GCL TECH(HK:03800) 2 1 Shi Ji Jing Ji Bao Dao·2025-10-17 11:31Core Viewpoint - GCL-Poly Energy (协鑫科技) has reported a turnaround in its photovoltaic materials business, achieving profitability in Q3 2025 after a significant loss in the same period last year, primarily due to a one-time gain from the sale of an associate company [4]. Company Summary - GCL-Poly's photovoltaic materials business recorded a profit of approximately 960 million RMB in Q3 2025, compared to a loss of 1.81 billion RMB in the same quarter of the previous year [4]. - The main factor for the turnaround was a tax-adjusted gain of about 640 million RMB from the sale of an associate company; excluding this non-recurring gain, the business still achieved operational profit [4]. - The EBITDA for the photovoltaic materials segment was approximately 1.41 billion RMB, a significant improvement from an adjusted LBITDA loss of about 571 million RMB in the previous year [4]. Cost and Pricing Summary - GCL-Poly has successfully reduced the average production cash cost of granular silicon to 24.16 RMB/kg in Q3 2025, down from 25.31 RMB/kg in Q2 2025 [5]. - The average external selling price of granular silicon increased significantly to 42.12 RMB/kg in Q3 2025, compared to 32.93 RMB/kg in Q2 2025 [5]. - The company's announcements reflect a decline in costs, a recovery in demand, and a price correction in the granular silicon segment [5]. Industry Context - The photovoltaic materials sector is experiencing a shift towards profitability, with several companies reporting reduced losses or turning profitable in the first half of the year [6]. - GCL-Poly is among the first in the silicon material industry to achieve a phase of profitability, attributed to stable pricing in the multi-crystalline silicon supply chain amidst intense competition [6]. - The domestic multi-crystalline silicon industry has seen a cumulative reduction of about 12,000 tons in inventory over the first nine months of the year, with production expected to be around 130,000 tons in October, indicating a slight increase in supply [6].