LONGi Green Energy's Latest Communication Minutes

Answer: The Central Economic Work Conference outlined clear requirements for "anti-involution," the core of which is to promote industry progress and development through industry standards and improved product quality. Broadly speaking, only in this way can the photovoltaic industry maintain technological advancement.

Regarding capacity clearance, we must encourage technological progress and promote the orderly withdrawal of outdated products and production capacity. This aligns with the fundamental principles of a market economy and the central government's current advocacy of supporting excellence and strengthening.

The company's BC products offer advantages across all scenarios due to their high efficiency, but these advantages vary across different application scenarios. For example, in distributed scenarios, BC products not only conserve rooftop resources but also offer advantages such as reliability and aesthetics.
These advantages are likely to bring greater value to customers. In areas with low labor costs and desertification, the price premium for BC products will be lower than in regions with higher labor costs and scarce land resources.

Answer: Currently, the company continues to focus on improving its own technology, developing and applying products in specific scenarios, improving operational efficiency, and reducing production costs. Despite changes in the external environment, these directions have not changed, and the company will continue to operate at its existing pace.

Answer: The current progress in cost reduction for BC products is generally in line with the company's expectations. The company also has clear cost reduction plans and targets for next year, as well as efficiency improvement goals.

Answer: The company's current monthly BC output capacity is approximately 2.5GW, and this will increase monthly going forward. The current mainstream power range for BC products is 650W-655W.

Answer: Silicon wafer products are already relatively mature, and cost reduction presents challenges. However, the company has developed many innovative solutions internally, which are expected to drive down non-silicon costs. Our Terai silicon wafers possess technological advantages and are currently very popular in the market. The silicon wafer segment is still undergoing market clearance and will become profitable in due course.

Answer: Based on an analysis of the efficiency improvement path for BC technology, BC products can maintain a 30W power advantage over TOPCon. With the addition of more new process technologies to TOPCon products, BC products can maintain a 20W power advantage, but the investment in TOPCon will be roughly the same as for BC technology.

Regarding tandem cell technology, the reliability of perovskite tandem technology has continued to improve over the past two years, and the opportunities for commercialization are growing. While tandem technology still faces challenges, it has made significant progress compared to two years ago. Therefore, the company also has plans for tandem cell technology and has set certain efficiency and reliability targets.

Answer: Overall, the company will consider reducing its stake in its US joint venture to comply with the US OBBB Act.

Answer: From the current perspective, there is still uncertainty about PV demand in 2026, primarily due to the continued volatility of the PV market. However, overall, it is expected to remain close to this year's level, and significant pressure will be placed on achieving significant growth. However, there are also many positive factors. PV demand is particularly strong in power-scarce and underdeveloped regions around the world, with significant growth. Overall, demand in larger markets such as China, Europe, and the US will remain relatively stable.

Answer: The company's plan has been slightly delayed compared to the original plan, primarily due to some equipment and facility issues, but overall progress is smooth.

Answer: The benefits our scenario-specific and functional products bring to businesses are obvious, including anti-dust accumulation products, lightweight components, anti-glare components, and other scenario-specific products. Anti-dust accumulation components are the most prominent example and have become a near-universal product. Compared to similar products on the market, our anti-dust accumulation components can generate gross profit margins 3%-5% higher. This demonstrates the value of product functionality.

For scenario-specific products with lower sales volumes, gross profit margins are even higher. For example, the gross profit margin of lightweight components can be around 15% higher than that of standard products. Therefore, these scenario-specific products, because they address customer pain points, have received very positive customer feedback. The company will continue to pursue this direction and has internally mandated an increase in the proportion of these scenario-specific products, primarily because they can contribute significantly to the company's bottom line.

Answer: Two years ago, the company proposed the development of technology services and is currently implementing them, such as the Hi ROOF S solution, which has already been implemented. In the rooftop PV market, there are thousands of EPC companies, who typically purchase standardized components for installation. This presents numerous risks in terms of construction quality, ongoing maintenance, extreme weather resistance, and fire prevention.

To address these issues, the company launched the Hi ROOF S integrated solution. With this solution, the company has developed independent distributors, effectively providing customers with a complete system. This solution significantly improves product quality, construction standardization, future operations and maintenance, and construction efficiency. Because it provides a highly effective solution to customer pain points, the company believes this solution is highly competitive and is currently under development.

Answer: Our overseas centralized business is not significantly different from our domestic centralized business. While domestically, we primarily use a bidding model, overseas, we rely on inquiry and competitive bidding. Some projects also utilize long-term partnerships. Contract-signing strategies vary from company to company. If changes in trade policy lead to increased costs, the company may adjust relevant clauses and communicate with customers accordingly.

Answer: The company hopes to achieve a break-even in gross profit margin and expenses from its core business in the fourth quarter of this year. The company will improve its operating performance by increasing product gross profit margins and reducing expenses. Although expenses have stabilized, the company will work hard to reduce them, and the reduction is expected to be limited. Furthermore, with the continued increase in BC production capacity, the sales share of BC products will increase significantly each quarter, driving an improvement in the company's average gross profit margin.

Answer: We estimate that BC products will account for 50% of our total shipments in 2026.

Answer: The company has always regarded product leadership as the core driver of sustainable development, continuously leading efficient technological iteration and industrial transformation. Leveraging the platform of the Central Research Institute and multiple national and provincial enterprise technology centers, the company has established a technical R&D team of over 3,000 people. The company has also formed an open and collaborative innovation ecosystem with upstream and downstream industry chains, globally renowned universities, and authoritative R&D institutions. Since the beginning of this year, the company has continued to promote the development of a BC innovation ecosystem.
In August of this year, the company established the Global BC Ecosystem Collaborative Innovation Center, marking the further expansion of this ecosystem. As of the end of May 2025, the company has engaged in technical collaborations with 191 partners worldwide and reached 55 collaborations with 44 partners, covering seven major areas: silicon wafers, batteries, modules, system solutions, hydrogen energy, biomass, and engineering technology.

Answer: As of now, the company's HPBC1.0 battery production capacity has been fully upgraded to HPBC2.0.

Answer: In the first half of this year, the company's HPBC2.0 production capacity continued to expand. After HPBC2.0 production began, it still took some time to ramp up, resulting in a discrepancy between production capacity and period-to-period output figures. Period-to-period shipment figures are based on period-to-period output figures. The company expects HPBC2.0 production to increase significantly in the second half of this year.

Answer: In the first half of 2025, the company sold 2.28GW of batteries, of which only a very small amount were BC cells.