LONGi Founder Steps Down from Executive Roles, Shifts Focus to R&D
LONGi Green Energy Technology, a leading integrated solar manufacturer in China, said on Tuesday that its founder, Li Zhenguo, will step down from his roles as general manager, board member and legal representative, taking on new responsibilities in leading the company’s drive towards product innovation and advancement.
Li will now become president of LONGi’s Central Research Institute and chief technology officer of the Science and Technology Management Center. In these capacities, Li will focus on advancing cutting-edge photovoltaic technologies to support the company’s long-term strategic development.
At the same time, the company announced that Chairman Zhong Baoshen will take over the roles of general manager and legal representative.
The company added that the leadership changes will not affect the company’s ownership structure. According to LONGi’s 2024 annual report released in early May, Li holds a 14.08% stake, making him the largest individual shareholder, while his wife, Li Xiyan, owns 5.02%. Together, they remain the actual controllers of the company.
On the same day, LONGi also issued a resolution for the election of its fifth board of directors. The nine new board members included Li Shuxuan, the daughter of Li Zhenguo, who was nominated for the first time.
The leadership reshuffle has sparked considerable discussion across the industry. According to one insider, the significance of the move lies in the fact that LONGi’s founder and largest shareholder will no longer be involved in board-level strategic decision-making, management oversight or day-to-day operations. This marks a notable shift in the company’s governance structure and signals a renewed strategic focus on technological innovation and long-term development.
Leadership Shake-up Amid Prolonged Solar Slump and Deepening Losses
LONGi’s leadership restructuring comes amid an extended downturn in the PV industry and significant financial losses for the company. Industry insiders concurred that overcapacity across all segments of the solar supply chain has intensified market competition, driven down product prices, and resulted in negative gross margins for many manufacturers.
According to LONGi’s 2024 annual report, the company recorded a net loss of 8.618 billion yuan ($1.2 billion) and a 36.2% year-on-year decline in revenue to 82.6 billion yuan. The report also revealed a substantial reduction in workforce: as of the end of 2024, LONGi employed 37,853 people, almost half of the 75,066 employees reported at the end of 2023.
In a letter to shareholders, Zhong described 2024 as the company’s most challenging year since it went public in 2012, and attributed the company’s weak performance to both external and internal factors. Externally, the imbalance between supply and demand, low operating rates and falling PV product prices weighed heavily on performance. Internally, Zhong acknowledged that a series of missteps in business management also contributed to the company’s difficulties.
According to OPIS data, the FOB China price for TOPCon modules was assessed at $0.083 per watt peak on May 27-a steep 35% decline from the $0.128/wp level recorded in early 2024, underscoring the continued downward pressure on pricing across the solar industry.
Emphasis on Technological Innovation for Future Growth
At the China Photovoltaic Industry Association’s annual conference in December 2024, Li Zhenguo described the current period as “the darkest moment for the PV
industry.” However, he also emphasized that the intense market pressures present a “golden opportunity” for technological advancement, advocating for innovation as the key to overcoming the challenges of heightened competition.
This perspective aligns with LONGi’s strategic focus, as reflected in its 2024 annual report, which shows a research and development investment of 5 billion yuan — accounting for 6.1% of total revenue — one of the highest ratios among its peers in the solar manufacturing sector.
In comparison, other leading integrated solar manufacturers in China reported the following R&D investments in 2024: Trina Solar allocated 5.6 billion yuan, 6.9% of revenue; JA Solar invested 3.7 billion yuan, 5.3% of revenue; Tongwei spent 2.7 billion yuan, 2.9% of revenue; and Jinko Solar’s R&D expenditure was 37.99 million yuan, accounting for only 0.08% of its total revenue.
In the first half of 2024, LONGi launched its TaiRay wafer, a next-generation product manufactured using its upgraded Recharge Czochralski (RCz) technology, or TRCz. The TaiRay wafer delivers more uniform resistivity, supports various cell technologies and is designed to improve cell efficiency. According to the company, the TaiRay wafer is ready for mass production and is expected to significantly reduce manufacturing costs once it achieves broad adoption among downstream customers.
While TOPCon technology continues to dominate the market with a share exceeding 70%, LONGi is strategically pivoting toward back contact (BC) technology. The company has announced plans to rapidly scale up BC production capacity, targeting approximately 70 gigawatts by the end of 2025. By the close of 2026, LONGi aims to transition nearly all of its domestic production to BC technology, underscoring its long-term commitment to technological leadership amid industry headwinds.
In February 2025, during a speech marking the 25th anniversary of LONGi’s founding, Li emphasized that in times of overcapacity, technology must serve as the key weapon for enterprise survival.
“This stance appears to reinforce the rationale behind his decision to step away from company management and concentrate on technological innovation,” commented one market insider.
The source added that the market is watching the company closely to see whether LONGi — once a dominant force during the PERC era — can regain its leadership position through continued technological advancement and innovation as the PV industry transitions towards N-type technology.
–Reporting by Summer Zhang, szhang@opisnet.com; Editing by Mei-Hwen Wong, mwong@opisnet.com
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