longji3Mr. Warren Wang (right), Longi Silicon’s Secretary to the Board Chairman, conducts a one-on-one meeting with an investor in Shenzhen.      Photo: Aries Consulting

XI’AN LONGI Silicon Materials Corp (SHA: 601012), the w
orld’s No.1 maker of monocrystalline silicon ingots and wafers, expects 10-15% gross margins in 2013, significantly higher than the 
3.8% GM seen in the fourth quarter last year.

That's good news for the A-share listed firm after it reported a bottom line loss of 54.7 million yuan last year due to major client Suntech’s woes and anti-dumping action abroad.

longi_wafersLongyi wafers.     Photos: Company“We sell our ingots and wafers primarily to downstream solar cell and panel manufacturers. So when a major client like Suntech struggles, so do we,” said Mr. Warren Wang, Longi Silicon’s Secretary to the Board Chairman.

Speaking at the Aries Consulting-organized “Scaling New Heights Investor Conference 2013” in Shenzhen on July 5, Mr. Wang said that this year was looking much rosier on the financial front.

“We expect to record a GM of between 10% and 15% this year,” he said.

Longi, which listed in Shanghai in April of last year, produces and sells monocrystalline ingots and wafers in China, with core products including 6”, 6.5” and 8” ingots and wafers.

longi_ingotsLongyi ingots.   The Shanghai-listed firm is the world's top maker of monocrystalline silicon products.     Photos: CompanyIn 2012, Longi’s revenue was 15.35% lower at 1.71 billion yuan due in large part to the financial troubles of major downstream solar sector client Suntech Power.

“The lack of orders from Suntech along with anti-dumping trade action against Chinese solar firms from both the US and the EU led to downside pressure for Longi in 2012,” Mr. Wang said.

As of end-2012, Longi’s monocrystalline silicon ingot capacity was 1.4 GW and its monocrystalline wafer capacity stood at 1 GW.

longi_plantLongi's facilities in North China.      Photos: Company

“Longi has a committed and highly talented R&D team, with six dedicated research centers, 82 product patent applications, 10 non-proprietary technologies and is also a leader in cost effective production of non-silicon based products as well,” Mr. Wang added.

Tough 2012, but things looking brighter

Last year saw China’s photovoltaic enterprises still impacted by the global financial crisis of four years prior, with perhaps 2012 being one of the toughest operating climates with endemic problems across the sector regarding silicon oversupply and severe financial hardships related to raw material stockpile writedowns.

longi_metsLongi recently 9.79 yuan with a 52-week range of 5.59-10.78.“Our sales were down 38% last year as the entire industry continued to endure difficult adjustments and restructuring,” he added.

Total industry-wide installed photovoltaic manufacturing and processing equipment capacity rose by around 10% in 2012 which resulted in selling price pressure across the sector.

However, the silicon product maker based in the Northern Chinese city of Xi’an was confident that things were looking brighter for the solar sector play this year.

“We are confident that our reliance on cost-efficient manufacturing and a strong capital position will help realize better growth down the road.

“Longi remains committed to quality excellence and cutting-edge R&D to help ensure a positive outcome.”
 


 
See also:

COMTEC SOLAR Swings To Q1 Net Profit

SOLARGIGA ENERGY: Latest Happenings...


You may also be interested in:


Share Prices

Counter NameLastChange
AEM Holdings3.8700.030
Avi-Tech Electronics0.2800.005
Best World1.7900.030
Broadway Ind0.118-
China Sunsine0.405-
DISA0.003-
Food Empire0.635-0.015
Fortress Minerals0.330-
Geo Energy Res0.360-0.015
Golden Energy0.7850.005
GSS Energy0.0480.002
InnoTek0.455-0.015
ISDN Holdings0.4150.010
ISOTeam0.090-0.010
IX Biopharma0.1270.001
Jiutian Chemical0.0820.004
KSH Holdings0.350-
Leader Env0.056-
Medtecs Intl0.139-0.001
Meta Health0.025-
Nordic Group0.475-0.005
Oxley Holdings0.1500.001
REX International0.2400.005
Riverstone0.6400.005
Sinostar PEC0.1850.015
Southern Alliance Mining0.380-
Straco Corp.0.400-0.005
Sunpower Group0.2850.025
The Trendlines0.0930.005
Totm Technologies0.103-0.002
UG Healthcare0.194-0.001
Uni-Asia Group0.8350.005
Wilmar Intl4.120-
Yangzijiang Shipbldg1.410-0.010

NextInsight RSS

rss_2 NextInsight - Latest News

Online Now

We have 2797 guests and no members online