Research On The Implementation Motivation And Effect Of LONGi Green Energy’s Expansionary Financial Strategy

Driven by the low carbon background,China’s photovoltaic industry has developed rapidly in the past decade.It has achieved an amazing transformation from being oppressed by Europe and the United States to becoming a leader in the world’s photovoltaic industry.On the one hand,photovoltaic enterprises continue to carry out technological innovations to achieve the goal of reducing costs and increasing efficiency.On the other hand,they are gradually getting rid of their dependence on government subsidies,and are moving from the era of subsidies to the era of grid parity.The PV industry is experiencing a "cold wave of the century" as domestic PV leaders such as LDK and Wuxi Suntech have suffered a devastating blow in the market.Many companies have reflected on the consequences of aggressive expansion,while LONGi Green Energy was successfully listed in this context and started to expand steadily and achieved good results.Therefore,it is important to study the successful expansionary financial strategy implemented by LONGi Green Energy to help other companies develop a financial strategy that matches their own development strategies.In the context of the new round of "production expansion",the expansionary financial strategy implemented by LONGi Green Energy can be used as a reference for companies in the industry.The thesis begins with an introduction to the context and importance of this study and a review of the literature on financial strategy,and briefly describes the research methodology and theoretical basis used in this thesis.Finally,conclusions and insights are drawn based on the previous analysis.This thesis concludes that the expansionary financial strategy implemented by LONGi Green Energy has been very successful.First,the company’s performance has continued to grow at a high rate and the strategic goals set have been achieved one by one;second,the strategic layout of the vertically integrated industrial chain has gradually improved the company’s industrial chain,achieving the expansion from upstream silicon and wafers to midstream cells and modules and even the construction of downstream power plants;third,the company has promoted many technological innovations in the PV industry,and its products have continuously Third,it has promoted many technical innovations in the PV industry,and the company’s products have continuously reduced costs and increased efficiency,enabling the industry to take a big step forward towards grid parity.LONGi Green Energy’s achievements are attributed to its expansionary financial strategy,in which the company raises funds required for development through various financing methods,invests in the construction of multiple capacity projects to expand the scale of its assets,lays out a vertically integrated industrial chain strategy to gain cost and scale advantages,and focuses on R&D investment to continuously achieve product cost reduction and efficiency improvement,which enhances the company’s core competitiveness.In addition,the company’s dividend distribution efforts have struck a good balance between meeting development capital needs and rewarding investors,bringing a more positive impact.In the context of the motivation of LONGi Green Energy’s expansionary financial strategy,this thesis also draws several insights: first,when formulating and implementing financial strategies,enterprises should consider external factors such as national policies and the current situation of the industry,as well as internal factors such as the enterprise’s financial situation and overall strategy;second,enterprises should focus their resources on developing their main business and enhancing their core competitiveness during the start-up or growth period;third,enterprises also need to raise awareness of the risks,pay attention to the control of financial risks,avoid blindly aggressive expansion,and sound financial strategy is the cornerstone of enterprise development and growth.