[SMM Announcement] Announcement on Adding Price Point for HJT Module-210mm (Distributed)

Dear Users:

Hello!

To facilitate upstream and downstream enterprises in the PV industry chain to better grasp the dynamics of the PV module market, promptly reflect the spot market prices, reduce transaction risks and costs for enterprises, and continuously improve and deepen research on the PV industry chain, SMM, after a period of accumulation and market surveys, plans to introduce a new price point for HJT modules - 210mm (distributed) starting from March 28th for market reference.

I. General Principles of SMM Price Assessment Methodology

Shanghai Metals Market (hereinafter referred to as SMM) is a completely independent third-party service organization that does not participate in any substantive transactions. Instead, it maintains close communication with buyers or sellers in the market as an observer or organizer and provides relevant services to the market. Through communication with industry insiders, SMM continuously formulates, reviews, and revises its methodologies, adopting the most common product specifications, trade terms, and conditions in the industry, and treating normal transactions that meet specification standards with equal importance. SMM reserves the right to exclude any price information deemed to be of poor reliability or non-representative from its pricing assessments.

SMM publishes daily metal spot prices (or price indices, including the Chinese market, markets outside China, and the global market), commonly referred to as SMM prices. SMM has developed corresponding methodologies for all published SMM prices (which will be published on SMM's official website, www.smm.cn, for inquiry). The methodologies outline the methods and procedures for generating and publishing SMM prices, and SMM strictly adheres to these methodologies in generating and publishing its prices.

To align with the actual situation of the spot market, SMM will make necessary revisions to its SMM price assessment methodology and announce them on SMM's official website before formal implementation. If you have any questions or suggestions regarding SMM prices or their methodologies, please contact SMM's customer service (contact information can be found on SMM's official website, www.smm.cn).

This document outlines the formulation standards for HJT modules - 210mm (distributed). The purpose of SMM in formulating these standards is to establish a transparent and verifiable mechanism for determining SMM prices.

II. Formation of SMM HJT Modules - 210mm (Distributed)

2.1 Definition

The HJT modules - 210mm (distributed) price published by Shanghai Metals Market (SMM) is formed and released by SMM in accordance with this methodology and can be used by both buyers and sellers as a reference for spot trade settlement of HJT modules - 210mm (distributed). This price is primarily based on the daily transaction price status of HJT modules - 210mm (distributed) nationwide, including relevant trade costs such as taxes and capital occupation costs.

2.2 SMM has added the following PV module prices

HJT module - 210mm (distributed)

2.3 Generation of the quotation methodology

SMM collects data information for evaluating the spot price of HJT modules - 210mm (distributed) through price collection (i.e., gathering raw data information that complies with SMM's data standard policies). This includes unexecuted quotes from buyers and sellers provided by price submitters (i.e., data providers) on the same day, as well as actual transaction prices of spot cargoes provided by price submitters where transactions have been concluded.

SMM's prices aim to reflect the true transaction level of a commodity at a specific point or period throughout the day. Therefore, when transactions and quotes with the same specifications and shipment periods are simultaneously announced in the market, transaction information takes precedence over quote information. While other factors are also considered during the evaluation process, actual transaction prices (which take precedence over quotes) and quotes always take precedence.

2.4 Method of price collection

SMM price analysts regularly collect relevant data information on the prices of HJT modules - 210mm (distributed) from price submitters via phone, QQ, WeChat, fax, and email between 9:30 AM and 11:00 AM each trading day. All instant messaging content, email communications, and records of any face-to-face communications will be archived; details of phone communications will be summarized and entered into the database. This price data information must pertain to typical, repeatable transactions between non-affiliated market participants (completely independent financially and legally).

SMM price analysts must adhere to the Compliance System when reporting to their supervisors any communications from market participants that involve coercion or threats, or any attempts to influence the evaluation results through induced offers. Once the price is published, SMM will not make any corrections or adjustments on the same day.

2.4.1 Targets of price collection

a. Module manufacturers with an annual procurement volume of over 1 GW for HJT modules, having standardized procurement models, smooth procurement channels, relatively stable procurement quantities, certain influence and reputation, operating legally and in good faith, and enjoying a good market reputation.

2.4.2 Price collection from other targets

If the number of active trading participants in the market is very limited, or if the data submitted by certain price submitters accounts for a significant proportion of the total data relied upon for evaluation, SMM will continue to seek other completely transparent and verifiable data from the entire market.

SMM's policy for collecting data information from the market is that SMM welcomes all information from various sources or organizations, as long as the data submitters provide it in good faith and for genuine purposes. However, it is required that both parties must recognize the SMM Data Submitter's Code of Conduct. SMM does not accept instant messaging communication requests from unidentified individuals. SMM price analysts are required to confirm the identity of market participants in accordance with procedures before engaging in instant messaging communication.

2.4.3 Standardization of Information and Data

Due to advancements in technology, the photoelectric conversion efficiency and power of PV modules have been continuously improving. The SMM HJT module-210mm (distributed) price point collection is based on the efficiency of mainstream mass-produced modules currently available in the market and is adjusted according to market changes. The current module efficiency can be found in the quotation notes next to the price point.

2.4.4 Analysis, Verification, and Screening of Information and Data

SMM is committed to making its utmost efforts to confirm quotation and transaction information with relevant parties. SMM will endeavor to conduct multi-party verification of all market data information provided by buyer/seller participants with their respective counterparties. When neither party to a transaction can or is willing to confirm the data, SMM will strive to seek cross-verification from other market participants.

If a received quotation or transaction data point is 20% higher or lower than the arithmetic mean of other normal data points, SMM may define this data as having questionable accuracy (an outlier or suspicious transaction). The SMM price analyst will then re-contact the price submitter to verify the accuracy, applicability, and completeness of the submitted data. If it is confirmed that the error occurred during the submission process, such as a typing error, the error will be corrected, and the data will be re-verified and screened. If no errors are found during the submission process, or if the verification reveals that the data may not conform to the actual situation of the current trading market, the SMM price analyst may exercise expert judgment to conclude that the data submitted by the price submitter is not a qualified data point and needs to be removed from the original dataset.

2.5 Product Standards

Module Grade: Grade A

Module Size: 2382mm*1134mm

Module Power: 720-740W (based on the power of mainstream mass-produced modules currently available in the market and adjusted according to market changes. The current module power can be found in the quotation notes next to the price point.)

2.6 Pricing Unit and Presentation Format

Transaction prices/quotations, etc., are expressed in yuan/W, in the form of a price range, inclusive of 13% VAT.

Price fluctuations are rounded to the nearest 0.01 yuan/W, with fluctuations limited to a movement of at least 0.01 yuan/W.

2.7 Delivery Method

Delivery-to-factory price (including freight of 0.02 yuan/W)

2.8 Payment Method

Cash settlement

2.9 Update Time

11:00-11:20 AM each trading day

III. Methodology Changes

All markets are subject to change, and SMM is responsible for ensuring that the methodologies for its market reports evolve in tandem with the market. Therefore, SMM conducts regular internal reviews of the appropriateness of its methodologies based on industry feedback. For all potential substantive but non-urgent modifications, SMM will follow a formal external consultation process. It will then announce significant changes and provide a notice period of at least 28 days, inviting industry participants to comment, unless special circumstances, particularly force majeure (natural disasters, wars, exchange bankruptcies, etc.), necessitate a shorter notice period. SMM undertakes to carefully consider all comments on proposed methodology changes, but in certain circumstances, it may have to make changes to the methodologies against the wishes of some market participants. Additionally, SMM has a formal methodology consultation process.

Silicon-based PV Research Team, SMM Information & Technology Co., Ltd.

May 27, 2025