Report Summary 1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints - On July 7, the SM2509 contract closed at 5,646 yuan/ton, down 0.77%. The spot price of Inner Mongolia ferromanganese was reported at 5,520 yuan/ton. The Central Financial and Economic Commission's Sixth Meeting emphasized eliminating backward production capacity and anti - involution. The factory's operating rate has rebounded for 6 consecutive weeks at a low level, and the overall inventory remains high. The port inventory of imported manganese ore increased by 26,000 tons this period, and the downstream hot metal production is running at a high level. The spot profit in Inner Mongolia is - 150 yuan/ton, and in Ningxia it is - 170 yuan/ton. Steel mills' procurement is cautious, and the tender price continues to decline. Technically, the 4 - hour cycle K - line is between the 20 and 60 moving averages, and the market should be treated as a volatile one [2]. - On July 7, the SF2509 contract closed at 5,364 yuan/ton, down 0.74%. The spot price of Ningxia ferrosilicon was reported at 5,250 yuan/ton. Trump said that the new tariffs will "most likely" take effect on August 1. The operating rate is running at a low level. The cost of Ningxia semi - coke has decreased, and the steel demand expectation is still weak overall. The current production profit of ferroalloys is negative. The spot profit in Inner Mongolia is - 330 yuan/ton, and in Ningxia it is - 150 yuan/ton. Technically, the 4 - hour cycle K - line is between the 20 and 60 moving averages, and the market should be treated as a volatile one [2]. 3. Summary by Relevant Catalogs 3.1 Futures Market - SM主力合约收盘价为5,646元/吨，较昨日下跌2元；SF主力合约收盘价为5,364元/吨，较昨日持平 [2]。 - SM期货合约持仓量为587,310手，较昨日减少2,318手；SF期货合约持仓量为405,006手，较昨日减少308手 [2]。 - 锰硅前20名净持仓为 - 34,158手，较昨日增加144手；硅铁前20名净持仓为 - 45,631手，较昨日减少3,557手 [2]。 - SM1 - 9月合约价差为52元/吨，较昨日增加8元；SF1 - 9月合约价差为12元/吨，较昨日增加12元 [2]。 - SM仓单为88,213张，较昨日减少473张；SF仓单为12,587张，较昨日增加310张 [2]。 3.2 Spot Market - 内蒙古锰硅FeMn68Si18价格为5,520元/吨，较昨日下跌30元；贵州锰硅FeMn68Si18价格为5,520元/吨，较昨日下跌30元；云南锰硅FeMn68Si18价格为5,500元/吨，较昨日持平 [2]。 - 内蒙古硅铁FeSi75 - B价格为5,270元/吨，较昨日下跌30元；青海硅铁FeSi75 - B价格为5,200元/吨，较昨日持平；宁夏硅铁FeSi75 - B价格为5,250元/吨，较昨日下跌30元 [2]。 - 锰硅指数均值为5,531元/吨，较上周增加41元；SF主力合约基差为 - 114元/吨，较昨日下跌30元；SM主力合约基差为 - 126元/吨，较昨日下跌28元 [2]。 3.3 Upstream Situation - 南非矿Mn38块天津港价格为35元/吨度，较昨日持平；硅石（98%西北）价格为210元/吨，较昨日持平 [2]。 - 内蒙古乌海二级冶金焦价格为850元/吨，较昨日持平；兰炭（中料神木）价格为640元/吨，较昨日持平 [2]。 - 锰矿港口库存为425万吨，较上周增加2.6万吨 [2]。 3.4 Industry Situation - 锰硅企业开工率为40.34%，较上周增加1.13个百分点；硅铁企业开工率为31.95%，较上周增加0.25个百分点 [2]。 - 锰硅供应为180,110吨，较上周增加875吨；硅铁供应为100,200吨，较上周增加2,700吨 [2]。 - 锰硅厂家库存为222,300吨，较半月前增加500吨；硅铁厂家库存为6.7万吨，较半月前减少0.24万吨 [2]。 - 锰硅全国钢厂库存可用天数为15.15天，较上月减少0.29天；硅铁全国钢厂库存可用天数为15.20天，较上月减少0.24天 [2]。 3.5 Downstream Situation - 五大钢种锰硅需求为126,789吨，较上周增加908吨；五大钢种硅铁需求为20,481.7吨，较上周增加127.5吨 [2]。 - 247家钢厂高炉开工率为83.44%，较上周下降0.4个百分点；247家钢厂高炉产能利用率为90.27%，较上周下降0.58个百分点 [2]。 - 粗钢产量为8,654.5万吨，较上月增加52.6万吨 [2]。 3.6 Industry News - 当地时间7月4日，美国总统特朗普表示美国政府将从当天起致函贸易伙伴设定新的单边关税税率，新关税“十有八九”从8月1日开始生效，关税税率可能在60%、70%到10%、20%不等 [2]。 - 中国物流与采购联合会称6月份全球制造业采购经理指数为49.5%，较上月上升0.3个百分点，连续两个月环比上升 [2]。 - 印度4日向世界贸易组织通报，因美国对汽车及零部件加征关税冲击印度出口，印度计划对美国征收报复性关税 [2]。 - 美国总统特朗普当地时间7月4日签署“大而美”税收和支出法案，提前终止多项清洁能源税收抵免，而油气等传统能源获大幅倾斜 [2]。

Core Viewpoint - The U.S. Senate Republican tax proposal aims to terminate tax credits for the wind and solar industries by 2028, while extending tax incentives for other energy sources until 2036, significantly impacting the clean energy sector [1][2][3] Group 1: Tax Incentives and Legislative Changes - The Senate version of the tax bill plans to end incentives for wind and solar energy by 2028, while maintaining tax reductions for other energy sources until 2036 [1][2] - The proposal will eliminate tax credits for companies focusing on rooftop solar leasing and homeowners purchasing solar systems, which analysts believe will severely harm the struggling U.S. solar industry [1][3] - The bill also cancels the $7,500 electric vehicle purchase credit after 180 days of enactment, contrasting with the House version that retains it until the end of the year [3] Group 2: Market Reactions and Industry Impact - Following the announcement of the Senate bill, solar stocks experienced significant pre-market declines, with Sunrun Inc. dropping over 28%, SolarEdge Technologies Inc. down over 22%, and Enphase Energy Inc. falling by 17% [1] - Analysts predict that the uncertainty surrounding clean energy tax credits will lead to continued market volatility, with potential bankruptcies in the solar sector, including Solar Mosaic Inc. [3][5] Group 3: Political and Environmental Reactions - The proposed legislation has drawn strong criticism from environmental and clean energy organizations, which argue it will increase household electricity costs and threaten numerous jobs across the U.S. [5] - The Senate Republicans plan to push the bill through by July 4, but significant adjustments may occur due to Democratic opposition [5]

Core Viewpoint - U.S. Senator Curtis advocates for the Senate budget proposal to relax the start date requirements for clean energy tax credits [1] Group 1 - The proposed changes aim to enhance the accessibility and effectiveness of clean energy tax incentives [1] - Relaxing the start date requirements could potentially accelerate investments in clean energy projects [1] - The initiative reflects a broader push within the Republican party to support clean energy initiatives while balancing fiscal responsibility [1]

Core Insights - The U.S. solar industry is expected to see a decline in new installed capacity over the next five years due to federal policy shifts favoring fossil fuels, tariffs, and other challenges [1] - The American Solar Energy Association and Wood Mackenzie predict that new solar capacity in 2030 will be over 10% lower than in 2025 [1] - The industry installed 10.8 GW of capacity in Q1 this year, a 7% year-over-year decline, but still near historical highs [1] Group 1 - The report highlights the anticipated impact of new federal tariffs on key imported materials like steel and aluminum on solar projects [1] - The potential cuts to clean energy tax credits proposed by Congressional Republicans could pose another significant threat to the industry [1] - The solar sector accounted for 69% of the newly added electricity generation in the latest quarter [1] Group 2 - The U.S. solar industry is projected to install 48.6 GW of capacity this year, but this is expected to drop to 43.5 GW by 2030 [2] - Demand from corporate buyers for utility-scale projects is driving industry momentum, despite concerns over federal policies limiting growth [2] - Residential installations fell by 13% to 1.1 GW in Q1, while the utility sector accounted for 9 GW of installations [2] Group 3 - States like Texas, Florida, Ohio, Indiana, and California contributed to 65% of the new capacity [2] - Rising electricity prices are making solar more attractive to consumers, with expected growth in the residential segment from 2025 to 2030 [2] - The industry is currently facing challenges such as high interest rates, tariffs, and less favorable state policies [2]

Core Points - The "Beautiful Bill" proposed by President Trump combines tax cuts, immigration reform, and various domestic priorities into a single legislative measure [1] - The House Republican leadership aims to finalize the bill by July 4, aligning with Treasury Secretary's request to include debt ceiling increases in the proposal [2] Tax Provisions - The bill includes a 5% remittance tax aimed at funding border security and introduces new refundable credits for verified U.S. remitters [3] - It proposes significant changes to clean energy tax credits, including the termination of various tax incentives for solar energy and hydrogen production [3][4] - The bill extends provisions from the 2017 Trump tax law, increasing estate and gift tax exemption limits and modifying the SALT deduction cap to $30,000 for individuals [3][4] Healthcare and AI Regulation - The bill is projected to reduce federal healthcare spending by $715 billion over ten years, potentially resulting in 13.7 million Americans losing healthcare coverage [6] - It proposes a 10-year suspension of most state-level regulations on artificial intelligence, which may create conflicts under Senate rules [6] SALT Deduction Controversy - The proposed $30,000 cap on SALT deductions has faced opposition from Republican lawmakers from blue states, raising concerns about political risks in their districts [7] Agricultural Provisions - The bill includes reforms to the Supplemental Nutrition Assistance Program (SNAP), shifting costs to states and incorporating key bipartisan agricultural provisions [10]

Core Viewpoint - The U.S. House of Representatives is proposing to eliminate consumer electric vehicle tax credits by the end of this year, rather than waiting until 2032 [1] Group 1: Tax Policy Changes - The House Ways and Means Committee has suggested a gradual phase-out of key clean energy tax credits, specifically under Section 45Y of the tax code, which is expected to expire by 2031 [1]

Financial Data and Key Metrics Changes - Q1 earnings per diluted share were $1.95, below the low end of guidance, primarily due to a higher proportion of international sales compared to U.S. sales [5][39] - Gross margin increased to 41% in Q1 from 37% in the prior quarter, driven by a higher mix of U.S. manufactured modules qualifying for Section 45X tax credits [40] - Total cash and marketable securities decreased to $900 million at the end of Q1, reflecting a decrease of $900 million from year-end [44] Business Line Data and Key Metrics Changes - The company secured net bookings of 0.6 gigawatts at a base ASP of $0.305 per watt, resulting in a contracted backlog of 66.3 gigawatts [4][35] - Q1 module sales were 2.9 gigawatts, with 1.75 gigawatts being domestically produced [39] - Approximately 32.5 gigawatts of contracted volume includes potential adjustments that could generate additional revenue of up to $600 million [36] Market Data and Key Metrics Changes - The mid to late stage bookings opportunities increased to 23.7 gigawatts, driven by demand in India from the PM Kusum initiative [37][38] - The company anticipates a shift in production from exports to the U.S. to the domestic Indian market due to new tariffs [15][55] Company Strategy and Development Direction - The company is focused on leveraging its unique profile as the only U.S. headquartered PV manufacturer of scale with a fully vertically integrated manufacturing presence [19][34] - The company plans to pivot its India facility to produce more for the domestic market in response to tariff impacts [15][55] - The company continues to advocate for maintaining key tax policies and strengthening domestic content provisions to support U.S. manufacturing [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term prospects for solar demand in the U.S., despite near-term challenges from the new tariff regime [17][33] - The company highlighted the importance of a level playing field in trade practices to ensure the sustainability of U.S. solar manufacturing [20][22] - Management noted that the uncertainty surrounding tariffs and policy changes could impact project costs and financing, leading to potential delays in shipments [50][51] Other Important Information - The company is facing challenges related to increased capital expenditure costs and production costs due to the new tariff regime [49][50] - The company has approximately 13.9 gigawatts of forward contracts for international product delivery to the U.S., with potential tariff-related risks [13][35] Q&A Session Summary Question: Outlook for bookings and impact of tariffs - Management noted increased customer engagement and momentum for bookings, but uncertainty remains regarding pricing dynamics due to tariffs and policy changes [66][70] Question: Underperformance of modules - Management confirmed that third-party reports validated root causes of production issues and corrective actions have been implemented [66][70]