Shenwan Hongyuan Group: The anti-solar industry continues to advance, with industry prices and profits showing clear signs of recovery.

Shenwan Hongyuan Group released a research report stating that the current market's core focus on the reform of the photovoltaic supply-side is on the establishment of a joint platform. This joint platform, which consists of 17 major companies, is starting with the most prominent contradiction in the supply side, the polysilicon link, and through mechanisms such as capacity coordination, quality grading, and self-regulated production reduction, effectively curbing the industry's disorderly expansion. Since the promotion of "anti-inner circle," the number of participants has continued to increase and the effect of price restoration of products is significant. In the third quarter of 2025, the polysilicon industry has begun to raise prices under the regulation requirement of "selling not lower than cost," gradually returning above the comprehensive cost line. Shenwan Hongyuan Group's main points are as follows: Event: On the evening of October 28, 2025, CCTV2's economic program "Economic Half Hour" specifically reported on the photovoltaic industry: from price wars to innovation in photovoltaic technology. The Chairman of Tongwei Co., Ltd., Zhu Gongshan, and the Chairman of LONGi Green Energy Technology, Zhong Baoshen, were interviewed on the show, with Zhu Gongshan stating that 17 companies have already signed, and the establishment of a joint platform is expected to be completed within the year. Polysilicon is the core driver for anti-inner circle, and the establishment of a joint platform will help accelerate the reform of the polysilicon supply side. Currently, the market's core focus on the reform of the photovoltaic supply-side is on the establishment of a joint platform. Zhu Gongshan's interview clarified the industry's determination and progress in anti-inner circle efforts. Polysilicon, as the most upstream sector of the photovoltaic industry chain with both capital and technology-intensive characteristics, is the key link for determining overall costs and profit distribution. The previous oversupply of capacity in this industry led to a price war, resulting in the entire industry chain falling into a vicious cycle of "low prices - losses." The joint platform, composed of 17 major companies, starts with the most prominent contradiction in the supply side of polysilicon and effectively controls the industry's disorderly expansion through mechanisms such as capacity coordination, quality grading, and self-regulated production reduction. This collaborative mechanism will accelerate the elimination of backward capacity, promote the rational return of polysilicon prices above the cost line, and lay a solid foundation for the profit restoration of the entire industry chain. Continuous promotion of anti-inner circle, industry pricing and profit restoration is significant. Since the promotion of "anti-inner circle," the number of participating entities has continued to increase, and the effect of product price restoration is significant. In the third quarter of 2025, under the regulation requirement of "selling not lower than cost," the polysilicon industry began to raise prices, gradually returning above the comprehensive cost line. The price increase has brought about a noticeable profit recovery for companies, among which Xinjiang Daqo New Energy achieved a net profit attributable to shareholders of listed companies of 73.479 million yuan in the third quarter of 2025, ending a five consecutive quarters of losses since the second quarter of 2024, turning losses into profits; GCL TECH's photovoltaic materials business also turned losses into profits in the third quarter. With policy guidance, the reform of the supply side of the industry is accelerating, and the price and profit bottom of the industrial chain have already been clarified. Targets to watch Recommendation to focus on: 1) Polysilicon companies as the core driver of anti-inner circle: Tongwei Co., Ltd (600438.SH), Xinjiang Daqo New Energy (688303.SH), and GCL TECH (03800); 2) BC sector companies with independent market movements: Shanghai Aiko Solar Energy (600732.SH), LONGi Green Energy Technology (601012.SH); 3) As the sector's valuation and profit recover, this round of supply-side reform will overflow to the auxiliary material sector, so it is recommended to pay attention to: photovoltaic film companies such as Hangzhou First Applied Material (603806.SH), and glass companies such as Flat Glass Group (601865.SH). Risk warning Price increases in the industrial chain are below expectations, supply-side reform policies are not as expected, and photovoltaic installations are below expectations.