Summary of the Conference Call on Organic Silicon Industry Industry Overview - The organic silicon industry has reached a consensus on a price increase of 300 RMB, with the mainstream price of DMC rising to 14,200-14,300 RMB. Future price adjustments will follow a rolling increase strategy of 300-500 RMB per instance [2][3] - The supply side is shifting from "production for sale" to "sales determine production," with no major new capacity expected in 2026. A reduction execution rate of 35% is needed to achieve supply-demand balance [2][3] - The global capacity of organic silicon is expected to increase from 77% to 85% in China by 2026 due to the accelerated exit of overseas capacities, such as Dow's planned shutdown of certain facilities [2][11] Demand Dynamics - Demand is characterized by "traditional steady growth + emerging explosive growth," with core increments coming from photovoltaic adhesives, electronic adhesives, and liquid silicone rubber for robotics. Traditional demand accounts for approximately 70% [2][24] - The cost side is supported by rising methanol prices, while industrial silicon remains stable due to reductions in the photovoltaic chain, with prices around 9,300-9,600 RMB. The complete cost for monomer plants is estimated at 10,500-11,000 RMB [2][24] Price Adjustments and Market Reactions - The cancellation of export tax rebates on April 1 has increased costs by approximately 1,200 RMB per ton, leading to a short-term rush in orders for March and pushing the industry towards high-value-added product transformation [2][22] - The next meeting is expected to be held between late April and early May, with price adjustments based on inventory levels, downstream inquiries, and procurement intensity [3] Cost Structure and Competitive Landscape - Major companies like Hesheng and Luxi have cost advantages of 300-700 RMB/ton through integration, low electricity prices, or energy efficiency of new facilities [2][24] - The procurement frequency for raw materials has increased from every 2-3 months to approximately 1-1.5 months due to a buyer's market [9] Future Price and Demand Projections - The price mechanism has significantly strengthened since November 2025, with prices no longer strictly following traditional seasonal logic. The ability to increase prices will depend on downstream acceptance and the rolling increase strategy [10] - The demand growth in 2026 is expected to be around 5%-7% for traditional sectors, while emerging sectors like photovoltaic adhesives and electronic adhesives will see faster growth [14][15] Emerging Applications and Innovations - The demand for photovoltaic adhesives is projected to grow significantly, with new installations estimated at 180-240 GW in 2026 [14] - The robotics sector is transitioning from R&D to commercialization, with expected global shipments of over 50,000 units in 2026 [16] Export Dynamics and Policy Impacts - China's organic silicon exports are projected to grow from 187,800 tons in 2021 to approximately 280,000 tons by 2025, with a compound annual growth rate of about 10.50% [22] - The cancellation of export tax rebates is seen as a double-edged sword, potentially reducing export volumes while pushing for a shift towards higher-value products [22] Conclusion - The organic silicon industry is undergoing significant changes in supply dynamics, pricing strategies, and demand structures. The focus on high-value products and the impact of external factors like export policies will shape the industry's future trajectory.

Group 1 - The core viewpoint of the news is that Dongyue Silicon Materials Co., Ltd. experienced a stock price increase of 5.1%, reaching 12.36 CNY per share, with a trading volume of 133 million CNY and a turnover rate of 0.91%, resulting in a total market capitalization of 14.832 billion CNY [1] - Dongyue Silicon Materials, established on December 28, 2006, and listed on March 12, 2020, specializes in the research, production, and sales of silicone materials [1] - The company's main business revenue composition includes: 107 glue (49.40%), silicone oil (13.49%), 110 raw rubber (12.11%), mixed rubber (5.46%), others (5.37%), fumed silica (4.32%), silicone adhesive (4.29%), other (supplement) (2.18%), liquid glue (2.01%), and intermediates (1.36%) [1] Group 2 - From the perspective of the top ten circulating shareholders, GF Fund's Guangfa Jufeng Mixed A (270005) increased its holdings by 615,000 shares, totaling 4.5566 million shares, which represents 0.38% of the circulating shares [2] - The estimated floating profit for Guangfa Jufeng Mixed A today is approximately 2.734 million CNY [2] - Guangfa Jufeng Mixed A, established on December 23, 2005, has a latest scale of 3.889 billion CNY, with a year-to-date return of 14.1% and a one-year return of 68.88% [2]

Group 1 - The stock price of Dongyue Silicon Materials increased by 6.32%, reaching 13.62 CNY per share, with a trading volume of 392 million CNY and a turnover rate of 2.53%, resulting in a total market capitalization of 16.344 billion CNY [1] - Dongyue Silicon Materials, established on December 28, 2006, and listed on March 12, 2020, specializes in the research, production, and sales of silicone materials [1] - The main revenue composition of the company includes: 107 glue (49.40%), silicone oil (13.49%), 110 raw rubber (12.11%), mixed rubber (5.46%), and other products [1] Group 2 - Among the top circulating shareholders of Dongyue Silicon Materials, a fund under GF Fund Management, specifically GF Jufeng Mixed A (270005), increased its holdings by 615,000 shares, totaling 4.5566 million shares, which represents 0.38% of the circulating shares [2] - GF Jufeng Mixed A has a current scale of 3.889 billion CNY and has achieved a year-to-date return of 16.52%, ranking 558 out of 8864 in its category, with a one-year return of 81.41%, ranking 503 out of 8126 [2] - The fund manager of GF Jufeng Mixed A is Su Wenjie, who has been in the position for 7 years and 100 days, managing a total asset size of 10.575 billion CNY, with the best fund return during his tenure being 167.69% [3]

Group 1 - The company, Hengxing Technology, has a subsidiary, Hengxing Chemical, which focuses on the research, production, and sales of silicone and related products [1] - Main products of the company include DMC, D5, 110 glue, 107 glue, and fumed silica [1] - The recent increase in silicone product prices has a positive impact on the company's operations [1]

Group 1: Report's Core View - The supply side shows a slight decline in production scheduling in January. On the demand side, the production scheduling of polysilicon and silicone in January has decreased significantly. Overall, both supply and demand of industrial silicon have decreased, and with the strengthening expectation of polysilicon production reduction, the support for price decline is weak [2] Group 2: Market Data Futures Market - SI 2601: Closing price is 8630, with a change of -0.12% [1] - SI 2602: Closing price is 8640, with a change of 0.17% [1] - SI 2603: Closing price is 8670, with a change of 0.17% [1] - SI 2604: Closing price is 8695, with a change of 0.12% [1] - SI 2605: Closing price is 8730, with a change of 0.46% [1] Spot Market - In East China: 553 (non - oxygen - passing) price is 9200 with no change; 553 (hydrogen - passing) price is 9250 with no change; 421 price is 9650 with no change; 441 price is 9400 with no change; 3303 price is 10350 [1] - At Huangpu Port: 553 (hydrogen - passing) price is 9300 with no change; 421 price is 9900 with no change [1] - At Tianjin Port: 553 (oxygen - passing) price is 9200 with no change; 421 price is 9750 with no change [1] - In Kunming: 421 price is 10000 with no change [1] - In Sichuan: 421 price is 9800 with no change [1] - DMC price is 13850; 107 glue price is 14500; polysilicon (compact material, per kg) price is 54.25 with no change; aluminum alloy ADC12 average price is 24000, with a decrease of 200 [1] Spread Data - si2601 - si2602 spread is - 10, with a change of 15 [1] - si2602 - si2603 spread is - 30, with a change of 5 [1] - 421 spot - 553 oxygen - passing spot spread is 400 [1] - Basis (East China 553 spot - main contract) is 520, with a change of 25 [1] Warehouse Data - Total warehouse capacity is 7.95 tons. The total number of yesterday's warehouse receipts is 7192, and today's is 7191, a decrease of 1 [1] Group 3: Industry Dynamics - On November 14, the Online Approval and Supervision Platform for Investment Projects in Jiangxi Province announced the filing information of Jiangxi Xinfang High - tech Yongxiu's annual production project of 137,500 tons of organic silicon new materials [1]

Core Viewpoint - Dongyue Silicon Material's stock has shown significant price increases recently, with a year-to-date rise of 11.23% and a 44.27% increase over the past 60 days, despite a net outflow of funds [1] Group 1: Stock Performance - As of January 12, Dongyue Silicon Material's stock price reached 12.97 CNY per share, with a market capitalization of 15.564 billion CNY [1] - The stock has experienced a 7.63% increase over the last five trading days and a 9.18% increase over the last 20 days [1] Group 2: Financial Performance - For the period from January to September 2025, Dongyue Silicon Material reported a revenue of 3.027 billion CNY, a year-on-year decrease of 24.76%, and a net profit attributable to shareholders of 2.857 million CNY, down 96.78% year-on-year [2] Group 3: Shareholder Information - As of December 31, the number of shareholders for Dongyue Silicon Material was 75,100, a decrease of 0.21% from the previous period [2] - The company has distributed a total of 1.044 billion CNY in dividends since its A-share listing, with 138 million CNY distributed over the last three years [3] Group 4: Institutional Holdings - As of September 30, 2025, Hong Kong Central Clearing Limited was the sixth-largest circulating shareholder, holding 7.1551 million shares, an increase of 492,100 shares from the previous period [3] - Southern CSI 1000 ETF was the eighth-largest circulating shareholder, holding 5.4807 million shares, a decrease of 28,800 shares from the previous period [3]

Group 1 - The core viewpoint of the news is that Dongyue Silicon Material's stock has experienced fluctuations, with a recent decline of 2.02% and a total market value of 15.732 billion yuan [1] - As of January 8, the stock price is reported at 13.11 yuan per share, with a trading volume of 505 million yuan and a turnover rate of 3.14% [1] - The company has seen a year-to-date stock price increase of 12.44%, with a 9.34% rise over the last five trading days, but a 1.43% decline over the last 20 days [1] Group 2 - For the fiscal year ending December 31, Dongyue Silicon Material reported a revenue of 3.027 billion yuan, a year-on-year decrease of 24.76%, and a net profit attributable to shareholders of 2.857 million yuan, down 96.78% year-on-year [2] - The company has distributed a total of 1.044 billion yuan in dividends since its A-share listing, with 138 million yuan distributed over the last three years [3] - As of September 30, 2025, the number of shareholders is reported at 75,100, a decrease of 0.21% from the previous period, with an average of 15,981 circulating shares per shareholder, an increase of 0.21% [2]

1. Report Industry Investment Rating - Not provided in the report 2. Core Viewpoints - The current silicon market maintains a pattern of weak supply and demand, and there is still pressure above the silicon price. Attention should be paid to the subsequent registration of new warehouse receipts and the actual start - up of silicon enterprises [1] - The willingness of downstream enterprises to replenish inventory is limited, and there is great pressure for the spot price to continue to rise, which suppresses the upward space of the futures price. Attention should be paid to the subsequent launch of the polysilicon platform and the evolution of macro - sentiment [1] 3. Summary by Relevant Catalogs Industrial Silicon Price Changes - The average price of non - oxygenated 553 (East China) remained flat at 9,350 yuan/ton, and the average price of 421 (East China) industrial silicon rose 0.51% to 9,800 yuan/ton. The closing price of the futures main contract fell 0.61% to 8,920 yuan/ton [1] Supply and Demand - In terms of supply, the suspension of production of silicon enterprises in the southwest production period has basically been implemented, and the start - up is at a low level within the year. The start - up in the north is relatively stable. It is expected that the output of industrial silicon in December will fluctuate slightly around 400,000 tons. In terms of demand, polysilicon enterprises maintain a production - reduction trend, silicone enterprises have reached a joint production - reduction mechanism, and the demand for industrial silicon may weaken. Silicon - aluminum alloy enterprises purchase as needed, and the downstream's willingness to stock up at a low level is limited [1] Investment Strategy - The overall situation is a pattern of weak supply and demand, with pressure above the silicon price. The trading strategy is range operation [1] Polysilicon Price Changes - The prices of N - type dense material, N - type re - feeding material, N - type mixed material, and N - type granular silicon remained flat. The closing price of the futures main contract rose 1.98% to 57,430 yuan/ton [1] Supply and Demand - On the supply side, silicon material enterprises maintain a production - reduction trend, but some silicon material factories may have new production capacity put into operation. After offsetting, it is expected that the output in October will still increase slightly, and the output in November will decrease to about 120,000 tons. On the demand side, the prices in the industrial chain are under pressure to decline. Although the polysilicon price is still firm, the market transactions are relatively light, with few new transactions, and the downstream has strong resistance to high - price resources [1] Investment Strategy - The overall situation is that the downstream's willingness to replenish inventory is limited, and there is great pressure for the spot price to continue to rise, which suppresses the upward space of the futures price. The trading strategy is to wait and see for now [1] Other Information - In October 2025, the import of complete vehicles was 43,000 units, a month - on - month increase of 5.6% and a year - on - year decrease of 0.3%. The import amount was $2 billion, a month - on - month decrease of 2.1% and a year - on - year decrease of 16.3%. From January to October 2025, the import of complete vehicles was 404,000 units, a year - on - year decrease of 30%, and the import amount was $20.25 billion, a year - on - year decrease of 38.3% [1] - Germany's Jülich Research Center announced that its developed silver - free heterojunction (HJT) solar cell achieved a world - record efficiency of 23.08% using a full - copper (Cu) metallization process. Compared with the benchmark device using full - silver (Ag) metallization, the efficiency only decreased by 0.4% [1]

Report Summary 1. Report Industry Investment Rating No information provided. 2. Core Viewpoint - Due to continuous production cuts in the southwest region during the dry season on both the supply and demand sides, and a significant decline in inventory due to the centralized cancellation of warehouse receipts, with limited actual consumption, the market may fluctuate in the short term [3]. 3. Summary by Relevant Catalog Futures Market - SI2512 closed at 9155 with a 0.38% increase and a position of 1674 [2]. - SI2601 closed at 9145 with a 0.16% decrease and a position of 203274 [2]. - SI2602 closed at 9140 with no change and a position of 52565 [2]. - SI2603 closed at 9145 with a 0.16% decrease and a position of 26444 [2]. - SI2604 closed at 9135 with a 0.11% decrease and a position of 12994 [2]. Spot Market - In the East region, 553 (non - oxygen - passing) was priced at 9350 with no change, 553 (hydrogen - passing) at 9550 with no change, 421 at 9800 with no change, 441 at 9750, and 3303 at 10450 [2]. - At Huangpu Port, 553 (hydrogen - passing) was priced at 9600 with no change, and 421 at 10050 [2]. - At Tianjin Port, 553 (flux - passing) was priced at 9400, and 421 at 9800 with no change [2]. - In Kunming, 553 (hydrogen - passing) was priced at 9600, and 421 at 10000 with no change [2]. - Sichuan DMC price for 421 was 9800, 107 - glue was 13850, polycrystalline silicon (dense material, per kg) was 51 with no change, and the average price of aluminum alloy ADC12 was 21500 with a 150 increase [2]. Price Difference - The price difference between si2512 and si2601 was 10 - 45 [2]. - The price difference between si2601 and si2602 was 5 - 15 [2]. - The price difference between 421 spot and 553 oxygen - passing spot was 250 [2]. - The basis (East 553 spot - main contract) was 405 with a 15 decrease [2]. Warehouse Information - The total capacity of all warehouses was 7.5 tons, and the total number of warehouse receipts remained unchanged at 3680 [2]. Industry Dynamics - On November 14, the online approval and supervision platform for investment projects in Jiangxi Province announced the filing information for an annual production of 137,500 tons of organic silicon new material project by Jiangxi Xinfang High - Tech Yongxiu [2].

Core Viewpoint - The organic silicon sector is experiencing a strong performance in the A-share market, driven by price increases and regulatory measures aimed at reducing price competition [1][3][4]. Group 1: Market Performance - The organic silicon concept stocks showed significant gains, with companies like Chenguang New Materials and Hongbo New Materials hitting the daily limit [1][3]. - The overall organic silicon sector rose over 3%, leading the market, with individual stocks such as Huasheng Lithium and Jinyinhai seeing increases of over 15% and 13%, respectively [3][4]. Group 2: Price Increases - Dow Chemical announced a price increase of 10% to 20% for its Xiameter product line starting December 10, indicating a positive shift in the global organic silicon market supply-demand relationship [3][4]. - The price of organic silicon DMC has risen to 13,150 yuan/ton, an increase of 11.44% compared to the beginning of the month [6][8]. Group 3: Regulatory Environment - The National Development and Reform Commission (NDRC) is taking steps to address chaotic price competition in the organic silicon industry, which may have contributed to the recent stock price increases [4][5]. - A meeting held by the NDRC emphasized the need for better regulation of price competition, which could support the industry's long-term development [4][5]. Group 4: Industry Outlook - Analysts are optimistic about the recovery of the organic silicon industry, citing a planned reduction in production rates to maintain a 70% operating rate among major producers [6][7]. - The industry is expected to see stable demand growth, with projected consumption of organic silicon intermediates reaching 182 million tons in 2024, a year-on-year increase of 20.9% [7][8].