Core Viewpoint - The photovoltaic sector is experiencing a collective rise in stock prices, driven by industry developments and policy reforms aimed at improving profitability and supply chain dynamics [1][2]. Group 1: Stock Performance - New Special Energy (01799) increased by 4.45%, reaching HKD 8.45 [1] - Xinyi Energy (03868) rose by 3.94%, trading at HKD 1.32 [1] - Xinyi Solar (00968) saw a 3.64% increase, priced at HKD 3.7 [1] - Fuyao Glass (600660) (03606) gained 2.02%, with a price of HKD 9.59 [1] Group 2: Industry Developments - CCTV2's "Economic Half Hour" reported on the photovoltaic industry, highlighting high-quality development practices [1] - 17 companies have nearly signed agreements to form a consortium, expected to be completed within the year [1] - Zhu Gongshan, Chairman of GCL Group, emphasized the importance of multi-crystalline silicon as a key focus for supply-side reforms [1] Group 3: Price and Profitability Trends - The "anti-involution" initiative has led to an expansion of participants and significant price recovery in the multi-crystalline silicon sector [2] - By Q3 2025, the multi-crystalline silicon industry is expected to increase prices above the comprehensive cost line due to regulatory requirements [2] - Daqo Energy reported a net profit of CNY 73.48 million in Q3 2025, marking the end of five consecutive quarters of losses [2] - GCL-Poly Energy's photovoltaic materials business also returned to profitability in Q3 [2] - The industry is witnessing accelerated supply-side reforms, with clear indications of price and profitability recovery [2]

Group 1 - The core viewpoint of the article highlights a collective rise in Hong Kong's photovoltaic concept stocks, indicating positive market sentiment in this sector [1] Group 2 - New Special Energy (01799.HK) saw an increase of 4.45%, reaching HKD 8.45 [1] - Xinyi Energy (03868.HK) rose by 3.94%, trading at HKD 1.32 [1] - Xinyi Solar (00968.HK) experienced a 3.64% increase, priced at HKD 3.7 [1] - Fuyao Glass (03606.HK) gained 2.02%, with a current price of HKD 9.59 [1]

Group 1 - The photovoltaic stocks have collectively risen, with notable increases in New Special Energy (up 4.45% to HKD 8.45), Xinyi Energy (up 3.94% to HKD 1.32), Xinyi Solar (up 3.64% to HKD 3.7), and Fuyao Glass (up 2.02% to HKD 9.59) [1] - CCTV2's report on the photovoltaic industry highlighted high-quality development practices, with 17 companies having signed agreements to form a consortium, expected to be completed within the year [1] - Shenwan Hongyuan indicated that polysilicon is a key focus for the "anti-involution" strategy, and the establishment of a joint platform will accelerate supply-side reforms in polysilicon [1] Group 2 - The "anti-involution" initiative has seen an expansion of participants and significant price recovery effects, with the polysilicon industry expected to start price increases by Q3 2025 under the "not below cost sales" regulation [2] - Price increases have led to a notable recovery in corporate profitability, with Daqo Energy reporting a net profit of CNY 73.48 million in Q3 2025, ending five consecutive quarters of losses [2] - GCL-Poly's photovoltaic materials business also returned to profitability in Q3, indicating that supply-side reforms are accelerating and the price and profit bottom for the industry have been established [2]

Group 1 - JPMorgan Chase & Co. increased its stake in Xinyi Solar Holdings Limited (00968.HK) by purchasing 5.757 million shares at an average price of HKD 3.7778 per share, totaling approximately HKD 21.75 million [1] - Following the purchase, JPMorgan's total holdings in Xinyi Solar rose to 641,627,831 shares, increasing its ownership percentage from 6.95% to 7.01% [1]

Group 1 - The core point of the article is that JPMorgan has increased its stake in Xinyi Solar (00968) by purchasing approximately 5.756964 million shares at a price of HKD 3.7778 per share, totaling around HKD 21.7487 million [1] - After the purchase, JPMorgan's total shareholding in Xinyi Solar is approximately 642 million shares, representing a holding percentage of 7.01% [1]

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年10月31日 狀態: 新提交 致：香港交易及結算所有限公司 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 00968 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 80,000,000,000 | HKD | | 0.1 HKD | | 8,000,000,000 | | 增加 / 減少 (-) | | | | | | HKD | | | | 本月底結存 | | | 80,000,000,000 | HKD | | 0.1 HKD | | 8,000,000,000 | 本月底法定/註冊股本總額： HKD 8,000,000,000 FF301 第 1 頁 共 10 頁 v 1 ...

Core Insights - The photovoltaic industry in China is experiencing significant growth, with a projected 45% increase in new installed capacity in 2024 compared to the previous year, marking nearly a 20-fold increase since 2015 [1] - The "14th Five-Year Plan" emphasizes green transformation as a core goal, aiming to consolidate and expand the advantages of the wind and photovoltaic industries [1] - The industry is undergoing profound changes with the transition from P-type to N-type monocrystalline silicon technology, expected to capture over 96.9% market share by 2025, alongside advancements in TOPCon, HJT, and BC technologies [1] Industry Developments - A coalition of 17 major companies is being formed to address supply-side issues, focusing on the polysilicon segment through capacity coordination, quality grading, and self-discipline in production cuts [2] - The "anti-involution" policies initiated since mid-2025 have led to a significant expansion of participating entities and a notable recovery in product prices, with the polysilicon industry starting to increase prices above the comprehensive cost line in Q3 2025 [2] Related Companies - Key companies in the photovoltaic supply chain include GCL-Poly Energy (03800), Xinte Energy (01799), Flat Glass Group (601865), Xinyi Solar (00968), Fuyao Glass (600660), and CAISSA New Energy (600876) [3]

Core Insights - The photovoltaic industry in China is experiencing significant growth, with a projected 45% increase in new installed capacity in 2024 compared to the previous year, marking a nearly 20-fold increase since 2015, indicating a shift from supplementary energy to a primary energy source [1] - The "14th Five-Year Plan" emphasizes green transformation as a core goal, aiming to consolidate and expand the advantages of the wind and photovoltaic industries [1] - Recent "anti-involution" policies from the government aim to regulate competition within the photovoltaic sector, transitioning the industry from chaotic low-price competition to sustainable development, which is expected to bring substantial benefits to both supply and demand sides [1] - The photovoltaic industry is undergoing a technological transformation, with the market share of N-type monocrystalline silicon technology expected to exceed 96.9% by 2025, alongside advancements in TOPCon, HJT, and BC technologies, leading to improved efficiency and reduced costs [1] - The multi-crystalline silicon sector is addressing supply-side issues through the establishment of a joint platform involving 17 major companies, focusing on capacity coordination, quality grading, and self-discipline to curb disorderly expansion [2] - The multi-crystalline silicon industry has begun to increase prices in Q3 2025, moving above the comprehensive cost line under the new pricing regulations [2] Related Companies in the Photovoltaic Industry - GCL-Poly Energy (03800), New Special Energy (01799), Flat Glass Group (06865), Xinyi Solar (00968), Fuyao Glass (03606), and CAISSA New Energy (01108) are key players in the Hong Kong stock market related to the photovoltaic industry [3]

Core Viewpoint - The Hong Kong stock market experienced a decline, with the Hang Seng Index falling by 0.89% and the Hang Seng Tech Index dropping by 1.91% [1] Group 1: Market Performance - The Hang Seng Index closed down by 0.89% [1] - The Hang Seng Tech Index decreased by 1.91% [1] Group 2: Company-Specific Movements - Semiconductor Manufacturing International Corporation (SMIC) saw a decline of 5.11% [1] - Xinyi Solar Holdings Limited dropped by 4.77% [1] - BYD Company Limited fell by 3.74% [1] - Hansoh Pharmaceutical Group Company Limited increased by 2.81% [1] - China National Pharmaceutical Group Corporation rose by 2.47% [1]

Summary of the Conference Call on China's Photovoltaic Industry Industry Overview - The report focuses on the photovoltaic (PV) industry in China, tracking monthly supply and demand dynamics, inventory levels, and cash gross profit margins and EBITDA profit margin trends for covered companies [1][2]. Key Points Pricing and Valuation - As of October, the market pricing for 2026 is projected at RMB 58/kg for polysilicon, RMB 1.8/piece for wafers, RMB 0.66/W for modules, and RMB 13/m² for PV glass. The forecasted prices are significantly lower at RMB 42/kg, RMB 1.3/piece, RMB 0.67/W, and RMB 10/m² respectively [2][12]. - The average stock price of covered companies faces a potential downside risk of 34% based on current valuations [2]. Industry Dynamics - The industry is experiencing "anti-involution" measures, with new regulations stating that pricing cannot fall below production costs, which may only slightly improve the pricing outlook for polysilicon compared to the lows seen in June [2]. - Downstream companies are expected to reduce prices to expand market share amid weak demand, despite the need to cut costs [2]. Supply and Inventory Trends - As of October, polysilicon inventory increased by 7% month-over-month to 275 GW, with approximately 150 GW at polysilicon plants, 110 GW at wafer plants, and 15 GW in futures contracts [3]. - PV glass manufacturers saw a significant increase in inventory days, rising 63% to 25 days (equivalent to 40 GW) due to sluggish shipment volumes [3]. - Production cuts are progressing slowly, with a projected 6% decrease in monthly polysilicon output for November and December due to seasonal price peaks in the Midwest [3]. Export and Demand - Exports of battery cells and modules decreased by 10% and 4% month-over-month to 11 GW and 28 GW respectively, primarily due to the end of peak demand seasons in overseas markets [3]. - The global demand for modules in September decreased by 6% year-over-year to 43 GW, although cumulative demand for the first nine months of 2025 increased by 30% to 525 GW [14][19]. Profit Margins - The cash profit margins for upstream sectors remained stable, while downstream margins further declined [5][6]. - The cash gross profit margin for Tier 1 polysilicon is reported at 37%, while the margins for cells and modules are negative, indicating significant pressure on profitability [6]. Additional Insights - The report highlights the potential for further increases in silver prices, which could impact downstream pricing acceptance due to its significant share (30%-40%) of non-silicon processing costs [3]. - The anticipated increase in production capacity for PV glass may exacerbate inventory issues if demand does not recover [3]. Conclusion - The Chinese photovoltaic industry is currently facing challenges with pricing, inventory management, and profitability. The outlook remains cautious, with potential risks to investment returns highlighted by the significant downside in stock valuations and the need for strategic pricing adjustments in response to market conditions [2][3][5].