Longi Green Energy Technology reported a net loss of 3.68 billion yuan ($547 million) for the first half of 2024, up from 2.57 billion yuan in the same period last year, reflecting persistent challenges in China’s solar sector.
The company’s results fell within its previously guided range of 3.4 billion to 3.8 billion yuan, underscoring the depth of industry-wide pressures. Weak domestic demand, overcapacity, and aggressive price competition have eroded margins across the sector, while volatility in silver prices forced manufacturers to reduce metal usage, prompting a shift toward silver-free production methods.
Longi has sought to diversify its revenue streams by entering the energy storage segment late last year, targeting growing global demand for battery systems. The move aligns with a broader strategic pivot amid a prolonged downturn in the solar industry, which has persisted for more than two years.
Analysts anticipate that a return to profitability will hinge on Longi’s ability to scale silver-free production and expand its energy storage operations. Chia Chen, an analyst at Bloomberg Intelligence, highlighted these factors as critical to the company’s medium-term recovery prospects.
The company’s financial performance underscores the broader challenges facing Chinese solar manufacturers, which are navigating a difficult external commercial environment alongside domestic market pressures.
