Core Viewpoint - Jiangsu Zhongrun Photovoltaic Technology Co., Ltd. (Zhongrun Photovoltaic) is advancing its listing process in Hong Kong, having submitted its application twice, with a focus on specialized photovoltaic cell manufacturing and vertical expansion into module production [1][2]. Company Overview - Zhongrun Photovoltaic is the world's largest specialized manufacturer of photovoltaic cells, with a significant market share of 18.3% among specialized manufacturers and 14.6% among all manufacturers, based on a projected shipment of 34.5GW in 2024 [1][2]. - The company has two main business lines: photovoltaic cells and modules, with cell revenue accounting for 81.1% of total revenue in 2024 [2]. Financial Performance - Revenue figures for Zhongrun Photovoltaic from 2022 to 2024 are projected at 12.517 billion, 20.838 billion, and 11.320 billion RMB, respectively, with net profits of 834 million, 1.681 billion, and a loss of 1.363 billion RMB [1][3]. - In the first half of 2025, the company reported revenue of 7.465 billion RMB, a 26.46% increase year-on-year, and a net profit of 1.204 billion RMB, indicating a turnaround from previous losses [1][10]. Market Dynamics - The transition from P-type to N-type photovoltaic cells is a significant trend, with N-type cell revenue growing from 0% in 2022 to 48.1% in 2024, driven by advancements in technology [3][4]. - The average selling price of photovoltaic cells has seen a drastic decline, with prices dropping from 0.9945 RMB/W in 2022 to 0.3202 RMB/W in 2024, reflecting intense market competition [7][8]. International Expansion - Zhongrun Photovoltaic has established a global presence, exporting products to over 32 countries and regions, with significant production capacities in the U.S., Europe, and Southeast Asia [5][6]. - In 2024, 67.1% of the company's revenue came from mainland China, while 32.9% was generated from international markets, indicating a successful international strategy [5][6]. Industry Trends - The photovoltaic industry is experiencing a shift towards "value competition" rather than "price competition," with efforts to stabilize prices and improve profitability [9][10]. - The company's strategic focus on advanced technologies such as HJT, TOPCon, and perovskite solar cells is crucial for maintaining competitiveness and achieving long-term growth [10].

Core Viewpoint - Longi Green Energy (601012.SH) is actively researching and focusing on perovskite tandem solar cell technology, achieving a significant milestone in efficiency [1] Group 1: Technological Advancements - The company announced that its self-developed large-area (260.9 cm²) silicon-perovskite tandem solar cell achieved a conversion efficiency of 33%, setting a new global record for large-area perovskite tandem cells [1] - The technology team is concentrating on mass production processes and component product development, making substantial progress in product reliability [1]

Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for future performance despite current challenges [4][6]. Core Insights - The company reported a revenue of 32.813 billion yuan for H1 2025, a year-on-year decrease of 14.83%, with a net profit attributable to shareholders of -2.569 billion yuan, although the loss margin has narrowed compared to previous periods [1]. - The company has increased its silicon wafer shipment by 17.19% year-on-year to 52.08 GW, and battery module shipments grew by 23.09% to 41.85 GW, indicating a strong market presence and growth in key segments [2]. - By the end of 2025, it is expected that the high-efficiency HPBC2.0 battery production capacity will exceed 60%, with the company maintaining a leading position in the industry through advanced technology [3]. Summary by Sections Financial Performance - For H1 2025, the company achieved a revenue of 32.813 billion yuan, down 14.83% year-on-year, and a net profit of -2.569 billion yuan, with the loss margin narrowing [1]. - The Q2 2025 revenue was 19.161 billion yuan, a decrease of 8.12% year-on-year, with a net profit of -1.133 billion yuan, also showing a reduction in loss [1]. Product and Market Development - The company has focused on high-value customers and niche markets, achieving significant growth in overseas sales, particularly in Spain, Australia, and Romania, with silicon wafer exports increasing by over 70% year-on-year [2]. - The HPBC2.0 technology has reached a mass production yield of 97% and a conversion efficiency of 24.8%, with expectations for high-efficiency production capacity to exceed 60% by the end of 2025 [3]. Operational Efficiency - The company has improved operational efficiency significantly, with sales and management expenses decreasing by 37% and 23% respectively in H1 2025, while maintaining a strong cash reserve of 49.303 billion yuan and a debt ratio of 60.72% [4].

Financial Performance - The company achieved a revenue of 4.213 billion yuan, a year-on-year decrease of 13.48% [2] - The net profit attributable to shareholders was 394 million yuan, down 14.59% year-on-year [2] - The gross profit margin increased from 26.92% in the same period last year to 33.74% [2] Semiconductor Sector Strategy - The company has established a strategic layout in the semiconductor field, focusing on three key technology platforms: vacuum, laser, and precision equipment [3] - The rapid progress is attributed to a differentiated development path, targeting areas with less competition and collaborating with customers on key technological nodes [3] - The company emphasizes future technology trends in its product differentiation strategy, particularly in selective etching and atomic layer deposition [4] Selective Etching Applications - Selective etching is widely used in 3D flash memory, DRAM, and advanced logic applications [5] - The company's selective etching technology minimizes physical damage and meets customer demands for precision and low-damage etching processes [5] HJT Battery Technology - The company is making significant progress in HJT battery technologies, with goals to achieve an average power of 780W and a maximum power close to 800W by the end of the year [6] - The silver content in HJT battery back-side paste has been reduced to below 15%, with plans to transition to pure copper paste without a seed layer [8] Future Trends in Photovoltaics - The company anticipates a shift towards silver-free or low-silver technologies in battery cell back-side materials [8] - HJT technology is seen as advantageous in overseas markets due to its high automation and manufacturing yield [8] - The company believes that silicon-based perovskite tandem solar cells represent a sustainable development direction for the photovoltaic industry [8]