Core Viewpoint - The company adopts a production model based on sales orders and a procurement model based on production, allowing it to mitigate risks associated with silver price fluctuations through pricing strategies and hedging [2]. Group 1: Production and Procurement Models - The company implements a production model that aligns with sales orders and a procurement model that aligns with production needs, placing orders for silver powder on the same day sales orders are received [2]. - The pricing of conductive silver paste products and the main silver powder procurement prices are based on current or similar silver spot prices, enabling the company to pass on the impact of silver price fluctuations to downstream customers [2]. Group 2: Risk Management Strategies - To further reduce the risk of silver price volatility, the company hedges the silver price difference between sales orders and procurement orders using silver futures [2]. - The hedging strategy is closely related to the company's daily operational needs and has a clear business foundation [2]. Group 3: Financial Impact - Fluctuations in silver prices affect several financial statement items, including operating income, operating costs, investment income, and fair value change gains, but do not impact the company's long-term actual operating profits [2]. - During the recent rapid increase in silver prices, the company recognized fair value change losses for silver futures and silver leasing based on the silver spot price at the balance sheet date, while inventory cannot be recognized for appreciation [2].

Financial Performance - In Q1-Q3 2025, the company achieved operating revenue of 12.724 billion CNY, a year-on-year increase of 10.55% [2] - Net profit attributable to shareholders was 29.4566 million CNY, a year-on-year decrease of 89.94% [2] - Net profit excluding non-recurring gains and losses was 126.6153 million CNY, down 68.93% year-on-year [2] - Total assets reached 11.029 billion CNY, a year-on-year increase of 40.82% [2] - Net assets amounted to 1.783 billion CNY, up 6.49% year-on-year [2] - Sales of photovoltaic conductive paste were 1,337.36 tons, a year-on-year decrease of 15.44%, with over 96% used for N-type battery paste products [2] Acquisition and Business Development - The company completed the acquisition of Zhejiang Suote, holding 60% of its shares, integrating the Solamet® photovoltaic silver paste business [4] - The third-quarter paste shipment statistics included Zhejiang Suote's shipments from September [4] - The acquisition of Jiangsu Jingkai, with a 62.5% stake, aims to create a closed-loop storage industry chain [9] Product and Market Trends - The company is progressing with high copper paste solutions, expecting GW-level production lines to be operational in Q4 [5] - The processing fees for TOPCon silver paste remain stable, while HJT and TBC cell paste processing fees are higher [8] - The storage business achieved sales revenue of 269 million CNY in the first three quarters of 2025, showing significant growth [11] Market Conditions and Pricing - The silver price increase has been managed through a sales-based production model, allowing price fluctuations to be passed to downstream customers [6] - The company employs silver futures hedging to mitigate risks associated with silver price volatility [7] - DRAM product market prices have been rising since Q2 2025, with expectations for increased shipment volumes [11] Future Outlook - Short-term growth in the storage business is anticipated from price and shipment volume increases, with a broad customer base supporting demand [11] - Long-term growth drivers include the rapid growth of AI computing power and the penetration of edge AI, which will support storage market demand and product pricing [11]