Core Viewpoint - The photovoltaic (PV) sector is experiencing fluctuations, with the China Securities PV Industry Index down by 0.47% as of December 3, 2025, despite some stocks showing gains and others declining [1] Group 1: Industry Developments - A recent conference in Beijing highlighted the theme "Photovoltaics Empowering Global Green and Low-Carbon Transition," where the "2025 China Photovoltaic Construction Progress Report" was released, summarizing significant achievements in China's PV construction and its contributions to global climate action [1] - The report anticipates that China's PV sector will start from a "one billion kilowatt" base and move towards a higher quality and more sustainable future [1] Group 2: Market Trends - According to Industrial Securities, the PV industry chain is expected to undergo a value reconstruction, with Q3 showing a trend of reduced losses in the main PV chain due to rising silicon material prices driven by "anti-involution" [1] - The industry is projected to see improvements in performance and benefits from both the "anti-involution" trend and the current position at the bottom of the cycle, suggesting a favorable environment for investment [1] Group 3: Key Stocks - As of November 28, 2025, the top ten weighted stocks in the China Securities PV Industry Index include Yangguang Electric, TBEA, LONGi Green Energy, TCL Technology, Tongwei Co., TCL Zhonghuan, Chint Electric, Deye, Canadian Solar, and JA Solar, collectively accounting for 61.01% of the index [1] Group 4: Investment Tools - The Harvest Photovoltaic ETF (159123) tracks the China Securities PV Industry Index, providing a convenient tool for investors to access the entire PV industry chain [2] - Investors can also explore opportunities through the off-market connection of the photovoltaic ETF (014605) [2]

Core Insights - The Ministry of Industry and Information Technology, along with multiple departments, held a meeting on August 19 to regulate the photovoltaic industry, aiming to eliminate outdated capacity and establish a pricing monitoring mechanism, reflecting a strong commitment to reforming the competitive landscape [1][3] - The photovoltaic industry is transitioning from "price wars" to "value reconstruction," driven by new policies and the implementation of the revised Anti-Unfair Competition Law, which prohibits selling products below cash costs [1][3][4] - Tongwei Co., holding a 30% global market share in high-purity silicon and leading in solar cell shipments for eight consecutive years, is positioned as a core player in navigating the industry cycle through cost control and technological innovation [1][4][9] Company Performance - Tongwei Co. reported a revenue of 40.509 billion yuan for the first half of 2025, with a significant reduction in losses in the second quarter, maintaining a strong market share in its core business [2] - The company achieved a sales volume of 161,300 tons of polysilicon, retaining a 30% global market share, and sold 49.89 GW of solar cells, continuing to lead globally [2] - As of the end of the first half, Tongwei had 33.229 billion yuan in cash and financial assets, ensuring robust liquidity and a variety of financing tools [2][4] Industry Dynamics - The photovoltaic industry is experiencing a "breaking point" due to a shift from quantity expansion to quality improvement, as the cumulative global installed capacity approaches 2000 GW [3][4] - Recent policies targeting "disorderly low-price competition" have established a price floor for products like silicon materials and modules, aiming to stabilize the market and improve profitability for mid and downstream companies [3][4] - The industry has seen a recovery in prices since the second quarter of 2025, with polysilicon prices rising by up to 3.37% and module prices rebounding by 10.45% from their June lows, indicating a positive shift in supply-demand dynamics [6][7] Market Response - The capital market has reacted positively to the changes in the photovoltaic sector, with significant stock price increases for leading companies like Tongwei, reflecting strong market expectations for recovery [8] - The concentration of market share among the top five silicon material companies has reached nearly 80%, which is expected to reduce volatility and enhance profitability stability for leading firms [8][9] - Tongwei's dual business model, combining "green agriculture and green energy," allows it to benefit from the long-term growth of the photovoltaic industry while providing a stable cash flow to mitigate cyclical fluctuations [8][9]