LONGi has released its 2021 and Q1 2022 annual reports to global shareholders, revealing that the company has maintained stable operations and achieved significant global shipments of products throughout the period.
The report put LONGi’s operating revenue for 2021 at CNY 80.932 billion, a year-on-year increase of 48.27%. Net profit attributable to the parent company during the period was CNY 9.086 billion, including CNY 8.826 billion of net profit deducted from non-recurring gains and losses attributable to shareholders of listed companies. The consolidated gross margin was 20.19% and the asset-liability ratio 51.31%, down 8.07 percent points from the previous year.
In terms of results for Q1 2022, the company achieved operating revenue of CNY 18.595 billion, up 17.29% compared to the same period in the previous year, and continues to lead the PV industry. LONGi sees significant potential for global energy transition and opportunities linked to the pursuit of worldwide carbon neutrality and has set itself the goal of achieving operating revenue of more than CNY 100 billion in 2022.
Wafer & Module production sees rapid growth and shipments remain No.1 globally
In 2021, LONGi achieved wafer shipments of 70.01GW, split between external sales of 33.92GW and 36.09GW for internal use and shipped 38.52GW of mono-crystalline modules, of which external sales accounted for 37.24GW and internal use 1.28GW. During the reporting period, the company’s global sales performance, market share and brand influence ranked it 1st in the world, with its total shipment volume of domestic and exported modules exceeding 2nd place by more than 10GW.
In Q1 2022, LONGi achieved 18.36GW in mono-crystalline silicon wafer shipments, split between external sales of 8.42GW and 9.94GW for internal use and shipped 6.44GW of mono-crystalline modules, of which external sales accounted for 6.35GW and internal use 0.09GW.
As of the end of 2021, the company’s production capacity for wafers, cells and modules had reached 105GW, 37GW and 60GW respectively, with 2022 capacity targets increased to 150GW, 60GW and 85GW.
LONGi has issued 2022 shipment targets of 90GW-100GW (including internal use) for wafers and 50GW-60GW (including internal use) for modules.
Globalization and localization strategy enables the business market to enter a new phase
As a key player in implementing a globalization and localization strategy, LONGi has achieved a leading position in market share for Greater China, Asia-Pacific, Europe, the U.S., the Middle East & Africa, module sales reaching overall leadership globally in 2020 with the status consolidated in 2021. The company has now established manufacturing facilities and sales networks in more than 150 countries and regions worldwide, employing 49,967 full-time corporate staff, with 9,827 employees outside China’s mainland accounting for 7.59% of the overall total.
With trade disputes (WRO) and other ad-hoc issues having an impact on China’s photovoltaic industry, LONGi’s advantage in not relying on a single market allows it to perform consistently well and meet growth expectations. The completion of the technical transformation of existing production lines will strengthen the overall coordination of global sales in various regions, shorten the in-transit time of products and further increase product shipment levels.
Sustainable investment in technology R&D leads to industry innovation
LONGi maintains a long-term commitment to R&D in technology. From the company’s listing in 2012 to 2021, the compound annual growth rate of operating revenue reached 53.52% and its total revenue increased from CNY 1.71 billion to more than CNY 80 billion, a 47-fold increase. The growth rate of R&D investment over the period is almost synchronous, totaling over CNY 10 billion.
As of 2021, LONGi had secured a total of 1,387 authorized patents and invested CNY 4.394 billion in technology R&D, accounting for 5.43% of revenue, a year-on-year increase of 69.55%. In the past year alone, LONGi has broken the world record for cell conversion efficiency 7 times across various technical disciplines and laid claim to the overall leadership in new high-efficiency cell technologies including n-type and p-type TOPCon and n-type and p-type HJT. The company’s new solar cell technology will be put into production during the third quarter of 2022.
International organisations validate LONGi’s renowned brand and product quality
In 2021, the U.S. Renewable Energy Testing Center (RETC) recognized LONGi as a “High Achiever” for the third consecutive year in its PV Module Index (PVMI) report and LONGi also earned Top Performer status in PVEL’s PV Module Reliability Scorecard.
At Intersolar 2021, LONGi was recognized as the winner in the Photovoltaics category for its high-efficiency Hi-MO 5 (182mm) series module, the award given to companies making a significant contribution to the industry via technological innovation.
In 2021, LONGi was once again recognised at the TÜV Rheinland “All Quality Matters” Solar Congress, with its Hi-MO 4 and Hi-MO 5 high-efficiency modules winning awards for Outdoor Energy Yield (Monofacial Group) and Energy Yield Simulation (Bifacial monocrystalline group) respectively.
Promoting the Environmental, Social and Governance (ESG) concept to achieve sustainability
LONGi actively implements sustainable development efforts. In 2021, the company announced an ambitious pledge at the UN Biodiversity Conference (COP15) to convert the company’s Baoshan production base in Yunnan Province into its first “Net-zero Plant” by 2023. The announcement of the pledge will see the beginning of “Net-zero LONGi” and the establishment of a test field for the company’s “Solar for Solar” sustainable development concept.
2021 also saw LONGi issue its first White Paper on Climate Action at the COP26 summit. According to the document, the company will continue to actively fulfil its commitment to promote the implementation of the four international initiatives, RE100, EV100, EP100 and SBTi.
The 2021 annual report additionally states that LONGi has now reached 40.19% of renewable electricity use in its global operations and reduced greenhouse gas emissions by 1,687,933 tons, via the three disciplines of self-owned power generation facilities, procurement of third-party power generation facilities and contract procurement of green power.
As a socially responsible company headquartered in Xi’an, capital of northwest China’s Shaanxi Province, LONGi donated CNY 10 million to the local government to combat the COVID-19 pandemic. The company also donated CNY 15 million to the people of Henan Province to provide disaster relief following extensive flooding.
Moving forward, LONGi will continue to enhance its product leadership strategy, taking the creation of value for customers as its starting point. The company will drive technological innovation with ambitious goals and continuously work toward the reduction of product cost and improvement in efficiency and quality, continuing to support high-intensity R&D investment and delivery of high-value results to global customers.
Note: The financial figures in the 2021 annual report and Q1 2022 report are quoted in Chinese Yuan (CNY).