Longi Warns of Another Loss Amid Solar Woes

Longi Green Energy Technology Co., a leading Chinese solar panel maker, has issued a stark warning of potential further losses in 2025. The company anticipates a net loss between 6 billion and 6.5 billion yuan for the year ending December, following a substantial deficit in 2024. This ongoing financial pressure stems from a combination of persistently low product prices and increased operational costs, particularly a sharp rise in silver and polysilicon prices during the fourth quarter of the previous year.

The broader Chinese solar power industry is grappling with significant overcapacity and intense competition, exacerbated by surging material costs. While recent government initiatives aim to address these systemic issues, their full impact is still unfolding. Industry watchers, however, express optimism for a market upswing. Analysts from Bloomberg Intelligence foresee an industry upcycle and a recovery in earnings for Longi starting in 2026, driven by easing price competition and improving market balance.

Longi has implemented cost reduction measures and is planning a strategic shift to utilize more affordable base metals instead of silver, a move expected to strengthen margins long-term. Similarly, leading polysilicon producer Tongwei Co. also expects a net loss for 2025, underscoring the widespread challenges. Despite these headwinds, the industry is poised for recovery, with consolidation and reduced capital spending contributing to a healthier market equilibrium projected for 2026.