In the first half of the year, the supply of monocrystalline products exceeded the demand, and the gross profit margin of LONGi reached a new high

LONGi released its 2017 interim report on the evening of August 29, showing that the company achieved operating income of 6.
276 billion yuan in the first half of the year, down 2.
3% year-on-year; The net profit attributable to the parent company was 1.
236 billion yuan, a year-on-year increase of 43.
60%.

In the first half of 2017, the global photovoltaic market continued to grow, in addition to China, India, the United States, Japan and other countries to maintain a high level of installed capacity, Chile, Mexico, Saudi Arabia and other South American, Middle East countries also began to actively promote photovoltaic power generation projects, China's domestic market in the 630 rush to install tide, photovoltaic installed capacity steady rise
.

According to the statistics of the National Energy Administration, in the first half of 2017, the installed capacity of new photovoltaic power generation in China was 24.
4GW, a year-on-year increase of 9%, of which 17.
29GW of photovoltaic power plants and 7.
11GW of distributed photovoltaics, an increase of 2.
9 times
year-on-year.

During the reporting period, the demand for monocrystalline products, which is a representative of high efficiency and high quality, was strong, and the products were always in a state of strong sales, and the market share of monocrystalline was further improved
.

In order to alleviate the tight supply of monocrystalline products, LONGi ensures that the existing production capacity starts full power on the one hand, and accelerates the progress of new construction and expansion projects on the other hand
.

The half-year report also shows that in the first half of 2017, the company's monocrystalline silicon wafer production was 877 million pieces, and the output of monocrystalline modules was 2051MW.

In terms of the progress of new projects, Yinchuan LONGi's 5GW monocrystalline silicon rod project and Ningxia LONGi's 1GW monocrystalline silicon rod project have entered the equipment commissioning stage, and the Kuching LONGi project with an annual output of 300MW monocrystalline silicon rod, 1GW monocrystalline silicon wafer, 500MW monocrystalline cell and 500MW monocrystalline module project has entered the final stage, and is expected to reach full production in the fourth quarter of 2017.
The plant construction of Baoshan LONGi's 5GW monocrystalline silicon rod project and Xi'an's 500MW module project is accelerating
.

It is worth noting that LONGi's quarterly comprehensive gross profit margin increased significantly by 6.
6 percentage points from the first quarter to 38%, setting a new high
in recent years.
The huge cost advantage is the core advantage of the company, and it is expected to be maintained or even further expanded
in the future.

Yesterday, a research report released by Guojin Securities pointed out that the market and industry were pessimistic about the industrial prosperity and product price trend after 630, and the actual situation seems to be much better than expected
.
Considering that the price of polysilicon on the cost side has stopped rising, and the release of silicon wafer production capacity of LONGi has accelerated significantly in the second half of the year, it is expected that the company's gross profit margin in the third quarter is expected to continue to remain high, and the quarterly net profit will continue to rise
month-on-month.

At the same time, the outbreak of distributed photovoltaics in the first half of the year, the leader plan also strengthened the escort of the monocrystalline route, these favorable factors have made the market share of monocrystalline products continue to increase
.

You Jiaxun, an analyst at China Merchants Securities, believes that the inflection point of replacing polycrystalline by monocrystalline in the photovoltaic industry has appeared, and the cost performance of monocrystalline silicon wafers is significant, and its future penetration rate will accelerate by 45%-50%; As a leading monocrystalline silicon wafer enterprise, the company has a strong ecological chain and obvious cost advantages
.