[SMM Silicon-Based PV Morning Meeting Summary] Polysilicon: In May, polysilicon production declined slightly by around 2,000 mt MoM, with multiple enterprises cutting production. On the 14th, an industry meeting was held again, with market attention focused on whether the negotiated production cuts would be implemented. Wafer: In May, wafer production by enterprises declined by around 3 GW MoM, with individual specialized enterprises further cutting production in the near term, leading to a continued decrease in output.

① Several enterprise leaders proposed countermeasures from aspects such as improving the efficiency of module products, increasing the proportion of exports to high-value overseas markets, and building new scenarios integrating PV ESS, in order to steadily enhance the company's operational capabilities. ② The US remains a high-premium market, and several enterprise leaders responded to the export plans for the US.

①The acceleration of capacity exit and the high inventory levels coexist. Can the supply-side reform of the PV industry chain truly reverse the industry's surplus situation? ②Financial reports frequently show signals of "hitting bottom." Is the logic behind the valuation repair of the PV sector sustainable? (Finance Link)

On May 12, the winning bid results for the framework agreement procurement of PV modules and inverters for the PV power plants of China Railway Shanghai Bureau Group Co., Ltd. were announced. There are eight enterprises that won the bid for Section 1 PV modules, namely Daheng Energy Co., Ltd., CECEP Solar Energy Technology (Zhenjiang) Co., Ltd., Tangshan Haitai New Energy Technology Co., Ltd., LONGi Lerri Solar Technology Co., Ltd., Guocheng Energy Construction Group Co., Ltd., Hefei JA Solar Technology Co., Ltd., Jiangsu Seraphim PV System Co., Ltd., and GCL System Integration Technology Co., Ltd.;

On May 9, the tender announcement for the EPC general contracting of Guizhou Huadian's PV projects from 2025 to 2026 was released, with an estimated capacity of approximately 950MW. The framework agreement period is tentatively set from June 1, 2025, to May 31, 2026. The tender announcement indicates that the project is divided into one section, encompassing all work within the project construction scope, such as survey and design (including water conservation design), equipment and material procurement (equipment and materials for which Huadian Group has already completed framework tenders shall be designed and procured in accordance with the tender results), construction and installation, grid connection procedures, commissioning, testing, acceptance, as well as coordination work within the scope of the employer's responsibilities. It also includes land acquisition and occupation for the project, land circulation in the PV area, compensation for young crops, and other related work.

[SMM Silicon-based PV Morning Meeting Summary: Wafer Prices Largely Stable, Solar Cell Inventory Continues to Rise] Wafer: The market price of N-type 18X wafers is 0.95-1 yuan/piece; the price of 210R model wafers is 1.1-1.1 yuan/piece. Solar cell: Inventory continues to rise, and enterprises are under pressure to ship goods. Film: Overall EVA transactions are average, with strong wait-and-see sentiment in the market. In-plant inventory at petrochemical plants remains at a low level.

①As the target company, Haoan Energy, failed to meet the 2024 performance commitment, the counterparty shall compensate the publicly listed firm 980 million yuan; ②The securities firm highlighted in the report that due to the substantial remaining performance compensation amount, which would have a significant impact on the company's profits, there remains objective uncertainty regarding the future arrangements of the performance commitment obligor for paying the remaining performance compensation.