The Effect of Prudent Financial Strategy on Corporate Innovation: A Case Study of LONGi Green Energy

Jiayi Zhang

doi:10.54097/061h7a80

Authors

Jiayi Zhang

DOI:

https://doi.org/10.54097/061h7a80

Keywords:

Financial strategy, capital structure, innovation, LONGi Green Energy.

Abstract

Under China's "dual carbon" targets and the policy framework for building a new renewable energy-dominated power system, the photovoltaic (PV) industry faces profound transformation in financial strategy models amid growing global economic uncertainties and intensifying market competition. This study conducts a systematic analysis of LONGi Green Energy's prudent financial strategy system and its empowering mechanism for technological innovation capabilities. The findings demonstrate that this financial strategy has not only significantly enhanced the company's R&D investment scale and efficiency in commercializing technological achievements, but also generated multi-dimensional impacts: it has strengthened corporate resilience in complex environments, enabling sustained technological development during market fluctuations; optimized capital allocation to provide stable financial support for long-term innovation; established best practices that elevate financial management standards across the industry; and created an integrated finance-innovation development model that offers valuable references for high-quality growth in the new energy sector. Collectively, these impacts have contributed to perfecting the PV industry's innovation ecosystem and advancing energy structure transformation, with the company's disciplined financial approach serving as a replicable template that balances stability with innovation-driven growth, ultimately promoting both corporate competitiveness and sustainable industry development while providing important insights for the global energy transition.

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