China’s Longi Green Energy Technology reported a first-half net loss of 3.68 billion yuan ($547 million), widening from a 2.57 billion yuan loss in the same period last year, as the solar sector’s prolonged downturn continued to weigh on margins.
The result fell within the company’s previously guided range of 3.4 billion yuan to 3.8 billion yuan for the six months through June. Weak domestic demand, persistent overcapacity and aggressive pricing in the solar market have pressured sector profitability, while a tougher trade environment overseas has further constrained growth.
In response, Longi has expanded beyond its core solar operations by entering the energy storage segment late last year, aiming to capitalize on rising global demand for battery systems. The company is also working to reduce silver usage in production amid volatile silver prices, a move analysts say could ease cost pressures and support a return to profitability.
Bloomberg Intelligence analyst Chia Chen noted before the results that Longi’s path to recovery hinges on scaling energy storage operations and transitioning toward silver-free production methods.
