Core Viewpoint - Hoshine Silicon Industry (合盛硅业) has reported its first loss since its listing in 2017, with an expected net profit loss of 300 to 400 million yuan for the first half of 2025, and a significant loss of at least 560 million yuan in the second quarter alone [1][2]. Group 1: Financial Performance - The company's core products include industrial silicon, organic silicon, and polysilicon, which are integral to the photovoltaic industry [2]. - The loss is attributed to weak downstream demand for industrial silicon, low operating rates in the polysilicon sector, and a significant decline in market prices due to supply-demand imbalances [2][3]. - The average price of polysilicon fell to 38,000 yuan per ton in May 2024, below the industry average cost for over 14 months, while industrial silicon prices dropped to 9,648 yuan per ton by April 2025, also below production costs for nearly three months [3]. Group 2: Market Conditions - The industrial silicon and polysilicon sectors are experiencing historical lows in monthly operating rates, at 41.9% and 38.6% respectively [3]. - Despite the current downturn, there is potential for recovery in the organic silicon sector driven by emerging industries such as renewable energy and 5G [3][4]. - The company anticipates a gradual improvement in supply-demand dynamics, with recent price increases indicating a potential market recovery [4]. Group 3: Financing Activities - Hoshine Silicon has initiated multiple financing measures to address its financial pressures, including asset-backed securities (ABS) projects and significant credit lines totaling hundreds of billions of yuan [1][7]. - As of the first quarter of 2025, the company's total assets were 90.769 billion yuan, with total liabilities at 56.783 billion yuan, resulting in a debt ratio of 62.56% [6]. - The company has also engaged in share transfers to raise funds, with its controlling shareholder transferring 5.08% of shares for 2.634 billion yuan to support both the company and its own financial needs [8].