with the sale of solar wafers increasing by 36.5% year-on-year to 38.36GW, around 18.8GW of which was for external clients. Earlier this month LONGi confirmed an increase in the price of its wafers as pricing volatility continued into Q3.

Total group revenues meanwhile rose by 75% year-on-year to RMB35 billion (US$5.4 billion), while total gross margin stood at 22.73%, an increase on that reported in H1 2020.

Overseas sales accounted for almost half of its sales in the first half of the year.

Net profit attributable to shareholders rose by 21% year-on-year to just under RMB5 billion (US$773 million).

15 September 2022
Bifacial PV modules will be the dominant solar PV technology globally within one or two years; in the utility-scale sector, their market share is already above 70%. This webinar will provide a clear view on the successful implementation of bifacial technology, maximizing system performance and minimising LCoE.
4 October 2022
Solar & Storage Finance USA, the only event that connects developers to capital and capital to solar and storage projects, will be back in November 2022.
29 November 2022
PV ModuleTech EMEA in Madrid on 29-30 November 2022 will address the factors underpinning the changing PV module landscape, gathering together all the key stakeholders across the value-chain from module production to field testing. Join us for presentations from the leading players in the sector, clearly identifying the opportunities and challenges set to impact module supply to Europe and the Middle-East over the next few years.

Read Next

August 10, 2022
Canadian Solar plans to build an integrated PV manufacturing plant in Western China, with a capacity of 200,000MT of high-purity polysilicon, 10GW of both cells and modules and multi-GW productions of raw and auxiliary materials.
August 3, 2022
Global investment in renewable energy reached a record half-year figure of US$226 billion in H1 2022, driven by soaring demand for clean energy technologies amid the ongoing energy and climate crisis, according to a BloombergNEF (BNEF) report.
PV Tech Premium
August 1, 2022
China’s polysilicon price finally stabilised this week, according to the Silicon Industry Branch of the China Nonferrous Metals Industry Association, following several long-term contracts being signed, helping to reduce market volatility in the short-term.
July 29, 2022
Thin-film module manufacturer First Solar will consider expanding its production footprint in the US if proposed legislation that includes manufacturing credits becomes law, the company’s CEO has said.
July 27, 2022
Solar wafer and cell prices have risen once again this week, with the price of polysilicon continuing to climb unabated.
July 26, 2022
UK-based energy group Octopus Energy has raised US$550 million to invest in renewables-enabling technologies and solutions.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
September 7, 2022
15:30 AEST (UTC +10)
Solar Media Events
September 14, 2022
Solar Media Events
October 4, 2022
New York, USA
Solar Media Events
October 11, 2022
Virtual event