Mono-si wafer market share has gradually risen up. This result is highly related to China’s governmental policies, production capacities, and leading manufacturers' strategies. As a major supplier, LONGi has been one of the spotlights amid the mono-si boom.
LONGi recently announced its annual financial report for 2016 and showed an outstanding performance. Meanwhile, it plans to invest RMB 1.8 billion to add 10GW mono-si wafer capacity.
LONGi's revenue grew 94% to RMB 11.5 billion in 2016. Its net profit rose 197% YoY, reaching RMB 1.55 billion, a well-beyond market expectation performance. Its annual gross margin surpassed 20%. This factor made LONGi stay in the leading group among all tier-one manufacturers, according to LONGi's financial report of 2016.
LONGi's performance was extraordinary in the fourth quarter of 2016. Its single-quarter gross margin achieved 31%, and net profit came to 14.9%. These two both set a high record during the recent years, respectively. LONGi expressed, the revenue in the fourth quarter of 2016 was mainly the result of this company's research & development (R & D), and cost reduction. Data showed, LONGi invested in R & D as much as RMB 560 million in 2016. Mono-si wafer cost has dropped as much as 34% annually. With improved quality and sales, profits remain excellent.
LONGi's mono-si production goes vertically integrated
As one of the primary manufacturers in the mono-si segment, LONGi's development plans stay rapid and specific. LONGi announced to co-invest with Trina Solar and Tongwei Solar in new 5GW mono-si ingot capacity in Lijiang, China, at the beginning of 2017. Recently, LONGi and Tongwei further signed to build 5GW high-efficiency polysilicon capacity, with total investment capital of RMB 8 billion. The new capacities above are probably partially integrated into LONGi's mono-si supply chain in the future.
In September 2016, LONGi and Baoshan City Government of Yunnan Province signed a mono-si ingot capacity development agreement. The company and the People's Government of Chuxiong Yi Autonomous Prefecture signed a project investment agreement, which will involve in building 10GW mono-si wafer capacity, according to LONGi's financial report.
LONGi's mono-si wafer production has amounted to 1.423 billion pieces in 2016. Currently, LONGi's mono-si wafer capacity accounts for 7.5GW. Its capacity under construction hit as much as 16GW. Combination of the two surpassed 20GW.
After buying LERRI Solar, LONGi possessed capacities of mono-si PV cells and modules. Meanwhile, LONGi officially renamed itself as "LONGi Green Energy Technology Co., Ltd." in February 2017. In one of EnergyTrend's interviews, LONGi expressed to participate in global downstream markets and continue developing mono-si products. LONGi's mono-si capacity has vertically included segments from polysilicon to downstream power stations.
Globally, LONGi has a 500MW solar cell/module fab in India, a 500MW vertically integrated ingot/wafer/cell/module facility in Kuching, Malaysia, and 2GW cell/module manufacturing lines in Taizhou, China.
"By the end of last year, our monocrystalline module production capacity had reached 5GW, and the target for the end of this year is 6.5GW. LONGi anticipates to deliver 4.5GW of solar cell and module this year,” stated LONGi Solar president Li Wenxue.