LONGi Green Energy Technology (601012) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 was RMB 38.53 billion, down 40.41% year-over-year due to sharp price declines in the PV industry.

• Net profit attributable to shareholders was RMB -5.24 billion, a significant reversal from RMB 9.18 billion profit in H1 2023.

• The company faced industry-wide overcapacity, falling prices, and global trade barriers, leading to operational and financial challenges.

• Despite the downturn, the company maintained global leadership in mono wafer shipments and advanced its BC technology platform.

Financial highlights

• Revenue: RMB 38.53 billion, down 40.41% year-over-year.

• Net profit: RMB -5.24 billion, compared to RMB 9.18 billion in H1 2023.

• Net cash flow from operating activities: RMB -6.41 billion, down 223.4% year-over-year.

• Basic EPS: RMB -0.69, down from RMB 1.21 in H1 2023.

• Gross margin and profitability were severely impacted by inventory write-downs and price declines.

Outlook and guidance

• The company expects continued industry adjustment with ongoing price pressure and overcapacity.

• Plans to scale up BC technology, with BC cell capacity expected to reach 70GW by end-2025.

• Focus on cost control, technology innovation, and global supply chain resilience.