Hoshine Silicon(SH:603260) Zheng Quan Shi Bao Wang·2025-08-28 08:21Core Viewpoint - The company faced operational pressure in the first half of 2025 due to challenges in the industrial silicon, organic silicon, and photovoltaic industries, resulting in a decline in performance despite a significant increase in cash flow from operating activities [1] Group 1: Financial Performance - In the first half of 2025, the company achieved operating revenue of 9.775 billion yuan, with a net profit attributable to shareholders of -397 million yuan, indicating a decline influenced by economic fluctuations and product price drops [1] - The net cash flow from operating activities reached 3.524 billion yuan, a substantial year-on-year increase of 1987.93% [1][8] Group 2: Organic Silicon Business - Despite rapid price declines in organic silicon reaching historical lows, the industry’s overall gross profit margin remained stable due to synchronized declines in raw material costs and product prices [2] - The company is expected to benefit from a recovery in organic silicon prices, with the domestic DMC industry operating rate projected to rise from 67% in 2024 to 76% in 2025 and 83% in 2026 [2] Group 3: Industrial Silicon Business - The company, as the largest producer of industrial silicon in China, is enhancing product quality and reducing production costs through optimized resource allocation and increased self-sufficiency [4] - The industrial silicon market is anticipated to recover as high-energy capacity exits the market, with prices expected to stabilize within a reasonable range [4] Group 4: Silicon Carbide Business - The company is extending its silicon-based new materials industry chain, focusing on silicon carbide as a new growth point, with significant advancements in production processes and product quality [5][6] - The company has achieved a crystal yield of over 95% for 6-inch silicon carbide substrates and is progressing well with 8-inch and 12-inch substrates [5] Group 5: Future Outlook - The company is optimistic about the second half of 2025, with stable organic silicon market capacity and strong demand in emerging sectors such as new energy vehicles and 5G technology [7] - The company is well-positioned to navigate industry challenges due to its comprehensive business chain and significant cash flow, which is expected to support operations during market downturns [8]