In 2024, the performance of the Chinese photovoltaic industry chain generally declined or incurred losses. Recently, A-share photovoltaic leader Longi Green Energy disclosed its latest performance forecast, indicating that the company will experience its first annual loss in nearly 10 years in 2024, setting the largest loss in its history.
After market close on January 16, the Chinese “PV No. 1” Longi Green Energy disclosed its performance forecast. The announcement stated that according to preliminary calculations by the finance department, it is expected to achieve a net loss attributable to shareholders of the listed company of 8.2 billion to 8.8 billion yuan in 2024, and to achieve a net loss attributable to shareholders of the listed company after deducting non-recurring gains and losses of 8.3 billion to 8.9 billion yuan.
In 2024, Longi Green Energy recorded net losses of 2.35 billion yuan, 2.893 billion yuan, and 1.261 billion yuan in the first three quarters, totaling 6.5 billion yuan. Based on the latest performance forecast data, the net loss in the fourth quarter is estimated to be approximately 1.7 billion to 2.3 billion yuan.
In terms of stock price performance, Longi Green Energy’s stock price showed an overall downward trend in 2024, with a full-year decline of 31.4%. As of January 16, Longi Green Energy had a total market value of 116.7 billion yuan.
Wind data shows that as of December 20, 2024, the total number of shareholders of Longi Green Energy was 820,000, a decrease of around 160,000 compared to the end of 2023. In addition, well-known investor Chen Fashu reduced his holdings of Longi Green Energy shares for two consecutive quarters in 2024, cashing out a total of over 630 million yuan.
Apart from Longi Green Energy, all companies in the photovoltaic industry chain that have disclosed their 2024 performance forecasts have fallen into losses.
Recently, JA Solar disclosed its highest historical loss amount. The announcement showed that JA Solar expects a net loss of 1.9 billion to 2.3 billion yuan in 2024.
Explaining the occurrence of losses in performance, JA Solar attributed it to the temporary supply-demand mismatch in the photovoltaic capacity and market demand, intensified market competition, continuous decline in industry chain prices, and the overall decrease in industry chain gross profit and profit levels.
Additionally, material company Sunwoda Technology disclosed its performance forecast, indicating that the company expects to achieve a net loss attributable to the parent company of 250 million to 200 million yuan in 2024, and to achieve a non-recurring net profit loss attributable to the parent company of 260 million to 210 million yuan.
According to industry sources in China, during the industry downturn, many mainstream companies in the photovoltaic industry chain will generally confirm losses.