2024-03-04 02:00:20
On May 29, 2023, China Longi Green Energy announced a price reduction for large-size monocrystalline silicon wafers. The picture shows a solar panel base in Hami, Xinjiang, China. (STR/AFP via Getty Images)
[The Epoch Times, March 04, 2024]The share price of Chinese solar technology company, Longi Green Energy Technology Co., Ltd. (Longi Green Energy) has fallen by 70% from its high point, and nearly one million people have invested in the company’s shares. The investors suffered heavy losses and were deeply involved, but the boss of LONGi Green Energy has cashed out 19.2 billion (RMB, the same below).
As the leader of photovoltaic companies (solar technology companies), LONGi Green Energy’s stock price hit a historical high of 72.55 yuan/share at the end of November 2021.
In March 2020, the average price of LONGi Green Energy was 11 yuan per share. In just over a year, the stock price has increased nearly seven times.
However, as the photovoltaic industry has fallen into a trough, LONGi Green Energy’s stock price is now 21.6 yuan per share, a 70% drop. Nearly one million investors who bought the company’s shares also suffered heavy losses, but the boss of Longi Green Energy cashed out 19.2 billion yuan at the high point of the company’s stock price.
From October to December 2020, LONGi Green Energy’s share price has reached 62 yuan/share, which is 6 times higher than the share price in March of that year.
The rising stock price attracted many investors and funds to buy the company’s shares. Li Chunan, the company’s largest shareholder, reduced his holdings by 3.430 billion due to “personal capital needs” and transferred his equity to Hillhouse Capital, cashing out 15.841 billion. A total of 19.271 billion was directly cashed out.
But the good times did not last long. Starting from July 2022, the photovoltaic sector has been downgraded until February 2024.
As the stock price fell, public funds also sold off Longi Green Energy’s shares. By the end of December 2023, the number of institutions holding positions in Longi Green Energy dropped from 2,107 on June 30, 2022 to 152, with nearly 2,000 institutions clearing their positions. Hillhouse Capital, which took over Li Chunan’s shares, suffered a loss of more than 5 billion yuan.
China’s A-share photovoltaic sector has achieved a miracle of tripling in 7 months, and has also become a hot sector where institutional investors and retail investors gather together in 2021. Now, the photovoltaic sector has been falling for more than three years, and investors who have not sold have basically lost an average of 50%.
“Pan Rock Heart”, a senior mainland IT internet commentator, commented on this on March 3 that because the entire photovoltaic industry has serious overcapacity, corporate executives have no confidence in the company’s continued growth and lack confidence in the recovery of the photovoltaic industry; in addition, The increase in import tariffs on Chinese products in Europe and the United States has made the industry even worse. When the millions of longi shareholders who have been trapped will be able to get their capital back, it depends on whether photovoltaic can return to the track of high profits and high growth.
Netizen “A Zhan” said in this regard: “This boss’s business in China is like raising pigs. How can he not sell the pigs if they are raised and fattened? Continuing to raise them requires both energy and feed.”
As of the closing of A-shares on March 1, LONGi Green Energy closed at 21.60 yuan per share, with a total market value of 163.7 billion.
Editor in charge: Liu Yi#
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