LONGi sets record revenue and shipments in 2018 as solar industry transitions to mono products

Facebook
Twitter
LinkedIn
Reddit
Email
LONGi overseas monocrystalline solar module shipments increase 370% in 2018  Image: LONGi Group

Leading monocrystalline wafer producer and ‘Solar Module Super League’ (SMSL) member LONGi Green Energy Technology continued to ride the industry wave in the transition to high-performance mono-based products in 2018, with overseas mono-module sales volume of 1,962MW, a year-on-year increase of 370%.

LONGi reported full-year 2018 financial results that set several new financial and product-related shipment records for the company. 

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

LONGi reported full-year revenue of RMB21,987 million (US$3.27 billion) in 2018, up 34.38% from the prior year, a new annual revenue record for the company and one of only a handful of PV manufacturers that increased revenue over the prior year.

LONGi reported full-year revenue of RMB 21,987 million (US$3.27 billion) in 2018, up 34.38% from the prior year.

Increased mono product shipments were the cornerstone of the record revenue, which has been set in over seven consecutive years. 

The company also reported record revenue for the fourth quarter of 2018 of RMB7,316 million (US$1,086 billion). 

LONGi reorted record revenue in the fourth quarter of 2018

In 2018 the company achieved 3.383 billion (pieces) of monocrystalline wafer shipments, a year-on-year increase of 59% compared with 2017. 

This included 1.966 billion wafers being sold to external customers, providing revenue of approximately RMB6,115 million (US$908 million), an increase of 6.31% from the previous year, despite significant monthly ASP declines. Mono wafer gross margins average 16.27% in 2018.

Mono module shipments reached 7,072MW, a new record high, while module sales almost reached 6GW (5,991MW), also a new record.

LONGi reported PV module shipments of 7,072MW in 2018.

The increased mono product shipments and sales contrasted with the decline in downstream PV installations in China as a result of the ‘531 New Deal’ as the global PV industry transitions to high-efficiency mono products.

On a regional basis, combined product sales actually increased in China in 2018. LONGi reported a 21.48% increase in sales in China, compared to 2017, resulting in revenue of RMB11,481 million (US$1.704 billion).

The company also benefited from an increase in PV power plant electricity generation revenue (US$118.3 million) as well as EPC revenue of around US$101.2 million in 2018.

The Asia Pacific region was the second largest market, generating sales of RMB3,414 million (US$506.9 million), up 43.81% from the previous year.

Coming from a smaller sales footprint in the Americas, LONGi module sales increased 103.9% to RMB1,433 million (US$212.8 million) in 2018. 
Sales in Europe were RMB764.4 million (US$113.5 million) in 2018, an increase of 239.8%, compared to 2017.

On a regional basis, combined product sales actually increased in China in 2018. LONGi reported a 21.48% increase in sales in China, compared to the 2017, resulting in revenue of RMB 11,481 million (US$ 1.704 billion).

However, LONGi was not immune from the product (wafer, cell and module) ASPs declines due to the impact from the 531 New Deal. As a result, annual net profits declined 32.36% to RMB 2,557 million (US$ 379.8 million) in 2018. 

LONGi was not immune from the product (wafer, cell and module) ASPs declines due to the impact from the 531 New Deal. As a result, annual net profits declined 32.36% to RMB 2,557 million (US$ 379.8 million) in 2018.

The profit decline was limited, due to the significant increase in product sales, manufacturing scale and cost reductions as well as technological advancements and product upgrades in the year but also hampered by the impact of provisions for inventory depreciation.

LONGi reported that the average unit non-silicon cost of pulling mono ingots decreased by 10.49% year-on-year. The average unit non-silicon cost decreased by 27.81% year-on-year, while the average conversion efficiency of mass production PERC cells reached 22.2%, and the average power output of mass production mono-PERC (60-cell) modules reached 305Wp to 310Wp.

On a quarterly basis, profits were only higher in the first quarter of 2018, compared to the previous year. However, profit levels were the highest in the fourth quarter of 2018 (RMB 866.7 million (US$ 128.7 million) in 2018), after setting a low in the previous quarter.

LONGi's profit levels were the highest in the fourth quarter of 2018 after setting a low in the previous quarter.

Manufacturing update

By the end of 2018, the company's monocrystalline silicon wafer production capacity had reached 28GW. Monocrystalline solar cell capacity stood at 5GW, while monocrystalline module production capacity had reached 8.8GW at its subsidiary, LONGi Solar. 

By the end of 2019, the capacity of ingot/wafers is expected to reach 36GW, cell capacity is planned to reach 10GW and module capacity is expected to reach 16GW.

LONGi also outlined its production capacity planning for the next three years (2019-2021), which includes achieving 65GW of mono ingot/wafer production capacity by the end of 2021.

Monocrystalline cell capacity is planned to reach 20GW by the end of 2021, while the capacity of mono modules is planned to reach 30GW by the end of 2021.

LONGi also outlined its production capacity planning for the next three years (2019-2021), which includes achieving 65GW of mono ingot/wafer production capacity by the end of 2021.

The company also set a new industry record in relation to R&D expenditure, the second consecutive year of doing so. LONGi reported R&D expenditure of RMB1,230 million (US$182.74 million).

LONGi reported R&D expenditure of RMB 1,230 million (US$ 182.74 million).
21 May 2024
Napa, USA
PV Tech has been running PV ModuleTech Conferences since 2017. PV ModuleTech USA, on 21-22 May 2024, will be our third PV ModulelTech conference dedicated to the U.S. utility scale solar sector. The event will gather the key stakeholders from solar developers, solar asset owners and investors, PV manufacturing, policy-making and and all interested downstream channels and third-party entities. The goal is simple: to map out the PV module supply channels to the U.S. out to 2025 and beyond.
8 October 2024
San Francisco Bay Area, USA
PV Tech has been running an annual PV CellTech Conference since 2016. PV CellTech USA, on 8-9 October 2024 is our second PV CellTech conference dedicated to the U.S. manufacturing sector. The event in 2023 was a sell out success and 2024 will once again gather the key stakeholders from PV manufacturing, equipment/materials, policy-making and strategy, capital equipment investment and all interested downstream channels and third-party entities. The goal is simple: to map out PV manufacturing in the U.S. out to 2030 and beyond.
26 November 2024
Málaga, Spain
Understanding PV module supply to the European market in 2025. PV ModuleTech Europe 2024 is a two-day conference that tackles these challenges directly, with an agenda that addresses all aspects of module supplier selection; product availability, technology offerings, traceability of supply-chain, factory auditing, module testing and reliability, and company bankability.
11 March 2025
Frankfurt, Germany
The conference will gather the key stakeholders from PV manufacturing, equipment/materials, policy-making and strategy, capital equipment investment and all interested downstream channels and third-party entities. The goal is simple: to map out PV manufacturing out to 2030 and beyond.

Read Next

Subscribe to Newsletter

Upcoming Events

Solar Media Events
May 21, 2024
Sydney, Australia
Solar Media Events
May 21, 2024
Napa, USA
Solar Media Events
May 22, 2024
London, UK
Upcoming Webinars
May 29, 2024
11am (EDT) / 5pm (CEST)