Report Industry Investment Rating - Not provided in the report Core Viewpoints - The industrial silicon futures market has strengthened again recently due to potential supply-side disturbances. It is expected that the silicon price may remain at a high level in the short term, but there is a risk of a subsequent decline. The polysilicon price is also in a high-level consolidation, and the spot price increase faces pressure [1]. - The supply of industrial silicon is increasing steadily, while the demand is mixed. The polysilicon industry has a certain demand increment, but the organic silicon and silicon-aluminum alloy industries have different situations [1]. Summary by Relevant Catalogs Industrial Silicon and Polysilicon Price Changes - On September 17, 2025, the average price of non-oxygenated 553 industrial silicon in East China increased by 1.11% to 9,100 yuan/ton, and the 421 increased by 1.05% to 9,600 yuan/ton. The futures main contract closed at 8,915 yuan/ton, up 1.31% [1]. - The prices of N-type polysilicon materials such as N-type dense material, N-type re-feeding material, N-type mixed material, and N-type granular silicon all increased, with increases ranging from 1.84% to 2.06%. The futures main contract closed at 53,670 yuan/ton, up 0.23% [1]. Market Supply and Demand - **Industrial Silicon Supply**: With the continuous rise of silicon prices, some previously overhauled silicon factories in Xinjiang have resumed production. The southwest production area has entered the wet season, and the power cost is at a low level throughout the year, so the enterprise start-up rate has steadily recovered, and the supply has increased steadily [1]. - **Industrial Silicon Demand**: Polysilicon enterprises maintain a production reduction trend, but some silicon material factories have复产 arrangements, which will bring some demand increments. The organic silicon market has supply pressure, and silicon-aluminum alloy enterprises purchase on demand, with low inventory willingness [1]. - **Polysilicon Supply**: Polysilicon enterprises maintain a production reduction trend, but some may have new production capacity put into operation. It is expected that the output will increase slightly, with an estimated output of nearly 110,000 tons in July and about 130,000 tons in August [1]. - **Polysilicon Demand**: The trading volume in the polysilicon market has increased significantly, and the inventory has decreased significantly. However, the terminal demand pressure is large, and the component price increase faces resistance [1]. Investment Strategies - **Industrial Silicon**: Adopt interval operation, buy out-of-the-money put options, and consider participating in the 2511 and 2512 reverse arbitrage opportunities [1]. - **Polysilicon**: Before the implementation of supply-side reform policies, try to go long on dips with a light position [1]. Industry News - Hebei Kuntian New Energy Co., Ltd.'s silicon-carbon anode material production line (Phase I, 1,000 tons) has been officially put into operation and started small-scale supply to domestic and foreign leading customers. The company has planned a Phase II expansion plan, aiming for an annual production capacity of 5,000 tons after the completion of both phases [1]. - On September 12, the General Office of the State Council issued the "Overall Plan for the 'Three-North' Shelter Forest Program", proposing to actively promote photovoltaic sand control in the northern wind-sand area and the northwest desert area [1].

Core Viewpoint - The transformation of the Ulan Buh Desert from a "red bull" of sandstorms to a "green Great Wall" showcases successful desertification control and ecological restoration efforts in Inner Mongolia, China [1][2]. Group 1: Desertification Control Efforts - The Baotou City has been combating desertification since the 1950s, implementing a comprehensive approach that includes natural reserves, sand fixation, and protective forest networks [2]. - As of 2024, Baotou has completed desert management over 35.32 million mu, with a core area of 150 kilometers of protective belts covering 24.9 million mu, ultimately forming a 200-kilometer green barrier [2]. Group 2: Economic Development through Ecological Projects - The "photovoltaic + ecological governance" model has been established, with 14.34 million mu of land utilized for this purpose, achieving a solar power installation capacity of 542.7 million kilowatts and an annual electricity generation exceeding 30 billion kWh [4][7]. - The local economy has benefited significantly, with over 4,000 farmers and herders gaining employment and an average annual income increase of 15,000 yuan [4]. Group 3: Agricultural and Medicinal Development - The cultivation of desert plants such as Cistanche and licorice has become economically viable, with the annual gross income from 50 mu of Cistanche reaching over 100,000 yuan [7]. - The area dedicated to Cistanche cultivation has reached nearly 140,000 mu, generating an annual output value exceeding 300 million yuan [7]. Group 4: Tourism Growth - The local tourism industry has flourished, with a 70% increase in visitor numbers compared to 2020 and a revenue growth of 61 million yuan [8]. - The development of five premium tourism routes has attracted visitors to experience the natural beauty and cultural heritage of the region [8].

Group 1 - Inner Mongolia has prioritized sand prevention and control, completing over 100 million mu of the "Three North" project and more than 65 million mu of sand prevention and control in the past five years [1] - The Alxa League, located in the westernmost part of Inner Mongolia, experiences significant sediment flow from the Ulan Buh Desert, with approximately 100 million tons of sediment carried away by the Yellow River annually [1] - The ecological restoration project initiated in 2022 in Alxa has achieved over 84% vegetation coverage in a 11,000 mu area, preventing about 1.5 million tons of sand from entering the Yellow River each year [1] Group 2 - The "Ten Major Conduits" of the Yellow River in Inner Mongolia contribute over 27 million tons of sediment to the river annually, with a significant portion coming from the easily eroded arsenic-bearing rock [3][4] - The construction of 271 sediment retention dams in the "Ten Major Conduits" has effectively reduced sediment flow into the Yellow River, with sediment concentration decreasing from 1550 kg/m³ to 195 kg/m³ [4] - Forest coverage in the West Liugou area has increased from 10.19% to 28.9%, and vegetation coverage has risen from 64.4% to 78.8% [4] Group 3 - The integration of sand prevention and wind/solar energy development is a new approach in Inner Mongolia, exemplified by the "Photovoltaic Great Wall" project spanning 400 kilometers [6] - The "Photovoltaic Great Wall" is expected to generate an annual power output of 200 billion kWh while simultaneously restoring 3 million mu of desert land [6] - The project promotes a sustainable cycle of photovoltaic energy, planting, and livestock farming, enhancing both ecological and economic benefits [6][7] Group 4 - During the "14th Five-Year Plan" period, Inner Mongolia has implemented integrated sand prevention and wind/solar energy projects totaling 27.27 million kilowatts, restoring 238.88 million mu of desert land [7] - The ongoing transformation of previously barren land into productive ecosystems reflects a broader commitment to environmental restoration across Inner Mongolia [7]

Core Viewpoint - Inner Mongolia has prioritized sand prevention and control, along with the "Three North" project during the 14th Five-Year Plan period, achieving significant ecological restoration and land management goals [1][19]. Group 1: Achievements in Ecological Restoration - Over the past five years, Inner Mongolia has completed more than 10 million acres of the "Three North" project and has engaged in sand prevention and control over 6.5 million acres [1]. - The "Yellow River 'Z' Bend" campaign is highlighted as a key ecological battle, focusing on both ecological protection and improving local livelihoods [1]. - The ecological restoration project in Alxa League has achieved a vegetation coverage rate of over 84%, preventing approximately 1.5 million tons of sand from entering the Yellow River annually [6][14]. Group 2: Innovative Approaches - Inner Mongolia is integrating sand prevention and control with wind and solar energy development, exemplified by the construction of a 400-kilometer "Photovoltaic Great Wall" in the Kubuqi Desert [17]. - The "Photovoltaic Great Wall" is expected to generate an average annual power output of 200 billion kilowatt-hours while simultaneously restoring 3 million acres of land [17]. - The region has implemented a total of 27.27 million kilowatts of integrated sand prevention and wind-solar projects during the 14th Five-Year Plan, successfully rehabilitating 238,880 acres of desertified land [19]. Group 3: Water and Soil Conservation - The "Ten Major Conduits" area has seen a significant reduction in sediment entering the Yellow River, with sediment concentration decreasing from 1,550 kg/m³ to 195 kg/m³ [14]. - The forest coverage rate in the West Liugou area has increased from 10.19% to 28.9%, while vegetation coverage has risen from 64.4% to 78.8% [14].

Core Insights - A solar photovoltaic (PV) project led by Inner Mongolia Energy Group has achieved significant results in combating desertification in the Ulan Buh Desert, providing valuable data for solar project construction and technology selection in desert areas [1] Group 1: Project Overview - The project is located in a solar resource-rich area with approximately 3000 hours of annual sunlight, facing challenges such as low rainfall, high evaporation, and frequent sandstorms [1] - The project covers an area of 23,000 acres and includes a self-built testing platform for systematic comparison between Longi's BC second-generation Hi-MO 9 components and traditional TOPCon components [1] Group 2: Performance Metrics - From April to July 2025, the BC technology components outperformed TOPCon components by 2.45% in terms of power generation per kilowatt and by 9.05% in terms of power generation per unit area [1] - During June, which experienced 14 rainy days, the BC components maintained a stable advantage, achieving a cumulative power generation increase of 2.44% compared to the control components [1] Group 3: Implications for the Industry - The successful application of this technology represents a new solution for solar projects in desert areas, providing critical decision-making support for large-scale solar desertification projects currently in implementation [1] - This project sets a technical benchmark for the construction and operation of renewable energy bases in "deserted" regions of China [1]

Core Viewpoint - Inner Mongolia has successfully transformed desert areas into green oases over several decades, significantly improving the ecological environment and reducing sandstorms [1][2]. Group 1: Environmental Transformation - The region of Inner Mongolia, particularly the Alxa League, has seen a remarkable change from severe desertification to lush greenery, aided by initiatives like the "Ten Major Conduits" project which addresses ecological issues affecting the Yellow River [1][2]. - The annual sediment inflow into the Yellow River has decreased from 27 million tons to 4 million tons due to comprehensive management efforts in the "Ten Major Conduits" area [2]. Group 2: Innovative Management Techniques - A combination of engineering and biological measures has been employed for desertification control, including water conservation projects and the introduction of photovoltaic technology for sand control [2]. - New pipeline water delivery technology has been implemented to provide a sustainable water source for ecological restoration, addressing the critical issue of water scarcity [2]. Group 3: Community Involvement and Economic Development - Local youth, like Wang Gang, are actively participating in desertification control efforts, establishing cooperatives to maximize economic benefits from sustainable practices such as the cultivation of Haloxylon ammodendron and its associated products [3][4]. - The cooperative model has expanded from 3 to 15 households, demonstrating a successful community-driven approach to both environmental restoration and economic development [4]. Group 4: Future Goals and Achievements - Inner Mongolia's desertification control efforts are aligned with the philosophy of "lucid waters and lush mountains are invaluable assets," with significant daily progress reported in land restoration [4]. - In 2023, the region achieved an average of 40,000 acres of desertification control per day, with plans to increase this to 60,000 acres per day in 2024 [4].

Core Viewpoint - The integration of photovoltaic (PV) technology with ecological restoration in Gansu has transformed desert areas into productive pastures, creating a sustainable model that combines energy production with environmental benefits [1][8]. Group 1: Photovoltaic Industry Development - Gansu has established a robust photovoltaic power generation industry, with an installed capacity exceeding 36 million kilowatts, equivalent to the output of 1.8 Three Gorges Dam projects at full capacity [11]. - The region's flat terrain and abundant sunlight make it particularly suitable for solar energy production [10]. - The PV projects have significantly reduced desertification, with over 10,000 acres of desert being treated through PV installations [36]. Group 2: Ecological Restoration - The PV installations have led to a remarkable ecological transformation, increasing vegetation coverage from a low level to over 80% in some areas [27]. - The environmental improvements include a 30% reduction in water evaporation and a 30-60% increase in soil moisture content [18][35]. - The introduction of PV technology has created a microclimate conducive to plant growth, allowing for the successful cultivation of drought-resistant plants [25]. Group 3: Sustainable Agricultural Practices - The "PV sheep" model has emerged, where livestock graze on the vegetation growing beneath the PV panels, creating a symbiotic relationship between renewable energy production and livestock farming [40]. - As of 2024, the number of "PV sheep" in regions like Jiuquan has surpassed 500,000, contributing to local economies [43]. - This model not only provides income for local herders but also involves them in the maintenance of the PV systems, enhancing the overall sustainability of the project [44]. Group 4: Broader Renewable Energy Landscape - Gansu's renewable energy portfolio includes wind and hydropower, with wind energy capacity exceeding 30 million kilowatts [56]. - The province's hydropower potential is significant due to its location along the upper reaches of the Yellow River, contributing to a diverse energy mix [58]. - By mid-2025, Gansu's total renewable energy capacity is projected to exceed 80 million kilowatts, with renewables accounting for over 40% of the province's total electricity generation [59]. Group 5: Historical Context and Future Implications - The transformation of Gansu's environment reflects a long-standing Chinese tradition of actively modifying nature to improve living conditions [66]. - The success of the "PV pasture" model demonstrates a new approach to sustainable development, merging economic viability with ecological restoration [47][51]. - This innovative practice not only addresses environmental challenges but also aligns with national ecological strategies, showcasing a model for future renewable energy projects [50].

Core Viewpoint - The development of solar energy projects in the desert regions of Inner Mongolia is transforming barren land into productive green energy bases, showcasing the integration of renewable energy generation with ecological restoration efforts. Group 1: Solar Energy Projects - The Huadian Inner Mongolia Tengger "Shagohuang" New Energy Base has a solar project with a capacity of 2 million kilowatts, covering an area of approximately 53,800 acres, which can meet the electricity needs of 1.3 million households annually [2][4] - The production process at Inner Mongolia Xinyuan Silicon Material Technology Co., Ltd. involves high-purity polysilicon production, utilizing a self-developed silane fluidized bed process that significantly reduces electricity consumption and costs compared to traditional methods [1] Group 2: Ecological Restoration - The solar arrays in the Tengger Desert serve as an effective method for sand control, with photovoltaic supports acting as natural sand-fixing piles and creating a unique "desert microclimate" that improves the survival conditions for drought-resistant plants [4][5] - The integration of solar power generation with ecological governance is being implemented in the Ulan Buh Desert, promoting a model of "power generation on panels, planting between panels, and driving rural revitalization" [5][7] Group 3: Economic and Social Impact - The solar projects are creating numerous job opportunities, alleviating local employment pressures, and transforming the livelihoods of nearby farmers and herders through land transfer and tourism-related activities [7] - The combination of technological innovation and green transformation in solar energy is enabling a modern version of "turning sand into gold," converting desert areas into clean energy bases and ecological restoration sites [7]

Core Viewpoint - The development of solar energy in the desert regions of Inner Mongolia is transforming barren land into productive green energy bases, showcasing the effectiveness of solar technology in ecological restoration and energy production [1][6]. Group 1: Solar Industry Development - Inner Mongolia's Xinyuan Silicon Material Technology Co., Ltd. produces high-purity polysilicon using innovative silane fluidized bed technology, significantly reducing energy consumption and costs compared to traditional methods [1]. - The region has over 70 solar enterprises, creating a complete solar industry chain from silicon material to solar panels, contributing to global solar energy supply [1]. - The Huadian Inner Mongolia Tengger "Shagao荒" New Energy Base has a 2 million kW solar project that can meet the electricity needs of 1.3 million households annually, covering an area of approximately 53,800 acres [2]. Group 2: Ecological Impact - The solar panels in the Tengger Desert help combat desertification by stabilizing sand and creating a unique microclimate that supports the growth of drought-resistant plants [4][6]. - The integration of solar energy projects with ecological restoration efforts, such as the "solar + vegetation" model, promotes both energy production and environmental sustainability [5]. - The solar projects not only improve the local ecosystem but also enhance the livelihoods of local communities by creating jobs and promoting tourism [6].

Core Viewpoint - The construction of a "photovoltaic wall" in the Kubuqi Desert is a significant innovation that combines ecological restoration with renewable energy generation, showcasing a sustainable approach to combating desertification and promoting economic development [1][2][3]. Group 1: Project Overview - The Kubuqi Desert's Erdos North Central New Energy Base has a planned total installed capacity of 16 million kilowatts, including 8 million kilowatts of solar power, 4 million kilowatts of wind power, and 400,000 kilowatts of thermal power [3]. - The project aims to deliver approximately 36 billion kilowatt-hours of clean energy annually, reducing carbon dioxide emissions by 16 million tons [3]. - The "photovoltaic wall" spans about 400 kilometers in length and 5 kilometers in average width, integrating ecological restoration with renewable energy development [3]. Group 2: Ecological and Economic Benefits - The "photovoltaic + ecological restoration" model effectively reduces surface evaporation and wind speed, creating a favorable environment for plant growth beneath the solar panels [2]. - The project utilizes water from nearby coal mines for irrigation and maintenance, addressing the challenges of desertification while enhancing local agricultural productivity [2]. - The implementation of the project has led to the establishment of over 10,000 acres of high-standard farmland, increasing local farmers' income by 900 yuan per acre [5]. Group 3: Community and Global Impact - The project has created a dual-layer protective network against sand invasion, integrating the photovoltaic wall with a 420-kilometer shelter forest [4]. - Local communities benefit economically from the project, with increased tourism and agricultural opportunities arising from the solar energy initiatives [5]. - The Kubuqi Desert's management practices are being shared globally as a model for sustainable desertification prevention, highlighting the balance between ecological and economic goals [5].