Basic Information of the Performance Briefing

On May 7, a photovoltaic enterprise (hereinafter referred to as the "Company") held a performance briefing for the 2025 fiscal year and the first quarter of 2026 through the Value Online interactive platform. The Company's management responded in detail to investors' concerns regarding industry development trends, operation plans, financial data and other issues.

Core Information of the Investor Event

Type of Investor Relations Activity: Performance Briefing
Time: 15:00-16:00, May 7, 2026
Venue: Value Online (https://www.ir-online.cn/) online interactive platform
Participants: Online investors attending the performance briefing
Company Representatives: General Manager An Xutao, Deputy General Manager & Board Secretary Liu Min, Chief Financial Officer Huo Yanan, Independent Director Wu Zhenyu

Key Questions and Company Responses

Photovoltaic Industry Development Trend: Short-term Adjustment, Solid Long-term Growth Resilience

In response to investors' question on the "2026 photovoltaic industry development trend", the Company stated that the global photovoltaic industry is at a critical stage of transformation from rapid scale expansion to high-quality development. In the short term, affected by factors such as excessive expansion of industrial chain capacity and price fluctuations, the industry is undergoing periodic adjustments. However, driven by the global "dual carbon" goals and the deepening of energy transition, the long-term growth resilience remains solid.

According to the 2025–2026 China Photovoltaic Industry Development Roadmap released by the China Photovoltaic Industry Association, the global newly installed photovoltaic capacity is expected to reach 500GW to 667GW in 2026, and the Chinese market is expected to reach 180GW to 240GW, with a slower growth rate than in 2025. By 2030, global newly installed capacity is expected to reach 881GW to 1044GW, with significant medium and long-term growth potential. In terms of regional structure, China will remain the world's largest photovoltaic installation market and become the core engine of global growth.

2026 Business Plan: Focus on Core Business, Promote Intelligent and Industrial Chain Collaboration

The Company clarified its 2026 business direction: to continue focusing on its core business, improve product quality and service quality, increase investment in technology R&D and quality management, and maintain competitive advantages in technology, cost and quality. In terms of market expansion and operation management, the Company will build an efficient marketing system and improve customer service quality; promote automation and intelligent construction of key processes to achieve cross-departmental efficient collaboration in production, supply procurement, customer sales, warehousing, finance and other links, so as to improve quality and efficiency. Meanwhile, the Company will actively explore opportunities in segmented industries upstream and downstream of the industrial chain, improve business performance and enhance overall competitiveness.

Gross Margin Recovery in Q1 2026: Driven by Product Structure Optimization and Cost Control

Regarding the "reason for the improvement of gross margin in the first quarter of 2026", the Company explained that it was mainly due to the continuous optimization of product and customer structure, the improvement of product quality and consistency through refined management, the active expansion of customers and market orders, as well as the strengthening of expense control and effective cost control.

Construction in Progress Surges by 383%: Semiconductor Crucible Project Becomes Strategic Priority

The announcement showed that the Company's construction in progress increased by 383.67% in the first quarter of 2026 compared with the beginning of the period, mainly due to the addition of equipment for the semiconductor quartz crucible construction project. The Company stated that semiconductor quartz crucible is an important direction of its strategic layout, and the "semiconductor quartz crucible construction project" is progressing steadily as planned. Upon completion, the project will further optimize the product structure.

At present, the Company's semiconductor quartz crucible products have reached cooperation and supplied customers in Beijing, Shandong, Inner Mongolia, Sichuan and other regions. Meanwhile, the Company continues to promote verification and promotion among key customers, and some models of products have been supplied to customers in batches. The Company believes that the demand for semiconductor silicon wafers and supporting high-purity quartz crucibles will continue to be released, providing long-term growth space for the semiconductor-grade quartz crucible business.

Customer Structure Optimization: Focus on Cooperation with Leading Enterprises and Domestic & International Market Expansion

In terms of customer structure optimization, the Company stated that in the field of solar-grade quartz crucibles, on the one hand, it maintains stable cooperation with large and medium-sized silicon wafer manufacturers such as TCL Zhonghuan, Canadian Solar, Shibang and GCL. On the other hand, it promotes product verification with leading enterprises including Jinko Solar, Trina Solar, Gaojing and Yongxiang, laying the foundation for subsequent bulk supply. In the field of semiconductor quartz crucibles, the Company continues to intensify customer development and has reached cooperation with customers in multiple regions.

In fiscal year 2025, the Company's products were sold to 22 provinces, autonomous regions and municipalities directly under the Central Government, with 27 new customers added. In the international market, products have been exported to countries including the Republic of Korea, India and Indonesia. The Company will consolidate existing cooperation, explore potential customers and cultivate new profit growth points through customized product development and regular customer follow-ups.

Reasons for Continuous Losses: Low Product Prices Amid Deep Industry Adjustment

In response to the question of "losses for two consecutive years and continued losses in the first quarter of 2026", the Company pointed out that in fiscal year 2025 and the first quarter of 2026, the photovoltaic industry was still in a deep adjustment cycle. The problem of supply-demand mismatch has not been fundamentally alleviated, and the operating rate of all links in the industrial chain remained low, resulting in low average selling prices of the Company's main products. However, through cost reduction and efficiency enhancement, product structure optimization and expense control, the loss scale in 2025 was significantly narrowed compared with 2024. The Company's management will actively respond to industry trends, strengthen R&D innovation and market expansion, and strive to improve business performance.

Asset Impairment and Inventory Risks: Impairment of 355,700 Yuan in Q1, Risks Gradually Released

The Company stated that in fiscal years 2024 to 2025, affected by the deep adjustment of the photovoltaic industry and the sharp decline in prices of industrial chain products, large provisions for inventory depreciation and fixed asset impairment were made based on the principle of prudence. In the first quarter of 2026, the amount of asset impairment loss was 355,700 Yuan. At present, the Company arranges production according to customer orders, continuously optimizes inventory structure and reasonably controls inventory. In the future, the Company will strictly measure relevant asset impairment provisions in accordance with accounting standards based on market changes.

Risk Warning

The Company stated that this performance briefing did not involve any material information that should be disclosed. Future operations will still face risks such as industry cycle fluctuations and intensified market competition, and investors are required to make rational judgments.

(Data source: Investor Relations Activity Record No. 2026-02 of the Company) (If any infringement is involved, please contact us for deletion)