LONGi Green Energy's H1 Net Loss Widens to 3.68 Billion Yuan as Industry Winter Drags On for Over Two Years
nashnova research
LONGi Green Energy's first-half net loss widened to RMB 3.68 billion, a roughly 43% deterioration year-on-year; overcapacity and a price war show no sign of bottoming after two-plus years, forcing the solar giant to bet on energy storage and silver-free cell technology.
How big is the loss — and how much worse than last year?
First-half net loss reached RMB 3.68 billion (≈ USD 547 million), up from RMB 2.57 billion a year earlier — a widening of roughly 43%.
The figure landed within the company's own guidance range of RMB 3.4–3.8 billion, so the market was not blindsided — but the widening trend itself confirms the downturn is still deepening.
This means → LONGi has now posted large first-half losses for two consecutive years. The solar downcycle has not bottomed out.
Why is the bleeding continuing — where is the money going?
Overcapacity plus a price war are the core drivers: domestic solar demand is shrinking while overseas trade barriers are tightening — supply has outstripped demand for over two years.
LONGi is not alone — several other major Chinese solar manufacturers disclosed first-half results this week, all reporting wider losses year-on-year.
In plain terms = the industry is producing far more than the market can absorb, prices have been pushed below cost, and everyone is losing money together.
What does silver have to do with solar losses?
Silver paste — a key conductive material applied to solar cell surfaces — is a major production input. Sharp swings in silver prices directly squeezed manufacturers' margins in the first half.
This reflects how sensitive solar makers' cost structures are to commodity prices: when silver spikes, they are caught between falling selling prices and rising input costs.
That pressure is the direct catalyst behind LONGi and peers accelerating "silver-free" cell technology development.
What is LONGi's plan to turn things around?
Late last year the company began a strategic pivot, shifting part of its focus toward energy storage to tap fast-growing global demand for battery storage systems.
Bloomberg Intelligence analyst Chia Chen noted ahead of the results: profitability hinges on two things — achieving silver-free production and scaling the storage business.
This means → silver-free tech addresses the "cost side"; storage addresses the "revenue side." The pace of progress on both tracks is the key metric for judging when LONGi exits its loss cycle.
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