[Epoch Times November 04, 2021](Epoch Times reporter Li Bing comprehensive report) On the morning of November 3, Chinese photovoltaic giant Longji shares suddenly plunged, and the stock price fell all the way. The drop in the afternoon opening expanded to 9.67% and hit the limit. As of the close, the latest market value of Longji shares is 492.6 billion yuan, and the market value has evaporated 48.6 billion yuan a day.
Regarding the cause of the stock price of Longi shares, the market blamed it on a rumor that the company’s components were detained by the US Customs.
In this regard, LONGi also issued an announcement in the evening, stating that from October 28, 2021 to November 3, 2021, the U.S. Customs will impose a suspension order (WRO) on Longi Green Energy Technology Co., Ltd. and its U.S. subsidiaries (hereinafter referred to as “Company”) a total of 40.31MW module products exported to the United States were detained. This batch of goods accounted for approximately 1.59% of the company’s export sales to the United States in 2020. At present, the company’s shipments to the US market are still proceeding normally.
However, the news that Longi’s products were detained at the US border also caused concerns in the capital market.
On November 3, the Dragon and Tiger List showed that four of the top five seats that sold LONGi’s shares on that day were institutional seats, of which the most sold reached 3.130 billion yuan.
A brokerage new industry analyst told Times Finance that the market reacted so much to Longi’s shares this time because the company’s gross profit margin in the Too high, once there is a turmoil, there will be a big drop.
Zhongtai Securities quickly interpreted LONGi’s shares after the market, saying that US border factors have little impact on business operations, and a drop is a buying opportunity. At the same time, it said, “In August, Jinko, Canadian Solar, Tianhe and other companies were also detained for similar reasons. Currently, the company is providing traceable materials to apply for release. The company’s traceable materials are earlier and can be resolved by normal procedures. The company’s business operations have less impact.”
Regarding media reports, LONGi issued a clarification statement on November 3, stating that the US’s trade restrictions on Chinese photovoltaic products began in November 2011. Since the second half of 2020, the company has established and improved management measures to respond to temporary detention orders (WRO), including corresponding measures such as product traceability and system construction, external agency certification, and supplier management. The company will actively respond to and cooperate with the US Customs in providing corresponding retrospective evidence to ensure that the company’s detained products can be lifted as soon as possible.
According to reports from Bloomberg, PV-magazine and other related media, on November 3, Roth Capital Partners, a solar energy analysis company, stated in a report to customers that according to the WRO (WRO) issued by the U.S. Customs in June , Longi shares may become the next component manufacturer in the US Customs and Border Protection operations. Longi’s maritime cargo is expected to be stranded in five ports, which is expected to have a wide-ranging impact on the company.
On August 16, US solar manufacturers submitted a petition to the federal government to oppose Chinese solar companies’ unlawful evasion of US tariffs and requested investigations of solar cells and modules from Malaysia, Thailand, and Vietnam that were illegally evading anti-dumping and countervailing duties against China.
In recent years, Chinese photovoltaic giants Longi Green Energy, JA Solar, Trina Solar and Jinko Power have aggressively deployed production capacity in neighboring countries in Southeast Asia. Set up factories in Malaysia, Thailand and other countries.
Editor in charge: Li Qiong
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