GCL TECH(HK:03800) 2 1 Shi Ji Jing Ji Bao Dao·2025-10-19 12:15Core Viewpoint - GCL-Poly Energy (03800.HK) announced a voluntary disclosure indicating that its photovoltaic materials business is expected to turn profitable in the third quarter of 2025 [1] Company Performance - The photovoltaic materials business recorded a profit of approximately 960 million RMB, compared to a loss of 1.81 billion RMB in the same period last year [3] - The main factor for the turnaround was the after-tax gain from the sale of an associate company, amounting to about 640 million RMB. Excluding this non-recurring gain, the photovoltaic materials business still achieved operational profit, with an EBITDA of approximately 1.41 billion RMB, compared to an adjusted LBITDA loss of about 571 million RMB in the previous year [4] Cost and Pricing Dynamics - The average production cash cost of granular silicon (including R&D costs) decreased to 24.16 RMB/kg in the third quarter of 2025, down from 25.31 RMB/kg in the second quarter [5] - The average external selling price (including tax) for granular silicon rose significantly to 42.12 RMB/kg, compared to 32.93 RMB/kg in the second quarter [6] Industry Context - The announcement reflects a decline in costs, a recovery in demand, and a price correction within the granular silicon segment. The photovoltaic materials sector is anticipated to reach a profitability turning point amid intense competition [6] - In the first half of this year, several photovoltaic material companies reported a reduction in losses or a return to profitability, with 47 A-share photovoltaic companies experiencing losses, compared to 39 in the same period last year [6] - GCL-Poly Energy is the first company in the silicon material industry to achieve a phase of profitability, benefiting from stable pricing in the multi-crystalline silicon supply chain [6] - The domestic multi-crystalline silicon industry has seen a cumulative inventory reduction of approximately 12,000 tons in the first nine months of this year, with production expected to be around 130,000 tons in October [7]