On the afternoon of September 1, Longi Green Energy (601012.SH) held its 2025 semi-annual earnings briefing via platforms such as the Shanghai Stock Exchange Roadshow Center. Chairman Zhong Baoshen and the management team engaged in in-depth discussions on the logic behind the narrowed losses, the mass production progress of BC technology, and the fourth-quarter operational targets. During the 1.5-hour meeting, the term “gross profit” was mentioned nearly 30 times, reflecting the core strategy of this photovoltaic leader to navigate the industry cycle.
Behind the 26 Billion Yuan Loss Reduction: Cost Cutting, Efficiency Gains, and Technological Breakthroughs
Financial reports show that Longi achieved revenue of 32.813 billion yuan in the first half of the year, a year-on-year decrease of 14.83%. The net loss was 2.569 billion yuan, a significant reduction of 2.661 billion yuan compared to the loss of 5.231 billion yuan in the same period last year. The main reasons for the reduced losses were optimization on the cost side—sales expenses decreased by 37% to 840 million yuan, management expenses fell by 23% to 1.34 billion yuan, and reduced asset impairment losses collectively contributed to improved operational quality.
“Cost reduction has entered a stable phase, and future incremental gains will primarily come from gross profit improvements,” Zhong Baoshen stated bluntly. He mentioned that the company’s break-even target for the third quarter, set at the beginning of the year, would be delayed to the fourth quarter, with the core driver being the large-scale rollout of second-generation BC products. Data shows that in the first half of the year, second-generation BC module shipments reached 4 GW. After June, production ramp-up accelerated, with current monthly output reaching 2.5 GW. The company plans to exceed 10 GW in sales in the fourth quarter, accounting for over 50% of its module structure.
BC Technology Moat: Efficiency Premium Supports Profit Recovery
As the absolute highlight of the earnings meeting, the mass production progress and cost competitiveness of BC technology took center stage. According to disclosures, the mainstream power of second-generation BC modules has reached 650–655W, maintaining a 30W lead over TOPCon. Even if competitors adopt new processes, Longi can still maintain an advantage of over 20W. Thanks to its suitability for distributed scenarios, BC products accounted for over 50% of distributed orders in most regions across the country as of September.
On the production capacity front, HPBC 2.0’s in-house capacity has reached 24 GW. Bases in Xixian New District and Tongchuan are gradually commencing production, while the Weibei project is steadily progressing. The annual target is to achieve 50 GW of production capacity. Notably, the plan to replace silver paste with base metals, originally scheduled for implementation within the year, has been delayed due to equipment debugging and is now expected to be rolled out in the second quarter of 2026. This technology could reduce metallization costs by 2 fen/W, though the company currently still relies on silver paste processes.
