LONGi Green Energy Technology (601012) Q3 2024 earnings summary

Executive summary

• Q3 2024 saw a significant downturn, with revenue dropping 31.87% year-over-year to RMB 20.06 billion and a net loss attributable to shareholders of RMB 1.26 billion, reflecting a 150.14% decline from the same period last year.

• The company attributes the losses to a sharp decrease in product prices across the photovoltaic (PV) industry and increased asset impairment losses.

• Strategic adjustments were made to product shipments in response to market fluctuations, with wafer shipments down 4.22% year-over-year and module shipments of 51.23GW, including a 17.7% increase in BC module shipments.

Financial highlights

• Revenue for the first nine months of 2024 was RMB 58.59 billion, down 37.73% year-over-year.

• Net profit attributable to shareholders for the same period was a loss of RMB 6.50 billion, a 155.62% decline year-over-year.

• Basic and diluted EPS for Q3 were both -0.17 RMB, and -0.86 RMB for the first nine months, down over 150% year-over-year.

• Net cash flow from operating activities for the first nine months was negative RMB 8.37 billion, a 189.17% decrease year-over-year.

• Total assets at quarter-end were RMB 155.19 billion, down 5.35% from the end of 2023.

Outlook and guidance

• The company is committed to advancing BC technology and increasing market penetration of high-efficiency BC products, with plans to steadily expand HPBC 2.0 capacity.

• Ongoing market volatility in the PV sector is expected to continue impacting pricing and profitability.