Summary of Key Points from the Conference Call Industry Overview - **Industry**: Clean Energy, specifically focusing on solar products in China [1] - **Date**: August 6, 2025 [1] Core Insights and Arguments - **Price Stability**: Prices of polysilicon, wafers, cells, and modules remained stable week-over-week (WoW) [6][6] - **Polysilicon Prices**: - Average price: Rmb 44/kg, unchanged WoW - Price range: Rmb 42-50/kg [6] - **Granular Polysilicon Prices**: - Average price: Rmb 44/kg, unchanged WoW - Price range: Rmb 43-46/kg [6] - **Solar Films**: Prices dropped by 0-1.9% WoW, while EVA resin and POE resin prices remained stable [6] - **Monthly Changes**: - Polysilicon prices increased by 25.7% month-over-month (MoM) [2] - Wafer prices for 182mm and 210mm increased by 36.4% and 31.4% MoM, respectively [2] - **Yearly Changes**: - Polysilicon prices increased by 12.8% year-over-year (YoY) [2] - Prices of solar films decreased YoY, with transparent EVA film down by 9.5% [2] Additional Important Information - **Market Dynamics**: The report indicates a stable pricing environment for solar products, which may suggest a balanced supply-demand scenario in the market [6] - **Regional Pricing**: The report includes pricing for various solar products across different regions, indicating a diverse market landscape [2] - **Analyst Contact Information**: Analysts involved in the report include Eva Hou, Estelle Wang, and Evan Chen, providing avenues for further inquiries [3] Conclusion - The clean energy sector, particularly solar products in China, is experiencing stable pricing with some fluctuations in specific product categories. The overall market appears to be resilient, with year-over-year price increases in polysilicon and stable prices in other segments.

Investment Rating - The industry view for China Utilities is rated as Attractive [3] Core Insights - The report highlights a stable pricing environment for solar products, with polysilicon prices averaging Rmb35/kg, remaining flat week-over-week, while granular polysilicon prices decreased by 1.4% week-over-week [5] - The report notes a downward trend in prices for N-type wafers and TOPCon cells, with decreases of up to 3.1% week-over-week [5] - Year-over-year price changes show significant declines across various solar products, with polysilicon prices down 10.3%, and TOPCon bifacial modules down 20.9% [2][5] Summary by Sections Price Summary - Polysilicon prices averaged Rmb35/kg, with a weekly average of Rmb19.00/kg for polysilicon in USD terms [2] - Wafer prices for 182mm and 210mm were Rmb0.93 and Rmb1.27 respectively, with a year-over-year decline of 15.5% and 23.0% [2] - The average price for TOPCon bifacial modules was Rmb0.68, reflecting a year-over-year decrease of 20.9% [2] Price Changes - The report indicates that solar-grade EVA resin prices decreased by 11.3% year-over-year, while POE resin prices remained stable [2][5] - The price of solar films showed a year-over-year decline of 15.0% for transparent EVA film and 27.3% for POE film [2] Company Ratings - CGN Power Co., Ltd is rated Overweight with a price of HK$2.73 as of June 18, 2025 [59] - China Gas Holdings is rated Equal-weight with a price of HK$7.60 [59] - LONGi Green Energy Technology Co Ltd is rated Overweight with a price of Rmb14.59 [59]

Investment Rating - The report maintains a "Buy" rating on Cell & Module and Film, while it has a "Sell" rating on Glass, Poly, Wafer, and Equipment [4]. Core Insights - The profitability of the solar industry is expected to face deterioration for Cell and Module, while Glass may see temporary improvement due to price hikes [6][14]. - The report highlights a significant decline in solar capital expenditure, projected at -55% year-over-year in 2025, alongside a lower capacity utilization rate averaging 59% from 2025 to 2030 [4]. - The report indicates that upstream pricing in China has started to lose momentum as the peak of rush installations is ending, while US module pricing has jumped due to a 90-day tariff exemption [19]. Summary by Sections Pricing Dynamics - As of April 17, 2025, month-to-date (MTD) spot prices for Poly/Wafer/Cell/Module/Glass/Film/Inverter in China showed average changes of -1%/-0.3%/-7%/+0.5%/+5%/+0%/+1%, while overseas module prices increased by 20% in the US [19]. - The report notes that inventory days across the value chain have improved to below 20 days, except for Poly at 40 days and Glass at 27 days, driven by strong domestic demand [13]. Production and Demand - Production volumes across the solar value chain are expected to recover significantly in April, with Poly/Wafer/Cell/Glass/Module projected to increase by +4%/+17%/+29%/+9%/+31% month-over-month [12]. - The report anticipates a decline in inventory levels across the value chain, with a lowered production-to-demand ratio at 94% in April compared to 104% in March [15]. Profitability Trends - The average cash gross profit margin (GPM) for Poly/Wafer/Cell/Module/Glass/Film in April showed changes of -0.3pp/+0.4pp/-11pp/-6pp/+3pp/+1pp, indicating a decline in profitability for Cell and Module [10]. - Monthly average cash profitability for the companies covered is expected to remain largely flat month-over-month in April, although it is better than the first quarter of 2025 [7].