Financial Data and Key Metrics Changes - Revenues for Q2 2025 were $75.2 million, down from $123.9 million in Q1 2025 and $219.9 million in Q2 2024, primarily due to decreased sales volume [16][17] - Gross loss was $81.4 million, with a gross margin of negative 108%, compared to negative 65.8% in Q1 2025 and negative 72% in Q2 2024 [17] - Net loss attributable to shareholders was $76.5 million, compared to $71.8 million in Q1 2025 and $119.8 million in Q2 2024 [19] - Cash balance as of June 30, 2025, was $599 million, down from $792 million as of March 31, 2025 [21] Business Line Data and Key Metrics Changes - Total production volume for the quarter was 29,012 metric tons, within guidance, but sales volume decreased to 18,126 metric tons from 28,008 metric tons in Q1 2025 [8][9] - Polysilicon unit production cost decreased by 4% sequentially to an average of $7.26 per kilogram [10] Market Data and Key Metrics Changes - Poly market prices fell from RMB 39-45 per kilogram in April to RMB 32-35 per kilogram by June [11] - A surge in installations in China occurred in May with 93 gigawatts added, but installations dropped to 14 gigawatts in June [10] Company Strategy and Development Direction - The company aims to enhance efficiency through digital transformation and AI adoption, positioning itself as a low-cost producer [14] - The company is optimistic about the long-term growth of the solar PV industry and is focused on navigating current market challenges [14] Management's Comments on Operating Environment and Future Outlook - Management noted that the solar PV industry is facing challenges due to overcapacity and low prices, but they expect a recovery supported by government initiatives [6][12] - The company anticipates total polysilicon production volume for 2025 to be approximately 110,000 to 130,000 metric tons [10] Other Important Information - The company has no financial debt and maintains a strong balance sheet, providing confidence to navigate market conditions [7][8] - A new share repurchase program of $100 million was authorized, reflecting management's optimism about future industry conditions [38] Q&A Session Summary Question: Can you share updates on policy development and product prices? - Management discussed a recent symposium involving government officials and industry players aimed at curbing irrational competition and promoting high-quality development [27][28] Question: How sustainable are the higher pricing levels? - Management indicated that selling below cash cost is unsustainable and emphasized the need for industry self-regulation [32] Question: What is the outlook for industry production volumes? - Management expects production volumes to be around 100,000 to 110,000 metric tons per month, balanced with demand [32] Question: What is the strategy regarding the share repurchase program? - The company authorized a $100 million share repurchase program to strengthen shareholder confidence and reflect optimism about the industry's future [38] Question: How will the company manage inventory levels? - Management stated that they will adjust utilization rates to manage inventory and are actively participating in the futures market to mitigate price volatility [52]

Financial Data and Key Metrics Changes - Company recorded revenues of $75.2 million for Q2 2025, a decrease from $123.9 million in Q1 2025 and $219.9 million in Q2 2024 [17] - Gross loss was $81.4 million, with a gross margin of negative 108%, compared to negative 65.8% in Q1 2025 and negative 72% in Q2 2024 [18] - Net loss attributable to shareholders was $76.5 million, with a loss per basic ADS of $1.14, compared to $1.07 in Q1 2025 and $1.81 in Q2 2024 [20] Business Line Data and Key Metrics Changes - Total production volume for the quarter was 29,012 metric tons, with sales volume decreasing to 18,126 metric tons from 28,008 metric tons in Q1 2025 [10] - Cash cost per kilogram decreased by 4% to $5.12, while polysilicon unit production cost also decreased by 4% to $7.26 per kilogram [11][12] Market Data and Key Metrics Changes - Poly market prices trended downward, falling from RMB39-45 per kilogram in April to RMB32-35 per kilogram by June [13] - Despite a surge in installations in May, installations plummeted to 14 gigawatts in June, indicating volatility in demand [12] Company Strategy and Development Direction - Company aims to enhance efficiency through digital transformation and AI adoption, positioning itself as a low-cost producer with high-quality products [16] - The company is optimistic about the long-term growth of the solar PV industry and is focused on navigating current market challenges [16] Management Comments on Operating Environment and Future Outlook - Management noted that the solar PV industry is facing challenges due to overcapacity and low prices, but they expect a recovery supported by government initiatives [8][15] - The company anticipates a production volume of approximately 27,000 to 30,000 metric tons for 2025, with a full-year guidance of 110,000 to 130,000 metric tons [12] Other Important Information - The company has a strong balance sheet with no financial debt and a cash balance of CNY599 million as of June 30, 2025 [9] - A new share repurchase program of $100 million was authorized, reflecting management's confidence in the industry's future [40] Q&A Session Summary Question: Can you share updates on policy development regarding the consolidation fund? - Management discussed recent government meetings aimed at curbing irrational competition and promoting industry self-regulation [29][30] Question: How sustainable do you think the higher pricing can be with anti-involution initiatives? - Management expressed that selling below cash cost is unsustainable and emphasized the need for industry players to align on pricing above production costs [34][35] Question: What is the strategy behind the recently announced share repurchase program? - The program aims to strengthen shareholder confidence and reflects optimism about the industry's future [40][41] Question: How do you see the balance between price and inventory dynamics? - Management indicated that industry policies will help balance supply and demand, and they are actively managing inventory levels [55][56] Question: Will the company sell more polysilicon in Q3? - Management confirmed that they intend to adjust sales strategies based on market conditions and regulatory developments [70][71]