Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Views - In the first half of 2025, the company reported a revenue of 40.509 billion yuan, a year-on-year decrease of 7.51%, with a net profit attributable to shareholders of -4.955 billion yuan. In Q2 2025, revenue reached 24.575 billion yuan, showing a year-on-year growth of 1.44% and a quarter-on-quarter increase of 54.24%, with a net profit of -2.363 billion yuan [2][6]. Summary by Sections Financial Performance - In H1 2025, the company sold 161,300 tons of silicon, capturing approximately 30% of the global market share. The silicon consumption per kilogram of silicon material decreased to below 1.04 kg/kg.si, with steam consumption nearly zero. The N-type material's metal content dropped to below 0.1 ppbw, and surface metal content reduced to below 0.2 ppbw, indicating potential for further cost optimization. However, due to the decline in silicon prices, the losses in the silicon business are expected to widen in Q2 2025 [11]. - The company maintained its position as the global leader in battery shipments, with H1 2025 battery sales reaching 49.89 GW. The company continues to explore cost reduction and efficiency enhancement, with key competitive indicators such as product A-grade rate, conversion efficiency, and non-silicon costs leading the industry. The newly launched TNC2.0 component product achieved a maximum power output of 645W (210R version). The unit profitability in Q2 2025 is expected to show significant recovery compared to Q1 due to the impact of domestic price increases [11]. - In the component business, H1 2025 component sales reached 24.52 GW (with 5.08 GW sold in overseas markets), representing a year-on-year growth of 31.33%. The domestic distributed shipment continues to lead the market, and the centralized sales maintain good cooperation with major state-owned power enterprises. The company’s production indicators, such as A-grade rate and fragment rate, are industry-leading and further optimized, with non-battery costs per watt decreasing by 11% year-on-year and period expenses dropping by 31% year-on-year, indicating a recovery in profitability in Q2 compared to Q1 [11]. - Financially, the company recognized an asset impairment loss of 2.421 billion yuan due to inventory depreciation in H1 2025, with Q2 accounting for 1.625 billion yuan, which negatively impacted performance. The company demonstrated excellent expense control, with a period expense ratio of 8.46% in Q2 2025, a decrease of 4.99 percentage points quarter-on-quarter, primarily due to a reduction in management expense ratio to 2.5%. The asset-liability ratio decreased by 0.32 percentage points to 71.9% in Q2 2025, and if convertible bond liabilities are excluded, the ratio stands at 66%. The company has sufficient liquidity with cash and trading financial assets amounting to 33.2 billion yuan [11].

Investment Rating - The report maintains a "Buy" rating for the company, considering it as one of the potential beneficiaries of the ongoing "anti-involution" in the industry [4]. Core Insights - The company reported a revenue of 40.5 billion RMB in the first half of 2025, a year-on-year decrease of 7.5%, with a net profit attributable to shareholders of -5.029 billion RMB, indicating a deeper loss compared to the previous year [1]. - The company achieved a sales volume of 161,300 tons of polysilicon, holding a global market share of approximately 30%, leading the industry. The price of polysilicon has seen a significant increase of 39% from its previous low, which is expected to gradually cover costs and restore profitability [2]. - The company sold 24.52 GW of solar modules in the first half of the year, with explosive growth in overseas markets, particularly in Poland, Romania, and Hungary [2]. - The company maintained its position as the global leader in battery cell sales, with a volume of 49.89 GW, and continues to lead in key competitive metrics such as A-grade ratio and conversion efficiency [3]. - The company has sufficient cash reserves, totaling approximately 33.229 billion RMB, which supports its ability to navigate through market cycles [3]. Financial Forecast - The forecast for the company's net profit attributable to shareholders has been adjusted to -6.16 billion RMB for 2025, 2.972 billion RMB for 2026, and 6.071 billion RMB for 2027, reflecting the competitive advantages in the silicon and battery segments [4]. - Revenue projections for 2023 are set at 139.104 billion RMB, with a growth rate of -2.33% for 2024 and a recovery expected in subsequent years [8]. - The diluted earnings per share are projected to be -1.563 RMB in 2024, improving to 0.660 RMB in 2026 and 1.348 RMB in 2027 [8].