In the context of slowing down the construction of the domestic photovoltaic market and continuous international trade frictions, Longi Green Energy Technology Co., Ltd., the world's largest monocrystalline silicon photovoltaic product manufacturing enterprise, has delivered a brilliant performance, with overseas sales accounting for 76% of the first half of this year, up from 12% in 2017. In the first half of this year, Longi Corporation's overseas sales of monocrystalline modules reached 2.423 gigawatts, a year-on-year increase of 252%. The company achieved a revenue of 14.111 billion yuan, a year-on-year increase of 41.09%, and a net profit attributable to shareholders of the listed company of 2.009 billion yuan, a year-on-year increase of 53.76%. The total assets were 51.615 billion yuan, a year-on-year increase of 30.15%, and it has continuously maintained its position as the world's highest valued photovoltaic enterprise.
Since mid-2016, Longi Corporation has been expanding overseas. After the implementation of the "5.31 Photovoltaic New Policy" in 2018, major domestic photovoltaic companies have set their sights on overseas markets, and the proportion of overseas business revenue has gradually increased. In order to explore overseas markets, Longi Corporation's business department structure has been adjusted from the original simple division of domestic and overseas to being divided according to finer market regions, "said Li Zhenguo, President of Longi Corporation.
At the same time as Longji shares galloped overseas, China's photovoltaic industry ushered in a "Dafengshou (Salad of assorted fresh vegetables)" in the overseas market.
Affected by multiple factors such as market changes, in the first half of this year, the newly installed capacity of photovoltaics in China was less than 12 GW, a decrease of over 50%. The newly installed capacity of centralized power stations was about 6.8 GW, a year-on-year decrease of 43.3%, and the newly installed capacity of distributed photovoltaics was about 4.6 GW, a year-on-year decrease of 61.7%. At the same time, the overseas photovoltaic market performed well in the first half of the year, with a global installed capacity of about 47 gigawatts, exceeding market expectations. The rebound in demand from overseas markets was already evident last year. Data shows that in 2018, the global new installed capacity was approximately 106 gigawatts, with overseas markets adding approximately 61.7 gigawatts, a year-on-year increase of 26.2%.
Driven by overseas markets, China's photovoltaic manufacturing sector continued to maintain a good growth trend in the first half of this year, with major manufacturing enterprises showing a strong production and sales situation, basically maintaining full production. According to statistics from the China Photovoltaic Industry Association, the export value of photovoltaic products (silicon wafers, solar cells, modules) in China reached 10.61 billion US dollars in the first half of the year, a year-on-year increase of 31.7%. Among them, the export value of battery cells has significantly increased, with export volume exceeding the total export volume of 2018; The export value of components has significantly increased, with an export volume of about 36 gigawatts, nearly doubling year-on-year.
Industry insiders say that currently, leading manufacturing companies have sufficient international market orders in the second half of the year. For domestic orders, some companies have begun to selectively accept orders based on order quality (price, payment method, etc.).
JinkoSolar has always adhered to the principle of global and even shipment, without excessive reliance on a single market. After the 'May 31 Photovoltaic New Policy', this strategic principle remains unchanged, but it will strengthen its layout and development in emerging markets in depth, breadth, and density, and consolidate its position in these markets. Qian Jing, Vice President of JinkoSolar Energy, told Economic Daily reporters that the company's current customers mainly come from overseas markets.
Li Gang, President of Seraph Photovoltaic Systems Co., Ltd., stated that the overall overseas market is in a stable and upward growth trend, with Europe and Southeast Asia being the two highlights of overseas market growth this year. The demand in the US market has also rebounded significantly from last year. In these regions, the company has established a presence and expects a 50% increase in sales this year. At present, the international economic situation is complex and ever-changing. In addition to market globalization, manufacturing globalization can also help effectively avoid trade protection measures. The company's future plan is to further increase its global layout.
It is worth noting that unlike the previous round of global expansion of China's photovoltaic industry, today's overseas market customers are not only concerned about price, but also about product quality and efficiency. In this context, technological innovation has become the core competitiveness driving China's photovoltaic products to "go global". In recent years, high-efficiency battery technologies such as black silicon have been widely applied in China, and leading technologies such as N-type double-sided modules and heterojunction modules are constantly maturing, which in turn promotes excellent Chinese modules to go overseas.
In the foreseeable future, overseas markets will continue to experience growth. According to Bloomberg New Energy Finance's forecast, global demand is expected to be between 123 and 149 gigawatts this year. International analysis firm IHS is also optimistic about the global photovoltaic market, expecting it to reach 123 gigawatts.
Wang Bohua, secretary-general of China Photovoltaic Industry Association, said that now the global photovoltaic industry is booming, and there are more and more large markets. A good exploration of foreign markets will significantly enhance the expectations, confidence and anti risk ability of Chinese enterprises.
Comment: Photovoltaic companies cannot take the old path to enter overseas markets
At a time when the construction pace of the domestic photovoltaic market is slowing down, we are delighted to see that the booming development of overseas markets once again provides strong support for the development of China's photovoltaic industry. While seizing opportunities, we still need to be vigilant, rationally view overseas markets, and do a good job in risk prevention and control. After all, in the last opportunity period of overseas markets, we suffered considerable losses in the photovoltaic "double reverse" in European and American countries.
From a historical perspective, frequent trade frictions have always been a norm in the international photovoltaic market, whether in the United States or other emerging markets, which has brought more uncertainty to China's photovoltaic industry's "going global". Undoubtedly, in the face of international trade issues faced by the photovoltaic industry, enhancing competitiveness is the only solution. Among them, quality is the lifeline of both enterprises and industries. In the increasingly complex international competition, Chinese photovoltaic enterprises should avoid the old path of extensive development and volume competition, and take the route of high-quality development, winning the trust of the market with high-quality products and services, and winning more market share.
In the future, the growth of global photovoltaic installed capacity will mainly come from emerging markets. In order for China's photovoltaic industry to firmly occupy these markets, it must fully leverage its advantages in market, technology, and full industry chain cooperation, build an upstream and downstream industrial linkage pattern from component manufacturing to power plant development, and fully leverage the advantages of upstream and downstream coordinated growth.
Compared with mature European and American markets, emerging markets are mostly developing countries and regions with immature related industries. When expanding the market, it is even more necessary to adapt to local conditions, deeply understand the climate characteristics, political situation, laws and regulations of the local market, and develop local teams. From a long-term development perspective, enterprises may encounter difficulties in "going global" alone, and the entire industry needs to work together to improve their overall response level and risk resistance ability.
