LONGI Green Energy Technology, one of the world’s biggest solar manufacturers, said it expects to post a first-half loss amid fierce competition and price wars in the sector.
The Chinese company forecast a net loss of 4.8 billion yuan (S$891 million) to 5.5 billion yuan, compared with net income of 9.2 billion yuan in the same period last year, Longi said in an exchange filing on Tuesday (Jul 9).
Longi said the “mismatch” of supply and demand in the solar industry led to a significant drop in prices for its major products, resulting in no revenue increase even as volume sales rose.
China’s world-leading solar industry is grappling with a deepening glut after production outstripped demand in recent years. JA Solar Technology this week reported a preliminary loss for the first half of 800 million yuan to 1.2 billion yuan.
Beijing has responded to calls for help from beleaguered solar manufacturers, promising to guide capacity expansions and avoid redundant investments. In June, the National Energy Administration pledged it will monitor solar factory utilisation and expansion plans to help improve market conditions.
Longi shares have plunged 42 per cent this year to 13.16 yuan in Shanghai, down from a peak of more than 73 yuan in 2021. BLOOMBERG
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