港股光伏股涨幅居前 协鑫科技涨超15% 财联社10月25日电，截至发稿，协鑫科技(03800.HK)涨 15.38%、福莱特玻璃(06865.HK)涨14.26%、信义光能(00968.HK)涨10.03%。 消息面上，近日美国商务部正在启动变更情况审查(CCR)，考虑部分撤销中国晶体硅光伏电池的反倾销 税和反补贴税。 ...

Investment Rating - The report assigns a "Buy" rating for GCL-Poly Energy Holdings Limited (03800.HK) for the first time [1][88]. Core Viewpoints - GCL-Poly is a well-established photovoltaic giant that has innovated through cycles, achieving significant market share and technological advancements in the solar industry [2][24]. - The demand for photovoltaic products continues to grow, although profitability is under pressure due to industry price declines and excess supply [2][60]. - The company is building a green technology matrix to differentiate itself in a competitive market, focusing on cost-effective and high-quality production methods [3][67]. Summary by Sections 1. Established Photovoltaic Giant, Technological Innovation Across Cycles - GCL-Poly was listed in November 2007 and quickly captured a significant market share, becoming a leader in the global photovoltaic market [2][24]. - The company has shifted its strategic focus to granular silicon technology, which has led to a substantial increase in production capacity and market share [2][24]. - R&D investment has been increasing, reaching 5.6% of total revenue in 2023, indicating a commitment to innovation [2][41]. 2. Continuous Growth in Photovoltaic Demand, Profitability Under Pressure - In 2023, the domestic installed capacity surged, with an additional 216.3 GW installed, exceeding expectations [2][60]. - The industry is entering a phase of slower growth, with projected installations of 490 GW in 2024 [2][60]. - The company’s revenue for 2023 was 34.129 billion yuan, a decrease of 7% year-on-year, while net profit fell by 84% to 2.51 billion yuan [1][33]. 3. Building a Green Hard Technology Matrix, Differentiated Competition - GCL-Poly has made significant advancements in granular silicon production, achieving lower costs and higher quality [3][67]. - The company’s granular silicon production capacity is expected to reach 480,000 tons by the end of 2024, with a production volume of nearly 300,000 tons [3][67]. - The company is also advancing in perovskite technology, with significant efficiency improvements and plans for large-scale production [3][85]. 4. Profit Forecast and Investment Rating - The report forecasts total revenue for 2024-2026 to be 17.99 billion, 25.01 billion, and 32.1 billion yuan respectively, driven primarily by volume growth [1][88]. - The projected net profit for 2024-2026 is -2.9 billion, 0.4 billion, and 2.5 billion yuan, reflecting a significant recovery in profitability by 2026 [1][88]. - The report highlights the potential for substantial valuation flexibility due to the company's cost advantages in granular silicon products [3][88].

财联社财经通讯社打开APP13:14:02【光伏概念港股午后急升 协鑫科技涨24%】财联社10月23日电，光 伏概念港股午后大涨。 截至发稿，协鑫科技(03800.HK)涨24%，福莱特玻璃(06865.HK)涨16%，信义光能(00968.HK)涨16%。 消息面上，近日中国光伏行业协会通过官微发布通告——《光伏组件当前成本分析：低于成本投标中标 涉嫌违法》，同时公布测算2024年10月份的光伏组件最低含税成本：0.68元/W。 光伏停牌港股动态财联社声明：文章内容仅供参考，不构成投资建议。 投资者据此操作，风险自担。 2024-10-23 13:14:0239588 阅读商务合作发送 ...

Investment Rating - The report gives a "Buy" rating for the company [6]. Core Insights - The company is expected to achieve significant cost advantages and product enhancements in granular silicon, leading to a rapid increase in profitability and market share [3]. - The company is positioned to lead a new low-carbon cycle in the photovoltaic manufacturing industry, driven by its granular silicon products [4]. - The company has a rich reserve of new technologies, including CCZ and perovskite, which are expected to create new growth drivers [5]. - The company's revenue is projected to recover as industry prices stabilize, with significant growth anticipated in the coming years [6]. Summary by Sections 1. Cost and Product Advantages - Granular silicon shows clear cost advantages and continuous improvement in product parameters, with cash costs expected to drop below 30,000 yuan per ton [3]. - The production process of granular silicon is more efficient, with a conversion rate of 99% and a significant reduction in energy consumption compared to traditional methods [16][18]. 2. Low-Carbon Initiatives - The company is effectively driving down carbon emissions in the photovoltaic industry, with low-carbon product advantages becoming increasingly recognized [4]. - The implementation of the CBAM policy is expected to enhance the value of low-carbon products, benefiting the company [59]. 3. Technological Advancements - The company has developed advanced technologies such as CCZ and perovskite, which are expected to enhance production efficiency and product quality [5][64]. - The CCZ technology is particularly noted for its ability to improve production efficiency and meet the demands of high-efficiency N-type batteries [64]. 4. Financial Projections - Revenue forecasts for 2024, 2025, and 2026 are 18.462 billion, 26.291 billion, and 33.716 billion yuan respectively, with corresponding net profits of -2.060 billion, 1.282 billion, and 3.657 billion yuan [6][75]. - The company is expected to see a significant recovery in profitability as industry conditions improve and cost advantages materialize [53][75].

Summary of Conference Call Company Overview - The conference call features Tiexin Technology, with a focus on its business operations and market conditions. The discussion is led by Zhou Xuhui and includes insights from Song Hao, the company's representative. [1] Industry Insights - The call highlights a critical turning point in the market, particularly regarding silicon material prices, indicating a significant moment for potential investment opportunities. [1] Key Points - The importance of the current market window is emphasized, suggesting that it may present unique opportunities for stakeholders. [1] - The company is positioned to discuss its business operations in the context of these market changes, indicating a proactive approach to adapting to industry dynamics. [1] Additional Important Content - The call sets the stage for a deeper exploration of Tiexin Technology's strategies and responses to the evolving market landscape, which may include future projections and operational adjustments. [1]

[Financial Summary](index=3&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) [Financial Summary](index=3&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) In the first half of 2024, the company faced significant performance pressure, with revenue sharply declining by 57.7% year-on-year, turning from profit to a loss attributable to owners of RMB 1.48 billion, while financial leverage increased and liquidity ratios decreased Six-Month Performance Summary as of June 30 | Indicator | H1 2024 (RMB Thousand) | H1 2023 (RMB Thousand) | Change | Change Percentage | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | 8,862,876 | 20,945,903 | (12,083,027) | (57.7%) | | Wafer Sales | 2,342,084 | 7,201,320 | (4,859,236) | (67.5%) | | Polysilicon Sales | 4,861,805 | 11,118,475 | (6,256,670) | (56.3%) | | **Profit Attributable to Owners of the Company** | (1,479,603) | 5,518,278 | (6,997,881) | (126.8%) | | **Basic (Loss)/Earnings Per Share (RMB Cents)** | (5.60) | 20.79 | (26.39) | (126.9%) | Summary of Consolidated Financial Position and Key Financial Ratios | Indicator | June 30, 2024 | December 31, 2023 | Change | Change Percentage | | :--- | :--- | :--- | :--- | :--- | | **Total Assets (RMB Thousand)** | 79,002,291 | 82,768,172 | (3,765,881) | (4.5%) | | **Total Debt (RMB Thousand)*** | 17,950,896 | 15,939,071 | 2,011,825 | 12.6% | | **Current Ratio** | 1.36 | 1.57 | (0.21) | (13.4%) | | **Quick Ratio** | 1.23 | 1.44 | (0.21) | (14.6%) | | **Net Debt-to-Equity Ratio** | 24.6% | 15.9% | 8.7% | 54.7% | [Chairman's Report and CEO's Business Review and Outlook](index=5&type=section&id=%E4%B8%BB%E5%B8%AD%E5%A0%B1%E5%91%8A%E5%92%8C%E9%A6%96%E5%B8%AD%E5%9F%B7%E8%A1%8C%E5%AE%98%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7%E5%8F%8A%E5%B1%95%E6%9C%9B) [Business Review and Strategic Outlook](index=5&type=section&id=%E4%B8%BB%E5%B8%AD%E5%A0%B1%E5%91%8A%E5%92%8C%E9%A6%96%E5%B8%AD%E5%9F%B7%E8%A1%8C%E5%AE%98%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7%E5%8F%8A%E5%B1%95%E6%9C%9B) Despite widespread losses in the photovoltaic industry chain in H1 2024, the company maintained a relatively stable operational foundation by focusing on FBR granular silicon core technology, improving quality, reducing costs, and optimizing management, while also increasing R&D investment and pursuing vertical and horizontal expansion - Despite fierce competition and widespread industry losses, the company maintained a relatively stable operational foundation by focusing on FBR granular silicon technology, optimizing business structure, and implementing strict cost controls, with **administrative expenses decreasing by 40% year-on-year**[9](index=9&type=chunk) - FBR granular silicon technology achieved significant progress, with **N-type ratio exceeding 96%**, cash cost projected to drop below **RMB 30/KG**, increased market recognition, full coverage of top-tier clients, and long-term contracts signed until **2027**[10](index=10&type=chunk) - The company's R&D investment as a percentage of revenue increased, with the cumulative R&D expense ratio exceeding **8%** in the first half, a **3.8 percentage point year-on-year increase**, to strengthen its technological moat[12](index=12&type=chunk) - Strategically, the company centers on FBR granular silicon, extending vertically to upstream industrial silicon and downstream integrated solutions for **PV, storage, charging, hydrogen, and computing**; simultaneously, it combines granular silicon with perovskite technology, aiming to lead the industry into the perovskite tandem era[16](index=16&type=chunk)[17](index=17&type=chunk) - Silane gas business emerged as a new profit growth driver, with external sales accounting for nearly **one-third of the national market**. Additionally, **2024** is positioned as a breakthrough year for the company's internationalization, prioritizing the Middle East market[19](index=19&type=chunk) [Management Discussion and Analysis (MD&A)](index=9&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) [Performance Overview](index=9&type=section&id=%E6%A6%82%E8%A7%88) Affected by severe supply-demand mismatch in the photovoltaic industry, the company's performance turned from profit to loss in H1 2024, with revenue decreasing by 57.7% and a gross loss of RMB 553 million H1 2024 Performance Overview | Indicator | H1 2024 | H1 2023 | | :--- | :--- | :--- | | **Revenue** | RMB 8,863 Million | RMB 20,946 Million | | **Gross (Loss)/Profit** | RMB (553) Million | RMB 8,778 Million | | **(Loss)/Profit Attributable to Owners of the Company** | RMB (1,480) Million | RMB 5,518 Million | [Business Review](index=10&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) During the reporting period, the company's main businesses were divided into photovoltaic materials and photovoltaic power stations, with photovoltaic materials revenue sharply decreasing by 57.9% and gross margin turning negative due to falling prices, while the power station business remained relatively stable [Photovoltaic Materials Business](index=10&type=section&id=%E5%85%89%E4%BC%8F%E6%9D%90%E6%96%99%E6%A5%AD%E5%8B%99) The photovoltaic materials business faced severe challenges in H1 2024, with polysilicon production increasing but revenue decreasing by 57.9% to RMB 8.77 billion and gross margin plummeting to -6.6% due to significantly lower selling prices, despite continuous quality improvements in granular silicon Photovoltaic Materials Business Production and Sales Volume | Indicator | H1 2024 | H1 2023 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | **Polysilicon Production** | 136,359 Metric Tons | 111,054 Metric Tons | +22.8% | | **Wafer Production** | 20,414 MW | 25,376 MW | -19.6% | | **Polysilicon Shipments** | 126,358 Metric Tons | 101,095 Metric Tons | +25.0% | | **Wafer Sales** | 19,451 MW | 25,701 MW | -24.3% | - Due to a significant decrease in polysilicon selling prices, photovoltaic materials business revenue decreased by **57.9%** year-on-year to **RMB 8.768 billion**, with gross margin turning from **41.9%** to **-6.6%**[29](index=29&type=chunk)[32](index=32&type=chunk) Granular Silicon Quality Improvement (Proportion of 18-Element Metal Impurity Content ≤1ppbw) | Period | 2023 Q2 | 2023 Q4 | 2024 Q2 | July 2024 | | :--- | :--- | :--- | :--- | :--- | | **Proportion** | 23% | 43% | 64.3% | 77.8% | [Photovoltaic Power Station Business](index=13&type=section&id=%E5%85%89%E4%BC%8F%E9%9B%BB%E7%AB%99%E6%A5%AD%E5%8B%99) As of June 30, 2024, the company operated 151 MW of photovoltaic power stations in the United States and China, with total electricity sales in the first half decreasing year-on-year, resulting in business revenue of approximately RMB 95 million Photovoltaic Power Station Business Operational Data | Indicator | H1 2024 | H1 2023 | | :--- | :--- | :--- | | **Total Installed Capacity** | 151.0 MW | - | | **Total Electricity Sales** | 96,587 MWh | 109,735 MWh | | **Business Revenue** | RMB 95 Million | RMB 110 Million | [Financial Review](index=13&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) The company's overall financial performance was severely impacted by the sharp decline in photovoltaic materials market prices, leading to a 57.7% decrease in total revenue, a negative gross margin of -6.2%, and a loss attributable to owners of RMB 1.48 billion, despite a 40% reduction in administrative expenses - Total revenue was approximately **RMB 8.86 billion**, a **57.7%** year-on-year decrease, primarily due to a significant drop in polysilicon selling prices[48](index=48&type=chunk) - Overall gross margin turned from **41.9%** in the prior period to a negative gross margin of **-6.2%**, recording a gross loss of **RMB 553 million**[49](index=49&type=chunk) - Administrative expenses were approximately **RMB 683 million**, a **40%** year-on-year decrease, mainly attributable to reduced staff costs and cost control policies[54](index=54&type=chunk) - Finance costs were approximately **RMB 305 million**, a **41.9%** year-on-year increase, primarily due to an increase in average interest-bearing debt during the period[59](index=59&type=chunk) - Loss attributable to owners of the company was approximately **RMB 1.48 billion**, compared to a profit of approximately **RMB 5.52 billion** in the prior period[61](index=61&type=chunk) [Liquidity, Financial Resources, and Risk Management](index=16&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90) As of June 30, 2024, the company's total assets were approximately RMB 79 billion, with net debt of RMB 10.1 billion and a net debt-to-equity ratio increasing to 24.6%, indicating weakened short-term solvency and exposure to policy, credit, interest rate, and foreign currency risks, alongside significant capital commitments Debt Structure (RMB Million) | Item | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Debt** | 17,951 | 15,938 | | Less: Bank Balances and Cash Equivalents | (7,847) | (9,174) | | **Net Debt** | 10,104 | 6,764 | Key Financial Ratios | Ratio | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Current Ratio** | 1.36 | 1.57 | | **Quick Ratio** | 1.23 | 1.44 | | **Net Debt-to-Equity Ratio** | 24.6% | 15.9% | - The company faces key risks including changes in government policies, customer credit risk, fluctuations in bank loan interest rates, and RMB exchange rate volatility[78](index=78&type=chunk)[79](index=79&type=chunk)[80](index=80&type=chunk)[81](index=81&type=chunk) - As of period-end, the Group's contracted but unprovided capital commitments were approximately **RMB 3.017 billion**, primarily for the acquisition of property, plant, and equipment[85](index=85&type=chunk) - The Board does not recommend the declaration of an interim dividend for the six months ended June 30, 2024[93](index=93&type=chunk) [Unaudited Condensed Interim Consolidated Financial Statements](index=22&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B0%A1%E6%98%8E%E4%B8%AD%E6%9C%9F%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) [Review Report](index=22&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B0%A1%E6%98%8E%E4%B8%AD%E6%9C%9F%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E4%B9%8B%E5%AF%A9%E9%96%B1%E5%A0%B1%E5%91%8A) The auditor, Crowe (HK) CPA Limited, reviewed these interim financial statements in accordance with Hong Kong Review Engagements Standards, concluding that nothing came to their attention suggesting the statements were not prepared in all material respects according to International Accounting Standard 34 - The auditor's review concluded that nothing has come to their attention that causes them to believe the unaudited condensed interim consolidated financial statements are not prepared, in all material respects, in accordance with International Accounting Standard 34[100](index=100&type=chunk) [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=24&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E7%B6%9C%E5%90%88%E6%94%B6%E7%9B%8A%E5%A0%B1%E8%A1%A8) The statement details the company's operating results for H1 2024, showing revenue of RMB 8.86 billion, a gross loss of RMB 550 million, and a total loss for the period of RMB 2.02 billion, with RMB 1.48 billion attributable to owners Key Items from Consolidated Statement of Profit or Loss (RMB Thousand) | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | **Revenue** | 8,862,876 | 20,945,903 | | **Gross (Loss)/Profit** | (552,647) | 8,777,934 | | **(Loss)/Profit Before Tax** | (2,213,300) | 7,420,270 | | **(Loss)/Profit for the Period** | (2,021,415) | 6,245,135 | | **(Loss)/Profit Attributable to Owners of the Company** | (1,479,603) | 5,518,278 | [Consolidated Statement of Financial Position](index=26&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E5%A0%B1%E8%A1%A8) As of June 30, 2024, the company's total assets were RMB 79.0 billion, total liabilities RMB 32.62 billion, and net assets RMB 46.38 billion, with non-current assets, primarily property, plant, and equipment, constituting a larger portion Summary of Statement of Financial Position (RMB Thousand) | Item | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | 79,002,291 | 82,768,172 | | Non-current Assets | 49,732,299 | 48,076,892 | | Current Assets | 29,269,992 | 34,691,280 | | **Total Liabilities** | 32,621,874 | 34,450,463 | | Current Liabilities | 21,568,059 | 22,138,926 | | Non-current Liabilities | 11,053,815 | 12,311,537 | | **Total Equity** | 46,380,417 | 48,317,709 | | Equity Attributable to Owners of the Company | 41,140,394 | 42,587,016 | [Consolidated Statement of Cash Flows](index=32&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) In H1 2024, the company experienced net cash outflows of RMB 3.80 billion from operating activities and RMB 3.54 billion from investing activities, primarily relying on a net cash inflow of RMB 4.50 billion from financing activities to support operations and investments, resulting in a net decrease of RMB 2.84 billion in cash and cash equivalents Summary of Statement of Cash Flows (RMB Thousand) | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | **Net Cash Used in Operating Activities** | (3,799,337) | (4,466,664) | | **Net Cash Used in Investing Activities** | (3,539,676) | (5,936,290) | | **Net Cash From Financing Activities** | 4,499,884 | 11,657,904 | | **Net (Decrease)/Increase in Cash and Cash Equivalents** | (2,839,129) | 1,254,950 | | **Cash and Cash Equivalents at End of Period** | 3,985,280 | 7,906,730 | [Notes to the Financial Statements](index=34&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B0%A1%E6%98%8E%E4%B8%AD%E6%9C%9F%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) The notes to the financial statements provide detailed explanations and supplementary information for various items, including basis of preparation, significant accounting policies, segment information, revenue breakdown, expense details, fair value of financial instruments, related party transactions, commitments, and contingent liabilities - Segment information indicates that the photovoltaic materials business is the Group's primary revenue source, but recorded a loss of **RMB 2.03 billion** during the period; the photovoltaic power station business is smaller in scale, recording a profit of **RMB 12.32 million**[140](index=140&type=chunk) - Net write-down of inventories during the period was approximately **RMB 825 million**, primarily due to a significant decrease in the average selling prices of polysilicon and wafers, resulting in inventory costs exceeding their net realizable value[197](index=197&type=chunk) - As of period-end, total bank and other borrowings amounted to **RMB 17.26 billion**, of which **RMB 11.36 billion** were secured borrowings[203](index=203&type=chunk) [Directors' and Shareholders' Interests](index=84&type=section&id=%E8%91%A3%E4%BA%8B%E5%8F%8A%E4%B8%BB%E8%A6%81%E8%A1%8C%E6%94%BF%E4%BA%BA%E5%93%A1%E6%96%BC%E8%82%A1%E4%BB%BD%E3%80%81%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E5%8F%8A%E5%82%B5%E5%88%B8%E4%B8%AD%E7%9A%84%E6%AC%8A%E7%9B%8A%E5%8F%8A%E6%B7%A1%E5%80%89) [Directors' and Chief Executive's Interests](index=84&type=section&id=%E8%91%A3%E4%BA%8B%E5%8F%8A%E4%B8%BB%E8%A6%81%E8%A1%8C%E6%94%BF%E4%BA%BA%E5%93%A1%E6%96%BC%E8%82%A1%E4%BB%BD%E3%80%81%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E5%8F%8A%E5%82%B5%E5%88%B8%E4%B8%AD%E7%9A%84%E6%AC%8A%E7%9B%8A%E5%8F%8A%E6%B7%A1%E5%80%89) This section discloses the company shares and related interests held by the company's directors and chief executive, with Chairman Mr. Zhu Gongshan and his family being the primary controlling shareholders through a trust, holding approximately 23.81% of the shares - Chairman Mr. Zhu Gongshan and his family (including his son Mr. Zhu Yufeng), through a discretionary trust, collectively hold a long position of **6,405,332,156 shares**, representing approximately **23.81%** of the issued share capital[266](index=266&type=chunk)[269](index=269&type=chunk) - Mr. Zhu Gongshan and Mr. Zhu Yufeng also hold a short position of **240,000,000 shares**, representing approximately **0.89%** of the issued share capital, derived from derivative agreements[266](index=266&type=chunk)[269](index=269&type=chunk) [Share Schemes](index=86&type=section&id=%E8%82%A1%E4%BB%BD%E8%A8%88%E5%88%83) The company operates three main share incentive schemes: the 2007 Share Option Scheme (expired but with outstanding options), the 2022 Share Option Scheme (no grants yet), and the 2017 Share Award Scheme, with 36.65 million options unexercised and 243 million awarded shares unvested as of June 30, 2024 - The **2007 Share Option Scheme** expired in **2017**, with no new options granted, but as of June 30, 2024, **36,646,844** share options remained unexercised[270](index=270&type=chunk)[271](index=271&type=chunk) - A new share option scheme was adopted in **2022**, but no share options have been granted under this scheme as of the end of the reporting period[277](index=277&type=chunk)[278](index=278&type=chunk) - Under the **2017 Share Award Scheme**, as of June 30, 2024, a total of **242,946,000** awarded shares remained unvested. Due to market uncertainties, the vesting dates for some awarded shares have been postponed for re-evaluation after **April 2025**[305](index=305&type=chunk)[309](index=309&type=chunk) [Major Shareholders' Interests](index=95&type=section&id=%E4%B8%BB%E8%A6%81%E8%82%A1%E6%9D%B1%E7%9A%84%E6%AC%8A%E7%9B%8A%E5%8F%8A%E6%B7%A1%E5%80%89) Beyond directors, this section discloses major shareholders holding more than 5% of the company's equity, with Asia Pacific Energy Fund Limited listed as a major shareholder, holding 6,405,332,156 shares, representing approximately 23.79%, ultimately controlled by Mr. Zhu Gongshan and his family's trust - Asia Pacific Energy Fund Limited holds **6,405,332,156 shares**, representing **23.79%** of the issued share capital, with this interest ultimately attributable to Mr. Zhu Gongshan and his family's trust[311](index=311&type=chunk)[312](index=312&type=chunk) [Corporate Governance and Other Information](index=96&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%8F%8A%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) [Corporate Governance and Other Information](index=96&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%8F%8A%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) The company complied with the Listing Rules' Corporate Governance Code during the reporting period, with the Board confirming effective risk management and internal control systems, while also repurchasing and cancelling 18,112,000 shares, and having its interim financial information reviewed by the Audit Committee and external auditor - The Board believes that the Group's risk management and internal control systems were effective during the reporting period[318](index=318&type=chunk) - For the six months ended June 30, 2024, the company repurchased and cancelled **18,112,000** of its own shares on the Stock Exchange, at a total consideration of approximately **HKD 24 million**[320](index=320&type=chunk) - The financial information in this interim report has been reviewed by the company's Audit Committee and external auditor, Crowe (HK) CPA Limited[321](index=321&type=chunk) [Company Information](index=98&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) [Company Information](index=98&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) This section provides basic company information, including Board members, committee compositions, company secretary, auditor, registered office, principal place of business, share registrar, legal advisors, and company website, among other contact and legal details

Investment Rating - The report maintains an "Accumulate" rating for the company [1][2]. Core Views - The company is focusing on granular silicon technology, with a structured capacity release and an overseas expansion strategy that leverages the carbon emission and ESG advantages of granular silicon. The low energy consumption and cost advantages of granular silicon help the company navigate through market cycles. Product quality is improving, and the price gap with rod-shaped silicon N-type products is narrowing. As an intermediate product in granular silicon production, the company benefits from a leading cost advantage in silane gas, driven by downstream demand recovery, leading to profit growth. The company also has advanced perovskite technology and is building GW-level production lines to expand long-term capacity. [1] Summary by Sections Financial Performance - In H1 2024, the company's revenue decreased by 57.7% year-on-year to 8.86 billion yuan, primarily due to a significant drop in silicon material and wafer prices, partially offset by an increase in silicon material shipment volume. - Gross profit for 2024 was -550 million yuan, a decrease of 9.33 billion yuan year-on-year, with a gross margin decline of 48.1 percentage points to -6.2%, attributed to falling product prices. - The company recognized an inventory impairment of 820 million yuan due to the decline in silicon material and wafer prices. - Net profit for H1 2024 was -2.02 billion yuan, with the attributable net profit at -1.48 billion yuan, a decrease of 7 billion yuan year-on-year, in line with expectations. - The company has repurchased shares worth 58 million yuan, 182 million yuan, and 24 million yuan in 2022, 2023, and H1 2024 respectively, with plans for a total repurchase or dividend distribution of no less than 2.5 billion yuan from 2024 to 2026. [1] Granular Silicon Production - The company has gradually released granular silicon capacity, with production capacity reaching 420,000 tons by the end of H1 2024. - The company plans to add 60,000 tons of module capacity in Xuzhou and expand capacity in the Middle East. - In H1 2024, granular silicon production increased by 66% year-on-year to 136,000 tons, with shipments (including internal sales) up 76% to 126,000 tons, and external sales up 85% to 121,000 tons. The average selling price of granular silicon was 40.3 yuan/kg. [1] Cost and Quality Advantages - Granular silicon has low energy consumption, providing cost and carbon footprint advantages. As domestic preferential electricity prices are gradually eliminated, the company's cost advantage over peers may widen. - Product quality is improving, with the total metal impurity ratio for granular silicon at ≤0.5 ppbw reaching 95.8% in July 2024, a significant increase from Q2 2023. - The company's products with a quality rating of 910A and above accounted for 96.6% of total products, an increase of 11.3 percentage points from February 2024. - The company has introduced a "turbidity" concept to represent the content of granular silicon powder, with 99.9% of products having turbidity <120 NTU in July 2024, a 79.3 percentage point increase from Q1 2023. [1] Silane Gas Business - The silane gas business is expected to benefit from demand in silicon-carbon anodes, photovoltaic cells, semiconductors, and display panels. As an intermediate product in granular silicon production, the company has a significant cost advantage in silane gas, which is expected to contribute to profit growth. [1] Perovskite Technology - The company is advancing its perovskite technology through its subsidiary, with the world's first 100MW perovskite pilot production capacity established. A groundbreaking ceremony for a GW-level large-scale perovskite production base was held in December 2023. The conversion efficiency of the company's 1×2m perovskite single-junction module is 19.04%, and the efficiency of the 369×555mm stacked module is 27.34%. [1]

Investment Rating - Maintains a "Buy" rating due to the company's continuous cost reduction and quality improvement in granular silicon, with expected recovery in profitability as polysilicon prices gradually recover [3] Core Views - The company reported revenue of 8 863 billion yuan in H1 2024, a year-on-year decrease of 57 7%, and a net loss attributable to the parent company of 1 480 billion yuan, a year-on-year decrease of 126 8% [2] - Polysilicon shipments reached approximately 126 400 tons in H1 2024, a year-on-year increase of 24 99%, with an average external selling price of 40 3 yuan/kg [2] - Granular silicon shipments to the top three customers accounted for 62 2% of total shipments, with the company's 420 000-ton polysilicon nominal capacity fully operational [2] - Granular silicon quality improved significantly, with N-type silicon accounting for over 96% of production, and total metal impurities in 5 elements reduced to below 1ppbw [2] - R&D expenditure increased to 718 million yuan in H1 2024, with an R&D expense ratio exceeding 8%, up 3 8 percentage points year-on-year [2] Financial Performance and Forecast - Revenue for 2024-2026 is projected to be 17 160 billion yuan, 30 523 billion yuan, and 42 118 billion yuan, respectively, with year-on-year growth rates of -49%, +78%, and +38% [3] - Net profit attributable to the parent company for 2024-2026 is forecasted to be -1 915 billion yuan, 1 567 billion yuan, and 4 354 billion yuan, with year-on-year growth rates of -176%, +182%, and +178% [3] - The stock's PE ratio for 2025 and 2026 is estimated at 20x and 7x, respectively [3] Operational Highlights - Granular silicon cash cost is expected to drop below 30 yuan/kg, with significant improvements in product quality and impurity levels [2] - The company obtained 65 patents in H1 2024, including 16 invention authorizations, focusing on granular silicon, industrial silicon, silane gas, perovskite, and CCZ technologies [2] - The company aims to achieve full-scale production of GW-level granular silicon lines by the end of 2024 [2] Market and Valuation - The stock's closing price was 1 17 yuan, with a 12-month price range of 0 89-1 64 yuan and a market capitalization of 28 688 billion yuan [6] - The company's EV/EBITDA ratio for 2024-2026 is projected at 8 31x, 3 61x, and 2 17x, respectively [8]

Investment Rating - The investment rating for GCL-Poly Energy Holdings Limited (协鑫科技) is not explicitly stated in the report, but it suggests a "sustainable focus" and "buy on dips" strategy due to its competitive advantages in the industry [4]. Core Views - GCL-Poly is currently experiencing losses due to the significant decline in polysilicon prices, which has impacted its revenue and profitability. The company is focusing on improving product quality and reducing costs to navigate through the industry's downturn [1][2]. - The company has achieved a high quality of its core product, granular silicon, with 96.6% of its products meeting the 901A standard or above, which is essential for downstream customers [2][3]. - GCL-Poly's cash cost for granular silicon is expected to drop below 30 RMB/kg, making it the lowest in the industry, enhancing its competitiveness during the industry's bottom cycle [3]. Summary by Sections Financial Performance - In the first half of 2024, GCL-Poly reported a revenue decline of 57.7% year-on-year to 8.86 billion RMB, with a gross loss of 553 million RMB, resulting in a gross margin of -6.6% [2]. - The average selling price of polysilicon dropped by 67.5% year-on-year to 40.3 RMB/kg, compared to 124.1 RMB/kg in the same period last year [2]. Product Quality and Market Position - The company has significantly improved the quality of its granular silicon products, with a notable reduction in total metal impurity content and turbidity levels, meeting stringent market standards [2][3]. - GCL-Poly's production capacity for granular silicon has reached 420,000 tons per year, with a 65.6% year-on-year increase in granular silicon output [2]. Cost Structure and Future Outlook - The company has the lowest production costs in the industry for granular silicon, with further reductions anticipated following ongoing technical upgrades [3]. - GCL-Poly is expected to incur a net loss of up to 2 billion RMB for the full year of 2024, but is projected to return to profitability in 2025 with an estimated net profit of 2.4 billion RMB [3].

Investment Rating - The report maintains a "Buy" rating for the company [1][4]. Core Views - The company has experienced a significant decline in revenue and profitability due to a sharp drop in industry chain prices, with a 57.9% year-on-year decrease in photovoltaic materials revenue in 2024H1 [1][2]. - The company is expected to reduce its cash cost of granular silicon to below RMB 30/kg, which will enhance its competitive advantage [1]. - The company has established long-term supply agreements with leading silicon wafer manufacturers, indicating strong demand for its granular silicon products [1][2]. Summary by Relevant Sections Financial Performance - In 2024H1, the company achieved a revenue of RMB 8.863 billion, a decrease of 57.69% year-on-year, and a net profit attributable to shareholders of -RMB 1.48 billion, a decline of 126.81% [2]. - The company's polysilicon production reached 136,400 tons, a year-on-year increase of 22.8%, while granular silicon production increased by 65.6% [1]. Product Quality and Market Position - The quality of granular silicon has improved significantly, with 95% of products meeting the impurity content standard of ≤0.5 ppbw [1]. - The top three customers accounted for 62.2% of the company's granular silicon shipments, reflecting strong market recognition [1]. Future Growth Potential - The company is exploring overseas granular silicon production capacity, which could support its international transformation [2]. - The silane gas business is expected to become a new profit growth point, with the company holding a leading position in high-purity silane gas production [2].