LONGi Green Energy Technology Co., Ltd.: history, ownership, mission, how it works & makes money

A Brief History of LONGi Green Energy Technology Co., Ltd.

Founded in 2000, LONGi Green Energy Technology Co., Ltd. has positioned itself as one of the world's leading manufacturers of monocrystalline silicon products. The company originated in Xi'an, Shaanxi Province, China, and has since expanded to become a significant player in the global renewable energy market.

In 2014, LONGi initiated its initial public offering (IPO) on the Shenzhen Stock Exchange, raising approximately 3.6 billion RMB (around 558 million USD at that time). This financial boost allowed the company to invest heavily in research and development as well as production capacity.

By 2015, LONGi's production capacity exceeded 5 GW, and the company was recognized as the largest producer of monocrystalline solar cells globally. Their focus on high-efficiency products led to significant technological advancements, including the development of PERC (Passivated Emitter and Rear Cell) technology.

In 2018, LONGi achieved a significant milestone by producing solar cells with an efficiency of 24.06%, marking a new record in the industry. This year also saw the establishment of LONGi's partnerships with various international firms, extending its market reach beyond China.

The company reached another critical juncture in 2020, when it reported annual revenue of 58.2 billion RMB (approximately 8.5 billion USD), representing a year-on-year growth rate of over 30%.

LONGi's strategic expansions continued as they began constructing new manufacturing facilities worldwide. By mid-2021, the company announced plans to invest 1 billion USD into expanding its production capacity in Malaysia by an additional 2 GW annually. This move was part of their strategy to increase global presence amid rising demand for renewable energy solutions.

In the first half of 2022, LONGi reported a net profit of 6.28 billion RMB (around 900 million USD), demonstrating robust operational performance. The company also maintained a gross margin of 23.2%.

LONGi's production capacity reached approximately 45 GW for solar cells and 39 GW for modules by the end of 2022. Their commitment to sustainability and innovation has made them a key player in the transition to renewable energy.

As of 2023, LONGi Green Energy continues to innovate and enhance its production capabilities, gearing towards a target of reaching 100 GW of total capacity by 2025. Their strategic focus on R&D and international partnerships will likely keep them at the forefront of the solar energy market.

A Who Owns LONGi Green Energy Technology Co., Ltd.

LONGi Green Energy Technology Co., Ltd., a prominent player in the solar power industry, has garnered significant attention for its innovative approach and market leadership. As of the latest reports, LONGi's ownership structure reveals a mix of public and institutional investors, along with significant stakes held by its founders.

The company is listed on the Shanghai Stock Exchange under the ticker symbol 601012. As of October 2023, the market capitalization of LONGi Green Energy stands at approximately ¥467 billion (around $66.5 billion).

Major Shareholders

LONGi's ownership is characterized by a concentration among key stakeholders:

• Li Zhenguo - Founder and Chairman: Holds approximately 20.86% of the shares.
• LONGi Green Energy Investment Holdings - A corporate entity associated with the founder: Holds around 9.83% of the shares.
• China National Chemical Corporation - A major state-owned enterprise: Holds approximately 5.78% of the shares.
• Institutional and public investors account for the remaining shares.

Ownership Breakdown

As a public company, LONGi is subject to various regulatory disclosures, which provide transparency into its shareholder structure. The company has seen a steady increase in institutional ownership, reflecting growing investor confidence in the renewable energy sector.

Recent Financial Performance

In its latest financial report for the year ending December 2022, LONGi achieved a revenue of approximately ¥126.36 billion (around $18 billion), representing a year-on-year growth of 46%. The net profit was reported at ¥8.27 billion (about $1.2 billion), with an operating margin of 6.55%.

LONGi Green Energy continues to expand its production capacity, aiming to increase its market share in the solar module and wafer sector. The company has committed to investing more than ¥40 billion in capacity expansion over the next five years, aiming to reach an annual production of 100 GW of photovoltaic products by the end of 2025.

This ambitious growth plan and the significant ownership stakes held by the company's founder and strategic partners underscore LONGi's strong position in the global solar energy market.

LONGi Green Energy Technology Co., Ltd. Mission Statement

LONGi Green Energy Technology Co., Ltd. focuses on providing clean energy solutions through the production and optimization of solar technology. Their mission statement emphasizes the commitment to developing innovative and sustainable solar products that meet the growing energy demands while minimizing environmental impact.

The company aims to become a global leader in the solar industry by fostering technological advancements and sustainable practices. As of 2023, LONGi has invested over RMB 18 billion (approximately $2.7 billion) in research and development to enhance solar energy efficiency and production capabilities.

LONGi’s mission is aligned with the international goal of achieving energy transition and combating climate change. The company strives for an annual cell production capacity of 85 GW by 2025, reflecting their ambition to scale operations significantly. In the fiscal year 2022, LONGi reported revenues of RMB 107.7 billion (approximately $16.3 billion), representing a year-over-year growth of 70%.

In terms of market presence, LONGi Green Energy holds a significant share of the global solar wafer market, accounting for over 30% of total production in 2022. Their module shipments reached 37.5 GW in 2022, securing their position as one of the top manufacturers worldwide.

The company’s investment strategy includes expanding manufacturing plants and upgrading existing facilities to enhance production efficiency. LONGi announced plans to establish a new 10 GW solar cell production facility in India, set to commence operations by early 2024, further solidifying their global footprint.

LONGi's commitment to sustainability is reflected in their goal of achieving 80% energy efficiency for their next-generation solar modules, targeting a reduction of carbon emissions associated with production by at least 30% by 2025.

Additionally, LONGi has been recognized for its strong corporate governance and sustainability practices, obtaining an “A” rating from the Carbon Disclosure Project (CDP) in 2023. This aligns with their mission to foster a sustainable future through renewable energy technologies.

How LONGi Green Energy Technology Co., Ltd. Works

LONGi Green Energy Technology Co., Ltd., founded in 2000, is a leading global manufacturer of solar products, particularly known for its high-efficiency monocrystalline solar cells and modules. As of 2023, LONGi has a production capacity of approximately 45 GW for solar cells and 30 GW for solar modules.

In 2022, LONGi reported total revenue of approximately CNY 111.98 billion (equivalent to around USD 16 billion), marking an increase of 48.5% year-over-year. The company's net profit for the same year stood at CNY 9.16 billion (about USD 1.31 billion), reflecting a remarkable growth trajectory.

LONGi has strategically positioned itself in the value chain of solar photovoltaic (PV) manufacturing, focusing on vertical integration. This model allows the company to control the production processes from silicon ingots to solar cells and modules, thereby optimizing costs and improving product quality. The company’s R&D efforts are robust, with a reported investment of approximately CNY 7 billion in 2022 alone, emphasizing innovation in efficiency and technology.

In terms of market presence, LONGi has established a supply chain that spans over 100 countries. Its products serve various sectors, including residential, commercial, and utility-scale solar installations. The company also has a significant focus on sustainability, aiming to achieve carbon neutrality in its operations by 2025.

During 2023, LONGi expanded its manufacturing capabilities by opening new production facilities in regions such as Southeast Asia and Europe to address growing global demand. This strategic move is expected to boost its production capacity by an additional 20 GW for solar modules by the end of 2024.

LONGi's stock, traded on the Shanghai Stock Exchange under the ticker symbol "601012," witnessed a price increase of 35% in 2022, reflecting strong market confidence in the company’s growth potential.

Overall, LONGi Green Energy's business model aligns tightly with the global shift toward renewable energy and sustainable practices, positioning it as a key player in the transition to a low-carbon economy.

How LONGi Green Energy Technology Co., Ltd. Makes Money

LONGi Green Energy Technology Co., Ltd. generates revenue primarily through the production and sale of photovoltaic (PV) products, particularly high-efficiency solar cells and modules. In 2022, the company reported a total revenue of approximately ¥132.5 billion (about $19.5 billion), marking a year-on-year increase of 52.2%.

The company operates on a vertical integration model, which reduces costs and enhances productivity across its manufacturing processes. In 2022, LONGi's production capacity reached around 50 GW for solar modules and 30 GW for solar cells. This substantial capacity positions LONGi as one of the largest solar manufacturers globally.

LONGi's revenue streams can be categorized as follows:

• Solar Cells and Modules: The primary revenue source, contributing approximately 80% of total revenue.
• R&D: LONGi invests heavily in innovation, spending about ¥8 billion annually, which also contributes to securing government grants and subsidies.
• Energy Storage Solutions: This segment is rapidly growing, contributing around 10% to the total revenue.
• International Sales: About 40% of sales come from overseas markets, particularly in Europe and North America.

In addition, LONGi's strategic partnerships with global leaders in the energy sector help to enhance its market presence and revenue potential. For instance, the company has collaborated with firms like Enel and ABB to advance solar power integration solutions.

LONGi's focus on efficiency and technological advancement is evident in its market-leading solar cell efficiency rates, which reached over 26% in 2022. This accomplishment has driven demand for its products, pushing the margins higher and contributing to its bottom line.

Furthermore, LONGi is actively engaged in expanding its global footprint through strategic acquisitions and partnerships. In 2023, the company announced plans to invest ¥20 billion in expanding its manufacturing capabilities in Southeast Asia, aiming for a 15% increase in production capacity over the next three years.

LONGi also benefits from governmental policies favoring renewable energy. With the global push towards net-zero emissions, subsidies and incentives provided by various countries enhance LONGi’s profitability and growth outlook. For instance, the company has received over ¥2 billion in subsidies from the Chinese government aimed at promoting solar energy adoption.

The integration of energy storage solutions into its product line is expected to add significant revenue in coming years, with forecasts suggesting this segment could grow to represent 15% of total revenue by 2025.

In summary, LONGi Green Energy Technology Co., Ltd. capitalizes on its extensive production capabilities, innovative technology, and favorable market conditions to drive growth and revenue. The electrifying pace of its expansion in both domestic and international markets underscores its position as a leader in the renewable energy sector.