1. Profitability shows steady recovery, while contract liabilities decline due to industry fluctuations. 2. The company is actively expanding its perovskite solar cell business. 3. It is also diversifying into semiconductor and lithium battery equipment sectors. 4. High-level policy guidance against cutthroat competition differs fundamentally from industry self-regulation, potentially optimizing the PV industry landscape and supporting a valuation rebound.

**Key Highlights** The company reported revenue of RMB 13.106 billion in Q1-Q3 2025, up 6.17% YoY, with net profit attributable to shareholders reaching RMB 2.688 billion (+32.90% YoY). Adjusted net profit stood at RMB 2.463 billion (+26.68% YoY). Q3 revenue fell 17.26% YoY to RMB 4.734 billion, while net profit rose 7.72% to RMB 858 million.

Profitability improved steadily, with Q3 gross margin at 28.06% (+4.68 ppts YoY) and net margin at 18.13% (+4.2 ppts YoY), driven by product mix optimization. Inventory and contract liabilities dropped significantly to RMB 6.622 billion (-63.37% vs. mid-2025) and RMB 6.481 billion (-60.62%), respectively, reflecting PV industry volatility. New orders were supported by production line upgrades, overseas expansion, and new technology adoption.

**Perovskite Solar Cell Expansion** The company has established a comprehensive presence in TOPCon, HJT, XBC, perovskite, and perovskite tandem cell technologies, emerging as a key equipment supplier for mainstream TOPCon solutions. It has developed in-house perovskite pilot lines and holds patents for perovskite equipment, offering full-line solutions. Its portfolio includes PVD, RPD, evaporation, laser, coating, VCD, and cleaning systems. Recently, it delivered industrial-grade piezoelectric inkjet printing equipment for perovskite films and shipped GW-scale magnetron sputtering PVD2400V systems.

**Semiconductor and Lithium Battery Equipment** Subsidiary Chuangwei Microelectronics has achieved full-process development of wet equipment for 6-12-inch wafer manufacturing, third-generation semiconductors, and advanced packaging. Breakthroughs in lithium battery vacuum equipment have also been made.

**Policy-Driven Industry Optimization** High-level policy directives against low-price disorderly competition, coupled with industry self-regulation, may reshape the PV sector. Silicon and module price trends under this framework warrant close monitoring.

**Risk Warning** The impact of anti-cutthroat competition policies and industry restructuring on valuations remains uncertain.