No.142 billioner Li Zhengguo – Longi Green Energy

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Introduced No#142 billionaire Li Zhenguo & family in China who is the manufacturer of Green Energy.

 

Founded in 2000 year, on Feb.14th.

 

About background of this company, I shared an interview which from The paper in 2022

 

Q:

The Paper: Please briefly review the process of this company from its establishment to its growth. What stages do you think it can be roughly divided into?

 

A:

Li Zhenguo: I think we can review this history from a different vision.

From a personal vision, I graduated from college in 1990, and the 10 years after graduation is the stage of raising a family; the second 10 years, from 2000 to 2009, until 2010, it is the 10 years of self-realization, I feel that I have the ability to do some things, bring out my ability, and be useful to the society; starting from 2009, it should be a responsibility, at this time the company has more than 1,000 people, of course, it has 60,000 people now, and the main consideration is to let the employees have a job.

From an industry vision, many people also asked me if I was determined to be in the photovoltaic field very early, but I was not. The reason why I did monocrystalline silicon before 2006 was because I could only do monocrystalline silicon. After 2006, we began to form a strategy, starting from technology and thinking about energy transition and social responsibility development.

We believe that whether it is the best technical route, depends on whether it is based on the essential demands of the lowest cost of electricity in the photovoltaic industry. This is a very important point, and we have researched and analyzed its in-depth research on the technical route.

Our decision is single crystal technology.

Then, to study and confirm how to achieve cost reduction.

For example, RCZ (multiple pulling charging technology), diamond wire cutting and other technologies are continuously introduced, in fact, they are all to strengthen and realize the COST advantage of the single crystal technology route.

 

In 2014-2015, the vision of our thinking changed.

We have determined that photovoltaics will be the lowest-cost clean energy source, which is the trend. We began to think more about how to eliminate the intermittent defects of photovoltaic power generation through some adjustment schemes.

 

Q:

The Paper: LONGi has always insisted on a single crystal, before the turning point of the cost of a single crystal, do you and your team have met mental influence?

A:

Li Zhengguo: It has a relationship with our depth analysis in 2006.

 

In 2006, it conducted in-depth research and analysis of the industry, mainly in two visions.

 

First, what is the technical route?

 

Our logic is that photovoltaic is an energy attribute, and the lowest power generation cost is the goal. The low cost and conversion efficiency of a single link cannot contribute to the future cost of electricity, and it may not be a good technical route. For example, we compare crystalline silicon and thin film, single crystal and polycrystalline, physical purification and Siemens method, concentrator cells and conventional crystalline silicon cells. The conclusion is that single crystal is the technical route with the lowest COST in the future. We assume that even if ingots are made at zero cost, single crystals will still have an advantage.

 

Therefore, there are many people in the capital market, including the industry, who say that LONGi is betting on the mono route, but we are not betting. At that time, we understood this clearly, and we made improvements and cultivation in the technical route later.

 

The second vision is how we view the competitive landscape of this industry.

We have also been challenged (increasing silicon prices) in recent quarters, but we think that whatever humans can make, there will be excess. Except for the power station, other links in the photovoltaic industry chain are manufacturing attributes. We believe that the future of the industry must be a pattern of full and complete competition. The ability that LONGi needs to build is how to maintain its ability to survive and develop in a fierce and full competition environment.

 

Based on the above analysis, we adopted strategies of several competitive at that time:

 

  1. The first phase of the strategy is to concentrate resources to form point breakthroughs in the links that we are good at, and form global competitiveness, such as our single crystal rod slicing link.

 

  1. Refused to sign long-term contracts with polysilicon makers to lock in prices. For more than a decade since, that judgment has been true, save for the last two or three quarters being challenged. Longi is a surplus theorist.

 

  1. In terms of site selection, we first chose Ningxia, where the power supply is sufficient and the cost of electricity is relatively low. At that time, we judged that the electricity fee is a rigid cost, and there is a lot of foam and moisture in the rest of the cost, and the electricity cost (proportion) will rise after being squeezed out. Sure enough, by 2013, electricity costs accounted for 13-14% of our silicon wafers, which is more competitive than building factories in the Yangtze River Delta region.

 

  1. Customized equipment.

Therefore, the realization of monocrystalline competitiveness was not achieved suddenly. In 2006, there were foreshadowing and strategic thinking. In addition, we are also innovating collaboratively in crystal pulling, diamond wire, and various battery technologies such as PERC.

 

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