Core Viewpoint - Brazil's energy storage industry is on the verge of explosive growth, driven by the implementation of regulatory frameworks and increasing demand for solar energy storage solutions [2][3]. Group 1: Market Overview - Brazil's solar power generation is expected to increase its share in the total energy mix from 22.2% at the end of 2024 to 32.9% by 2029, with installed capacity rising from 51.7 GW to 88.2 GW, a net increase of 36.5 GW [2]. - The Brazilian Energy Storage Association (ABSAE) predicts that the solar energy storage sector will attract approximately 44 billion Brazilian Reais (around 8.46 billion USD) in investments by 2030, with off-grid systems, grid-level projects, and commercial/industrial storage each accounting for one-third of total investments [2]. - In 2024, battery storage demand in Brazil surged by 89%, with some regions experiencing over 190 hours of power outages annually, highlighting the urgent need for storage solutions among households and agricultural users [2]. Group 2: Regulatory and Policy Environment - The urgency of integrating battery storage systems into Brazil's electricity structure was emphasized by Rodrigo Sauaia, Executive Chairman of the Brazilian Solar Energy Association (ABSOLAR), noting that approximately 1 billion Brazilian Reais of renewable energy in the Northeast market remains unused due to a lack of infrastructure and planning [3]. - The development of storage solutions is currently hindered by pending regulatory policies, but the market is expected to flourish once these policies are established [3]. Group 3: Company Developments - CATL showcased its TENER Stack, a 9MWh modular energy storage system that improves land use efficiency by 45% and energy density by 50% compared to traditional systems [6]. - Trina Solar presented its Elementa series, which combines components, brackets, and storage to address grid stability challenges in Latin America, with a total shipment of 9 GW in Brazil and 19 GW in Latin America [10]. - Risen Energy introduced its Risen Sunease system and Risen Stack1, emphasizing safety and rapid deployment capabilities [12]. - Kehua Tech displayed its 1500V energy storage solution, designed to operate reliably in diverse climatic conditions across South America [15]. - Sungrow launched its integrated solar-storage solutions, addressing the structural electricity shortages in Brazil [17]. Group 4: Strategic Collaborations - During the exhibition, several companies, including Sungrow and DONG Energy, signed strategic cooperation agreements with local renewable energy firms to deepen collaboration in the storage sector [20].

Group 1 - The photovoltaic industry is experiencing a steady advancement in reversing internal competition, with a focus on short-term rebounds and long-term investment opportunities due to low valuations [1] - As of August 28, 2025, the CSI Photovoltaic Industry Index (931151) increased by 0.87%, with notable stock performances including Zhengtai Electric (601877) up 9.16% and Meichang Co., Ltd. (300861) up 8.50% [1] - The Photovoltaic ETF (516180) rose by 1.06%, with a recent price of 0.67 yuan, and has accumulated a 1.39% increase over the past week [1] Group 2 - As of July 31, 2025, the top ten weighted stocks in the CSI Photovoltaic Industry Index (931151) include Yangguang Electric (300274) and Longi Green Energy (601012), collectively accounting for 56.16% of the index [2]

Group 1 - The stock price of Trina Solar is reported at 16.17 yuan, down 0.55 yuan or 3.29% from the previous trading day, with a trading volume of 7.13 billion yuan [1] - Trina Solar's main business includes the manufacturing of photovoltaic products and system solutions, with key products such as photovoltaic modules, photovoltaic systems, and smart energy [1] - The company operates globally and holds a significant position in the photovoltaic industry chain [1] Group 2 - In the first half of the year, Trina Solar achieved operating revenue of 31.01 billion yuan, with module shipments exceeding 32 GW, where the domestic market accounted for slightly over 50% and the European market for slightly over 25% [1] - The company has adjusted its sales strategy for the U.S. market due to policy risk assessments, but has noted a recovery in U.S. module prices and plans to accelerate sales in the second half of the year [1] - Trina Solar has reported a backlog of energy storage orders exceeding 10 GWh, with an annual energy storage shipment target of over 8 GWh [1] Group 3 - On August 27, the net outflow of main funds was 53.08 million yuan, with a cumulative net outflow of 156.67 million yuan over the past five days [1]

Core Viewpoint - Trina Solar reported a revenue of 31.01 billion yuan in the first half of the year, with a net profit attributable to shareholders of -2.92 billion yuan, indicating challenges in profitability amid market fluctuations [1] Financial Performance - The company achieved a revenue of 31.01 billion yuan in the first half, with 16.68 billion yuan in the second quarter [1] - The net profit attributable to shareholders was -2.92 billion yuan for the first half, with -1.60 billion yuan in the second quarter [1] - Operating cash flow was 1.84 billion yuan in the first half, with 2.68 billion yuan in the second quarter [1] Market Dynamics - Trina Solar shipped over 32 GW of modules in the first half, with domestic sales slightly above 50%, Europe at just over 25%, Asia-Pacific at 11%-12%, and the Middle East at around 8% [1] - The company has reduced sales to the U.S. market due to policy risks and price trends, but anticipates a recovery in U.S. module prices in the second half [1] - There is an expectation of accelerated demand release in the U.S. market, with module prices in Q3 showing an increase compared to the first half [1] Technology Outlook - Trina Solar believes that TOPCon will remain the mainstream technology in the coming years, while BC and HJT will coexist in niche markets [2] - The company is focused on improving the efficiency of TOPCon technology and is also exploring perovskite tandem cell technology [2] - The transition from crystalline silicon to tandem technology is expected to yield significant efficiency improvements [2] Energy Storage Strategy - Energy storage is identified as a key growth area, with a target of over 8 GWh in shipments for the year [2] - The increase in overseas orders is expected to enhance economies of scale, improving the gross margin of the energy storage segment [2] - Trina Solar currently has over 10 GWh of energy storage orders, with a significant portion from the U.S. market, supporting future profitability [2] Distributed Solar Market - The company anticipates a period of market observation following the end of the rush for installations, until clearer policies and expected returns on investment are established [2] - Long-term, the decline in module prices has reduced their share of total investment in household power stations, indicating potential cost reduction opportunities to offset negative impacts on returns [2] Strategic Planning - As distributed solar policies and project returns become clearer, the commercial chain is expected to adjust to lower controllable costs and mitigate negative impacts [3] - Trina Solar plans to closely monitor regional policies and customer demand, tailoring strategies for different provinces to optimize project development and sales [3]

Industry Overview - The photovoltaic industry is facing significant challenges, with major companies reporting a combined net loss of 172.64 billion yuan in the first half of the year [1][5][6] - The price decline in the photovoltaic supply chain has severely compressed profit margins across the industry, indicating ongoing difficulties despite a temporary boost from installation surges [1][5] Company Performance - Tongwei Co., Ltd. reported a revenue of 40.509 billion yuan, a year-on-year decrease of 7.51%, with a net loss of 4.955 billion yuan [1][5] - TCL Zhonghuan achieved a revenue of 13.398 billion yuan, down 17.36% year-on-year, and a net loss of 4.242 billion yuan, a 38.48% increase in losses compared to the previous year [1][6] - Trina Solar delivered its first loss report since its IPO, with a revenue of 31.056 billion yuan, a 27.72% decline, and a net loss of 2.918 billion yuan, representing a 654.47% increase in losses year-on-year [2][6] - JA Solar reported a revenue of 23.905 billion yuan, down 36.01%, with a net loss of 2.580 billion yuan, widening from a loss of 0.874 billion yuan in the previous year [2][6] - JA Solar's second-quarter losses showed a significant reduction of over 40% compared to the first quarter, with improved gross margins [2][6] Policy and Market Response - The Ministry of Industry and Information Technology and other departments have initiated measures to combat irrational competition in the photovoltaic sector, emphasizing the need for industry self-discipline and quality standards [2][7] - A recent meeting outlined four key measures: enhancing industry regulation, curbing low-price competition, standardizing product quality, and supporting industry self-regulation, signaling a shift towards high-quality development [2][7] - The domestic polysilicon prices have shown signs of recovery, with the average price of N-type polysilicon remaining at 47,900 yuan per ton as of August 20 [3][8]

Core Viewpoint - The photovoltaic industry is facing significant challenges, with major companies reporting substantial losses in the first half of the year, indicating a continued struggle despite short-term boosts from installation surges [2][3]. Financial Performance - Tongwei Co., Ltd. reported a revenue of 40.51 billion yuan, a year-on-year decrease of 7.51%, with a net loss attributable to shareholders of 4.96 billion yuan [2]. - TCL Zhonghuan achieved a revenue of 13.40 billion yuan, down 17.36% year-on-year, with a net loss of 4.24 billion yuan, a 38.48% increase in losses compared to the previous year [2]. - Trina Solar posted a revenue of 31.06 billion yuan, a decrease of 27.72% year-on-year, with a net loss of 2.92 billion yuan, marking a 654.47% increase in losses compared to the previous year [3]. - JA Solar reported a revenue of 23.90 billion yuan, down 36.01% year-on-year, with a net loss of 2.58 billion yuan, widening from a loss of 874 million yuan in the previous year [3]. Industry Trends - The photovoltaic industry is experiencing a significant price drop across the supply chain, severely compressing profit margins, with the term "internal competition" being highlighted as a major challenge [2]. - In July, the domestic photovoltaic installation capacity reached 11.64 GW, a decrease of 18.9% month-on-month and 44.7% year-on-year, marking the lowest level since 2025 [3]. - The Ministry of Industry and Information Technology and other departments have initiated measures to regulate the photovoltaic industry, aiming to eliminate irrational competition and address capacity mismatches [4][5]. Policy Developments - A recent meeting emphasized four key measures: strengthening industry regulation, curbing low-price competition, standardizing product quality, and supporting industry self-discipline, signaling a shift from "scale expansion" to "high-quality development" in the photovoltaic sector [5]. - The government aims to enhance industry concentration through supply-side reforms and the elimination of outdated production capacity [5].

Core Viewpoint - The solar cell industry in China is experiencing significant growth, with production figures indicating a robust increase in output and a positive outlook for the coming years [1] Industry Summary - As of June 2025, China's solar cell (photovoltaic cell) production reached 67.39 million kilowatts, marking a year-on-year growth of 24.1% [1] - Cumulatively, from January to June 2025, the total production of solar cells in China was 370.19 million kilowatts, reflecting an 18.2% increase compared to the previous year [1] - The report by Zhiyan Consulting outlines the competitive landscape and investment recommendations for the solar cell industry in China from 2025 to 2031 [1] Company Summary - Key listed companies in the solar energy sector include Longi Green Energy (601012), Tongwei Co., Ltd. (600438), Sungrow Power Supply Co., Ltd. (300274), JA Solar Technology Co., Ltd. (002459), Trina Solar Limited (688599), TBEA Co., Ltd. (600089), Chint Electric Co., Ltd. (601877), and TCL Zhonghuan Renewable Energy Technology Co., Ltd. (002129) [1]

Core Insights - The photovoltaic industry is facing significant challenges, with major companies reporting substantial losses in their recent half-year financial statements, indicating a tough market environment [1][2]. Financial Performance - Tongwei Co., Ltd. reported a revenue of 40.51 billion yuan, a year-on-year decrease of 7.51%, and a net loss attributable to shareholders of 4.96 billion yuan [1]. - TCL Zhonghuan achieved a revenue of 13.40 billion yuan, down 17.36% year-on-year, with a net loss of 4.24 billion yuan, a decrease of 38.48% compared to the previous year [1]. - Trina Solar posted a revenue of 31.06 billion yuan, a decline of 27.72%, and a net loss of 2.92 billion yuan, which is a significant increase in losses compared to the previous year [2]. - JA Solar reported a revenue of 23.90 billion yuan, a 36.01% decrease, with a net loss of 2.58 billion yuan, worsening from a loss of 874 million yuan in the same period last year [2]. Industry Trends - The photovoltaic industry is experiencing a price decline across the supply chain, severely compressing profit margins, with the term "internal competition and external blockage" being used to describe the ongoing challenges [1]. - In July, the domestic photovoltaic installation capacity added was 11.64 GW, a decrease of 18.9% month-on-month and 44.7% year-on-year, marking the lowest level since 2025 [4]. - The Chinese government is taking stronger measures to eliminate irrational competition and address capacity mismatches within the industry, signaling a shift from "scale expansion" to "high-quality development" [4]. Policy Developments - A recent meeting involving multiple government departments emphasized the need for industry regulation, including curbing low-price competition and supporting industry self-discipline [4]. - The meeting outlined four key measures: enhancing industry regulation, curbing disorderly competition, standardizing product quality, and supporting self-regulation within the industry [4].

Core Viewpoint - The photovoltaic industry has been in a downturn for seven consecutive quarters, with major companies reporting significant losses in the first half of the year, indicating a challenging environment with supply-demand imbalances and price declines [1][7]. Company Performance - Tongwei Co., Ltd. reported a net loss of 4.955 billion yuan, a year-on-year increase in losses of 1.826 billion yuan, with revenue of 40.509 billion yuan, down 7.51% [2][3]. - Longi Green Energy recorded a net loss of 2.569 billion yuan, but reduced losses by 2.661 billion yuan compared to the previous year, with revenue of 32.813 billion yuan, down 14.83% [2][4]. - Trina Solar experienced its first loss since going public, with a net loss of 2.918 billion yuan and revenue of 31.056 billion yuan, down 27.72% [5]. - JA Solar reported a net loss of 2.580 billion yuan, widening from 874 million yuan the previous year, with revenue of 23.905 billion yuan, down 36.01% [6]. - TCL Zhonghuan faced a net loss of 4.242 billion yuan, a decrease of 38.48% year-on-year, with revenue of 13.398 billion yuan, down 17.36% [5]. Industry Trends - The global photovoltaic market is experiencing a supply-demand imbalance, leading to a decline in prices across all segments, with many companies operating at a loss [1][4][7]. - The industry is undergoing a deep adjustment period, with outdated production capacities being phased out, but the pace of adjustment may not meet expectations, risking further price declines [8]. - Recent data shows a significant drop in new installations, with July's figures at 11.64 GW, down 18.9% month-on-month and 44.7% year-on-year, marking a new low since 2025 [9]. Financial Resilience - Companies with strong cash reserves are better positioned to survive the downturn, with Tongwei and Longi holding 33.229 billion yuan and 28.769 billion yuan in cash and financial assets, respectively [10]. - TCL Zhonghuan, despite its losses, has indicated a willingness to participate in industry consolidation due to its cash flow and financial reserves [10].

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - "Anti - involution" related convertible bonds are cost - effective absolute - return assets. The position and bond selection of "anti - involution" sector convertible bonds are the "decisive factors" for the future market due to three reasons: large capital capacity, high cost - performance of underlying stocks, and low bond prices with debt - bottom value support [1][9]. - Five convertible bonds are recommended: Youfa Convertible Bond, Wankai Convertible Bond, Keshun Convertible Bond, Feng 22 Convertible Bond, and Tian 23 Convertible Bond [3][11]. 3. Summary According to the Directory 3.1 Overall Logic and Layout Ideas - **Large capital capacity**: "Anti - involution" sector has a large number of convertible bonds. Industries such as power equipment and basic chemicals have many convertible bonds in existence. If "anti - involution" progresses beyond expectations, it may drive up the underlying stocks and the convertible bond index [1][9]. - **High cost - performance of underlying stocks**: Some industries' underlying stocks, like those in steel, basic chemicals, and power equipment, are under pressure. But "anti - involution" may improve supply - demand, and the leading enterprises may have stronger profit elasticity after industry clearance. Also, the stock prices are low, so there is potential for valuation repair [2][10]. - **Low bond prices with debt - bottom value support**: Most "anti - involution" related convertible bonds have conversion values below 120 yuan, and many are in the 60 - 90 yuan and 90 - 120 yuan ranges. Debt - type/balanced convertible bonds have better debt - bottom protection, suitable for absolute - return funds [2][10]. 3.2 Individual Bond Selection 3.2.1 Youfa Group/Youfa Convertible Bond - Youfa Group is the largest domestic welded - steel pipe enterprise. In 2025, the welded - pipe price declined. With the improvement of downstream demand and the new supply - side reform in the steel industry, the company plans to expand its domestic and overseas layouts [14][15]. 3.2.2 Wankai New Materials/Wankai Convertible Bond - Wankai New Materials is a leading domestic polyester material enterprise. In 2024, the domestic polyester bottle - chip market had increased production but decreased prices. New applications may bring new demand. Many enterprises in the industry are reducing production, which may optimize the supply - demand pattern and increase the company's profitability [20][23]. 3.2.3 Keshun Co., Ltd./Keshun Convertible Bond - Keshun focuses on building waterproofing solutions. The domestic waterproofing industry is highly fragmented, but the new regulations may benefit leading enterprises. Keshun will expand its retail, non - real - estate, and overseas businesses, and improve profitability through R & D and cost reduction [26][31]. 3.2.4 Xin Fengming/Feng 22 Convertible Bond - Xin Fengming is a major player in the polyester fiber industry. The upstream raw material supply is abundant, which is beneficial for the polyester end. Due to environmental policies and industry integration, some small enterprises are being eliminated, and the industry structure is being optimized [32][33]. 3.2.5 Trina Solar/Tian 23 Convertible Bond - Trina Solar is involved in photovoltaic products, energy storage, and system solutions. The Chinese photovoltaic industry faces challenges, but the "anti - involution" action and policy support may bring price recovery, technology premium, and industry integration, and improve the company's profitability and stock valuation [38][39].