(Yicai) May 27 -- Shares of Longi Green Energy Technology fell after the major Chinese solar panel maker said founder Li Zhenguo has resigned as a director, general manager, and legal representative to concentrate instead on leading research and development at the firm.

Longi [SHA: 601012] closed 2.7 percent lower at CNY14.44 (USD2) a share today, bringing the decline since the end of last year to 8.1 percent. The broader Shanghai stock market edged down 0.2 percent.

The board has approved Chairman Zhong Baoshen to step in as GM and legal representative, while Li's daughter is poised to join as a non-independent director, the Xi'an-based company also announced late yesterday. The changes will not impact production or operations, nor will the controlling shareholders or actual controllers change, it added.

Li will continue to lead Longi's research and development efforts as director of the central research institute and chief technology officer of the technology management center, the company noted. The research team will focus on cutting-edge technologies in the photovoltaic industry.

While Li's resignation may seem sudden, there were earlier indications, a source close to the company told Yicai. "His public appearances and frequency of engagements had decreased significantly in recent years, while his focus on the firm's R&D investments has increased,” the person said.

Established in 2000 by Li, Zhong Baoshen, and others, Longi shipped 108.46 gigawatts of solar wafers last year and has ranked first worldwide for several successive years. It ranked second for solar module shipments.

But the company swung into the red with a net loss of CNY8.6 billion (USD1.2 billion) in 2024, versus a net profit of CNY10.8 billion (USD1.5 billion) in the previous year, due to plunging prices.

For the first quarter of this year, it reported a net loss of CNY1.44 billion.

Li remains the Longi’s actual controller, but his work will now prioritize R&D, the source noted, adding that “Longi will subsequently introduce Li's daughter as a director."

In a separate announcement yesterday, Longi said the company will hold its annual general meeting on June 30, with the appointment of Li Shuxuan as a non-independent director one of the items on the agenda.

Born in 1993, she is a senior executive at a beauty and nutrition company in Xi'an and is a director at a smart solid waste treatment firm in Dongguan. She has a master's degree in engineering from the University of Hong Kong and previously worked at China Everbright Bank in Xi’an.

Editors: Tang Shihua, Martin Kadiev