Financial results of Longi Green Energy Technology nearly double in 2016
Monday, Mar 20, 2017
The financial results Longi Green Energy Technology Co., Ltd for the financial year 2016 the company reported revenues of RMB11.531 billion, an increase of 93.89% over the previous year, and net profit RMB1.547 billion, a significant increase of 197.36% from 2015. Earnings per share was RMB0.86 , an increase of 117.42%. The weighted average return on assets after deduction (WARA) is 21:15%, up by 9.18 percentage points, and the consolidated gross profit margin was 27.48%, up by 7.11 percentage points from the previous year.
Longi significant improvement in performance is due to the success of the company's effort to exit freely from the traditional business model which relies on solar wafers alone, and by adding a module business to drive revenue growth. Last year, sales of solar modules to reach RMB5.7 billion, surpassing sales of silicon wafers (5.075 billion yuan), and has become the 'cash cow' (main income) company. Gross margin of 27.2 percent module business is much higher than the solar cell business and polycrystalline silicon, and closer to the wafer business margin of 28.16%. Healthy profit margins boosted net profit of RMB1.547 billion in that year.
Longi will continue to develop the business capacity of solar cells and modules. Some of the projects are well under way: 500MW solar cell and module fabrication in India , the vertical integration facility ingot / wafer / cell / module in Kuching, Malaysia , including 500MW of cells and modules, and cell and module manufacturing plant in Taizhou 2GW. Meanwhile, in February this year, a leading research firm Bloomberg New Energy Finance, put Longi Solar (formerly known as Lerri Solar ) in the list of Tier 1 module supplier firms.
President Li Wenxue Longi Solar, commented, "As of last year, the production capacity of monocrystalline modules has reached 5GW, and the target for this year is as much as 6.5GW. Longi expects to provide 4.5GW of solar cells and modules this year. While we will always develop customer base and increase revenue, Longi trying to maintain profit margins price that will allow us to grow up healthy and consistent. we are determined to continue the development of products and add our technology, because we depend on the performance and quality of products to attract new customers and increase business value we."
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