Core Viewpoint - The company reported a significant decline in revenue and a net loss for the first half of the year, primarily due to falling industrial silicon prices and operational disruptions in the photovoltaic sector [1] Financial Performance - The company's revenue for the first half of the year was 9.775 billion, representing a year-on-year decrease of 26.34% [1] - The net loss amounted to 397 million, marking a shift from profit to loss compared to the previous year [1] Contributing Factors - The decline in revenue and the net loss were attributed to several factors, including a decrease in industrial silicon sales prices, operational losses in the photovoltaic segment, and provisions for inventory write-downs [1]

1. Report Industry Investment Ratings No specific industry investment ratings are provided in the report. 2. Core Viewpoints - The A-share market is expected to enter a high-level oscillation phase, waiting for a direction decision. It is recommended to buy put options to protect long positions or partially take profits on previous positions [2]. - The bond market sentiment is expected to continue to stabilize, and it is advisable to lightly test long positions on bond futures during pullbacks [2]. - Gold is oscillating strongly, and it is recommended to buy gold options and construct a bull spread strategy. Silver long positions should be held above $38 [2]. - The container shipping index is weakly oscillating, and short positions on the October contract should be continued [2]. - For steel products, it is possible to try long positions as the apparent demand has stopped falling and rebounded. For iron ore, coking coal, coke, etc., it is recommended to go long at low prices [2]. - For non-ferrous metals, copper is expected to see inventory depletion near the peak season, and it is recommended to refer to the price range. For other non-ferrous metals, different trading strategies are given according to their respective fundamentals [2]. - In the energy and chemical sector, different trading strategies are provided for each variety based on their supply and demand, cost, and other factors [2]. - In the agricultural products sector, different trading strategies are recommended for each variety according to their market conditions [2]. - For special commodities, trading strategies such as taking partial profits on previous short positions and going short at high prices are proposed [2]. - In the new energy sector, it is recommended to wait and see for polysilicon and lithium carbonate [2]. 3. Summary by Relevant Catalogs Financial Sector - **Stock Index Futures**: A-share market is expected to enter high-level oscillation. It is recommended to buy put options to protect long positions or partially take profits on previous positions [2]. - **Bond Futures**: Bond market sentiment is expected to continue to stabilize. It is advisable to lightly test long positions on bond futures during pullbacks [2]. - **Precious Metals**: Gold is oscillating strongly. It is recommended to buy gold options and construct a bull spread strategy. Silver long positions should be held above $38 [2]. Commodity Sector - **Shipping Index**: The container shipping index is weakly oscillating, and short positions on the October contract should be continued [2]. - **Steel and Iron Ore**: For steel products, it is possible to try long positions as the apparent demand has stopped falling and rebounded. For iron ore, it is recommended to go long at low prices in the range of 770 - 820 [2]. - **Coking Coal and Coke**: Due to a sudden mine accident and partial coal mine shutdowns, coking coal futures are expected to rebound. It is recommended to go long at low prices. Coke is also recommended to go long at low prices as the coking profit continues to repair [2]. - **Non-Ferrous Metals**: Copper is expected to see inventory depletion near the peak season. Different trading strategies are given for other non-ferrous metals according to their fundamentals [2]. - **Energy and Chemicals**: Different trading strategies are provided for each variety based on their supply and demand, cost, and other factors, such as going long, shorting, or waiting and seeing [2]. - **Agricultural Products**: Different trading strategies are recommended for each variety according to their market conditions, such as going long, shorting, or waiting and seeing [2]. - **Special Commodities**: Trading strategies such as taking partial profits on previous short positions and going short at high prices are proposed [2]. - **New Energy**: It is recommended to wait and see for polysilicon and lithium carbonate [2].

Report Summary 1. Report Industry Investment Rating There is no mention of the industry investment rating in the report. 2. Core Viewpoints - This week, industrial silicon prices rose by 1.51%, with market sentiment improving and prices oscillating upward in the range of 7,000 - 7,500. Polysilicon prices fell by 3.12%, continuing last week's downward trend due to reduced downstream demand [7]. - In the future, the supply of industrial silicon will remain abundant, while demand from its three major downstream industries is slowing. The polysilicon supply is in a state of reduced load operation, and demand is under significant pressure, with high inventory levels [7]. - It is recommended that the industrial silicon main contract oscillate in the range of 6,800 - 7,600, with a stop - loss range of 6,500 - 7,800. The polysilicon main contract should oscillate in the range of 30,000 - 34,000, with a stop - loss range of 29,000 - 35,000 [7]. 3. Summary by Directory 3.1 Week - on - Week Summary - **Market Review**: Industrial silicon prices rose by 1.51% this week, with a shift in the main contract to 09. Polysilicon prices fell by 3.12% due to reduced downstream demand [7]. - **Market Outlook**: For industrial silicon, supply will remain loose, and demand from downstream industries is slowing. For polysilicon, supply is in a reduced - load state, demand is weak, and inventory is high [7]. - **Operation Suggestions**: The industrial silicon main contract should oscillate in the range of 6,800 - 7,600, with a stop - loss range of 6,500 - 7,800. The polysilicon main contract should oscillate in the range of 30,000 - 34,000, with a stop - loss range of 29,000 - 35,000 [7]. 3.2 Spot and Futures Markets - **Industrial Silicon**: This week, the futures price of industrial silicon fell. The spot price was slightly flat, and the basis weakened. It is expected to continue weakening next week. As of June 20, 2025, the spot price was 8,150 yuan/ton, and the basis was 760 yuan/ton [8][13][15]. - **Polysilicon**: This week, the futures price of polysilicon fell significantly, the basis weakened, and the spot price declined. As of June 20, 2025, the spot price was 31 yuan/kg, and the basis was - 1,895 yuan/g [17][20]. - **Futures Market**: This week, the operating rate and output of industrial silicon increased. As of June 19, 2025, the national output was about 73,100 tons, and the national capacity utilization rate was 50.34% [22][24]. 3.3 Industry Situation - **Raw Materials and Cost**: This week, the raw materials of industrial silicon decreased slightly, electricity prices dropped, and government subsidies reduced costs. The willingness of enterprises to start production during the wet season increased [26][29]. - **Inventory**: This week, the warehouse receipts and social inventory of industrial silicon decreased. As of June 19, 2025, the number of warehouse receipts was 55,179 lots, a decrease of 3,495 lots from the previous period, and the total social inventory was 559,000 tons, a decrease of 13,000 tons [31][33]. - **Downstream Situation** - **Organic Silicon**: The output and operating rate of organic silicon increased. As of June 20, 2025, the weekly output was 45,000 tons, an increase of 4,140 tons, and the weekly operating rate was 68.4%, an increase of 2.12%. The cost of organic silicon spot increased slightly, the price decreased, and the profit declined [36][40][46]. - **Aluminum Alloy**: The spot price of aluminum alloy was flat, and the inventory increased. It is expected that the demand for industrial silicon will remain weak [48][53]. - **Silicon Wafer and Battery Cell**: The prices of silicon wafers and battery cells continued to decline, which affected the demand for polysilicon and had a negative impact on upstream industrial silicon [55][57]. - **Industrial Chain Analysis**: This week, the cost of polysilicon remained flat, and it is expected that the output will gradually decline. In May 2025, the total output of polysilicon plants in China was 97,355 tons, a decrease of 1,447 tons from the previous month, a month - on - month decrease of 0.59% [61][63].

Report Summary 1. Industry Investment Rating No investment rating information is provided in the report. 2. Core Viewpoints - The sentiment in the industrial silicon commodity market has improved, and upward risks should be noted. The fundamental situation of polysilicon remains weak [1]. - The trend strength of industrial silicon and polysilicon is -1, indicating a bearish outlook [3]. 3. Content Summaries by Directory 3.1 Fundamental Tracking - **Futures Market**: Si2507's closing price was 7,135 yuan/ton, down 145 yuan from T - 1, 205 yuan from T - 5, and 1,405 yuan from T - 22. PS2507's closing price was 34,540 yuan/ton, down 515 yuan from T - 1 and 560 yuan from T - 5 [1]. - **Basis**: The spot premium of industrial silicon (against East China Si5530) was +1050 yuan/ton, and that of polysilicon (against N - type re - investment) was - 1490 yuan/ton [1]. - **Prices**: The price of East China oxygen - passing Si5530 was 8150 yuan/ton, and the price of polysilicon - N - type re - investment material was 36500 yuan/ton [1]. - **Profits**: The profit of silicon plants (Xinjiang new standard 553) was - 3988 yuan/ton, and the profit of polysilicon enterprises was - 4.7 yuan/kg [1]. - **Inventory**: The industrial silicon social inventory (including warehouse receipt inventory) was 58.7 tons, and the polysilicon manufacturer inventory was 26.9 tons [1]. - **Raw Material Costs**: The price of Xinjiang silicon ore was 400 yuan/ton, and the price of Xinjiang washed coking coal was 1350 yuan/ton [1]. 3.2 Macro and Industry News Canadian solar manufacturer Heliene has put into operation a 500MW component assembly plant in Minnesota, USA. The company's total annual production capacity in the US has reached 1.3GW [2]. 3.3 Trend Intensity The trend intensity of industrial silicon and polysilicon is -1, with -2 being the most bearish and 2 being the most bullish [3].

Report Summary 1) Report Industry Investment Rating No information provided on the industry investment rating. 2) Core View of the Report The report focuses on the fundamentals of industrial silicon and polysilicon, including futures market data, price, profit, inventory, and raw material costs. It also mentions a significant industrial silicon project in Xinjiang and the trend strength of both industrial silicon and polysilicon [2][4]. 3) Summary by Relevant Catalogs Fundamentals Tracking - **Futures Market Data**: For industrial silicon, Si2506 had a closing price of 8,490 yuan/ton, with volume of 382,636 hands and open interest of 146,525 hands. For polysilicon, PS2506 closed at 38,420 yuan/ton, with volume of 236,082 hands and open interest of 44,692 hands [2]. - **Price and Profit**: Industrial silicon prices showed declines in some regions. Polysilicon - N type re - feed material was priced at 39,500 yuan/ton. Silicon factory profits were mostly negative. Polysilicon enterprise profit was - 3.2 yuan/kg [2]. - **Inventory**: Industrial silicon social inventory was 59.6 million tons, and polysilicon factory inventory was 25.7 million tons [2]. - **Raw Material Costs**: Prices of raw materials like silicon ore, washed coal, petroleum coke, etc., had different trends. For example, Xinjiang silicon ore was 440 yuan/ton, and Xinjiang washed coal decreased by 50 yuan/ton compared to T - 5 [2]. Macro and Industry News On May 9th, the 100,000 - ton industrial silicon technological transformation project of Xinjiang Yaoju Silicon - based New Materials Co., Ltd. in Heshuo County started. The project has a total investment of 1.268 billion yuan and is expected to bring significant economic benefits after production [4]. Trend Strength The trend strength of both industrial silicon and polysilicon is - 1, indicating a relatively bearish outlook [4].