Core Viewpoint - The profitability recovery of the photovoltaic industry chain is expected to gradually materialize after 2026, amid declining overall demand growth and slow capacity exit [1] Price Stability and Competition - The current low price levels across the photovoltaic industry chain are causing a slow capacity exit, with intense price competition among manufacturers [1] - Since mid-2023, prices across the photovoltaic industry chain have shown signs of stabilization, but component prices have not seen sustained increases [1] - As of now, polysilicon prices are around 50,000 yuan/ton, silicon wafers at 1.3 yuan/piece, battery cells at 0.3 yuan/W, and modules at 0.7 yuan/W [1] Downstream Demand and Price Transmission - The stability of low prices is primarily due to the low acceptance of price increases by downstream developers [2] - Although polysilicon prices have increased by 50% since June, this price increase has mainly been transmitted only within the upstream "polysilicon-battery cell" segment [2] - The photovoltaic module market, which previously experienced rapid growth, is now facing slowing or even downward pressure, with Bloomberg New Energy Finance forecasting a compound annual growth rate of -5% for new installations in China from 2025 to 2035 [2] Regulatory Impact and Market Dynamics - The construction of photovoltaic projects has slowed down, with approximately 28 GW of new photovoltaic installations added in Q3 2023 according to the National Energy Administration [3] - Developers are currently in a wait-and-see mode as new pricing mechanisms are being established across provinces [4] - New consumption scenarios, such as large-scale wind-solar integrated projects, are expected to support maintaining a relatively high level of annual new photovoltaic installations [4] Industry Capacity Management - The industry hopes to achieve rapid capacity exit through a "polysilicon storage" plan, but progress remains to be observed, with ongoing discussions about regulation, funding sources, and capacity distribution methods [4]