I. Estimated Performance for the Current Period [1.1 Performance Forecast Period](index=1&type=section&id=1%E3%80%81%E4%B8%9A%E7%BB%A9%E9%A2%84%E5%91%8A%E6%9C%9F%E9%97%B4) This performance forecast covers the period from January 1 to June 30, 2025 - The performance forecast period is from **January 1, 2025, to June 30, 2025**[2](index=2&type=chunk) [1.2 Estimated Performance Overview](index=1&type=section&id=2%E3%80%81%E9%A2%84%E8%AE%A1%E7%9A%84%E4%B8%9A%E7%BB%A9) The company anticipates a net loss for the first half of 2025, with the loss expected to widen compared to the prior year - The company expects a **net loss** for the first half of 2025[2](index=2&type=chunk) [1.2.1 Details of 2025 Half-Year Performance Forecast](index=1&type=section&id=(1)%202025%20%E5%B9%B4%20%E5%8D%8A%E5%B9%B4%E5%BA%A6%E4%B8%9A%E7%BB%A9%E9%A2%84%E8%AE%A1%E6%83%85%E5%86%B5) A detailed comparison of key financial metrics for the first half of 2025 shows an expected increase in net losses Comparison of 2025 Half-Year Performance Forecast | Item | 2025 Jan-Jun Forecast (billion CNY) | Prior Year Same Period (billion CNY) | Trend | | :--- | :--- | :--- | :--- | | Net Profit Attributable to Shareholders of Listed Company | Loss: 4.00 to 4.50 | Loss: 3.06 | Loss Widening | | Net Profit After Deducting Non-Recurring Gains and Losses | Loss: 4.10 to 4.60 | Loss: 3.49 | Loss Widening | | Basic Earnings Per Share (CNY/share) | Loss: 1.0017 to 1.1269 | Loss: 0.7680 | Loss Widening | II. Pre-Audit Status of Performance Forecast [2.1 Pre-Audit Status](index=1&type=section&id=%E6%9C%AC%E6%9C%9F%E4%B8%9A%E7%BB%A9%E9%A2%84%E5%91%8A%E6%9C%AA%E7%BB%8F%E6%B3%A8%E5%86%8C%E4%BC%9A%E8%AE%A1%E5%B8%88%E9%A2%84%E5%AE%A1%E8%AE%A1) The current performance forecast has not been pre-audited by a certified public accountant, requiring investor caution - This performance forecast has **not been pre-audited** by a certified public accountant[3](index=3&type=chunk) III. Explanation of Performance Changes [3.1 Main Reasons for Performance Change](index=1&type=section&id=%E4%B8%9A%E7%BB%A9%E5%8F%98%E5%8A%A8%E5%8E%9F%E5%9B%A0%E8%AF%B4%E6%98%8E) The company's losses are primarily due to supply-demand imbalance, continuous price drops in the photovoltaic industry, and inventory impairment - Global photovoltaic installations maintained **resilient growth**, with the domestic distributed market experiencing a short-term rush, leading to **periodically strong market demand**[4](index=4&type=chunk) - From May to June 2025, industry chain demand gradually cooled, coupled with **supply-demand imbalance** across various segments and **inventory pressure**, leading to **continuous product price declines**[4](index=4&type=chunk) - The company' reported a **net operating loss** for the period, primarily impacted by **falling product prices** and **inventory impairment**[4](index=4&type=chunk) [3.2 Company Response Strategies](index=1&type=section&id=%E5%85%AC%E5%8F%B8%E5%BA%94%E5%AF%B9%E7%AD%96%E7%95%A5) The company is implementing strategic initiatives, operational improvements, cost control, and organizational reforms to enhance competitiveness and maintain positive operating cash flow - The company is continuously advancing **strategic implementation, operational improvements, cost reduction and control, and organizational reforms** to enhance operational quality[4](index=4&type=chunk) - Efforts include **enhancing product competitiveness, accelerating turnover, reducing costs, improving efficiency**, and maintaining **positive operating cash flow** for the reporting period, upholding operational integrity[4](index=4&type=chunk) - The company will continue to actively practice **industry self-discipline**, seize development opportunities, proactively address challenges, adhere to **technology-driven innovation**, firmly pursue a **globalization strategy**, strengthen operational control, and strive to **improve annual operating performance**[4](index=4&type=chunk) IV. Other Related Explanations [4.1 Nature of Performance Forecast and Risk Warning](index=2&type=section&id=%E6%9C%AC%E6%AC%A1%E4%B8%9A%E7%BB%A9%E9%A2%84%E5%91%8A%E6%98%AF%E5%85%AC%E5%8F%B8%E8%B4%A2%E5%8A%A1%E9%83%A8%E9%97%A8%E5%88%9D%E6%AD%A5%E6%B5%8B%E7%AE%97%E7%9A%84%E7%BB%93%E6%9E%9C) This performance forecast is a preliminary estimate, and investors are advised to refer to the official half-year report for final financial data and exercise caution - This performance forecast represents a **preliminary estimate** by the company's finance department[6](index=6&type=chunk) - The **final financial data** will be subject to the company's disclosed 2025 half-year report[6](index=6&type=chunk) - Investors are kindly advised to **exercise caution regarding investment risks**[6](index=6&type=chunk)

TCL中环（002129）公告，预计2025年1月1日-2025年6月30日归属于上市公司股东的净利润亏损40亿元 ～45亿元，上年同期为亏损30.64亿元；扣除非经常性损益后的净利润亏损41亿元～46亿元，上年同期 为亏损34.89亿元；基本每股收益亏损1元/股～1.13元/股，上年同期为亏损0.768元/股。 ...

Market Overview - The Shanghai Composite Index fell by 0.13% on July 9, with 17 out of the 28 sectors rising, led by Media and Agriculture sectors, which increased by 1.35% and 0.65% respectively [1] - The Electric Equipment sector saw a slight increase of 0.17% [1] - The sectors with the largest declines were Non-ferrous Metals and Basic Chemicals, which dropped by 2.26% and 0.85% respectively [1] Capital Flow Analysis - The main capital outflow from the two markets totaled 38.536 billion yuan, with only three sectors experiencing net inflows: Media (1.055 billion yuan), Retail (864 million yuan), and Construction Decoration (40.34 million yuan) [1] - The Electronic sector had the largest net outflow, totaling 7.789 billion yuan, followed by Non-ferrous Metals with 5.412 billion yuan [1] Electric Equipment Sector Performance - In the Electric Equipment sector, 358 stocks were tracked, with 99 stocks rising and 252 stocks declining; 5 stocks hit the daily limit up [2] - The top net inflow stock was Ningde Times, with a net inflow of 378 million yuan, followed by Tongguan Copper Foil and Kelu Electronics with inflows of 219 million yuan and 178 million yuan respectively [2] - The sector experienced a total net outflow of 4.576 billion yuan, with 11 stocks seeing outflows exceeding 100 million yuan; the largest outflows were from Rongfa Nuclear Power, Sunshine Power, and Nord Shares, with outflows of 327 million yuan, 250 million yuan, and 226 million yuan respectively [2][3] Top Gainers in Electric Equipment Sector - The top gainers in the Electric Equipment sector included: - Ningde Times: +2.84%, turnover rate 0.75%, main capital flow 377.94 million yuan - Tongguan Copper Foil: +20.02%, turnover rate 48.19%, main capital flow 218.52 million yuan - Kelu Electronics: +10.06%, turnover rate 7.49%, main capital flow 178.39 million yuan [2] Top Losers in Electric Equipment Sector - The top losers in the Electric Equipment sector included: - Rongfa Nuclear Power: +0.42%, turnover rate 33.08%, main capital flow -327.43 million yuan - Sunshine Power: -0.57%, turnover rate 3.01%, main capital flow -249.65 million yuan - Nord Shares: -4.98%, turnover rate 14.04%, main capital flow -226.20 million yuan [3]

Core Viewpoint - The recent surge in the photovoltaic (PV) equipment sector in the A-share market is driven by a series of favorable policies aimed at combating "involution" and promoting high-quality development within the industry [1][2]. Policy Background - The central government has intensified signals against "involution," with the Ministry of Industry and Information Technology (MIIT) mandating PV companies to report their cost prices, threatening penalties for those selling below cost [2][4]. - High-level meetings involving major PV companies indicate a strong governmental commitment to addressing disordered competition and enhancing product quality [2][4]. - The "anti-involution" measures have been a recurring theme in government discussions since last year, with multiple policy documents emphasizing the need for comprehensive regulation [2][4]. Industry Background - The PV industry is experiencing severe overcapacity, with significant price declines across the supply chain. In 2024, prices for polysilicon, silicon wafers, batteries, and modules are expected to drop by 39%, 50%, 40%, and 29% respectively [6][7]. - The industry's rapid expansion has led to a situation where many companies are selling products below cost, resulting in substantial losses. In 2024, major PV companies reported losses exceeding 600 billion yuan [6][7]. - The growth of the PV sector is notable, with projected installation capacity growth rates of 13.9%, 59.3%, 148.1%, and 28.3% from 2021 to 2024 [6]. Sichuan Countermeasures - Sichuan, a major player in the PV industry, is implementing strategies to address overcapacity while promoting technological upgrades and competitive advantages [9][10]. - The province is witnessing short-term challenges, including production cuts and layoffs, but long-term benefits are anticipated as companies stabilize and innovate [10][11]. - A combination of self-initiated production cuts and government policies aims to reduce capacity and enhance competitiveness [12][14]. Future Outlook - Despite current challenges, the PV industry is expected to rebound as the market corrects itself. The International Renewable Energy Agency projects that global PV installations will need to reach 18,200 GW by 2050 to meet carbon neutrality goals [14].

Group 1 - The HJT battery concept sector increased by 3.22%, ranking 9th among concept sectors, with 54 stocks rising, including Topray Solar and Tongwei Co., which hit the daily limit [1] - Leading stocks in the HJT battery sector included Trina Solar, Guosheng Technology, and Shichuang Energy, which rose by 8.10%, 8.07%, and 6.90% respectively [1] - The sector saw a net inflow of 1.809 billion yuan from main funds, with 30 stocks receiving net inflows, and 7 stocks exceeding 50 million yuan in net inflow [2] Group 2 - The top net inflow stock was Tongwei Co., with a net inflow of 636 million yuan, followed by Longi Green Energy and Topray Solar with net inflows of 517 million yuan and 137 million yuan respectively [2] - The net inflow ratios for Topray Solar, Tongwei Co., and Longi Green Energy were 54.80%, 22.69%, and 14.34% respectively [3] - The HJT battery concept sector had a significant presence in the market, with various companies showing strong performance in terms of stock price and trading volume [4]

Core Viewpoint - The BC battery sector has seen a collective surge of over 4% as of July 8, with several stocks, including Tongwei Co., Ltd. and Junda Co., Ltd., reaching their daily limit up [1] Industry Summary - BC batteries, or back-contact batteries, integrate both positive and negative metal contacts on the back, allowing for a design that absorbs more sunlight and offers higher efficiency, particularly suitable for distributed photovoltaic and commercial rooftop applications [1] - By April 2025, the mass production efficiency of BC batteries is expected to exceed 27%, with a theoretical efficiency limit of 29.1% [1] - Recent discussions in the photovoltaic industry have focused on "anti-involution," with the Ministry of Industry and Information Technology emphasizing the need for lawful and orderly competition, which is expected to enhance market expectations for the healthy development of the photovoltaic industry [1] - The BC battery technology is positioned as a high-efficiency, high-value photovoltaic technology, offering better performance compared to traditional P-type and TOPCon batteries, and is anticipated to play a significant role in the industry's transformation and upgrade [1] Company Summary - Longi Green Energy (601012) has a BC production capacity of 30GW HPBC (High-efficiency Passivated Back Contact) battery project, which is already in mass production [2] - Junda Co., Ltd. has established an experimental line for BC products based on N-type technology, moving towards pilot testing and mass production of N-type products [2] - Tongwei Co., Ltd. has a comprehensive layout in various technology routes, including TOPCon, HJT, BC batteries, and perovskite/silicon tandem batteries, with ongoing breakthroughs in N-type batteries [2] - Dongcai Technology (601208) focuses on technological innovation and explores differentiated photovoltaic product development strategies, with products already applied to BC batteries [2] - Jiejia Weichuang (300724) is developing XBC battery testing and sorting equipment to address issues related to the positioning accuracy of battery grid lines on the back [3] - Foster (603806) is the largest supplier of packaging materials for Longi and Aiko's BC batteries [4] - Aiko Co., Ltd. (600732) has launched a new generation of N-type back-contact ABC battery technology components and photovoltaic energy solutions [4] - TCL Zhonghuan (002129) is enhancing its product lineup by transforming TOPCon standard component production lines and establishing a 2GW BC component production line [4]

Group 1 - The photovoltaic ETF fund (159863.SZ) has increased by 5.08%, with major components such as Sungrow Power (up 8.98%), Longi Green Energy (up 6.08%), Tongwei Co. (up 10.00%), Daqo New Energy (up 14.84%), and TBEA Co. (up 3.02%) [1] - There are rumors that silicon material does not have a guiding price and cannot be sold below their full cost, with policies reiterating "supply-side expectations rising" [1] - The photovoltaic industry is currently undergoing a clearing process that can be categorized into financial, policy, and technical clearings, with expectations of challenges in domestic demand in Q3 and an anticipated increase in polysilicon production in July [1] Group 2 - Zhongyi Securities' strategy team notes that the current market environment is similar to the end of 2014, with investors having accumulated profit effects in the industry, and policy expectations stabilizing [1] - China Post Securities highlights that the photovoltaic industry has been officially named for "involution-style" competition, with leading photovoltaic glass companies planning to collectively reduce production by 30% starting in July [2] - The Ministry of Industry and Information Technology has signaled stronger regulatory measures, requiring companies to report cost prices and planning to impose heavy penalties on low-price sales, indicating an escalation in industry governance [2]

Core Insights - The 18th SNEC PV+ 2025 International Solar Photovoltaic and Smart Energy Conference and Exhibition was held in Shanghai from June 11 to 13, showcasing TCL Zhonghuan's advanced solar products and technologies [1] Group 1: Product Innovations - TCL Zhonghuan presented its 210 monocrystalline silicon rods and a series of silicon wafer products, along with next-generation BC technology components and high-efficiency, high-power BC and TOPCon technology components [1][3] - The company has made significant advancements in solar technology, launching 12-inch ultra-large monocrystalline silicon wafers in 2019, breaking the industry's reliance on 8-inch wafers and achieving breakthroughs in production efficiency and photoelectric conversion efficiency [3] - The BC technology components showcased have a maximum power of 680W and an efficiency of 25.2%, while the TOPCon technology components reach up to 750W and 24.14% efficiency [4] Group 2: Market Strategy and Sustainability - TCL Zhonghuan is transitioning from a single manufacturing model to a "new energy production + sales" model, enhancing its competitive advantage and providing a comprehensive carbon reduction model for the photovoltaic industry [5] - The company emphasizes the integration of ESG (Environmental, Social, and Governance) principles into its global market strategy, viewing it as essential for sustainable and responsible global expansion [5] - The launch of the "zero-carbon factory" project aims to create replicable and scalable solutions for carbon reduction across the entire supply chain [5]

Core Viewpoint - The photovoltaic sector is experiencing a significant rebound, with the leading photovoltaic ETF (516290) surging over 4% in trading volume, indicating a potential bottom reversal in the market [1] Group 1: Market Performance - The photovoltaic leading ETF (516290) saw a price increase of 4.47%, reaching 0.444, with a trading volume of 3,842 million [1] - Major component stocks of the ETF, such as Daqo New Energy, Tongwei Co., and Sungrow Power Supply, reported substantial gains, with Daqo New Energy rising over 14% and Tongwei Co. hitting the daily limit [1] Group 2: Industry Insights - In May, the newly installed capacity for photovoltaic systems reached 93 GW, marking a year-on-year increase of 388%, with a historical high of nearly 100 GW in new installations driven by a rush to install [2] - The photovoltaic industry is addressing supply-side excess, with expectations for specific measures to be implemented, which could benefit segments like silicon materials and BC battery efficiency improvements [3] Group 3: Future Outlook - The photovoltaic sector is anticipated to undergo a fundamental recovery, with positive sentiment expected to shift as new technologies and government initiatives promote market clearing [4] - The photovoltaic leading ETF (516290) is highlighted as a low-fee option in the market, with management and custody fees significantly lower than the industry average [4]

Core Viewpoint - A new round of anti-"involution" competition has been initiated, affecting both traditional industries like steel and cement, as well as emerging sectors such as photovoltaics, new energy vehicles, and lithium batteries. The central government has signaled a commitment to address low-price disorderly competition and promote the orderly exit of backward production capacity [1][4][6]. Group 1: Government Initiatives - The Central Economic Committee's recent meeting emphasized the need to govern low-price disorderly competition legally and systematically, aiming to enhance product quality and facilitate the exit of outdated production capacity [1][6]. - The Ministry of Industry and Information Technology (MIIT) has held discussions with photovoltaic industry leaders to address the challenges posed by low-price competition and to promote high-quality development within the sector [11][12]. - The revised Anti-Unfair Competition Law, effective from October 15, 2025, aims to provide legal tools to combat "involution" competition, particularly targeting platform operators who enforce below-cost pricing [9][10]. Group 2: Industry Responses - Various industry associations, including those in steel, cement, and battery sectors, have called for a collective response against "involution" competition, advocating for quality over price in market competition [3][16][19]. - The photovoltaic industry is experiencing significant pressure, with upstream silicon material prices plummeting, leading to a collective financial strain across the entire supply chain [12][14]. - Industry leaders have highlighted the necessity for consolidation and stricter control of production capacity to overcome the challenges posed by "involution" competition, suggesting that cooperation is essential for long-term sustainability [14][19]. Group 3: Economic Context - The current "involution" phenomenon is attributed to two main factors: a cyclical economic adjustment leading to heightened price sensitivity among consumers, and external pressures from a de-globalizing environment that compel companies to compete primarily on price [7][8]. - The imbalance between supply and demand in various sectors, particularly in the steel industry, has resulted in increased production despite declining consumption, exacerbating the "involution" issue [18][19].