Report Investment Rating The report does not mention the investment rating for the polysilicon industry. Core Views - **Strategy**: For the 2506 contract, it is advisable to be cautiously bullish. When the market rebounds above 40,000 yuan/ton, producers can consider selling hedging at high prices. In the short term, conduct a positive spread arbitrage between the 06 and 07 contracts. If the warehouse receipt volume starts to increase rapidly, switch to a reverse spread arbitrage. There are no strategies for cross - variety and spot - futures operations. For options, sell near - month deep out - of - the - money put options and buy call options [6][7][69]. - **Industry Situation**: The polysilicon upstream and downstream industries have high concentration, with leading enterprises having a large share of production capacity. Most enterprises are currently in a state of losing cash costs, and several polysilicon listed companies reported losses in the first quarter. Some enterprises have shut down for a long time, and most have reduced production loads. The number of polysilicon types and grades is large, and it is subject to brand - based delivery. The standard delivery product on the market is n - type dense material, with relatively high delivery requirements and large discounts for alternative delivery products. The amount of warehouse receipts registered by manufacturers at the current market price is expected to be very small [9][70]. Summary by Directory 1. Polysilicon Production Overview - **Production Enterprises**: The polysilicon industry has high concentration, with the top four enterprises (Tongwei Co., Ltd., GCL Technology, Daqo New Energy, and Xinte Energy) having a combined market share of over 60%. Each of these enterprises has its own development strategy and production characteristics [14][15]. - **Capacity and Output**: By the end of 2024, the polysilicon production capacity reached about 2.86 million tons, a year - on - year increase of 42%, but the capacity utilization rate was only about 30%. Leading enterprises are still expanding production capacity. Due to industry self - restraint on production, the production enthusiasm of enterprises is limited, and the output is expected to decline slightly. The industry has been in a de - stocking pattern since 2025, but the high total inventory has a large inhibitory effect on the spot market [18]. - **Downstream Enterprises**: The downstream of polysilicon is also highly concentrated. According to the 2024 production capacity statistics, the top 5 enterprises account for nearly 53% of the production capacity, and the top 2 account for 33% [23]. - **Cost**: The production cost of polysilicon mainly consists of raw material cost, electricity cost, labor cost, depreciation cost, and technological differences. The raw material, electricity, and depreciation costs account for about 80% of the total cost. Leading enterprises have different production costs due to differences in electricity cost ratios and technological routes [26]. 2. Polysilicon Classification - **Physical Form**: Polysilicon can be classified into block silicon and granular silicon. Block silicon has a stable quality and can be stored for a long time, while granular silicon can avoid the crushing step but is easily contaminated [28]. - **Purity**: It can be divided into metallurgical - grade polysilicon (MG - Si), solar - grade polysilicon (SOG - Si), and electronic - grade polysilicon (SEG - Si) in descending order of purity [33]. - **Downstream Doping and Conductivity Type**: Solar - grade polysilicon is mainly divided into N - type and P - type, depending on the type of doping impurities [34]. - **Surface State**: Block silicon can be further divided into dense material, cauliflower - like material, and coral - like material. Dense material is mainly used for pulling single - crystal silicon, while cauliflower - like and coral - like materials are mainly used for making poly - silicon wafers [35]. 3. Polysilicon Delivery Rules Interpretation - **Brand Delivery System**: Polysilicon futures implement a brand - based delivery system. The delivery products must be from registered brands approved by the exchange. Registered brand products can be warehoused without inspection if the owner can provide relevant quality certificates. There are 7 enterprises with 12 production plants in the first batch of registered brands [41][42]. - **Delivery Details**: The delivery area covers 8 provinces (autonomous regions), and there is no premium or discount between regions. The delivery unit is 30 tons per lot. The warehouse receipt has a 6 - month validity period, and products with a production date over 90 days cannot be registered as warehouse receipts. The delivery methods include one - time delivery, rolling delivery, and futures - to - cash transactions [49][50][53]. - **Delivery Requirements**: The benchmark delivery product is N - type block silicon, and the alternative is P - type block silicon with a discount of 12,000 yuan/ton. Strict quality indicators are specified, and packaging and storage requirements are also defined. There are also position - limit and risk - control measures [58][63][64]. 4. Polysilicon Delivery and Recent Market Analysis and Outlook - **Delivery Situation**: The current market price is expected to result in a very small amount of warehouse receipts. The recent market has seen continuous increases in positions and price declines, with low trading volume. The 2506 contract is expected to rise in the short term, and it is estimated that the market price needs to be above 39,000 yuan/ton for warehouse receipt registration to be cost - effective, and above 40,000 yuan/ton for producers to have a strong willingness to register [66][67]. 5. Summary - **Industry Status**: The polysilicon upstream and downstream industries are highly concentrated, and most enterprises are in a state of loss. There are many types and grades of polysilicon, and the delivery requirements are high. The amount of warehouse receipts registered at the current market price is expected to be small [70]. - **Strategy**: The same as the core strategy, including unilateral, cross - period, cross - variety, spot - futures, and option strategies [69].

Core Viewpoint - The photovoltaic industry is facing significant challenges in 2024, with a price drop exceeding 29% for major materials, leading to substantial losses for many companies, including leading firms like LONGi Green Energy [2][3] Group 1: Industry Performance - Nearly half of the 80 listed photovoltaic manufacturing companies in A-shares are experiencing losses, with LONGi Green Energy describing 2024 as its most difficult year since its listing [2] - Major integrated companies like JinkoSolar and LONGi Green Energy have seen revenue declines of over 20%, with JinkoSolar's net profit plummeting by 98.67% and LONGi Green Energy reporting a net loss of 8.618 billion [3][6] - The top 10 photovoltaic companies show a mixed performance, with only Sungrow Power Supply achieving growth in both revenue and net profit [3][4] Group 2: Employment Trends - Many A-share photovoltaic companies are reducing their workforce, with ST Lingda cutting 86.67% of its staff, and other companies like ST Quan reducing their workforce by nearly 52% [2] - LONGi Green Energy has the highest total number of layoffs at 49.57%, reducing its workforce from approximately 75,000 to under 38,000 [3][5] - The reduction in workforce is correlated with the companies' financial performance, with those experiencing significant profit declines also showing higher layoff rates [2][4] Group 3: Cost Management - LONGi Green Energy's reduction in workforce has led to a 7.16% decrease in direct labor costs, while total employee compensation dropped by 33.53% to 1.574 billion [6] - The company has also seen a significant reduction in management expenses by 30.22%, although R&D expenses have decreased by 20.48% [6][7] - The overall trend indicates that while companies are cutting costs, the speed of cost reduction is not keeping pace with the decline in prices and revenues [6][7] Group 4: Future Outlook - Despite the current challenges, some companies are beginning to show signs of recovery in early 2025, although concerns remain about potential demand weakness in the latter half of the year [9] - The international trade environment is becoming increasingly challenging, particularly for companies with overseas operations, as tariffs and trade barriers impact their business [9][10] - Companies are likely to continue optimizing their workforce to maintain competitiveness in a rapidly changing market [7][9]

Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for future investment returns [4][6]. Core Viewpoints - The company reported a significant decline in revenue and net profit for 2024, with revenue at 15.098 billion yuan, down 55.20% year-on-year, and a net loss of 4.750 billion yuan, a decrease of 289.25% [1][5]. - Despite the challenging market conditions, the company is expected to achieve a turnaround due to continuous cost reductions and potential stabilization in industry prices [4]. - The company has made substantial advancements in its emerging businesses, including silane gas and perovskite technology, which are anticipated to contribute to future growth [4]. Summary by Sections Financial Performance - In 2024, the company achieved a silicon production and shipment volume of 269,200 tons and 281,900 tons, respectively, representing year-on-year growth of 32% and 45% [2]. - The average selling price of the company's silicon products was approximately 34.2 yuan/kg, while revenue from polysilicon sales was 8.673 billion yuan, down 50.25% year-on-year [2]. - The cash manufacturing cost of silicon decreased to 33.52 yuan/kg in 2024, a 10% reduction from Q4 2023, with further reductions expected in Q1 2025 [2]. Emerging Business Development - The company invested 1.102 billion yuan in R&D in 2024, with a research expense ratio of approximately 7.3% [4]. - The annual production capacity of electronic-grade silane gas reached 600,000 tons, capturing about 25% of the domestic market [4]. - The company’s perovskite technology is projected to achieve a module efficiency of 27% by the end of 2025 [4]. Carbon Footprint and Environmental Initiatives - The company’s silicon products have achieved a carbon footprint of 14.441 kg CO2 e/kg, a 42% reduction from the previous year, setting a new industry record [3]. - The company is actively addressing carbon emissions in response to new export product requirements set by the Ministry of Commerce [3]. Profit Forecast and Valuation - The profit forecast for 2025-2027 has been adjusted, with expected net profits of -405 million yuan, 842 million yuan, and 1.980 billion yuan, respectively [4][5]. - The report highlights the company's competitive advantages in silicon products and the potential for new growth from its investments in emerging technologies [4].

Financial Performance - Total revenue for 2023 was RMB 33,700,479, a decrease of 55.2% compared to RMB 15,097,560 in 2024[9] - The company reported a net loss attributable to shareholders of RMB 4,750,396 in 2024, a significant decline of 289.3% from a profit of RMB 2,510,076 in 2023[9] - Sales of polysilicon decreased by 50.3% to RMB 8,673,317 in 2024 from RMB 17,435,147 in 2023[9] - For the fiscal year ending December 31, 2024, the company's revenue was approximately RMB 15,098 million, a decrease of 55.3% from RMB 33,700 million in 2023, with a gross loss of RMB 2,510 million compared to a gross profit of RMB 11,692 million in 2023[41] - The company recorded a loss attributable to shareholders of approximately RMB 4,750 million in 2024, compared to a profit of RMB 2,510 million in 2023[41] - The overall gross margin turned negative at -16.6% for the year ending December 31, 2024, compared to a gross margin of 34.7% in 2023, reflecting the impact of declining average selling prices of photovoltaic products[67] Assets and Liabilities - Total assets decreased by 9.5% to RMB 74,874,157 in 2024 from RMB 82,768,172 in 2023[11] - The company's equity attributable to shareholders fell by 12.7% to RMB 37,177,048 in 2024 from RMB 42,587,016 in 2023[11] - The current ratio decreased by 25.5% to 1.17 in 2024 from 1.57 in 2023[11] - The company’s debt increased by 19.8% to RMB 19,095,320 in 2024 from RMB 15,939,071 in 2023[11] - Trade receivables and other receivables decreased from approximately RMB 17.9 billion on December 31, 2023, to about RMB 11.6 billion on December 31, 2024, primarily due to a reduction in trade receivables and notes receivable[87] - Total debt increased from approximately RMB 15.9 billion on December 31, 2023, to RMB 19.1 billion on December 31, 2024, with net debt rising from RMB 6.8 billion to RMB 9.2 billion[92] Production and Technology - The company has developed a proprietary silane fluidized bed (FBR) technology for silicon production, which offers low cost and low carbon footprint advantages[12] - GCL Technology's R&D investment reached 718 million yuan in the first half of 2024, accounting for over 8% of revenue, an increase of 3.8 percentage points year-on-year, marking a record high[24] - The cash cost of granular silicon reached a new industry low of 33.18 yuan per kilogram, providing a strong foundation for future performance reversal[27] - GCL-Poly's FBR granular silicon technology has achieved a cash production cost of 27.14 CNY/kg, with a product quality ratio exceeding 95% and a market share surpassing 25%[31] - The company has successfully reduced production costs of perovskite solar cells by 50%, achieving conversion efficiencies of 19.04% for single cells and 26.36% for stacked cells, maintaining a global leadership position[32] - GCL-Poly's granular silicon has set a world record with a carbon footprint of 14.441 kgCO2e/kg, and all production bases have achieved 100% coverage of sustainable supply chains certified by TÜV Rheinland[33] Market Position and Strategy - GCL Technology signed a long-term procurement contract for 425,000 tons of polysilicon with LONGi Green Energy, indicating strong demand and strategic partnerships[20] - The company plans to implement a dual-drive strategy focusing on both upgrading existing businesses and innovating new business expansions, aiming for a comprehensive development in silicon-carbon materials[35] - GCL-Poly has over 600,000 tons of silane gas production capacity, leading globally, with a domestic market share of approximately 25% for its high-purity silane gas[36] - The company has launched new businesses in carbon nanotubes and silicon carbide, with its semiconductor subsidiary achieving over 50% domestic market share in electronic-grade polysilicon[37] - The company aims to accelerate internationalization and enhance its brand, R&D, technology, and operational management on a global scale[40] Sustainability and ESG Initiatives - GCL Technology's carbon footprint management project, GCL Carbon Chain 2.0, was launched in collaboration with Ant Group and TÜV Rheinland, enhancing its sustainability initiatives[22] - The company achieved a carbon footprint certification of 14.441kgCO2e/kg for its FBR granular silicon, significantly reducing CO2 emissions by 10.48 million tons annually compared to traditional methods[60] - The company has established a dynamic carbon footprint tracking and management platform called "GCL Carbon Chain," promoting low-carbon standards in the photovoltaic industry[118] - The company saved approximately 22,374 million kWh of electricity and 1.4114 million tons of water resources in 2024, contributing to its environmental management goals[118] - The company implemented a comprehensive ESG management system in 2024, establishing clear responsibilities for various ESG indicators and achieving ISO 20400 certification for sustainable supply chain management[117] Corporate Governance and Leadership - The company has maintained compliance with the corporate governance code as per the listing rules for the year ending December 31, 2024[136] - The board consists of ten members, including six executive directors and four independent non-executive directors, ensuring a balanced structure[139] - The company is committed to high standards of corporate governance to maximize value for stakeholders through continuous review and assessment of systems and procedures[135] - The company has independent non-executive directors with diverse backgrounds and expertise, enhancing the board's effectiveness[139] - The company has adopted a nomination policy and board diversity policy effective from January 1, 2019, focusing on various diversity factors[179] Employee and Talent Management - GCL Technology received recognition as one of the "Best Employers in China" for 2023, highlighting its strong talent attraction capabilities[15] - The company aims to enhance its employee diversity and welfare, optimizing training systems and improving safety and health management[119] - The company promotes diversity at all employee levels, ensuring equal opportunities for training and career development[188] Financial Management and Shareholder Value - The company has announced a voluntary decision to cease any share buybacks in 2024 to ensure the sustainability of its R&D and operational stability amid intense competition in the photovoltaic industry[13] - The company has adopted a dividend policy that considers legal compliance and operational impact before declaring dividends[199] - The company plans to evaluate its dividend policy's effectiveness and make necessary revisions as needed[200]

Group 1 - The top three companies with the highest short positions are WuXi AppTec (02359), Ganfeng Lithium (01772), and Vanke Enterprises (02202), with short ratios of 15.63%, 14.23%, and 13.24% respectively [1][2] - The company with the largest increase in short positions is China Ruifeng (00136), which saw an increase of 2.52%, followed by Vanke Enterprises (02202) with an increase of 1.49%, and Rongchang Biologics (09995) with an increase of 1.18% [1][2] - The companies with the largest decrease in short positions include Zai Ding Pharmaceuticals (09688) with a decrease of 1.31%, Midea Group (00300) with a decrease of 0.80%, and Kanglong Chemical (03759) with a decrease of 0.76% [1][3] Group 2 - The latest short position data shows that the short ratio for WuXi AppTec decreased from 6168.69 million shares to 6050.95 million shares, while Ganfeng Lithium decreased from 5893.42 million shares to 5743.15 million shares [2] - The short ratio for Vanke Enterprises increased from 259 million shares to 292 million shares, indicating a growing bearish sentiment [2] - Other notable companies with significant changes in short positions include ZTE Corporation (00763) and Brilliance China Automotive (01114), with short ratios of 12.54% and 12.18% respectively [2]

Core Viewpoint - Hongtian Co. and its director Shu Zhigao are under investigation by the China Securities Regulatory Commission (CSRC) for failing to disclose related party transactions as required by regulations [2][5]. Group 1: Investigation and Regulatory Actions - On April 25, Hongtian Co. announced that both the company and director Shu Zhigao received a notice of investigation from the CSRC, confirming that they are under investigation [2][3]. - The investigation is related to allegations of failing to disclose related party transactions and other violations [4][5]. - The Shanghai Stock Exchange issued an inquiry letter to Hongtian Co. regarding related party transactions and undisclosed significant matters [4][23]. Group 2: Financial Performance and Audit Opinions - Hongtian Co.'s 2024 annual report revealed that the auditing firm, Lixin Certified Public Accountants, issued a qualified opinion due to uncertainties regarding related party transactions [14][16]. - The company reported a revenue of 1.374 billion yuan in 2024, a decrease of 38.60% compared to the previous year, and a net profit of 117 million yuan, down 42.87% [18]. - The company acknowledged that its financial performance did not meet expectations, attributing this to a slowdown in the industry [17]. Group 3: Related Party Transactions - Hongtian Co. confirmed a related party transaction involving the sale of an office property to Suzhou Luhai Holdings for 4.846 million yuan [7][9]. - The controlling shareholder of Luhai Holdings is a direct relative of Shu Zhigao, establishing a related party relationship [9]. - The company has been asked to disclose details regarding its related party transactions with Nord Co. over the past three years, including transaction amounts and pricing [25][26].

Summary of the Conference Call Company and Industry Overview - The conference call involved the company Xiexin Technology, focusing on the photovoltaic (PV) industry and its financial performance for 2024 [1][2][5]. Key Financial Data - In 2024, Xiexin Technology reported revenues of 15.1 billion, a decline of 55% from 33.7 billion in 2023 [2]. - Gross profit for 2024 was a loss of 2.5 billion, compared to a profit of 11.6 billion in 2023, resulting in a gross margin of -16.6% versus 34.7% in 2023 [2]. - EBITDA for 2024 was 14 billion, up from 12.6 billion in 2023 [2]. - The company reported a net loss attributable to shareholders of 4.75 billion in 2024, compared to a profit of 2.5 billion in 2023 [2]. - Basic earnings per share for 2024 were a loss of 17.97 cents, compared to a profit of 9.47 cents in 2023 [2]. Operational Highlights - The company produced 269,000 tons of granular silicon in 2024, an increase from 200,000 tons in 2023, with shipments of 281,000 tons compared to 194,000 tons in 2023 [4]. - The company’s total assets at the end of 2024 were 74.8 billion, down 9.5% from 82.7 billion in 2023, while total liabilities decreased by 5% to 32.5 billion [3][4]. - The debt-to-asset ratio was reported at 43.5% under international accounting standards [3][4]. Market Trends and Strategic Insights - The global photovoltaic market is expected to see a compound annual growth rate (CAGR) with an increase in global module shipments projected to exceed 650 GW by 2025 [5][6]. - The company emphasized the importance of cost reduction and product competitiveness in a challenging market environment [5]. - Inventory levels of silicon materials have decreased from approximately 350,000 tons in Q4 of the previous year to around 250,000 tons [6]. Technological Developments - Xiexin Technology is focusing on the development of N-type silicon materials, which are expected to dominate the market, with over 90% of new cells projected to be N-type by 2024 [8]. - The company is also investing in research and development for perovskite technology, which has shown significant efficiency improvements [15][16]. ESG and Sustainability Initiatives - The company has established a comprehensive ESG governance structure and is committed to reducing its carbon footprint, with significant reductions in carbon emissions reported [28][31]. - Xiexin Technology aims to align with international ESG standards and has initiated audits for its suppliers to ensure compliance [29][30]. Conclusion - Despite a challenging financial year, Xiexin Technology is strategically positioned to leverage its technological advancements and market trends in the photovoltaic industry. The focus on cost efficiency, product quality, and sustainability initiatives will be crucial for future growth and competitiveness [50][51].

Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Views - The company reported a revenue of 15.098 billion HKD for 2024, a decrease of 55% year-on-year, and a net profit attributable to shareholders of -4.75 billion HKD, indicating a shift from profit to loss [5][8]. - The company has optimized its cash cost for granular silicon to 33.52 HKD/kg in 2024, with further improvements expected as the cash cost was reduced to 27.14 HKD/kg in the first two months of 2025 [8]. - The company has a production capacity of 480,000 tons for granular silicon, with an output of 269,200 tons and a shipment volume of 282,000 tons in 2024 [8]. - The company’s silicon wafer sales volume was 33.525 GW in 2024, a decrease of 35.4% year-on-year, primarily due to industry price declines [8]. - The gross margin for the photovoltaic power station segment dropped to 16.9% in 2024 from 46.7% in 2023, impacting overall performance [8]. - Administrative expenses were reduced to 1.855 billion HKD in 2024, down 18.5% year-on-year, due to salary reductions and cost control measures [8]. - The company aims to achieve positive cash flow in Q1 2025 and anticipates a turnaround in performance, supported by cost control and a significant reduction in director salaries [8]. Summary by Sections Financial Performance - Revenue for 2024 was 15.098 billion HKD, a 55% decrease year-on-year [5][8]. - Net profit attributable to shareholders was -4.75 billion HKD, indicating a loss [5][8]. Production and Sales - Granular silicon production capacity is 480,000 tons, with 2024 output at 269,200 tons and shipments at 282,000 tons [8]. - Silicon wafer sales volume was 33.525 GW in 2024, down 35.4% year-on-year [8]. Cost Management - Cash cost for granular silicon was 33.52 HKD/kg in 2024, with further optimization to 27.14 HKD/kg in early 2025 [8]. - Administrative expenses decreased to 1.855 billion HKD in 2024, an 18.5% reduction [8]. Future Outlook - The company expects to achieve positive cash flow in Q1 2025 and aims for a performance turnaround [8].

Core Viewpoint - GCL-Poly Energy Technology Co., Ltd. (GCL-Poly) has reported a significant decline in its 2024 financial performance, with revenue dropping by 55.2% year-on-year, leading to substantial losses in both gross profit and net profit [2][3]. Financial Performance - The company's total revenue for 2024 was approximately 15.1 billion yuan, down from 33.7 billion yuan in 2023 [2]. - Gross profit turned into a loss of about 2.5 billion yuan, compared to a profit of 11.69 billion yuan in 2023, marking a decline of 121.5% [2]. - The net profit attributable to shareholders shifted from a profit of 2.51 billion yuan in 2023 to a loss of approximately 4.75 billion yuan in 2024 [2]. - The gross margin plummeted from 34.7% in 2023 to -16.6% in 2024 [2]. Business Segments - GCL-Poly's main business segments include photovoltaic materials and photovoltaic power station operations [3]. - Revenue from the photovoltaic materials segment was about 14.96 billion yuan in 2024, a decrease of 55.3% from 33.49 billion yuan in 2023 [3]. - The photovoltaic materials segment reported a loss of 5.35 billion yuan in 2024, down from a profit of 3.2 billion yuan in 2023, with a gross margin decline from 34.6% to -16.9% [3]. - The photovoltaic power station segment generated approximately 140 million yuan in revenue, a 35% decline year-on-year, with losses of 267 million yuan in 2024 compared to a profit of 56 million yuan in 2023 [3]. Debt and Cash Flow - Total liabilities stood at 32.58 billion yuan, with short-term interest-bearing debt increasing significantly from 5.91 billion yuan at the end of 2023 to 10.69 billion yuan at the end of 2024 [4]. - The company anticipates positive cash flow starting in the first quarter of the current year, with expectations of profitability by the third quarter [4]. Management and Compensation - Executive directors voluntarily reduced their total annual compensation from 188 million yuan to approximately 16.4 million yuan for 2024, a reduction of over 90% [5]. - The company maintains that this reduction will not affect the stability of the core management team, as it is part of a flexible compensation system [5]. Strategic Outlook - GCL-Poly is optimistic about future performance, citing a potential recovery in silicon prices and a significant reduction in industry inventory levels [4]. - The company is pursuing dual strategies: strict operational management for its main business and incubation of technology ventures like Xinhua Semiconductor and GCL-Optoelectronics [7][8]. - Xinhua Semiconductor is progressing towards an IPO, while GCL-Optoelectronics is also expected to enter the capital market soon [8]. Industry Context - The broader "GCL system" is facing challenges, with other subsidiaries also reporting declines in performance, including GCL New Energy and GCL Integrated [9].

Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of HKD 1.30 [6][7]. Core Views - The company reported a revenue of RMB 15.098 billion for 2024, a year-on-year decrease of 55.2%, and a net profit attributable to shareholders of -RMB 4.75 billion, indicating a shift from profit to loss [1]. - The company is expected to achieve profitability in Q3 2025 and Q4 2025, driven by cost reduction in granular silicon production and an increase in market share [2][3]. - The company is leveraging its raw material and technology advantages to develop new growth areas in renewable energy, electronic information, and new chemical materials [3]. Summary by Sections Financial Performance - The company experienced a significant decline in revenue and net profit in 2024, with a revenue of RMB 15.098 billion and a net loss of RMB 4.75 billion [1][5]. - The granular silicon production cash cost was reported at RMB 28.17 per kg, with a unit loss estimated at RMB 11-12 per kg [1]. - The company anticipates a revenue increase of 29.87% in 2025, reaching RMB 19.607 billion, and a return to profitability with a net profit of RMB 1.117 billion [5][21]. Market Position and Strategy - The company has a leading position in granular silicon production, with a market share of 19.1% in Q4 2024, expected to rise to 25.7% in Q1 2025 [2]. - The company is the only domestic player with a systematic grasp of large-scale electronic-grade polysilicon preparation technology, achieving over 50% market share in this segment [3]. - The company is also expanding into new materials, including silicon-carbon anodes and perovskite solar cells, with significant efficiency improvements expected [3]. Valuation and Forecast - The forecast for net profit attributable to shareholders for 2025-2027 is RMB 11.17 billion, RMB 29.19 billion, and RMB 43.3 billion, respectively [4]. - The company is valued at a PE ratio of 30x for 2025, with a target price adjusted to HKD 1.30, reflecting its leadership in granular silicon and cost advantages [4][6].