Core Viewpoint - GCL-Poly Energy (03800.HK) announced a voluntary disclosure indicating that its photovoltaic materials business is expected to turn profitable by the third quarter of 2025, following a significant improvement in financial performance [1]. Financial Performance - The photovoltaic materials segment recorded a profit of approximately 960 million RMB, compared to a loss of 1.81 billion RMB in the same period last year [3]. - The main factor for the turnaround was the after-tax gain from the sale of an associate company, amounting to about 640 million RMB. Excluding this non-recurring gain, the photovoltaic materials business still achieved operational profit [3]. - The EBITDA for this segment was approximately 1.41 billion RMB, a significant improvement from an adjusted LBITDA loss of about 571 million RMB in the previous year [3]. Cost and Pricing Dynamics - The average production cash cost of granular silicon (including R&D costs) decreased to 24.16 RMB/kg in the third quarter of 2025, down from 25.31 RMB/kg in the second quarter [3]. - The average external selling price (including tax) for granular silicon rose significantly to 42.12 RMB/kg, compared to 32.93 RMB/kg in the second quarter [4]. Industry Context - The announcement reflects a decline in costs, a recovery in demand, and a price correction within the granular silicon segment, amidst a backdrop of intense competition in the photovoltaic materials industry [4]. - In the first half of this year, several photovoltaic material companies reported a reduction in quarterly losses or achieved profitability, with 47 A-share photovoltaic companies facing losses, up from 39 in the same period last year [4]. - GCL-Poly Energy is noted as the first company in the silicon material industry to achieve a phase of profitability, benefiting from stable pricing across the polysilicon supply chain [4]. Inventory and Production Outlook - In the first nine months of this year, the domestic polysilicon industry saw a cumulative inventory reduction of approximately 12,000 tons [5]. - The expected domestic polysilicon production for October is around 130,000 tons, with a slight increase in production compared to previous months, while demand remains relatively stable [5].