Every time reporter Zhang Jing
On November 3, there were media reports that LONGi’s products were detained at the US border. The report mentioned that “according to the WRO released by the US in June, the company may become the next component manufacturer blocked by US customs and border protection operations. “In this regard, Longi issued a clarification announcement on the evening of November 3.
Longji shares announced that a total of 40.31MW of module products were detained by the United States, but this batch of goods only accounted for 1.59% of the company’s 2020 export sales to the United States. At present, the company’s shipments to the US market are still proceeding normally, and the US Customs Temporary Detention Order (WRO) has not had a significant adverse impact on the company’s operations for the time being.
The “Daily Business News” reporter noted that the detention of LONGi’s products by the US border is not an isolated case. In order to suppress China’s photovoltaic industry, since August this year, photovoltaic manufacturers such as JinkoSolar, Canadian Solar, Trina Solar, etc. The components have been exposed and detained by U.S. Customs.
Some analysts in the photovoltaic industry told reporters that the so-called “temporary deduction order” imposed by the United States on the photovoltaic industry is due to the Occupies a clear advantage, so the United States wants to launch an “anti-circumvention” investigation on Chinese related products.
According to Longi’s announcement, the United States’ trade restrictions on Chinese photovoltaic products began as early as November 2011. The restricted products include solar cells produced in mainland China, whether or not they are partially or fully assembled into modules, laminates, and batteries. Panels or other products (excluding silicon wafers, hereinafter referred to as “photovoltaic products”) are subject to a “dual reverse” investigation. In June 2018, Chinese photovoltaic products (batteries, modules and inverters) were included in the taxation list.
In response to the component deduction incident, Longi said that according to the China Photovoltaic Industry Association data, the new photovoltaic installations in the United States accounted for 14.8% of the total global installed capacity in 2020. The company’s sales area is global and will not have a major dependence on the US single market.
In addition, the company has established traceability management measures and work processes for related products, and can provide traceable evidence of related products to prove that the silicon raw materials used in the U.S. Customs temporary seizure of component products meet the regulatory requirements of the U.S. government.
Therefore, the company judges that the WRO of the US Customs has not had a significant adverse impact on the company’s operations, and the company will continue to pay attention to and evaluate the impact of the WRO on the company’s US shipments.
The above-mentioned analysts also believe that although there are conflicts and frictions between China and the United States in economic and trade exchanges, for China’s photovoltaic industry, the United States is a rigid demand for photovoltaic modules, and the deductions are short-term fluctuations, and they are not expected to affect Longi’s overseas Market and sales have an impact.
According to the 2021 semi-annual report of Longi, despite the impact of overseas epidemics, Longi can still achieve 7.654 billion yuan in overseas revenue.
“Our module shipments in major overseas markets such as the United States, Europe, and Asia Pacific are growing. With our investment in scientific research and technological leadership in the industry, LONGi’s global influence will increase, and its global delivery capabilities will also be greatly improved.” The relevant person in charge of the shares told reporters.
Not long ago, Longi’s three-quarter report showed that in the first three quarters, operating income was 56.205 billion yuan, a year-on-year increase of 66.13%; net profit attributable to the parent was 7.556 billion yuan, a year-on-year increase of 18.87%, and performance continued to grow steadily.
