Report Summary 1. Industry Investment Rating - No industry investment rating is provided in the report. 2. Core Viewpoints - Industrial silicon is in a weak and volatile trend [1]. - Polysilicon's futures market is running strongly, and attention should be paid to the content of today's meeting [2]. 3. Summary by Directory 3.1 Fundamental Tracking - **Futures Market**: - Industrial silicon (Si2511): The closing price is 8,570 yuan/ton, with a decrease of 70 yuan compared to T - 5 and 250 yuan compared to T - 22; the trading volume is 225,068 lots, showing a decreasing trend; the open interest is 142,381 lots, also decreasing [2]. - Polysilicon (PS2511): The closing price is 50,865 yuan/ton, an increase of 875 yuan compared to T - 1; the trading volume is 276,176 lots; the open interest is 80,114 lots [2]. - **Basis**: - Industrial silicon: The spot premium or discount varies according to different benchmarks, such as +830 yuan/ton for East China Si5530 and +330 yuan/ton for East China Si4210 [2]. - Polysilicon: The spot premium for N - type re - investment is +1385 yuan/ton [2]. - **Prices**: - Industrial silicon: The price of Xinjiang 99 silicon is 8,850 yuan/ton, and Yunnan Si4210 is 9,950 yuan/ton [2]. - Polysilicon: The price of N - type re - investment material is 52,750 yuan/ton [2]. - **Profits**: - Industrial silicon: The profit of Xinjiang new standard 553 silicon plant is - 2,699.5 yuan/ton, and that of Yunnan new standard 553 is - 3,638 yuan/ton [2]. - Polysilicon: The profit of polysilicon enterprises is - 14.0 yuan/kg [2]. - **Inventory**: - Industrial silicon: The social inventory (including warehouse receipt inventory) is 54.5 million tons, the enterprise inventory is 16.8 million tons, and the industry inventory is 71.3 million tons [2]. - Polysilicon: The manufacturer's inventory is 24.0 million tons [2]. - **Raw Material Costs**: - Industrial silicon: The prices of raw materials such as silicon ore, washed coal, petroleum coke, and electrodes vary in different regions [2]. - Polysilicon: The prices of related products such as trichlorosilane, silicon powder, silicon wafers, battery cells, components, photovoltaic glass, and photovoltaic - grade EVA are provided [2]. - Organic silicon: The price of DMC is 11,300 yuan/ton, and the enterprise profit is - 830 yuan/ton [2]. - Aluminum alloy: The price of ADC12 is 21,050 yuan/ton, and the profit of recycled aluminum enterprises is 130 yuan/ton [2]. 3.2 Macro and Industry News - On October 15, 2025, the State Grid Xinjiang Electric Power Co., Ltd. announced the results of the competitive bidding for the mechanism electricity price of incremental new energy projects in 2025. The mechanism electricity price for wind power is 0.252 yuan/kWh with a scale of 18,539,219,756 kWh, and for photovoltaic power is 0.235 yuan/kWh with a scale of 3,608,399,178 kWh [2][4]. 3.3 Trend Intensity - The trend intensity of industrial silicon is 0, indicating a neutral trend; the trend intensity of polysilicon is 1, indicating a relatively strong trend [4].

Core Insights - TrendBank is organizing various industry conferences to promote collaboration and innovation in the semiconductor and display technology sectors [3][4][10] - The company aims to enhance resource aggregation and industry cluster development in the Ningbo and Yangtze River Delta regions [10][11] Event Summaries - The 2025 TrendBank Display Technology and Supply Chain Industry Annual Conference will be held from November 19-21 in Chengdu, Sichuan [3] - The 2025 TrendBank Polarizer Industry Conference successfully gathered numerous enterprises to explore future development opportunities [4] - The 2025 TrendBank Lithography Industry Conference focused on the localization of lithography technology [4] - The 2025 TrendBank PI Conference and the HIPC 2025 event on heterogeneous integration were also successfully concluded [4] - In 2026, TrendBank plans to host a series of conferences focusing on advanced materials and technologies in the semiconductor industry [6][7][8] Future Plans - TrendBank will collaborate with the Yongjiang Laboratory to host the Heterogeneous Integration Annual Conference from November 17-19, 2025, focusing on advanced packaging technologies [10][11] - The conference will cover topics such as multi-material heterogeneous integration, optoelectronic co-packaging, and advanced packaging techniques like TGV and FOPLP [11]

Market Trends - Photovoltaic sector stocks rose on Tuesday, with LONGi Green Energy once hitting the daily limit [1] - The industry anticipates a new policy release aimed at curbing internal competition [1] - Relevant authorities may issue a notice to strengthen photovoltaic capacity regulation [1]

Industry Overview - The trade tensions between the US and China have escalated, with the US considering an additional 100% tariff on Chinese goods, which has led to significant declines in US stock markets and the Nasdaq Golden Dragon Index. This situation is expected to cause a notable pullback in the A-share market, which has reached a 10-year high. However, the impact may be less severe than previous tensions in April due to the timing of policy implementations [2]. Company Performance - Taiwan's leading PCB manufacturer, Zhen Ding Technology, reported a consolidated revenue of NT$47.366 billion for Q3, a quarter-on-quarter increase of 23.98%. The company anticipates record performance in Q4 due to ongoing demand from IC substrates and various customer orders [3]. - ASUS announced a revenue of NT$82.6 billion for September, reflecting a 31% quarter-on-quarter and 33% year-on-year growth. The Q3 revenue reached NT$200.3 billion, marking a 7% quarter-on-quarter and 20% year-on-year increase, driven by demand for servers, graphics cards, and commercial PCs [3]. - Hengdian East Magnetic (002056.SZ) expects a net profit of between RMB 1.39 billion and RMB 1.53 billion for the first three quarters of 2025, representing a year-on-year growth of 50.1% to 652%. The company benefits from strong demand in the new energy vehicle and AI server sectors, as well as effective cost control in the photovoltaic market [4]. - Jihong Co. anticipates a net profit of between RMB 257 million and RMB 270 million for the first three quarters of 2025, indicating a year-on-year increase of 95.07% to 105.31%. The growth is attributed to the expansion of cross-border e-commerce and strategic partnerships in the packaging sector [7].

Core Insights - In August, China's total electricity consumption reached 10,154 billion kilowatt-hours, marking a 5% year-on-year increase, and setting a historical record for the second consecutive month [1][2] Group 1: Electricity Consumption by Sector - The primary industry saw a significant increase in electricity consumption, with a total of 1,012 billion kilowatt-hours in the first eight months, reflecting a 10.6% year-on-year growth, which is 3.6 percentage points higher than the previous year [1] - The secondary industry continued its recovery, with electricity consumption of 4.34 trillion kilowatt-hours in the first eight months, showing a 3.1% year-on-year increase [1] - The high-tech and equipment manufacturing sectors experienced a 5.3% increase in electricity consumption, outperforming the average growth rate of the manufacturing sector by 2.5 percentage points [1] - The new energy vehicle manufacturing sector maintained rapid growth, with an electricity consumption increase of 23% in the first eight months [1] Group 2: Trends in Specific Industries - The information transmission, software, and IT services sectors saw a 15.8% increase in electricity consumption, driven by the rapid development of mobile internet, big data, and cloud computing [2] - The wholesale and retail sectors experienced an 11.8% increase, with the electric vehicle charging and swapping services growing by 44.1% [2] - Urban and rural residential electricity consumption grew by 6.6% in the first eight months, with a 2.4% year-on-year increase in August [2] Group 3: Economic and Policy Context - The macroeconomic environment is showing signs of recovery, supported by policies aimed at promoting consumption and stabilizing industrial growth, leading to a release of production capacity across various sectors [3] - In August, manufacturing electricity consumption increased by 5.5%, the highest monthly growth rate of the year, with notable recovery in raw material industries such as steel, building materials, non-ferrous metals, and chemicals [3] - High-tech and equipment manufacturing sectors demonstrated strong resilience, with all sub-sectors achieving positive growth, indicating the emergence of new economic growth points [3]

Core Insights - In August, China's total electricity consumption reached 10,154 billion kilowatt-hours, marking a 5% year-on-year increase, and achieving a historical high for the second consecutive month [1] - The first industry saw a significant growth in electricity consumption, with a total of 1,012 billion kilowatt-hours in the first eight months, reflecting a 10.6% year-on-year increase [1] - The second industry continued its recovery, with electricity consumption of 4.34 trillion kilowatt-hours in the first eight months, up 3.1% year-on-year [1] - The third industry maintained rapid growth, with electricity consumption of 1.33 trillion kilowatt-hours in the first eight months, showing a 7.7% year-on-year increase [1] Industry-Specific Insights - High-tech and equipment manufacturing industries collectively saw a 5.3% year-on-year increase in electricity consumption in the first eight months, outperforming the average growth rate of the manufacturing sector by 2.5 percentage points [1] - The new energy vehicle manufacturing sector experienced a remarkable growth of 23% in electricity consumption during the first eight months [1] - The information transmission/software and IT services sector reported a 15.8% year-on-year increase in electricity consumption, driven by the rapid development of mobile internet, big data, and cloud computing [2] - The wholesale and retail sector's electricity consumption grew by 11.8%, with the electric vehicle charging and swapping services seeing a substantial increase of 44.1% [2] Economic Context - The high electricity consumption levels are attributed to the summer heat, with record high loads reported in July and August due to high temperatures across the country [2] - Government policies aimed at promoting consumption and stabilizing industrial growth have contributed to a warming macroeconomic environment, leading to a release of production capacity across various industries [3] - In August, the manufacturing sector's electricity consumption grew by 5.5%, the highest monthly increase this year, with notable recovery in raw material industries such as steel, building materials, non-ferrous metals, and chemicals [3] - The resilience of high-tech and equipment manufacturing is evident, with all sub-sectors achieving positive growth, indicating the emergence of new economic growth points [3]

Core Viewpoint - Suzhou Shijin Technology Co., Ltd. has signed a cooperation agreement to introduce a total of 301 million yuan in relief funds to alleviate its liquidity pressure and ensure continued operations [1][2]. Group 1: Financial Arrangement - The initial capital injection will not exceed 135 million yuan, allocated in two main directions: up to 72.5 million yuan for acquiring existing debts to optimize the debt structure, and up to 62.5 million yuan as a loan to ensure employee salary payments and daily operations [2]. - The loan has a term of 36 months with a fixed annual interest rate of 4.5%, featuring a flexible repayment method that significantly reduces short-term financial pressure [2]. Group 2: Governance and Oversight - The agreement includes multiple safeguards and compliance frameworks to ensure the safe and proper use of relief funds, including collateral and guarantees to protect state capital interests [2]. - An investment decision committee, composed of representatives from the three state-owned enterprises, will oversee the fund's usage, requiring a two-thirds majority for decisions [2]. Group 3: Long-term Impact - The relief cooperation is seen as a milestone for the long-term development of Shijin Technology, providing immediate liquidity relief and supporting core business operations in environmental protection and photovoltaic sectors [3]. - This case serves as a model for similar enterprises facing temporary difficulties, showcasing a collaborative approach between government and state-owned enterprises [3].

1. Report Industry Investment Rating No relevant information provided. 2. Core Viewpoints of the Report - The supply of industrial silicon is increasing, with last week's supply at 93,000 tons, a 1.09% week - on - week increase. The demand is also rising, reaching 86,000 tons last week, a 7.50% week - on - week growth. However, the overall market situation is complex, with high inventories in multiple downstream sectors and varying profit and loss conditions [6]. - The supply of polysilicon increased slightly last week, with a production of 31,100 tons, a 0.32% week - on - week increase. The demand side shows a mixed picture, with some products in a loss state and others in profit. The overall demand is expected to be weak in the short - term but may rebound later [8]. - The main factors affecting the market include cost support, demand recovery after the holiday, and the supply - demand imbalance in the downstream polysilicon market. There are both positive and negative factors, and the market is expected to fluctuate within a certain range [10][11]. 3. Summaries According to the Catalog 3.1 Daily Views Industrial Silicon - **Fundamentals**: Supply increased, demand rose, and inventories in downstream sectors such as polysilicon, organic silicon, and alloy ingots were at high levels. Some production was in a loss state, and the comprehensive operating rate of organic silicon was lower than the historical average [6]. - **Basis**: The spot price of industrial silicon in East China was at a premium to the futures price, which is considered a positive factor [6]. - **Inventory**: The social inventory remained flat, while the sample enterprise inventory decreased. The inventory at major ports remained unchanged, presenting a mixed signal [6]. - **Disk**: The MA20 was upward, but the price of the 11 - contract closed below the MA20, showing a neutral situation [6]. - **Main Position**: The main position was net short, and the short position increased, indicating a negative factor [6]. - **Expectation**: The supply production schedule increased, demand recovery was at a low level, and cost support increased. The industrial silicon 2511 is expected to fluctuate in the range of 8,475 - 8,745 [6]. Polysilicon - **Fundamentals**: Supply increased slightly, and the demand side had different performance in various products. Some were in a loss state, and some were profitable. The overall demand was expected to decline in the short - term but may rebound later [8]. - **Basis**: The N - type dense material spot price was at a premium to the futures price, which is a positive factor [8]. - **Inventory**: The weekly inventory was at a high level, showing a neutral situation [8]. - **Disk**: The MA20 was downward, and the price of the 11 - contract closed below the MA20, indicating a negative factor [8]. - **Main Position**: The main position was net long, and the long position increased, suggesting a positive factor [8]. - **Expectation**: The supply production schedule decreased in the short - term and is expected to recover in the medium - term. The overall demand is expected to decline but may rebound later. The polysilicon 2511 is expected to fluctuate in the range of 50,340 - 52,220 [8]. 3.2 Market Overview Industrial Silicon - Futures prices of multiple contracts decreased, with the 01 - contract price dropping from 9,320 to 8,955, a 3.92% decline. Spot prices of some products remained unchanged, and there were changes in inventory and production data [14]. Polysilicon - Futures prices of some contracts decreased, and there were changes in the prices of silicon wafers, battery cells, and components. The inventory of polysilicon was at a high level, and the production and export of related products also had corresponding changes [16]. 3.3 Price and Basis Trends - Industrial silicon price - basis and delivery product spread trends showed the historical trends of the basis and the spread between different grades of silicon [18][19]. - Polysilicon disk price trends presented the price and trading volume trends of the main contract, as well as the basis trend [22][23]. 3.4 Inventory, Production, and Capacity Utilization - Industrial silicon inventory included social inventory, sample enterprise inventory, and inventory at major ports. The inventory situation varied, with some remaining flat and some decreasing [6][14]. - Industrial silicon production and capacity utilization trends showed the historical production and capacity utilization rates of sample enterprises and different grades of silicon [26][27][28]. - Polysilicon inventory was at a high level, and there were changes in the production and inventory of related products such as silicon wafers and battery cells [8][16]. 3.5 Cost and Supply - Demand Balance - Industrial silicon cost trends showed the cost and profit trends of different regions and grades of silicon [33][34]. - Industrial silicon supply - demand balance included weekly and monthly supply - demand balance tables, showing the production, import, export, and consumption of industrial silicon [35][36][38][39]. 3.6 Downstream Market Trends Organic Silicon - The price, production, and inventory trends of DMC, as well as the price trends of downstream products such as 107 glue, silicone oil, raw rubber, and D4, were presented. The production profit of organic silicon was in a loss state, and the inventory was at a high level [41][42][43][44][45]. Aluminum Alloy - The price, supply, inventory, and production trends of aluminum alloy were shown. There were changes in the price, cost, and profit of imported ADC12, and the production and inventory of different types of aluminum alloy ingots also had corresponding changes [51][52][54][55]. Polysilicon - The production, inventory, and price trends of polysilicon and its downstream products such as silicon wafers, battery cells, and components were analyzed. The profit and loss situation of different products varied, and the overall market situation was complex [8][16].

Core Viewpoint - Suzhou Shijin Technology Co., Ltd. has signed a cooperation agreement with three state-owned institutions to introduce a total of 301 million yuan in relief funds to alleviate short-term liquidity pressure and support ongoing operations [1][2]. Group 1: Financial Arrangement - The initial phase of the relief fund will not exceed 135 million yuan, allocated in two main directions: up to 72.5 million yuan for acquiring existing debts to optimize the debt structure and reduce repayment pressure, and up to 62.5 million yuan as a loan to ensure employee salary payments and daily operations [2]. - The loan has a term of 36 months with a fixed annual interest rate of 4.5%, featuring a flexible repayment method that significantly eases short-term cash flow pressure [2]. Group 2: Governance and Oversight - The agreement includes multiple safeguards and compliance frameworks to ensure the safe and proper use of relief funds, with Shijin Technology and related parties providing various guarantees [2]. - An investment decision committee composed of representatives from the three state-owned enterprises will oversee the fund's usage, requiring a two-thirds majority for decisions, ensuring rigorous risk control and demonstrating confidence in Shijin Technology's operational prospects [2]. Group 3: Long-term Impact - The relief cooperation is seen as a milestone for Shijin Technology, with short-term funding expected to quickly alleviate liquidity issues and stabilize the core team and supply chain [3]. - Long-term, the optimization of the debt structure and the infusion of operational funds will support the company's focus on core businesses such as environmental protection and photovoltaics, helping it leverage technological advantages to seize market opportunities [3]. - This cooperation serves as a model for similar enterprises facing temporary challenges, showcasing a "government-enterprise collaboration" approach [3].

Core Viewpoint - Fuda Alloy (603045.SH) is acquiring a 52.61% stake in Zhejiang Guangda Electronic Technology Co., Ltd. for a total price of 352.4998 million yuan, aligning with the ongoing policies promoting mergers and acquisitions in the capital market and the booming photovoltaic industry amid global energy transition [1][2]. Group 1: Acquisition Details - The acquisition involves cash payment to 16 parties, including Wenzhou Chuangda and Wang Zhongnan, for Guangda Electronic's stake [1]. - The transaction price reflects a dynamic price-to-earnings ratio of approximately 11 times, significantly lower than the valuation levels of peer companies [3]. Group 2: Guangda Electronic's Strengths - Guangda Electronic has established itself as a rare integrated manufacturer in the industry, with self-developed core materials since its inception in 2010 [2]. - The company's core product, silver paste for TOPCon solar cells, is projected to increase its sales share from 34.03% in 2023 to 96.86% by mid-2025, showcasing its ability to adapt to industry technology iterations [2]. Group 3: Strategic Implications - The acquisition is expected to enhance Fuda Alloy's earnings per share and create a new profit growth point by entering the high-barrier photovoltaic conductive silver paste market [3][5]. - The merger is anticipated to yield significant synergies, particularly in technology integration and cost optimization, as both companies share a focus on metal conductive materials [4]. Group 4: Market Opportunities - Fuda Alloy can leverage Guangda Electronic's established relationships with leading clients in the photovoltaic industry to expand its market presence in new energy sectors [4][5]. - The strategic move is seen as a response to the global energy revolution, optimizing the company's industrial layout and ensuring sustainable long-term development [5].