Key Points - The report highlights the strong performance of the photovoltaic industry, with a record high of 92.92 GW of new installations in May 2025, representing a year-on-year increase of 388.03% [14][15] - The logistics industry in China shows a slight improvement, with the logistics prosperity index rising to 50.8% in June, up 0.2 percentage points from the previous month [5][8] - The banking and electric power sectors are leading the A-share market, with a steady upward trend observed in recent trading sessions [9][10] - The semiconductor industry continues to grow, with global semiconductor sales reaching $56.96 billion in April 2025, a year-on-year increase of 22.7% [18] - The gaming industry is experiencing a resurgence, with a record number of game approvals in June, indicating strong cultural consumption demand during the summer [33][34] - The automotive industry shows positive trends, with both production and sales of passenger vehicles increasing in May 2025, alongside a significant rise in new energy vehicle exports [39][40] Market Analysis - The A-share market has shown narrow fluctuations, with the average price-to-earnings ratios for the Shanghai Composite Index and the ChiNext Index at 14.20 times and 38.60 times, respectively, indicating a suitable environment for medium to long-term investments [8][9] - The report suggests a balanced investment strategy, focusing on sectors with expected strong mid-year performance and reasonable valuations, particularly in banking, photovoltaic equipment, and food and beverage industries [8][9][10] Industry Insights - The photovoltaic sector is expected to continue its growth trajectory, driven by government policies aimed at increasing solar energy installations and addressing desertification through solar projects [13][14] - The new materials sector is also gaining traction, with a notable increase in the new materials index, which rose by 6.91% in June, outperforming the broader market [17] - The logistics sector's slight recovery reflects a broader trend of economic stabilization, with consumption and investment being the main drivers of growth [5][8] Investment Recommendations - The report recommends focusing on leading companies in the photovoltaic materials sector, particularly those involved in polysilicon and solar glass production, as they are expected to benefit from ongoing industry consolidation and demand growth [15][16] - In the gaming sector, companies leveraging AI technology for game development are highlighted as potential investment opportunities due to the expected increase in market demand [34][35] - The automotive sector is advised to be monitored closely, especially companies with strong performance in new energy vehicles, as they are likely to benefit from the growing trend towards electrification [39][40]

Core Viewpoint - The "Electricity and Sand Become Gold" project in Gansu Province exemplifies the integration of renewable energy, ecological restoration, and agricultural development in desert areas, showcasing innovative approaches to utilizing solar energy for sustainable practices [1][3]. Group 1: Project Overview - The project has been recognized with the "Good Brand" award at the Fourth Rural Energy Development Conference, highlighting its significance in promoting clean energy and ecological restoration [3]. - The initiative involves a collaborative framework among government, photovoltaic companies, and local communities to establish a 300,000 kW photovoltaic desertification control demonstration project, generating approximately 500 million kWh annually [3][4]. Group 2: Implementation Strategies - The project employs a four-in-one model of "power generation on panels, planting under panels, breeding between panels, and sand control," effectively merging renewable energy with ecological and agricultural elements [3][4]. - The company has established a green service channel to support the project, providing technical assistance, safety training, and market policy education to construction personnel [4]. Group 3: Economic and Social Impact - The initiative aims to enhance local farmers' income by creating sales channels for agricultural products and prioritizing the employment of local labor in the photovoltaic desertification control efforts [4]. - The project promotes the integration of multiple industries, including desert agriculture, photovoltaic energy production, and desert tourism, contributing to rural revitalization and economic development [4].

Report Summary 1. Report Industry Investment Rating No information provided. 2. Core Viewpoints - The market's expectation of new production capacity is increasing, while most enterprises are in a stage of losing cash cost at current price levels, dampening production enthusiasm and causing some to suspend delivery product lines [2][3] - The demand side is relatively weak. Downstream photovoltaic module production scheduling has been reduced, demand has weakened marginally, silicon wafer and battery cell enterprises are expected to cut production, and end - market purchasing enthusiasm is low [3] - With the release of the photovoltaic desert control plan in the three - north desert regions, market sentiment has improved, but the polysilicon inventory is at a high level, suppressing market prices [3] - There was a short - term supply reduction due to a Xinjiang factory's shutdown, leading to a polysilicon price rebound, but prices may fall after the news fades. Long - and medium - term operations should focus on short - selling at high levels [3] 3. Summary by Relevant Catalogs Futures Market - The closing price of the main polysilicon contract was 33,535 yuan/ton, up 220 yuan; the position volume was 66,333 lots, down 2,729 lots [3] - The price difference between August and September for polysilicon was 550 yuan, up 20 yuan; the price difference between polysilicon and industrial silicon was 25,475 yuan/ton, up 190 yuan [3] Spot Market - The spot price of polysilicon was 34,500 yuan/ton, unchanged; the basis was 1,185 yuan/ton, down 1,600 yuan [3] - The weekly average price of photovoltaic - grade polysilicon was 4.22 US dollars/kg, down 0.03 US dollars [3] - The average prices of polysilicon (cauliflower, dense, and re - feeding materials) were 28, 29.5, and 31 yuan/kg respectively, all unchanged [3] Upstream Situation - The closing price of the main industrial silicon contract was 8,060 yuan/ton, up 30 yuan; the spot price was 8,450 yuan/ton, up 150 yuan [3] - The monthly export volume of industrial silicon was 52,919.65 tons, down 12,197.89 tons; the import volume was 2,211.36 tons, up 71.51 tons [3] - The monthly output of industrial silicon was 299,700 tons, down 36,050 tons; the total social inventory was 542,000 tons, down 17,000 tons [3] Industry Situation - The monthly output of polysilicon was 95,000 tons, down 1,000 tons; the monthly import volume was 793 tons, down 161 tons [3] - The weekly spot price of imported polysilicon in China was 4.88 US dollars/kg, down 0.13 US dollars; the monthly average import price was 2.19 US dollars/ton, down 0.14 US dollars [3] Downstream Situation - The monthly output of solar cells was 70,569,000 kilowatts, down 1,359,000 kilowatts [3] - The average price of solar cells was 0.82 RMB/W, up 0.01 RMB/W [3] - The monthly export volume of photovoltaic modules was 103,399,980 units, up 19,610,660 units; the import volume was 12,098,490 units, down 8,021,950 units [3] - The monthly average import price of photovoltaic modules was 0.29 US dollars/unit, up 0.02 US dollars/unit [3] - The weekly comprehensive price index of the photovoltaic industry (SPI) for polysilicon was 21.67, down 0.62 [3] Industry News - As of June 27, the mainstream market prices of P - type and N - type polysilicon were stable [3] - The US Senate Republican leader plans to vote on Trump's bill, which restricts new energy and affects industry demand [3] - Currently, all polysilicon manufacturers are operating at reduced loads [3] Inventory - Polysilicon inventory is at a high level. Silicon wafer enterprises' unsold inventory suppresses market prices [3] Key Focus - No news today [3]

Investment Rating - The investment rating for the electric equipment and new energy industry is "Outperform the Market" (maintained) [1] Core Insights - The offshore wind power projects in Zhejiang province are accelerating, with 13GW of projects' products and services being opened for bidding [1] - Six regions have released new mechanism electricity price policies, indicating a higher proportion of market-oriented transactions; no new mechanism electricity projects are planned for Inner Mongolia East and West [1] - Huadian New Energy plans to raise 18 billion RMB through an IPO, targeting investments in 11.3GW of photovoltaic and 3.9GW of wind power [1] - The national plan during the 14th Five-Year Plan period includes 253GW of photovoltaic projects for desertification control [1] - Powin, a leading U.S. energy storage integrator, has filed for Chapter 11 bankruptcy protection [1][5] Summary by Sections Offshore Wind Power - Zhejiang's deep-sea development is accelerating, with multiple offshore wind farm projects announced, including a 5000MW project and others totaling 4000MW and 2000MW [2] Photovoltaic - Six regions have issued new mechanism electricity price policies, significantly increasing the market-oriented transaction ratio and raising revenue uncertainty [3] - Huadian New Energy's IPO aims to raise 18 billion RMB for various projects, including 8.5GW of centralized photovoltaic and 3.88GW of wind power [3] National Planning - The national plan for the 14th Five-Year Plan period includes a target of 253GW of photovoltaic installations to combat desertification by 2030 [4] Energy Storage - Powin, a major player in the U.S. energy storage market, has filed for bankruptcy, affecting several Chinese companies that are among its largest unsecured creditors [5] Company Profit Forecasts - Key companies' profit forecasts indicate varying growth, with Daikin Heavy Industries projected to achieve a net profit of 4.7 billion RMB in 2024, while Dongfang Cable is expected to reach 10.1 billion RMB [7]

Report Summary 1. Industry Investment Rating No investment rating information is provided in the report. 2. Core Views - This week, the prices of industrial silicon and polysilicon both increased. Industrial silicon rose by 8.66%, and polysilicon by 5.95%, due to the positive news of photovoltaic desert control [7]. - The supply of industrial silicon is expected to remain loose. The southwest region's electricity price is decreasing, and there are plans for large - scale enterprises to resume production. The northwest region also offers electricity subsidies [7]. - The overall demand for industrial silicon from its three major downstream industries is slowing down. Organic silicon production is being cut due to zero profit, polysilicon production is reduced, and the aluminum alloy industry is in a passive de - stocking phase [7]. - The demand for polysilicon is under pressure, with weak downstream demand and high inventory. However, the release of the photovoltaic desert control plan has improved market sentiment [7]. - Next week, industrial silicon is expected to experience basis regression, and the increase in futures prices may be limited. Polysilicon's basis is expected to return to the normal range [7]. - It is recommended that the main contract of industrial silicon oscillates in the range of 7600 - 8600, with a stop - loss range of 7400 - 8800. The main contract of polysilicon oscillates in the range of 32000 - 34500, with a stop - loss range of 30000 - 36000 [7]. 3. Summary by Directory 3.1 Weekly Highlights Summary - **Market Review**: Industrial silicon and polysilicon prices increased this week. After the news of photovoltaic desert control on Thursday, the market began to reflect the expectation of increased demand, and prices rose significantly [7]. - **Market Outlook**: - **Industrial Silicon**: Supply will be loose, while demand from downstream industries is weakening. The overall demand for industrial silicon is expected to slow down [7]. - **Polysilicon**: Supply is in a state of reduced load operation, and demand is weak. However, the release of the photovoltaic desert control plan has improved market sentiment. Inventory is at a high level [7]. - **Operation Suggestion**: The main contract of industrial silicon should be mainly in range - bound oscillation (7600 - 8600), with a stop - loss range of 7400 - 8800. The main contract of polysilicon should be in short - term oscillation (32000 - 34500), with a stop - loss range of 30000 - 36000 [7]. 3.2 Futures and Spot Market - This week, the futures prices of industrial silicon and polysilicon both decreased [8]. - The price of industrial silicon increased, the spot price rose, and the basis weakened. It is expected that the basis will return next week [13]. - The futures price of polysilicon rebounded, the basis weakened, the spot price rose, and the basis returned to normal [17]. - This week, the production and capacity utilization rate of industrial silicon increased due to the rainy season in the southwest region and the resumption plans of large enterprises. As of June 27, 2025, the national industrial silicon production was about 73,500 tons, and the national industrial silicon capacity utilization rate was 50.61% [23][25]. 3.3 Industry Situation - **Cost**: This week, the raw materials of industrial silicon slightly decreased, the electricity price dropped, and the overall cost decreased due to government subsidies. Although enterprises are still in a loss state, the willingness to resume production during the rainy season has increased [27]. - **Inventory**: This week, the warehouse receipts of industrial silicon decreased, the social inventory increased, and the overall inventory slightly increased. The process of inventory reduction has been repeated, but the overall trend remains unchanged. As of June 27, 2025, the number of industrial silicon warehouse receipts was 53,234 lots, a decrease of 2386 lots; the total social inventory of metallic silicon was 571,000 tons, an increase of 12,000 tons [32][36]. - **Downstream Industry**: - **Organic Silicon**: The production and capacity utilization rate decreased. Enterprises chose to continue reducing production to support prices due to profit decline. As of June 27, 2025, the weekly production was 44,200 tons, a decrease of 800 tons; the weekly capacity utilization rate was 67.17%, a decrease of 1.23% [38][42]. - **Aluminum Alloy**: The spot price decreased, the inventory increased, and the passive de - stocking continued. The demand for industrial silicon is expected to remain weak. As of June 27, 2025, the aluminum alloy price was 20,100 yuan/ton, a decrease of 100 yuan/ton; the aluminum alloy ingot inventory was 26,000 tons, an increase of 2000 tons [50][52]. - **Silicon Wafer and Battery Chip**: The silicon wafer price decreased, and the battery chip price remained flat. The overall demand for polysilicon was affected, which in turn affected the demand for industrial silicon. As of June 27, 2025, the silicon wafer price was 1.06 yuan/piece, a decrease of 0.02 yuan/piece; the battery chip price was 0.25 yuan/watt, unchanged from last week [57][59]. - **Polysilicon Production Cost**: This week, the cost of trichlorosilane (photovoltaic grade) for polysilicon remained flat, and the price of industrial silicon decreased. Overall, the production cost remained stable, and the polysilicon production is expected to gradually decline. In May 2025, the total production of polysilicon plants in China was 97,355 tons, a decrease of 1447 tons from the previous month, a month - on - month decrease of 0.59% [64][66].

Group 1 - JinkoSolar's global vice president shared China's experience in photovoltaic desertification control at the 2025 Summer Davos Forum, attracting international interest [2] - JinkoSolar supplied a total of 1.75GW of photovoltaic components for two major projects in Saudi Arabia and is involved in a 1.8GW project in Abu Dhabi, showcasing China's solutions for energy transition and desertification prevention [2] - The company aims to shift from global sales to global production and investment, exporting technology, systems, standards, talent, and experience to help local industries establish their own supply chains [2] Group 2 - China has the most severe desertification in the world, with 2.57 million square kilometers of desertified land, accounting for 26.81% of its territory [3] - Through large-scale greening projects, China has effectively managed 53% of its desertifiable land, achieving "zero growth" in land degradation [3] - The "14th Five-Year Plan" emphasizes the construction of large-scale wind and photovoltaic bases in desert areas, with a target of 455 million kilowatts of installed capacity by 2030 [3] Group 3 - The State Grid Corporation of China plans to integrate large-scale renewable energy into the grid, transmitting power from desert regions over distances of 2,000 to 3,000 kilometers [5] - By the end of 2024, the first batch of 50 large-scale wind and photovoltaic base projects will be completed, with an installed capacity exceeding 90 million kilowatts [5] - Continuous technological innovation has led to increased global recognition of JinkoSolar's products, with over 50% of orders coming from overseas clients [5] Group 4 - The systematic development approach of photovoltaic desertification control in China is seen as a model for other countries [5] - Building large-scale renewable energy bases in desert areas is an effective solution for integrating renewable energy generation with desertification control and ecological restoration [5][6] - This approach not only promotes green energy development but also creates economic growth points in desert regions through ecological restoration and energy industry integration [6]

Group 1 - Xinjiang has expanded the green protective belt around the Taklamakan Desert by 4.79 million acres this year, building on last year's achievements [1] - The width of the green protective belt has increased from 110 meters to 7,500 meters through scientific determination of suitable crops and utilization of groundwater resources [1] - The government has introduced the "Nine Sand Policies" to address challenges in the desertification control efforts, ensuring the availability of water, electricity, and land [1] Group 2 - The financial support for desertification control includes nearly 1.1 billion yuan allocated annually by the regional and corps finance for new sand control tasks [1] - The mechanism of benefit-sharing has significantly increased community participation, with local residents benefiting from the ecological restoration efforts [2] - The cultivation of specialty economic crops such as meat and desert roses on 6.24 million acres has generated over 30 billion yuan in output value, creating stable employment for over 300,000 people [2]

Group 1 - The core idea of the articles emphasizes the integration of ecological protection and economic development through innovative projects like the "Photovoltaic + Ecological" governance model in Dengkou County [2][3][4] - Dengkou County has achieved a forest and grass coverage rate of 39.1%, reflecting its commitment to ecological conservation and sustainable development [1] - The total investment for the "Photovoltaic + Ecological" governance project is 5.234 billion yuan, with a planned capacity of 1.6 million kilowatts, showcasing significant financial commitment to renewable energy [3] Group 2 - The project is expected to generate an average annual power output of 3.27 billion kilowatt-hours and an annual revenue of 820 million yuan, indicating strong economic potential [3] - The initiative has created over 3,000 stable job opportunities for local farmers and herders, enhancing their income by an average of 18,000 yuan per person [4] - The project not only focuses on economic benefits but also revitalizes rural areas, transforming previously barren lands into thriving ecological and industrial communities [4]

Core Viewpoint - The article highlights the successful implementation of a photovoltaic sand control project in Inner Mongolia, which combines ecological restoration with renewable energy generation, showcasing a model for sustainable development in arid regions [1][3][5]. Group 1: Project Overview - The photovoltaic sand control project in the Xinhua Forest Farm is designed to combat desertification while generating renewable energy, with an expected annual electricity generation of 360 million kilowatt-hours once operational [3]. - The project employs a unique layout of solar panels that follows the natural terrain, maintaining a distance of 13.5 meters between panels to ensure optimal sunlight exposure and protect existing sand plants [1][3]. Group 2: Ecological Impact - The Xinhua Forest Farm has successfully reduced its sandy area from 21,500 acres to 5,000 acres, achieving a forest coverage rate of 65% through various afforestation and sand control initiatives [3][4]. - The farm has planted 4.3 million trees and has seen an increase in tree survival rates, demonstrating effective sand control methods such as using trees and grasses to stabilize the soil [3][4]. Group 3: Community Involvement - Over 2,000 local villagers have participated in the project, benefiting from employment opportunities that provide daily wages of 300 yuan, thus enhancing community engagement in ecological restoration efforts [4]. - The project aims to create more value from green initiatives, with plans to develop smart seedling bases and explore new business models like "photovoltaic plus" to further integrate ecological protection with economic development [4]. Group 4: Broader Context - The Xinhua Forest Farm's success is part of a larger effort in Inner Mongolia to combat desertification along the Yellow River, with a total of 14.89 million acres treated in the past two years [5]. - The region is transitioning from traditional labor-intensive methods to mechanized and intelligent management for sand control, enhancing the effectiveness of ecological protection measures [5].

Core Viewpoint - China is one of the countries most severely affected by desertification, and the government has been actively addressing this issue through various ecological protection initiatives [1][5]. Group 1: Ecological Protection Efforts - Inner Mongolia is a key battleground for desertification prevention, with significant directives from President Xi Jinping to build a green Great Wall in the northern regions [5]. - The region has implemented integrated protection strategies for mountains, rivers, forests, fields, lakes, grasslands, and deserts, strengthening comprehensive desertification control [9]. - The Helan Mountain Nature Reserve has seen an increase in wildlife, with 75 species of nationally protected animals, including 13 species of first-class protection [10]. Group 2: Specific Projects and Achievements - The Uliangsuhai wetland, the largest lake wetland in the Yellow River basin, has undergone ecological restoration since 2018, improving biodiversity and water quality [11]. - The Xinhua Forest Farm, part of the "Three-North" shelter forest system, has transformed from a desertification area to a green space, providing a protective barrier for surrounding farmland [13]. - The Kubuqi Desert has achieved an 80% governance rate, with a vegetation coverage of 58% [17]. Group 3: Renewable Energy and Ecological Synergy - A solar power project in the Ulan Buh Desert is designed to integrate photovoltaic energy generation with ecological restoration, expected to generate 2 billion kWh of green electricity annually [18]. - The project aims to combat desertification while providing renewable energy, showcasing a model of "photovoltaic desertification control" [18]. Group 4: Agricultural and Irrigation Developments - The Hetao Irrigation District in Inner Mongolia is a significant agricultural area, irrigating over 11 million acres with water from the Yellow River, recognized as a World Irrigation Heritage site [22].