协鑫科技：提质降本，穿越行业寒冬

Investment Rating - The investment rating for GCL-Poly Energy Holdings Limited (协鑫科技) is not explicitly stated in the report, but it suggests a "sustainable focus" and "buy on dips" strategy due to its competitive advantages in the industry [4]. Core Views - GCL-Poly is currently experiencing losses due to the significant decline in polysilicon prices, which has impacted its revenue and profitability. The company is focusing on improving product quality and reducing costs to navigate through the industry's downturn [1][2]. - The company has achieved a high quality of its core product, granular silicon, with 96.6% of its products meeting the 901A standard or above, which is essential for downstream customers [2][3]. - GCL-Poly's cash cost for granular silicon is expected to drop below 30 RMB/kg, making it the lowest in the industry, enhancing its competitiveness during the industry's bottom cycle [3]. Summary by Sections Financial Performance - In the first half of 2024, GCL-Poly reported a revenue decline of 57.7% year-on-year to 8.86 billion RMB, with a gross loss of 553 million RMB, resulting in a gross margin of -6.6% [2]. - The average selling price of polysilicon dropped by 67.5% year-on-year to 40.3 RMB/kg, compared to 124.1 RMB/kg in the same period last year [2]. Product Quality and Market Position - The company has significantly improved the quality of its granular silicon products, with a notable reduction in total metal impurity content and turbidity levels, meeting stringent market standards [2][3]. - GCL-Poly's production capacity for granular silicon has reached 420,000 tons per year, with a 65.6% year-on-year increase in granular silicon output [2]. Cost Structure and Future Outlook - The company has the lowest production costs in the industry for granular silicon, with further reductions anticipated following ongoing technical upgrades [3]. - GCL-Poly is expected to incur a net loss of up to 2 billion RMB for the full year of 2024, but is projected to return to profitability in 2025 with an estimated net profit of 2.4 billion RMB [3].