China Net Finance, July 8 (Reporter Li Bingyan) "As early as the beginning of 2023, the company has a clear direction judgment and has carried out a series of work plans, and in 2025, the company will be the first to return to the growth track, and will enter a state of recovery before the photovoltaic industry, and the company's goals are very clear." On July 4, Zhong Baoshen, chairman of LONGi Green Energy, told investors in Xi'an. On the same day, nearly 100 industry insiders from the securities industry, investment institutions and research fields were gathered to discuss the advancement and market potential of BC technology.
Industry adjustment steps in the deep water area BC technology to accelerate the market recovery
In 2024, the mismatch between supply and demand in the PV market will continue, with the price of modules and other industrial chains falling sharply, superimposed by international trade barriers and other factors, the whole industry is generally facing the dilemma of declining performance or even losses, and the pace of technological iteration of many enterprises has also slowed down significantly. The photovoltaic industry has both strong cyclical attributes and growth attributes, and the current industry is entering a stage of deep adjustment, and the market will gradually eliminate backward production capacity. Zhong Baoshen pointed out that "based on the current supply and demand relationship in the industry, only innovation can see prosperity, and without the interference of other unexpected factors, there is no opportunity without innovation."
In the face of fierce market competition and downward pressure on prices in the PV industry, LONGi Green Energy has shown strong performance growth potential with its continuous innovation and volume expansion of HPBC technology. Zhong Baoshen said: "2024 will be a very difficult year for the company and the industry, but with the continuous launch of new BC technology products and the improvement of market recognition, the company will take the lead in returning to the growth track next year." ”
As a leader in BC technology, LONGi's HPBC modules stand out in the market due to their excellent performance. According to the investor conference on the same day, the mainstream power of LONGi Green Energy's HPBC modules will reach 660W in 2025, and the power of forward-looking products will climb to 680W. Although the current cost of HPBC modules is slightly higher than that of TOPCon, LONGi Green Energy is expected to achieve the goal of equivalent or even lower cost than TOPCon by 2025 with years of technology accumulation and cost reduction path planning. With the gradual implementation of the base metal substitution plan and battery technology achievements, the company is expected to further significantly reduce the cost of BC technology in the second half of next year, providing strong support for product competition and market recovery.
Hi-MO9 modules equipped with BC technology generate 6%-8% more power than traditional TOPCon, while enjoying a 20% price premium. This significant advantage has not only won the favor of the global high-end market, but also shows great potential in areas where land resources are scarce and electricity prices are high. It is reported that just over a month after the launch of LONGi Green Energy's Hi-MO 9 modules, it has achieved 1GW of orders in hand, and the reserve orders have exceeded 5GW, which is very popular with the market.
BC batteries have gradually become the mainstream, and the cycle crosses the vitality of the technology
With the acceleration of the global energy transition and the continuous expansion of the photovoltaic market, efficient, reliable and economical photovoltaic products have become the mainstream demand of the market. "The company will have a lot of production capacity from the second half of this year into construction, and in the first and second quarters of next year, BC second-generation products will be put on the market on a large scale. The company's overall plan is that by the end of 2025, the combined production capacity of BC Generation 1 and BC Generation 2 will reach about 70GW; By the end of 2026, all products from domestic factories will be migrated to BC Technology, except for individual overseas plants. Zhong Baoshen emphasized.
Not only that, other leading companies in the photovoltaic industry have also set their sights on BC batteries. Ouyang Zi, chief technology officer of JA Solar, also said this month that JA Solar's R&D focus will gradually shift to BC and tandem cells. Considering the current state of the art, it is a reasonable expectation to BC first and then stack. In addition, Tongwei Co., Ltd., Jinko Solar, Trina Solar, TCL Zhonghuan, Junda Co., Ltd. and other photovoltaic head companies have also revealed that they have a layout in the field of BC batteries. At this year's SNEC exhibition, new products equipped with BC batteries also appeared in more and more corporate booths.
As a leader in HPBC technology, LONGi Green Energy is actively accelerating the replacement of BC production capacity to meet the rapidly growing market demand. According to reports, in the next three years, LONGi Green Energy's annual monocrystalline silicon wafer production capacity will reach 200GW, of which "Terui" silicon wafer production capacity accounts for more than 80%; The annual production capacity of BC batteries will reach 100GW; The annual production capacity of monocrystalline modules will reach 150GW. In particular, HPBC2.0 products will achieve a production capacity of about 50GW in 2025, providing solid support for the company to recover ahead of the industry.
Since LONGi Green Energy officially announced the choice of BC battery technology route in September last year, BC battery has attracted widespread attention in the market, and its development speed has exceeded expectations. As the mainstream of the market gradually shifts to BC batteries, LONGi Green Energy has ushered in new development opportunities, and at the same time, sufficient capital reserves have also provided a strong guarantee for the company to go through the cycle.
On June 17, LONGi Green Energy issued an announcement on the resolution of the 2023 Annual General Meeting of Shareholders, and the "Proposal on the Public Issuance of 10 Billion Yuan of Corporate Bonds" was passed. The issuance of corporate bonds (non-convertible bonds) is mainly used for the construction of advanced production capacity such as "Tererick" silicon wafers and BC second-generation batteries, aiming to accelerate the industrial iteration of BC and other new technologies through new technologies, further enhance the company's competitiveness, and open a new performance growth pole in the photovoltaic industry.
Full-scene BC products are frequently released, and LONGi refers to long-termism
In fact, LONGi has always adhered to the "first principles" principle, that is, to reduce costs and increase efficiency through technological innovation, from the Hi-MO 6 to the Hi-MO X6 dual-glass anti-humidity and heat resistant modules, the Hi-MO X6 Max series products, to the more efficient HPBC second-generation technology and the Hi-MO 9 products.
"The second-generation BC products will be oriented to the full-scenario market. This is also the reason why the company first released the second-generation BC-based Hi-MO 9 product is mainly positioned in the ground centralized market." Zhong Baoshen said that we will also launch distributed products based on the second generation of BC, and its comprehensive advantages will become the leader in the whole industry. “
This means that at a time when the competition in the photovoltaic industry is becoming increasingly fierce, LONGi did not choose "price war" to occupy market share, but took the customer as the center, deeply cultivated the BC technology route, came up with "high power and high value" leading technologies and products, and highlighted the "optimal life cycle value", aiming to break the dilemma of industry homogeneity.
From the perspective of products, the main factors affecting the service life of photovoltaic module products are nothing more than the selection of materials, the advancement of production technology, quality control, etc., and the differences in each aspect will cause the final quality of photovoltaic modules to be very different. Only by truly making efforts at the level of technological innovation and paying attention to the reliability and long-term performance of module products can the industry get out of the dilemma of low-price competition.
In Zhong Baoshen's view, only continuous scientific and technological innovation is conducive to the long-term and healthy development of the industry, and can make everyone return to the most fundamental track of industry development. In this way, it will not only prompt more corporate brands to "volume value" rather than "volume price", but also allow more customers to pay attention to the "long-termism" brought by cost-effective products.
(Editor in charge: Wang Chenxi)