Chinese Solar Company Longi Forecasts First-Half Loss as Prices Drop
- Longi sees at least $660 million of losses in first half
- Beijing released rules to aid the struggling sector on Tuesday
Longi Green Energy Technology solar panels on the rooftop of a house in the village of Yang Zhuang, Shaanxi province, China.
Source: Bloomberg
Two of the world’s biggest solar manufacturers lost more than $1 billion in the first half as a massive glut in the Chinese market continued to hurt the sector, which is vital to combat climate change.
Longi Green Energy Technology Co., until recently the world’s biggest solar firm, said in a preliminary results filing late on Tuesday that a “mismatch” of supply and demand has led to a significant drop in prices for its major products, resulting in no revenue increase even as sales volumes rose. Its fellow Chinese company Tongwei Co. also blamed “persisting” low costs across the supply chain in its statement.