Summary of Q3 2025 Earnings Call for Qibin Group Company Overview - **Company**: Qibin Group - **Industry**: Glass manufacturing, specifically float glass, photovoltaic glass, electronic glass, and pharmaceutical glass Key Financial Metrics - **Q3 2025 Revenue**: 4.387 billion CNY - Float Glass: 1.9 billion CNY - Photovoltaic Glass: 2.1 billion CNY - Energy-saving Building Glass: 240 million CNY - Electronic Glass: 70 million CNY - Pharmaceutical Glass: 7-8 million CNY - **Net Profit**: Over 24 million CNY - Float Glass Profit: 62 million CNY - Energy-saving Building Glass Profit: 20 million CNY - Losses: Photovoltaic Glass (23 million CNY), Electronic Glass (14 million CNY), Pharmaceutical Glass (7 million CNY) [2][5][6] Production and Sales Performance - **Float Glass Production**: 83.64 million weight cases in the first three quarters, up 1.91 million weight cases year-on-year - **Sales of Float Glass**: 81.83 million weight cases, with a production-sales ratio of 97.84% and a gross margin of 15.4% - **Q3 Production**: 28.3 million weight cases, sales of 29.61 million weight cases, production-sales ratio of 104.5% - **Photovoltaic Glass**: Production and sales of 445 million square meters in the first three quarters, with a gross margin of 7.6% [7][2] Cost and Expense Management - **Raw Material Prices**: - Soda ash prices decreased from over 1,400 CNY to 1,200 CNY - Petroleum coke prices increased from 1,400 CNY to under 1,700 CNY - **Financial Ratios**: - Financial expense ratio decreased from 3.08% to 2.5% - Management expense ratio decreased from 5% to 4.1% - Sales expense ratio decreased from 1.14% to 1% [8] Cash Flow and Investment Activities - **Net Cash Flow from Operating Activities**: 1.06 billion CNY in the first three quarters, with Q3 contributing over 700 million CNY, a year-on-year increase of 255% - **Investment Activities**: 1.58 billion CNY, significantly reduced compared to previous years; accounts receivable increased by 143 million CNY but the growth rate narrowed; inventory decreased by 200 million CNY compared to Q2 [9] Dividend Policy - **Future Dividend Plan**: Increased dividend payout ratio from 20% to 50% over the next three years, with more frequent cash dividends, potentially semi-annually or quarterly [10] Industry Insights - **Float Glass Market**: - The float glass industry is under pressure but showed signs of recovery in September 2025, with an average domestic price of 1,290 CNY/ton, up 7.6% from Q2 and 10.8% year-on-year - Energy-saving building glass is experiencing structural upgrades driven by carbon neutrality goals and changing market demands [4] - **Photovoltaic Glass Market**: - After a period of adjustment, the photovoltaic glass industry is recovering, with inventory pressure released and prices rebounding - Major companies dominate the market, reducing the risk of vicious competition, and prices are expected to remain stable [2][12] Challenges and Future Outlook - **Electronic Glass**: Currently in a loss position due to R&D expenses and personnel costs, with profitability unlikely in the first half of next year, but long-term improvements are anticipated through investments in chip packaging and overflow projects [3][25] - **Market Predictions**: - The industry consensus is that supply-demand balance can be maintained, with expectations of price declines next year but not reaching the lows of mid-2023 [21] - The potential for significant price drops in November is low, with prices expected to stabilize around 13 CNY [13] Additional Considerations - **Environmental Policies**: New policies require advance reporting for new capacity and emphasize measures against underpricing, although specific regulations are yet to be clarified [11] - **Future Production Capacity**: Limited unactivated capacity in photovoltaic glass, with minimal likelihood of large-scale activation due to energy consumption requirements [22]

Report Summary 1. Report Industry Investment Rating No relevant information provided. 2. Core View of the Report - The price of Shanghai Silver futures has been rising strongly, with the main contract reaching 10,317 yuan on September 22, a 3.81% increase, hitting a record high. The COMEX silver futures have accumulated a 41% increase since the beginning of the year, far exceeding the 35% increase of gold during the same period. The rise is due to three main reasons: macro - level factors, fundamental factors, and technical factors [3]. - The Shanghai Composite Index is expected to fluctuate at a high level overall. The market has a positive expectation due to a press conference at 3 pm today, and relevant departments are promoting the formulation of national standards for pre - made dishes [7]. - The gold market is trading on the expectation of an interest rate cut in October. After a three - day adjustment, gold has reached a new high with a strong upward trend and can continue to be bullish [11]. - For iron ore, the start of restocking may support raw materials. Technically, it is still in a high - level wide - range oscillation range and should be treated with an oscillatory mindset [14]. - For glass, it declined today. Attention should be paid to the support level of the lower platform. The daily melting is basically stable, the factory inventory has slightly decreased, but the recovery of downstream deep - processing orders is insufficient [18][19]. - For soybean oil, on September 12, the domestic commercial inventory of soybean oil was 1.26 million tons. High inventory restricts the price increase space, and it should be treated with a bearish oscillatory view [22]. - For pulp, the price in Shandong is stable, the port inventory is slightly decreasing, and it remains at a medium - high level. Before the Mid - Autumn Festival peak season, there is an expected boost, but no improvement is seen yet. It is expected to oscillate at a low level, and high - selling and low - buying within the range can be considered [25]. 3. Summary by Related Catalogs Hot Focus - The continuous rise of Shanghai Silver futures is mainly due to: macro - level factors such as the Fed's monetary policy shift (new Fed governor's dovish speech supporting a 150 - basis - point interest rate cut this year and market expectations of two 25 - basis - point cuts in the next two meetings) and rising geopolitical tensions; fundamental factors including supply - demand imbalance in the silver market (increased demand from the photovoltaic industry and a global supply - demand gap of 3,659 tons in 2025) and increased investment value; and technical factors such as a bullish moving - average arrangement and a MACD golden cross [3]. Technical Analysis - Stock Index Futures - The Shanghai Composite Index closed with a small positive line with a lower shadow. A press conference today is expected to be positive for the market, and relevant departments are promoting the formulation of national standards for pre - made dishes. The market is expected to oscillate at a high level [7]. Technical Analysis - Gold - The market is trading on the expectation of an interest rate cut in October. After a three - day adjustment, gold reached a new high with a strong upward trend and can continue to be bullish [11]. Technical Analysis - Iron Ore - The supply is stable, steel mills are gradually resuming production, and iron ore restocking before the National Day may support prices. Technically, it is in a high - level wide - range oscillation range [14][15]. Technical Analysis - Glass - The glass price declined today. Attention should be paid to the lower platform support. The daily melting is stable, the factory inventory has slightly decreased, but the recovery of downstream deep - processing orders is insufficient [18][19]. Technical Analysis - Soybean Oil - On September 12, the domestic commercial inventory of soybean oil was 1.26 million tons, with a week - on - week decrease of 10,000 tons, a month - on - month increase of 100,000 tons, and a year - on - year increase of 110,000 tons. High inventory restricts the price increase space [22]. Technical Analysis - Pulp - The price of pulp in Shandong is stable, the port inventory is slightly decreasing and remains at a medium - high level. Before the Mid - Autumn Festival peak season, there is an expected boost, but no improvement is seen yet. It is expected to oscillate at a low level, and high - selling and low - buying within the range can be considered [25].

Industry Overview - Silver futures on the Shanghai Futures Exchange rose by 3.81%, reaching a historical high [1] - Gold prices have been consistently hitting historical highs this year, with silver prices also on the rise, as London spot silver prices surpassed $42 per ounce, marking a 14-year high and a cumulative increase of over 40% this year [1] - The main silver futures contract in Shanghai exceeded 10,000 yuan per kilogram, achieving a nearly 13-year high with a cumulative increase of over 30% this year [1] - Demand for investment silver bars has significantly increased, while orders for semi-finished jewelry products have decreased due to rising silver prices [1] Company Developments - Guiyan Platinum Industry is accelerating the establishment of an annual production capacity of 2,000 tons of Guiyan brand silver, aiming to solidify its position as the leading brand of green silver in China [2] - The company has signed a strategic cooperation agreement with Yihua Tong to actively seek collaboration opportunities in fuel cell catalyst product research and development, as well as platinum resource recovery [2] - Zhongjin Lingnan possesses silver metal resource reserves of 5,722 tons, along with cobalt reserves of 20,807 tons in its affiliated mines [3]

Core Viewpoint - The photovoltaic industry is transitioning from "price wars" to "value reconstruction," with a comprehensive recovery across the industry chain driven by both policy and market dynamics, benefiting leading companies first [1][2]. Group 1: Industry Recovery - The first half of 2025 marks a significant recovery for the Chinese photovoltaic industry, with nearly half of the 70 listed companies in the photovoltaic equipment sector reporting positive performance [3]. - The recovery is supported by policy-driven market order optimization, which has alleviated price competition issues across the industry chain [3][4]. - The price of polysilicon has been rising since July 2025, with N-type polysilicon prices exceeding 50,000 yuan/ton, indicating a gradual restoration of profitability in the main industry chain [3]. Group 2: Policy and Demand Drivers - A series of targeted policies have been introduced since 2025 to address the industry's pain points related to "low-price disorderly competition" [4]. - The implementation of the revised Anti-Unfair Competition Law on June 27, 2025, prohibits selling products below cash cost, establishing a price floor for the photovoltaic industry [4]. - Strong demand is evident, with domestic new photovoltaic installations reaching 223.25 GW from January to July 2025, a year-on-year increase of 81% [3][4]. Group 3: Investment Opportunities in the Industry Chain - In the polysilicon segment, profitability is recovering significantly, with prices continuing to rise and reaching a maximum increase of 3.37% [5]. - Tongwei Co., Ltd. holds a 30% global market share in high-purity crystalline silicon, with a cash cost of approximately 38,000 yuan/ton, indicating strong cost control [6]. - The silicon wafer segment is transitioning to N-type technology, with N-type silicon wafer penetration expected to exceed 90% by 2025 [7]. Group 4: Technological Advancements and Market Positioning - The battery segment is dominated by TOPCon technology, with a production capacity of 967 GW, accounting for 83% of the market [8]. - JinkoSolar is a leader in N-type TOPCon technology, with a production efficiency exceeding 25% and a significant share of overseas revenue [8]. - The module segment shows clear differentiation, with N-type modules accounting for over 70% of the market, and leading companies like LONGi Green Energy and Trina Solar achieving high power outputs and certifications [9]. Group 5: Storage and New Growth Drivers - The explosive growth in the energy storage sector is a core driver of the current recovery, with increasing demand for photovoltaic and storage system integration [12]. - Sungrow Power Supply Co., Ltd. is a leading player in the energy storage system market, with a global market share of 35% in storage inverters [12].

Investment Rating - The investment rating for the company is "Buy" [7][14] Core Views - The company achieved a revenue of 40.51 billion yuan in H1 2025, a year-on-year decrease of 7.5%, and a net profit attributable to shareholders of -4.96 billion yuan, compared to -3.13 billion yuan in the same period last year. In Q2 2025, the revenue was 24.58 billion yuan, showing a year-on-year growth of 1.4% and a quarter-on-quarter increase of 54.2%. The gross profit margin was 2.0%, down 3.4 percentage points year-on-year but up 4.9 percentage points quarter-on-quarter. The company is a leading player in the silicon material industry with significant competitive advantages and is actively expanding into downstream markets, which is expected to lead to substantial performance improvement as the photovoltaic industry recovers [5][12][14]. Summary by Sections Financial Performance - In H1 2025, the company's photovoltaic business generated a revenue of 26.68 billion yuan, a year-on-year decrease of 8.1%, with a gross margin of -5.3%, down 11.3 percentage points year-on-year. The decline was primarily due to a significant drop in the prices of main products, with average price declines of approximately 30% for polysilicon, 20%-35% for battery cells, and 24%-26% for modules. However, prices began to improve in July 2025, indicating a potential turning point for profitability [11][12]. Market Position and Product Development - The company maintains a strong position in the polysilicon and battery cell markets, with a global market share of about 30%. In H1 2025, polysilicon sales were 161,000 tons, down 29.5% year-on-year, while battery cell sales reached 49.9 GW, showing significant growth. Module sales were 24.5 GW, up 31.3% year-on-year, with overseas sales accounting for 21% of total sales. The company launched the TNC 2.0 module, incorporating self-developed technologies that enhance performance and reduce risks [12][13]. Revenue and Profit Forecast - The company is expected to face short-term profitability pressures due to intense industry competition. Revenue forecasts for 2025-2027 are 96.54 billion yuan, 122.51 billion yuan, and 134.24 billion yuan, with year-on-year growth rates of 4.9%, 26.9%, and 9.6%, respectively. The net profit attributable to shareholders is projected to be -6.08 billion yuan in 2025, turning positive in 2026 with 2.22 billion yuan and reaching 5.92 billion yuan in 2027. The earnings per share (EPS) are expected to be -1.35 yuan in 2025, 0.49 yuan in 2026, and 1.31 yuan in 2027 [14][15].

Investment Rating - The report maintains a positive outlook on leading equipment manufacturers in the photovoltaic industry, anticipating their ability to navigate through the current cycle [1]. Core Insights - The photovoltaic equipment industry is experiencing short-term performance pressure, with a focus on waiting for industry recovery [6][42]. - The industry is characterized by both growth and cyclical attributes, influenced by supply, demand, and technological factors [3]. Summary by Sections Industry Performance - In 2024, the total revenue of the photovoltaic equipment industry reached 848.6 billion, a year-on-year increase of 2%, while the net profit attributable to shareholders was 54.8 billion, down 57% year-on-year [10]. - The first quarter of 2025 saw a total revenue of 158.3 billion, a decrease of 19% year-on-year, with net profit dropping to 15 billion, down 40% year-on-year [10]. Profitability Analysis - The industry's gross margin for 2024 was 24%, a decrease of 6 percentage points year-on-year, while the net profit margin was 6%, down 9 percentage points year-on-year [16]. - The report highlights that leading equipment manufacturers maintain higher profitability compared to the industry average, with gross margins around 30% [28]. Equipment Segment Insights - In the silicon wafer equipment segment, low-oxygen single crystal furnaces and tungsten wire diamond saws are expected to have promising futures, with ongoing international expansion [43]. - The battery equipment segment is seeing accelerated cost reduction and efficiency improvements, particularly with HJT technology, and overseas orders are expected to increase [43]. Market Trends - The report notes a slowdown in the expansion of silicon wafer production capacity in 2024, with a focus on the introduction of new technologies as downstream markets recover [60]. - The Middle East is emerging as a significant market for photovoltaic equipment, with expected growth in installed capacity driven by energy diversification efforts [65]. Cash Flow and Financial Health - The industry has seen a significant improvement in cash flow since Q3 2024, with a net operating cash flow of 9.25 billion in Q1 2025 [40].

Core Viewpoint - Bangjie Co., Ltd. has revised its 2024 annual performance forecast, expecting a net profit loss of 500 million to 750 million yuan, an increase from the previously estimated loss of 300 million to 450 million yuan, due to pessimistic expectations regarding the photovoltaic industry's recovery and worsening operational conditions at its subsidiary in Yangzhou [2][5]. Group 1: Company Performance - The company initially estimated a loss of 300 million to 450 million yuan in January 2025, citing factors such as supply-demand mismatches and increased competition in the photovoltaic industry [3]. - The latest announcement indicates that the expected asset impairment losses will exceed the original estimates, leading to a revised loss forecast of 500 million to 750 million yuan [4][5]. - The company has acknowledged that the operational situation at its Yangzhou subsidiary has deteriorated further, contributing to the increased loss forecast [4]. Group 2: Industry Context - Despite Bangjie Co., Ltd.'s negative outlook, other photovoltaic companies report improved conditions compared to the last quarter of the previous year, suggesting that Bangjie's situation may be an outlier [6][7]. - The photovoltaic industry is experiencing a recovery, with some companies indicating that they do not anticipate further downward adjustments to their performance forecasts [6][7]. - Recent policy changes and market dynamics have led to a surge in component prices and production, indicating a more favorable environment for certain segments of the photovoltaic industry [8].