Li Zhenguo, founder of one of China’s biggest solar manufacturers Longi Green Energy Technology Co., has stepped down from his operational roles.

This leadership change comes after Longi reported a net loss of 1.44 billion yuan (US$200 million) in Q1 2025.

According to a filing with the Shanghai Stock Exchange on May 26, he is leaving his positions as general manager, board member, and legal representative.

However, he will remain active as head of the company’s research institute and serve as chief technology officer at its technology management center.

Longi’s chairman since 2006, Zhong Baoshen, will take over as general manager and legal representative.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ China’s solar industry faces overcapacity crisis unlike any since 2016

The leadership change at Longi reflects a broader structural crisis in China’s solar manufacturing sector, not just a company-specific issue.

China’s solar production capacity dramatically outstrips global demand, with manufacturers adding 861GW of production capacity in 2023 alone 1.

This overcapacity has triggered the first collective industry loss since 2016, with five major Chinese solar manufacturers accumulating over 8 billion yuan in losses in early 2024, quadrupling from the previous year 2.

The magnitude of the problem is evident in installation numbers: China had installed 660GW of solar capacity by Q1 2024, compared to the U.S. total of 179GW 3.

Industry leaders like Li Zhenguo recognized this crisis months ago, calling for voluntary capacity limitations as early as November 2023, admitting that the industry’s growth model had become unsustainable.

2️⃣ Solar price war creates global market distortions with geopolitical consequences

The intense competition among Chinese manufacturers has driven an 89% price drop in solar panels since 2009, fundamentally altering global renewable energy economics 1.

This price collapse has forced companies like Longi to operate at a loss, with the company’s revenue falling from $18.25 billion in 2023 to a projected $10.89 billion in 2025 despite maintaining high production volumes 4.