Core Viewpoint - The photovoltaic industry is transitioning from "price wars" to "value reconstruction," with a comprehensive recovery across the industry chain driven by both policy and market dynamics, benefiting leading companies first [1][2]. Group 1: Industry Recovery - The first half of 2025 marks a significant recovery for the Chinese photovoltaic industry, with nearly half of the 70 listed companies in the photovoltaic equipment sector reporting positive performance [3]. - The recovery is supported by policy-driven market order optimization, which has alleviated price competition issues across the industry chain [3][4]. - The price of polysilicon has been rising since July 2025, with N-type polysilicon prices exceeding 50,000 yuan/ton, indicating a gradual restoration of profitability in the main industry chain [3]. Group 2: Policy and Demand Drivers - A series of targeted policies have been introduced since 2025 to address the industry's pain points related to "low-price disorderly competition" [4]. - The implementation of the revised Anti-Unfair Competition Law on June 27, 2025, prohibits selling products below cash cost, establishing a price floor for the photovoltaic industry [4]. - Strong demand is evident, with domestic new photovoltaic installations reaching 223.25 GW from January to July 2025, a year-on-year increase of 81% [3][4]. Group 3: Investment Opportunities in the Industry Chain - In the polysilicon segment, profitability is recovering significantly, with prices continuing to rise and reaching a maximum increase of 3.37% [5]. - Tongwei Co., Ltd. holds a 30% global market share in high-purity crystalline silicon, with a cash cost of approximately 38,000 yuan/ton, indicating strong cost control [6]. - The silicon wafer segment is transitioning to N-type technology, with N-type silicon wafer penetration expected to exceed 90% by 2025 [7]. Group 4: Technological Advancements and Market Positioning - The battery segment is dominated by TOPCon technology, with a production capacity of 967 GW, accounting for 83% of the market [8]. - JinkoSolar is a leader in N-type TOPCon technology, with a production efficiency exceeding 25% and a significant share of overseas revenue [8]. - The module segment shows clear differentiation, with N-type modules accounting for over 70% of the market, and leading companies like LONGi Green Energy and Trina Solar achieving high power outputs and certifications [9]. Group 5: Storage and New Growth Drivers - The explosive growth in the energy storage sector is a core driver of the current recovery, with increasing demand for photovoltaic and storage system integration [12]. - Sungrow Power Supply Co., Ltd. is a leading player in the energy storage system market, with a global market share of 35% in storage inverters [12].

Core Viewpoint - The photovoltaic industry is experiencing signs of performance improvement among certain manufacturers, driven by ongoing efforts to combat "involution" and adjustments in the pricing of polysilicon, which are gradually being accepted by the downstream market [1][5]. Group 1: Company Performance - Companies like Aiko Solar, Longi Green Energy, and Hongyuan Green Energy have shown signs of reduced losses through refined management and expansion into overseas markets [2]. - Aiko Solar reported a net loss of 238 million yuan in the first half of the year, significantly reduced from a loss of 1.745 billion yuan in the same period last year, with a return to profitability in Q2 [2]. - Longi Green Energy's net loss narrowed to 2.569 billion yuan from 5.231 billion yuan year-on-year, benefiting from the market performance of its HPBC components and improved internal management [2]. Group 2: Industry Trends - The photovoltaic industry is currently in a deep adjustment cycle, with many companies unable to reverse previous losses due to factors such as capacity release and imbalanced supply-demand relationships [4]. - The industry is expected to maintain low production loads and low profit margins as a new norm, with a focus on inventory digestion and adherence to a "sales-driven production" principle [6]. - The industry is advocating for self-regulation and fair competition to promote sustainable development, emphasizing the importance of asset management alongside manufacturing efforts [5]. Group 3: Pricing and Market Dynamics - Since July, polysilicon prices have returned to the cost range of 45,000 to 50,000 yuan per ton, prompting companies to recognize that loss-making operations are unsustainable [6]. - The shift towards a "no-loss" operational philosophy is crucial for the industry's recovery, with a focus on avoiding below-cost pricing to secure orders [6]. - Analysts suggest that as the pricing adjustments in the polysilicon segment are accepted by the market, component prices are likely to return above cost levels, indicating potential for recovery in the industry [6].