Summary of Key Points Core Viewpoint The company, Jiangsu Zhongxinbo New Energy Technology Co., Ltd., has decided to terminate part of its fundraising projects and redirect some of the remaining funds to new projects due to changes in market conditions and operational needs. This decision aligns with the company's strategic development and aims to enhance its core competitiveness in the photovoltaic industry. Group 1: Fundraising Overview - The company issued 16,053,790 A-shares at a price of RMB 68.60 per share, raising a total of RMB 1,101,289,994, with a net amount of RMB 1,083,226,696.74 after deducting issuance costs [1][2]. - The funds have been deposited into a special account approved by the board of directors, ensuring proper management and protection of investor rights [1]. Group 2: Investment Project Status - The total investment amount for the fundraising projects was RMB 149,651.79 million, with RMB 108,322.67 million allocated for specific projects [2]. - The company plans to terminate the "Western Tracking Bracket Production and Verification Base Construction Project," originally planned for RMB 30,644.50 million, due to a significant change in market demand for tracking brackets [3][4]. Group 3: Reasons for Project Termination - The demand for tracking bracket systems in large ground photovoltaic power plants has not met expectations, leading to a reassessment of the project's viability [4]. - As of August 25, 2025, RMB 904.23 million of the fundraising has been utilized, leaving RMB 22,955 million in the special account, which will be redirected to new projects [4]. Group 4: New Investment Project Details - The new project, "Automation Upgrade Project for Changzhou Production Base," will utilize RMB 6,820 million of the remaining funds, with a total investment of RMB 7,519.15 million [4][5]. - This project aims to enhance production efficiency and product competitiveness by introducing advanced manufacturing equipment and optimizing production processes [5][6]. Group 5: Strategic Importance of New Project - The Changzhou production base is crucial for meeting domestic and international demand for tracking brackets, providing strong supply chain support for overseas market expansion [5][6]. - The project aligns with the industry's trend of "cost reduction and efficiency enhancement," which is vital for the sustainable development of the photovoltaic sector [6][7]. Group 6: Regulatory Compliance and Approval Process - The decision to terminate part of the fundraising projects and redirect funds has been approved by the company's board and audit committee, and it will be submitted for shareholder approval [15][16]. - The company will adhere to relevant regulations to ensure the legal and effective use of the redirected funds [15][16].

Core Insights - Jiangsu Riyu Photovoltaic New Materials Co., Ltd. (Riyu Photovoltaic) has achieved a remarkable net profit compound annual growth rate of 925.6% and an average annual revenue growth of 141.3% over the past three years [4] - The company specializes in the research, production, and sales of conductive silver paste for solar cells and has submitted an application for listing on the Hong Kong Stock Exchange [4] Company Overview - Established in September 2015, originally named Shanghai Riyu New Materials Technology Co., Ltd., the company relocated to Wuxi, Jiangsu [4] - The main products include conductive silver paste and metallization paste, covering various mainstream photovoltaic cell technologies such as TOPCon, xBC, and PERC [4] Market Demand and Growth - The global market for photovoltaic silver paste has seen significant growth, increasing from 13.1 billion yuan in 2020 to an expected 46.8 billion yuan by 2024, with a projected compound annual growth rate of approximately 19.9% from 2024 to 2029 [4][5] - The demand for N-type high-performance silver paste has surged due to the rapid adoption of N-type technologies like TOPCon and xBC, leading to a substantial increase in Riyu Photovoltaic's market position [5] Financial Performance - Riyu Photovoltaic's revenue skyrocketed from 393 million yuan in 2022 to 2.285 billion yuan in 2024, with net profit rising from 877,000 yuan to 92.24 million yuan during the same period [5] - The company's silver paste sales volume increased from 79.7 tons in 2022 to 356.7 tons in 2024 [5] Product Revenue Breakdown - Revenue from TOPCon silver paste surged from 170,000 yuan in 2022 to 1.601 billion yuan in 2024, accounting for 70.1% of total revenue [5] - Revenue from xBC silver paste rose from 310 million yuan to 518 million yuan, representing 22.6% of total revenue [5] - Conversely, revenue from PERC silver paste declined from 360 million yuan to 137 million yuan, dropping to 6% of total revenue [6] Capital Raising and Valuation - Riyu Photovoltaic has successfully completed three rounds of equity financing from mid-2023 to the end of 2024, raising approximately 459.3 million yuan [6] - The company’s valuation increased from 783 million yuan post-A round financing to 2.456 billion yuan after the B+ round [6] Strategic Changes and Leadership - The company underwent significant changes under the leadership of Guo Peng, who acquired approximately 82% of the company in 2021 and later became the absolute controlling shareholder [7] - Guo Peng shifted the company's focus towards N-type technology and established strategic partnerships with leading photovoltaic manufacturers [7][8] Research and Development Focus - Riyu Photovoltaic has invested in the strategic development of new generation HPBC silver paste, achieving a 20% reduction in silver paste consumption while maintaining peak battery efficiency [8] - The company plans to allocate funds from its IPO to advance R&D projects, including new metallization solutions and innovative raw materials [10] Operational Challenges - The company faces high raw material costs, with silver powder being a significant expense, constituting approximately 97% of sales costs [9] - Customer concentration remains a concern, with the top five customers accounting for about 74.8% of revenue in 2024, although this is an improvement from nearly 100% in previous years [10]

Financial Data and Key Metrics Changes - Total revenue for the first quarter of 2025 was $1.9 billion, down 33% sequentially and down 40% year over year [20] - Net loss was approximately $100 million for the first quarter [6] - Gross margin decreased both sequentially and year over year, primarily due to a decrease in average selling price (ASP) of solar modules [20] - Total operating expenses were $350 million, down 8% sequentially and down 18% year over year [21] - Cash and cash equivalents at the end of the first quarter were $3.77 billion, a significant increase from $2.44 billion at the end of the first quarter last year [19] Business Line Data and Key Metrics Changes - Model shipments reached 17.5 gigawatts with revenues of $1.91 billion for the first quarter [5] - Total shipments were 19.1 gigawatts, with module shipments accounting for approximately 90% [13] - Shipments to the Indo Pacific market grew by nearly 10% year over year and 150% sequentially, while shipments to North Asia increased by nearly 20% year over year [14] Market Data and Key Metrics Changes - New installations in China in the first quarter amounted to 59.7 gigawatts, an increase of 31% year over year [6] - The global module demand is expected to remain about 700 gigawatts in 2025, with strong growth in Asia Pacific, Europe, and the Middle East [17] - The U.S. market is expected to see a wave of early purchases of cells and modules due to a current shortage in local cell production capacity [17] Company Strategy and Development Direction - The company aims to maintain a leading position in the industry by optimizing market strategies and supply chain management while improving technology and product competitiveness [12] - The focus is on high-efficiency cell capacity and high-power products, which are expected to have a competitive advantage in the market [10] - The company plans to explore innovative business models that integrate solar and storage solutions [12] Management's Comments on Operating Environment and Future Outlook - Management noted that the current market environment is challenging due to low prices across the solar industrial chain and disruptions caused by changes in international trade policies [6] - There is optimism about long-term demand in the U.S. market despite current uncertainties [18] - Management expects gross margins to improve slightly in the second quarter due to an upward trend in module prices driven by demand from China and other regions [34] Other Important Information - The company expects annual production capacity for mono wafers, solar cells, and solar modules to reach 120, 95, and 130 gigawatts, respectively, by the end of 2025 [12] - Confirmed orders for energy storage systems accounted for 50% to 60%, with another 20% to 30% showing strong potential for signing [11] Q&A Session Summary Question: Details on ESS shipments - ESS shipment mix is mainly dominated by the Asia Pacific region, Europe, and emerging markets, with challenges in extending the ESS business in the U.S. due to trade barriers [27] Question: Future imports to the U.S. post-ADCVB - The company is exploring different options to provide more certainty and competitiveness in the U.S. market, despite uncertainties from preliminary tariffs [28] Question: Expectations for margins in Q2 and Q3 - Management expects gross margins to improve slightly in Q2 due to an upward trend in module prices, with potential for stabilization in the second half of the year [34] Question: Plans for U.S. cell manufacturing - Local production in the U.S. is seen as a long-term trend, but short-term uncertainties make it difficult to ramp up manufacturing [39] Question: Guidance on ESS margins - The target gross margin for ESS is expected to be in the range of 5% to 10% [46] Question: U.S. shipment target for the year - The shipment target for the U.S. is approximately 5% to 10% of total shipments, with current uncertainties impacting this range [50] Question: Shareholder return program - The company plans to buy back shares and defer dividends, with a minimum of $100 million allocated for dividends and repurchases [56]