Longi’s solar module embrace supercharges its 2016 profit and revenue

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Longi Green Energy, a China-based producer of solar ingots, wafers and modules, has this week posted its 2016 financial results that reveal strong growth in revenue and net profit for the year.

Having sidled into the solar module business, the firm saw its revenues reach RMB 11.531 billion ($1.67 billion), which is a year-on-year increase of 93.89%. Module sales alone accounted for RMB 5.7 billion ($825 million) and thus the business sector was duly labeled the company’s “cash cow” for the year.

In February, Longi Solar was officially launched following the group’s acquisition of Lerri Solar. This move marked Longi’s push into the monocrystalline cell and module market.

Indeed, the company’s module business gross margin of 27.2% in 2016 far surpassed that recorded in the company cell and polycrystalline silcon sectors, and came near to Longi’s profitable wafer business, which registered a 28.16% margin.

Net profit rose 197% on 2015 to reach RMB 1.547 billion ($224 million) for 2016, with gross profit margin rising 7% to reach 27.48% for the year.

The firm added in its financial filing that it will continue to pursue sola cell and module capacity expansions in 2017, adding that development of its 500 MW solar cell and module fab in India is progressing well, as too is its 500 MW cell, module and wafer facility in Malaysia and the addition of 2 GW of cell and module lines at Longi’s Taizhou facility in China.

“By the end of 2016 our monocrystalline module production capacity had reached 5 GW; and the target for the end of this year is 6.5 GW,” said Longi Solar president Li Wenxue. “Longi anticipates to deliver 4.5 GW of solar cell and modules this year.”

Earlier this week Longi partnered with Tongwei on the development of a new polysilicon production plant in China’s Sichuan province.

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