Summary of Conference Call on Photovoltaic Industry's Anti-Competition Measures Industry Overview - The conference focused on the photovoltaic (PV) industry, particularly discussing the recent anti-competition measures and market dynamics within the sector [1][2]. Key Points and Arguments 1. **Market Recovery and Policy Support**: The market has shown a positive recovery, driven by recent policy announcements aimed at eliminating barriers to a unified national market and addressing excessive competition [1][2]. 2. **Formation of Industry Alliances**: 17 leading companies in the silicon material sector are forming a coalition to stabilize prices and reduce production capacity, with expectations to complete this by the end of the year [2][3]. 3. **Price Recovery Indicators**: The third quarter has shown signs of improvement in the PV supply chain, particularly due to the recovery in prices of silicon materials, which is expected to continue as production cuts are anticipated in November [3][4]. 4. **Impact of Policy Changes**: The introduction of stricter regulations against below-cost pricing has led to a significant increase in silicon prices, from around 30,000 to over 50,000 [6][15]. 5. **Performance of Key Companies**: Major companies like Xiexin and Tongwei reported significant improvements in their financial performance in Q3, indicating a recovery in the industry [8][18]. 6. **Investment Recommendations**: Analysts recommend focusing on companies with strong cyclical attributes in the silicon material and PV glass sectors, including Tongwei, Daqo, and Xiexin [9][23]. 7. **Technological Advancements**: The industry continues to see technological progress, which is expected to create a competitive edge for companies that can innovate and maintain high margins [9][20]. 8. **Long-term Market Dynamics**: The anticipated supply-side reforms in the silicon sector are expected to lead to a more balanced supply-demand situation, which will benefit downstream companies and prevent a return to cutthroat competition [19][21]. Additional Important Insights - **Regulatory Environment**: The government's commitment to creating a unified market and addressing local protectionism is crucial for the long-term health of the PV industry [7][22]. - **Market Sentiment**: The recent media coverage and government announcements have sparked renewed investor interest and optimism regarding the anti-competition measures [2][4]. - **Financial Health of the Sector**: Many companies are showing signs of financial recovery, with improved profit margins and reduced losses compared to previous quarters [8][22]. This summary encapsulates the key discussions and insights from the conference call regarding the photovoltaic industry's current state and future outlook, emphasizing the importance of policy support and industry collaboration in fostering a healthier market environment.

Core Viewpoint - The power equipment industry is experiencing steady growth in revenue and profit, driven by high domestic grid investment and surging overseas demand, with new growth areas like supercapacitors and energy storage emerging as key focus points [2] Group 1: Industry Performance - The majority of power equipment companies reported steady growth in revenue and profit, with notable examples including State Grid and Southern Grid conducting multiple rounds of equipment tenders [2][3] - The China Electricity Council reported that grid investment reached 437.8 billion yuan in the first three quarters, a year-on-year increase of 9.9% [2] - The cumulative tender amount for transmission and transformation equipment by State Grid reached 68.188 billion yuan, up 22.9% year-on-year [2] Group 2: Company Highlights - Pinggao Electric reported a revenue of 8.436 billion yuan for the first three quarters, a year-on-year increase of 6.98%, with net profit rising 14.62% [3] - Siyuan Electric achieved a revenue of 5.33 billion yuan in Q3, a 25.68% increase year-on-year, and a net profit of 899 million yuan, up 48.73% [3] - Siyuan Electric's overseas revenue reached 2.86 billion yuan in the first half, a staggering 89% increase, with overseas orders growing faster than average [3] Group 3: Emerging Business Areas - Energy storage and supercapacitors are becoming significant growth drivers for power equipment companies, with Sunshine Power predicting a domestic energy storage installation of around 130 GWh this year [5] - Siyuan Electric's energy storage bid volume is expected to reach 2.4 GWh in 2024, placing it among the top ten in the country [5] - Guodian NARI has been deeply involved in the energy storage sector, contributing to the commissioning of new energy storage plants [5] Group 4: Future Outlook - Industry experts anticipate sustained high growth in the power sector, driven by policies promoting renewable energy and the need for stable grid infrastructure [7] - Wanlian Securities suggests continued investment in new power system facilities, emphasizing smart grids and new energy storage as key areas to watch [7]

Core Viewpoint - The photovoltaic industry is showing signs of recovery as companies' performance improves in the third quarter, driven by policy guidance and strategic adjustments within firms [1][2][3] Group 1: Performance Recovery - Several companies in the photovoltaic supply chain have reported improved performance, particularly in the silicon material sector, which has rebounded quickly [1] - Daqo New Energy Corp reported a revenue of 1.773 billion yuan in Q3, a year-on-year increase of 24.75%, and a net profit of 73.48 million yuan, recovering from a loss of 429 million yuan in the same period last year [1] - Doublegood Energy Systems Co. achieved a quarterly revenue of 1.688 billion yuan, a year-on-year decrease of 49.86%, but a net profit of 53.18 million yuan, up 164.75% [1][2] Group 2: Price and Cost Factors - The rise in polysilicon prices and a decrease in production costs are key factors driving the improved performance of silicon material companies in Q3 [2] - Tongwei Co. reduced its losses to 315 million yuan in Q3 from 2.363 billion yuan in Q2, indicating significant improvement [2] - GCL-Poly Energy Holdings Ltd. reported a profit of 960 million yuan in its photovoltaic materials business, contrasting sharply with a loss of 1.81 billion yuan in the same period last year [2] Group 3: Shift to Value Competition - The industry is transitioning from a "price war" to "value competition," with downstream component and integrated companies also showing signs of performance recovery [3][4] - LONGi Green Energy Technology Co. reported a 47.52% reduction in losses in the first three quarters of the year, focusing on customer-centered value creation and cost reduction [3] - JA Solar Technology Co. improved its gross margin to -0.88% in Q3, continuing a trend of improvement throughout the year [3] - Hongyuan Green Energy Co. achieved a revenue of 5.685 billion yuan in the first three quarters, a year-on-year increase of 6.54%, and a net profit of 235 million yuan, indicating a turnaround [4]

Core Viewpoint - Tongwei Co., Ltd. announced that its stock price has triggered the downward adjustment clause for its convertible bonds due to the closing price being below 85% of the conversion price for 15 out of 30 consecutive trading days. However, the company decided not to adjust the conversion price downward [1]. Summary by Sections - **Company Announcement** - On October 31, Tongwei Co., Ltd. released an announcement regarding its convertible bonds, specifically "Tong 22 Convertible Bonds" [1]. - **Stock Price Performance** - The company's stock closing price was below the current conversion price of 29.41 yuan per share for 15 out of the last 30 trading days, triggering the adjustment clause [1]. - **Board Decision** - The company's board of directors, during its fifth meeting of the ninth session, decided not to proceed with the downward adjustment of the conversion price [1]. - **Future Considerations** - The company will not propose any downward adjustment plan for the conversion price within three months following the board's decision, specifically from November 1, 2025, to January 31, 2026 [1].

Core Viewpoint - The photovoltaic industry chain is experiencing a divergence, with upstream companies reporting improved profits while downstream components continue to face losses [3][6]. Upstream Performance - Leading upstream companies such as Tongwei Co., GCL-Poly Energy, and Daqo New Energy have shown improved quarterly profits in Q3 2025, with Daqo New Energy achieving a net profit of 73.48 million yuan for the first time since Q2 2024 [3][4]. - Tongwei Co. holds the highest global market share in high-purity silicon, reporting a reduced net loss of 315 million yuan in Q3, down from 2.363 billion yuan in Q2, marking an over 80% reduction in losses [3][4]. - GCL-Poly Energy reported an increase in the average selling price of granular silicon to 42.12 yuan/kg in Q3, up from 35.71 yuan/kg in Q1 and 32.93 yuan/kg in Q2 [3]. Market Trends - The improvement in upstream performance reflects a market recovery trend and the initial effects of the photovoltaic "anti-involution" strategy, with a reported reduction of approximately 12,000 tons in domestic polysilicon inventory in the first three quarters of the year [4][5]. - Polysilicon prices have strengthened due to reduced supply, with average prices for N-type and granular silicon rising to 53,200 yuan/ton and 50,500 yuan/ton by the end of September, representing increases of 55% and 51% respectively since June [5]. Downstream Challenges - Downstream component manufacturers are struggling with rising costs and weakened terminal demand, failing to achieve profitability in Q3 2025 [6][7]. - Major companies in the component sector, including JinkoSolar, LONGi Green Energy, Trina Solar, and JA Solar, reported significant net losses in Q3, with losses ranging from 8.34 billion yuan to 12.83 billion yuan [6][7]. - Cumulatively, these companies have incurred losses exceeding 30 billion yuan in the first three quarters, with Trina Solar leading with a loss of 4.201 billion yuan [6][7]. Future Outlook - The industry outlook for Q4 remains cautious, with expectations of demand decline and some companies reporting lower-than-expected orders [7]. - LONGi Green Energy's chairman expressed confidence in achieving breakeven in Q4 by increasing the revenue share of BC products and scenario-based products [7].

| 股票代码：600438 | 股票简称：通威股份 | | | 公告编号：2025-084 | | --- | --- | --- | --- | --- | | 债券代码：110085 | 债券简称：通 | 22 | 转债 | | 通威股份有限公司 关于不向下修正"通 22 转债"转股价格的公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈 述或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 重要内容提示： 自 2025 年 10 月 11 日至 2025 年 10 月 31 日，通威股份有限公司（以 下简称"公司"）股票收盘价在连续三十个交易日中有十五个交易日低于当期转 股价格的 85%（29.41 元/股），已触发"通 22 转债"的转股价格向下修正条款。 经公司第九届董事会第五次会议审议通过，公司董事会决定本次不向下修正转股 价格，并在作出本次董事会决议后 3 个月内（即 2025 年 11 月 1 日至 2026 年 1 月 31 日）亦不提出转股价格向下修正方案。 自 2026 年 2 月 1 日起首个交易日重新开始计算，如"通 22 转债"未来 再次触发转股价格 ...

Core Insights - The photovoltaic industry is experiencing a divergence where upstream companies are showing signs of recovery while downstream components continue to struggle with losses [2][4][5] Upstream Performance - Leading upstream companies such as Tongwei Co., Ltd. (600438.SH), GCL-Poly Energy Holdings Limited (03800.HK), and Daqo New Energy Corp. (688303.SH) reported improved quarterly profits in Q3 2025, with Daqo achieving a net profit of 73.48 million yuan for the first time since Q2 2024 [2][3] - Tongwei holds the highest global market share in high-purity crystalline silicon, reporting a reduced net loss of 315 million yuan in Q3, down from 2.363 billion yuan in Q2, indicating a more than 80% reduction in losses [2][3] - GCL-Poly's average selling price for granular silicon products increased to 42.12 yuan/kg in Q3, up from 35.71 yuan/kg in Q1 and 32.93 yuan/kg in Q2, reflecting a positive price trend [2] Market Dynamics - The supply-side self-discipline and production cuts have led to a reduction of approximately 12,000 tons in domestic polysilicon inventory in the first three quarters of the year, contributing to a stronger market price [3] - Polysilicon prices have significantly increased, with N-type raw materials and granular silicon averaging 53,200 yuan/ton and 50,500 yuan/ton respectively by the end of September, marking increases of 55% and 51% since June [3] Downstream Challenges - The downstream component sector is facing challenges due to rising costs and weakened end-user demand, with major companies like JinkoSolar, LONGi Green Energy, Trina Solar, and JA Solar all reporting losses in Q3 [4][5] - The total shipment volume of the top ten global component suppliers is projected to be around 247.9 GW in the first half of 2025, with the top four companies accounting for nearly 60% of this total [4] - The net losses for these leading companies in Q3 were significant, with Trina Solar reporting a loss of 1.283 billion yuan, followed by JinkoSolar, JA Solar, and LONGi Green Energy with losses of 1.012 billion yuan, 973 million yuan, and 834 million yuan respectively [4] Future Outlook - The industry outlook for Q4 remains cautious, with expectations of declining demand and some companies reporting lower-than-expected orders [6] - The focus is shifting towards the signing of orders and production arrangements for Q1 of the following year as demand is anticipated to weaken further towards the end of the year [6]

Core Viewpoint - The photovoltaic industry is expected to establish a joint platform by the end of 2025, with a clear supply-side reform strategy focusing on top-level policies, industry self-discipline, and technological iteration. The sector has completed price and profit stabilization, indicating a positive market outlook [1]. Group 1: Joint Platform and Supply-Side Reform - The establishment of the joint platform is crucial for accelerating supply-side reforms in the polysilicon sector, which is the most upstream part of the photovoltaic industry chain. This initiative involves 17 major companies and aims to address the severe overcapacity and price wars that have led to a "low price-loss" cycle [2]. - The collaborative mechanism of the joint platform will facilitate the elimination of outdated production capacity and help polysilicon prices return to levels above the cost line, thereby laying a solid foundation for profit recovery across the entire industry chain [2]. Group 2: Price and Profit Recovery - The ongoing "anti-involution" efforts have led to a significant expansion of participating entities and noticeable recovery in product prices. By the third quarter of 2025, polysilicon prices began to rise above the comprehensive cost line, resulting in substantial profit recovery for companies [3]. - For instance, Daqo Energy reported a net profit of 73.48 million yuan in the third quarter of 2025, marking the end of five consecutive quarters of losses, while GCL-Poly also achieved profitability in its photovoltaic materials business during the same period [3].

Group 1 - Over 12.3 billion in main funds flowed into the power equipment sector, making it the top sector among 31 Shenwan primary industries [1] - The only ETF tracking the green energy index saw a peak increase of over 1.4% before dropping 0.38%, reaching a high not seen since February 2023 [1] - Key stocks such as Enjie, Yongxing Materials, and New Zoubang saw significant gains, with New Zoubang rising over 11% and Beiterui increasing by more than 9% [1] Group 2 - The "14th Five-Year Plan" emphasizes accelerating the construction of a new energy system and achieving carbon peak by 2030, with leading companies like CATL and Sungrow expected to benefit [3] - The photovoltaic industry is entering a critical bottom phase, with expectations for a new era led by major players, focusing on supply control and enhancing global competitiveness [3] - Lithium hexafluorophosphate prices have doubled from under 50,000 yuan/ton in August to 105,000 yuan/ton by October 30, impacting pricing strategies for electrolyte products [3] Group 3 - Dongwu Securities highlights a strong demand for lithium batteries, with production and sales expected to rise significantly, particularly in Europe and global energy storage [4] - The battery sector is projected to exceed market expectations by 2026, with first-tier profitability improving and second-tier profitability reaching a turning point [4] - The solid-state battery sector is anticipated to see increased demand due to advancements in AI, with multiple catalysts expected to emerge in Q4 [4] Group 4 - The green energy ETF (562010) passively tracks the green energy index, with top ten weighted stocks including CATL, BYD, and Longi Green Energy [4]

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].