Report Summary 1. Industry Investment Ratings - The report gives an optimistic outlook for industrial silicon, stating that market sentiment is boosted, and suggests a strategy of "buying on dips" for polysilicon, which is expected to trade in a range [1]. 2. Core Views - The report analyzes the fundamentals of industrial silicon and polysilicon, including price, profit, inventory, and raw material costs, and believes that industrial silicon market sentiment is positive while polysilicon is in a range - bound pattern [1]. 3. Summary by Relevant Catalogs 3.1 Fundamental Tracking - **Futures Market**: Si2511 (industrial silicon) closed at 8,745 yuan/ton with a volume of 620,638 lots and an open interest of 279,381 lots; PS2511 (polysilicon) closed at 51,405 yuan/ton with a volume of 445,445 lots and an open interest of 142,397 lots [1]. - **Basis**: Industrial silicon's spot premium/discount varies with different benchmarks, and polysilicon's spot premium/discount (against N - type re - input) is - 2405 yuan/ton [1]. - **Price**: The price of Xinjiang 99 - silicon is 8450 yuan/ton, Yunnan Si4210 is 9850 yuan/ton, and polysilicon - N - type re - input material is 49000 yuan/ton [1]. - **Profit**: Silicon plant profits in Xinjiang and Yunnan are negative, at - 2556 yuan/ton and - 3251 yuan/ton respectively; polysilicon enterprise profit is - 15.7 yuan/kg [1]. - **Inventory**: Industrial silicon's social inventory is 54.3 million tons, enterprise inventory is 17.5 million tons, and total industry inventory is 71.8 million tons; polysilicon's manufacturer inventory is 24.9 million tons [1]. - **Raw Material Costs**: The prices of raw materials such as silicon ore, washed coal, petroleum coke, and electrodes are provided, with some showing no change recently [1]. - **Polysilicon (Photovoltaic)**: The prices of related products like silicon wafers, battery cells, components, and photovoltaic glass are given, with some prices rising and some falling [1]. - **Organic Silicon and Aluminum Alloy**: DMC price is 10750 yuan/ton with a negative profit of - 1225 yuan/ton; ADC12 price is 20450 yuan/ton, and the profit of recycled aluminum enterprises is - 260 yuan/ton [1]. 3.2 Macro and Industry News - On August 22, 2025, Huadian Group's 2025 - 2026 photovoltaic module centralized procurement was bid - opened. The first bid section for N - type TOPCon modules has a scale of 18GW with an average bid price of 0.71 yuan/W, and the second bid section for N - type TOPCon, BC, and HJT modules has a scale of 2GW with an average bid price of 0.746 yuan/W [1][3]. 3.3 Trend Intensity - The trend intensity of industrial silicon and polysilicon is both 1, indicating a neutral - to - slightly - positive outlook [3].

Core Viewpoint - JinkoSolar's financial performance in the 2025 mid-year report shows significant declines in revenue and net profit, indicating challenges in the competitive solar market [1][3]. Financial Performance Summary - Total revenue for the first half of 2025 was 23.905 billion yuan, a decrease of 36.01% year-on-year [1]. - The net profit attributable to shareholders was -2.58 billion yuan, reflecting a 195.13% decline compared to the previous year [1]. - The gross margin fell to -3.53%, down 190.2% year-on-year, while the net margin decreased to -10.96%, a drop of 238.7% [1]. - Operating expenses totaled 1.186 billion yuan, accounting for 4.96% of revenue, a slight increase of 0.61% year-on-year [1]. - Earnings per share were -0.79 yuan, a decrease of 192.59% from the previous year [1]. Cash Flow and Debt Analysis - Cash flow from operating activities showed a significant increase of 342.44%, attributed to reduced procurement costs and lower employee cash payments [3][4]. - The company experienced a 3.93% increase in cash and cash equivalents due to new borrowings, while short-term borrowings decreased by 37.67% due to repayments [3][4]. - The net increase in cash and cash equivalents was down 34.18%, primarily due to reduced borrowings and increased repayment obligations [4]. Investment and Market Position - The company’s historical return on invested capital (ROIC) has been relatively low, with a median of 9.54% over the past decade, indicating average investment returns [4]. - The company has faced significant market competition, leading to a decline in solar product prices, which has adversely affected revenue [3][4]. - Analysts project a continued negative performance for 2025, with expected losses of 3.425 billion yuan and an average earnings per share of -1.03 yuan [5]. Fund Holdings and Market Sentiment - Several funds have increased their holdings in JinkoSolar, including Guangfa High-end Manufacturing Stock A and HSBC Jintrust Low Carbon Pioneer Stock A, indicating some investor confidence despite the poor financial results [6].

Core Viewpoint - Longi Green Energy reported a narrowing loss in its 2025 interim financial results, with total revenue declining and net profit improving year-on-year despite ongoing challenges in the solar industry [1] Financial Performance - Total revenue for the first half of 2025 was 32.813 billion yuan, a decrease of 14.83% compared to 38.529 billion yuan in 2024 [1] - The net profit attributable to shareholders was -2.569 billion yuan, an improvement of 50.88% from -5.231 billion yuan in the previous year [1] - In Q2 2025, total revenue was 19.161 billion yuan, down 8.12% year-on-year, while net profit was -1.133 billion yuan, up 60.66% [1] - Gross margin was -0.82%, a decrease of 110.66% year-on-year, while net margin was -7.92%, an increase of 41.83% [1] Cost and Expenses - Total selling, administrative, and financial expenses amounted to 1.773 billion yuan, accounting for 5.4% of revenue, a decrease of 24.65% year-on-year [1] - Operating cash flow per share improved by 92.45% to -0.06 yuan, while earnings per share increased by 50.72% to -0.34 yuan [1] Asset and Liability Changes - Cash and cash equivalents decreased by 9.51% to 49.303 billion yuan, while accounts receivable increased by 16.41% to 11.908 billion yuan [1] - Interest-bearing debt rose by 18.77% to 24.735 billion yuan [1] Investment and Market Position - The company has faced significant challenges, with a historical median ROIC of 15.67% over the past decade, and a particularly poor ROIC of -9.7% in 2024 [4][5] - Analysts expect a net profit of -2.138 billion yuan for 2025, with an average earnings per share estimate of -0.28 yuan [5] Fund Holdings - The largest fund holding Longi Green Energy is the Huatai-PB CSI Photovoltaic Industry ETF, with a current scale of 9.984 billion yuan and a recent net value increase of 2.42% [6]

Core Viewpoint - The company reported a significant decline in revenue and net profit for the first half of 2025, attributed to intensified industry competition and price pressures in the photovoltaic sector [6][7]. Financial Performance - The company's operating revenue for the reporting period was CNY 23,904,547,738.48, a decrease of 36.01% compared to the same period last year [6]. - The net profit attributable to shareholders was CNY -2,580,036,902.77, representing a 195.13% decline year-on-year [6]. - The net cash flow from operating activities improved to CNY 4,507,744,337.20, a 342.44% increase compared to the previous year [6]. - Basic and diluted earnings per share were both CNY -0.79, down 192.59% from CNY -0.27 in the previous year [6]. Asset and Equity Position - Total assets at the end of the reporting period were CNY 105,598,096,155.52, down 6.52% from the previous year [3]. - The net assets attributable to shareholders decreased by 11.10% to CNY 24,800,325,903.62 [3]. Market and Operational Strategy - The company maintained its leading position in battery module shipments, with a total of 33.79 GW shipped during the reporting period, of which approximately 45.93% were exported [6][7]. - The company emphasized technological innovation, investing CNY 1,388 million in R&D, which accounted for 5.81% of its operating revenue [7]. - The company launched various high-performance products tailored for different environmental conditions, enhancing its competitive edge [7]. Global Expansion and Supply Chain Strategy - The company is advancing its internationalization strategy and optimizing its global logistics network to mitigate risks associated with international trade policies [9]. - Plans to issue H-shares and list on the Hong Kong Stock Exchange are underway to strengthen its capital structure and enhance its international brand image [9].

Core Viewpoint - Sichuan Yingfa Ruineng Technology Co., Ltd. has submitted its listing application to the Hong Kong Stock Exchange, focusing on the photovoltaic cell manufacturing industry, with a significant market share in N-type TOPCon cells [1][3]. Company Overview - Yingfa Ruineng was established in 2016 and is headquartered in Yibin, Sichuan, with production bases in Yibin, Tianchang, Mianyang, and Indonesia [1]. - The company specializes in the production of photovoltaic cells, which convert sunlight into electricity, and offers both N-type and P-type cells [1][3]. - Yingfa Ruineng is the third-largest specialized manufacturer of N-type TOPCon cells globally, holding a market share of 14.7% as of 2024 [1]. Founder Background - The founder, Zhang Fayü, has a diverse background, starting from a military career to establishing a successful electronics company before venturing into the photovoltaic sector [2]. - Zhang founded Yingfa Ruineng in response to the "13th Five-Year Plan," which set ambitious solar installation targets [2]. Financial Performance - The company's revenue for the years 2022, 2023, 2024, and the first four months of 2025 were approximately 5.643 billion, 10.494 billion, 4.359 billion, and 2.408 billion RMB, respectively [3]. - Profit figures for the same periods were approximately 350 million, 410 million, -864 million, and 355 million RMB, indicating fluctuations in profitability [3]. Product Focus - Yingfa Ruineng focuses exclusively on photovoltaic cells and does not manufacture solar modules, with its primary customers being solar module manufacturers [3]. - The average conversion efficiency of Yingfa Ruineng's N-type TOPCon cells is certified at 27.02% by the Chinese Academy of Sciences [3].

Core Viewpoint - Sichuan Yingfa Ruineng Technology Co., Ltd. has submitted its main board listing application to the Hong Kong Stock Exchange, aiming to expand its presence in the capital market and further its development in the photovoltaic industry [1][6]. Group 1: Company Background and Development - The founder, Zhang Fayou, has a remarkable journey from a rural background to establishing a major player in the photovoltaic sector, with the company evolving from a small workshop to a comprehensive enterprise covering photovoltaic cells, new energy stations, and industrial operations [1][3]. - In 2016, the company was established in Anhui, marking its entry into the photovoltaic cell market, and later relocated its headquarters to Yibin in 2025, establishing production bases in multiple locations including Indonesia [3]. Group 2: Market Position and Strategy - Yingfa Ruineng has rapidly increased its market share, achieving a 14.7% share in the global N-type TOPCon cell market by 2024, ranking third globally [4]. - The company has strategically focused on N-type TOPCon technology and has signed a strategic cooperation agreement for N-type HPBC cells with major clients, indicating a strong market positioning [3][4]. Group 3: Financial Performance - Despite a significant revenue decline of 58.5% from 2023 to 2024 due to the exit from P-type PERC cells, the company has shown resilience with a recovery in gross margin to 23.8% in the first four months of 2025 [4]. - The financial structure has shifted, with N-type TOPCon cells becoming the core business, reflecting the company's adaptability to market changes [4]. Group 4: Leadership and Future Outlook - The rapid development of Yingfa Ruineng is closely linked to the leadership of Zhang Min, who has been instrumental in the construction of the Yibin base and the transformation of N-type TOPCon cell production [5]. - The upcoming listing on the Hong Kong Stock Exchange is seen as a critical step for capital operations and a strategic move to gain a competitive edge in the evolving photovoltaic market [6].

Group 1 - Market sentiment remains high, with a joint meeting held by multiple departments regarding the photovoltaic industry, attended by relevant manufacturing and power generation companies, the China Photovoltaic Industry Association, and local industrial and information technology authorities [1] - As of August 22, 2025, the CSI Photovoltaic Industry Index (931151) rose by 1.63%, with notable increases in constituent stocks such as Maiwei Co., Ltd. (300751) up 8.40%, Juhe Materials (688503) up 6.74%, and Aisxu Co., Ltd. (600732) up 5.51% [1] - The Photovoltaic ETF Fund (516180) increased by 1.23%, marking its third consecutive rise, with a latest price of 0.66 yuan; over the past week, the fund has accumulated a rise of 6.03%, ranking 2nd out of 10 comparable funds [1] Group 2 - As of July 31, 2025, the top ten weighted stocks in the CSI Photovoltaic Industry Index (931151) include Sungrow Power Supply Co., Ltd. (300274), Longi Green Energy Technology Co., Ltd. (601012), TCL Technology Group Corporation (000100), and others, collectively accounting for 56.16% of the index [2]

Core Viewpoint - JinkoSolar's stock price increased to 5.61 yuan as of August 20, 2025, reflecting a rise of 0.04 yuan from the previous trading day, with a trading volume of 9.11 million hands and a transaction amount of 509 million yuan [1] Company Overview - JinkoSolar is a high-tech enterprise specializing in the research, production, and sales of solar photovoltaic modules, cells, and wafers, covering multiple segments of the photovoltaic industry chain [1] - The company's products are widely used in residential, commercial, and ground power station applications [1] Recent Developments - Recently, the company entered into a strategic partnership with Mauritania's mineral water brand TIJIRIT to deploy a total capacity of 2.15 MWh energy storage system and 1.3 MW photovoltaic modules at TIJIRIT's factory [1] - This project is expected to reduce carbon emissions by approximately 1,800 metric tons annually [1] Financial Flow - On August 20, the net inflow of main funds was 18.97 million yuan, while the cumulative net outflow of main funds over the past five days was 13.04 million yuan [1]

Core Viewpoint - The recent increase in polysilicon prices in China is driven by regulatory support for the photovoltaic industry and coordinated production cuts by polysilicon manufacturers [1] Price Summary - The transaction price range for n-type re-investment polysilicon is between 45,000 to 52,000 yuan per ton, with an average transaction price of 47,900 yuan per ton, reflecting a week-on-week increase of 1.05% [1][2] - The transaction price range for n-type granular silicon is between 45,000 to 47,000 yuan per ton, with an average transaction price of 46,000 yuan per ton, showing a week-on-week increase of 3.37% [1][2] - The price data is based on nine polysilicon production companies, which account for 87% of domestic total production in Q2 2025, with n-type materials making up 91.3% of the total [2][3] Market Dynamics - The increase in polysilicon prices is attributed to a joint meeting by six ministries aimed at regulating competition in the photovoltaic industry, signaling a commitment to reduce internal competition [1] - Polysilicon manufacturers are implementing production cuts and sales restrictions, alleviating market pressure on supply and demand [1] - The production cuts are most significant among leading companies, resulting in reduced operating rates and increased overall costs, which are expected to drive prices higher [1] - The restriction on shipments of silicon materials has further tightened supply, leading to increased purchasing demand from downstream buyers who are motivated by expectations of rising prices [1]

Report Summary - **Report Date**: August 20, 2025 [1] - **Report Type**: Industrial Silicon Industry Daily Report 1. Report Industry Investment Rating - No industry investment rating is provided in the report. 2. Core Viewpoints - The total demand for industrial silicon from the three major downstream industries remains flat. Today, the price of industrial silicon continued to decline. During the wet season, the power cost is low, there are many production enterprises, and the supply is abundant. The price is expected to fall to around 8,000 yuan. It is recommended to consider mid - to long - term long positions if the price later falls below 8,000 yuan [2] 3. Summary by Directory 3.1 Futures Market - The closing price of the main contract was 8,390 yuan/ton, a decrease of 235 yuan; the main contract's open interest was 279,868 lots, a decrease of 6,737 lots; the net position of the top 20 was - 92,125 lots, an increase of 5,455 lots; the Guangzhou Futures Exchange's warehouse receipts were 50,625 lots, a decrease of 85 lots; the price difference between September and October industrial silicon was - 30 yuan, a decrease of 10 yuan [2] 3.2 Spot Market - The average price of oxygen - passing 553 silicon was 9,250 yuan/ton, a decrease of 150 yuan; the average price of 421 silicon was 9,600 yuan/ton, a decrease of 150 yuan; the basis of the Si main contract was 860 yuan/ton, an increase of 85 yuan; the DMC spot price was 11,300 yuan/ton, unchanged [2] 3.3 Upstream Situation - The average price of silica was 410 yuan/ton, unchanged; the average price of petroleum coke was 1,810 yuan/ton, unchanged; the average price of clean coal was 1,850 yuan/ton, unchanged; the average price of wood chips was 490 yuan/ton, unchanged; the ex - factory price of graphite electrodes (400mm) was 12,250 yuan/ton, unchanged [2] 3.4 Industry Situation - The monthly output of industrial silicon was 324,700 tons, an increase of 19,500 tons; the weekly social inventory of industrial silicon was 552,000 tons, an increase of 10,000 tons; the monthly import volume of industrial silicon was 2,211.36 tons, an increase of 71.51 tons; the monthly export volume of industrial silicon was 52,919.65 tons, a decrease of 12,197.89 tons [2] 3.5 Downstream Situation - The weekly output of organic silicon DMC was 44,900 tons, an increase of 700 tons; the average price of aluminum alloy ADC12 in the Yangtze River spot market was 20,300 yuan/ton, unchanged; the overseas market price of photovoltaic - grade polysilicon was 15.75 US dollars/kg; the weekly average spot price of photovoltaic - grade polysilicon was 4.94 US dollars/kg; the monthly export volume of unforged aluminum alloy was 25,770.18 tons, an increase of 1,590.89 tons; the weekly operating rate of organic silicon DMC was 75.05%, an increase of 0.21 percentage points; the monthly output of aluminum alloy was 1.669 million tons, an increase of 24,000 tons; the monthly export volume of aluminum alloy was 20,187.85 tons, a decrease of 337.93 tons [2] 3.6 Industry News - On August 20, the Ministry of Industry and Information Technology organized a photovoltaic industry symposium to standardize the competition order in the photovoltaic industry. The meeting on August 19 did not discuss the implementation details of "anti - involution" in each link, and the anti - involution rules for battery, component, silicon wafer, and polysilicon links are expected to be discussed in the next two days. The central bank will implement a moderately loose monetary policy and promote a reasonable recovery of prices. In the industrial silicon sector, in the supply side, as the wet season deepens in the southwest region, the electricity price advantage becomes more prominent, stimulating the resumption of production in silicon plants. The number of newly opened furnaces in Sichuan and Yunnan is increasing, and the output in the southwest region is expected to increase next week. In Xinjiang, some large factories maintain a stable production rhythm, while some small and medium - sized silicon factories have low enthusiasm for resuming production due to thin profits, and the overall output remains relatively stable [2] 3.7 Viewpoint Summary - The three major downstream industries' total demand for industrial silicon remains flat. Today, the price of industrial silicon continued to decline. During the wet season, the power cost is low, there are many production enterprises, and the supply is abundant. The price is expected to fall to around 8,000 yuan. If the price later falls below 8,000 yuan, it is recommended to consider mid - to long - term long positions [2]