Interview with Zhong Baoshen: How companies can transition from industry anxiety to meaningful transformation

How focusing on high quality development solves the challenge of market saturation

The solar industry is currently navigating a period of significant uncertainty that has left many organizations searching for a definitive way forward. Many players are experiencing what can be described as industry uncertainty, a feeling fueled by operational losses, and a lack of a clear roadmap for the future. In a recent discussion for the LONGi Voice Series, LONGi Chairman Zhong Baoshen shared his perspective on why this shift is happening and how the industry can move forward. While the current state of excessive competition is painful, it also serves as a critical opportunity for a necessary market reshuffling that will test resilience and reward those with vision.

Market confusion stems from financial pressure and an unclear future direction

The current sense of prevailing uncertainty across the sector is essentially a manifestation of confusion. The discussion highlighted that current market conditions are preventing many enterprises from operating profitably. This financial pressure, combined with an inability to see where the next phase of growth will come from, creates a challenging environment for decision makers. When companies cannot see a clear path to profitability, the resulting confusion slows down progress and prevents long-term planning necessary for stability. Understanding these dynamics is the first step toward addressing underlying structural issues and supporting more resilient business models.

Manufacturing scale alone no longer guarantees profit in a saturated market

One of the industry’s most important realizations is that manufacturing scale alone is no longer sufficient. Zhong Baoshen noted that the dividend period for simple expansion has ended because homogenized production capacity has become excessive. When products are largely the same across the board, there is no basis for obtaining higher profits through volume alone. The market has moved into a saturated stage where growth has slowed to a medium or low pace, requiring a fundamental shift in strategy. Companies that continue to focus only on increasing their output without differentiation will find it increasingly difficult to survive as the market matures and competition intensifies.

Customer centric innovation identifies new opportunities for long-term growth

To break through the current stagnation, companies must return to the core patterns of industry development. This means shifting the focus from simple production to a deep exploration of real customer needs. By investing in innovation that specifically addresses customer pain points, enterprises can create entirely new business opportunities. Whether it is improving the efficiency of technologies like TOPCon and BC or developing specific solutions, the focus must remain on value. Moving toward high-quality development centered on solving problems is the only sustainable path to long-term success in the evolving energy landscape. This transition requires a commitment to research and a willingness to move away from the high-volume low margin models of the past.