Core Viewpoint - Shangneng Electric has responded to the Shenzhen Stock Exchange's inquiry regarding its application for a specific stock issuance, addressing key issues such as project filing, changes in the issuance plan, expansion of distributed photovoltaic inverter production, and inventory impairment provisions along with sales expenses [1] Group 1: Project Filing and Expansion - The annual production capacity project for 25GW string photovoltaic inverters has faced delays, with the company indicating that the project filing will expire in August 2025 due to not starting construction [2] - The company has applied for an extension of the project start date to 2026, allowing for continued implementation despite the risk of filing expiration [2] Group 2: Changes in Issuance Plan - In July 2023, the company modified its issuance plan to include additional subscription targets, with the actual controller Wu Qiang intending to participate [3] - This change is classified as a significant alteration under relevant securities regulations, affecting the investment projects initiated after July 31, 2023 [3] Group 3: Production Capacity Expansion - The fundraising project aims to add 15GW of distributed photovoltaic inverter production capacity, representing a tenfold increase [4] - Despite a decline in some overseas market demands, the company believes the expansion is justified due to anticipated growth in the global distributed photovoltaic market, particularly in domestic and certain international markets [4] - The company possesses several advantages for absorbing the new capacity, including strong brand recognition, extensive customer resources, robust marketing networks, and effective cost control [4] Group 4: Inventory and Sales Expense Analysis - The company's inventory impairment provision ratio differs significantly from comparable companies, influenced by product structure and sales conditions [5] - Sales expenses for 2024 are projected to be 190 million, a 45.18% increase year-on-year, primarily due to heightened market development costs [5] - The sales expenses are aligned with revenue, and the overall sales expense ratio is lower than that of comparable companies, reflecting the company's efficient sales personnel management and operational model [5]

Core Viewpoint - The joint meeting of six departments signals a strong push from the government to transition the photovoltaic industry from "scale expansion" to "high-quality development," aiming to eliminate low-price and low-quality competition [1] Industry Overview - The meeting is interpreted as a milestone for the industry to combat "involution," creating a fair and healthy competitive environment for high-quality companies with strong technical capabilities and management [1] - Companies that focus on niche markets and possess core technological barriers and excellent brand reputation will see their long-term investment value increasingly highlighted [1] Company Highlights - **Oriental Risen**: A leader in HJT technology, the company aligns with the policy's call for "strengthening technological innovation" and "maintaining quality safety standards." Its "Voxi" series products represent the highest quality and technology level in photovoltaic modules, avoiding price competition through advanced technology [2][3] - **Yihua Co.**: Specializes in precision connectors for photovoltaic brackets, with a strong focus on technology and quality. The company benefits from the shift in market competition from price wars to reliability and durability, enhancing its market share and technical premium [3][4] - **Jinlang Technology**: A major brand in distributed photovoltaic inverters, the company emphasizes brand reputation and reliable channel services. As the market cleans up "false marketing," Jinlang's strong brand and service capabilities position it to capture market resources [4][5] - **Ainengju**: A smart service provider for distributed energy, focusing on the development and operation of distributed photovoltaic power stations. The company's business model allows it to avoid intense competition in manufacturing while meeting the increasing demands for operational efficiency and safety [5][6] Market Implications - The joint deployment by six departments heralds a significant industry reshuffle, with companies lacking technology and relying on low-price competition facing severe survival challenges. In contrast, quality leaders like Oriental Risen, Yihua Co., Jinlang Technology, and Ainengju are poised to seize unprecedented growth opportunities [6]