(Jan 18): Chinese solar giant Longi Green Energy Technology Co warned it may report another loss in calendar year 2025, as a prolonged downturn continues to weigh on the solar supply chain.
The company expects a full‑year net loss of about six billion yuan (US$861 million, or $1.11 billion) to 6.5 billion yuan for the period ended December, according to preliminary results released Sunday on the Shanghai Stock Exchange. This compares with the 8.6 billion‑yuan deficit in the year ended December 2024, it said.
Longi attributed the loss to the persistently low product prices and cost pressures, including the “sharp increase” in silver and polysilicon prices in the fourth quarter, which weighed on its operations.
China’s solar power industry has been struggling with overcapacity and intense competition, as well as the surging cost of silver, a key component in solar cell production. Sentiment towards the sector has gradually improved following a recent government campaign to address these issues across several industries, but the positive impact is most evident in polysilicon, a crucial upstream material used in solar panels.
Longi — the largest solar-panel maker in China by market capitalisation — is poised for an earnings recovery this year, as the solar industry swings to an upcycle, according to Bloomberg Intelligence analysts Chia Chen and Henik Fung.
Price competition is easing under the government’s campaign, while overcapacity is improving as solar firms cut capital spending and consolidation picks up. “These factors support a healthier market balance and higher solar-panel prices starting 2026,” they said in a note. Longi’s plan to transition to affordable base metals from silver in the second quarter should also strengthen margins in the long term, they added.
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The company had previously posted a smaller loss in the third quarter, after taking multiple cost reduction measures. Chairman Zhong Baoshen said in September that the company was “confident” it would return to breaking even in its core business in the fourth quarter.
Leading polysilicon producer Tongwei Co also said on Sunday that it’s likely to post a net loss of nine billion to 10 billion yuan in 2025, compared with 7.04 billion yuan net loss a year earlier. The company said its polysilicon segment achieved operating profit in the second half along with rising prices, but increasing costs of key materials such as silver still brought “significant” operating pressures.
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