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01 Silicon prices continue to fall, has fallen below the industry average cost line, companies continue to buy back protection.

02 Tongwei shares said that the company's polysilicon production bases have no maintenance or production reduction plans for the time being, and will continue to pay attention to the market supply and demand situation.

03 As the price of silicon materials has fallen to the lower limit of manufacturing costs, some companies are expected to have a full loss in the second quarter.

04 more than head silicon enterprises have started to buy back, such as Tongwei shares to buy back a total of 49.2602 million shares, Daquan Energy cumulative repurchase of 8.1369 million shares.

05 However, Xu Guangfu, the actual controller and chairman of Daquan Energy, only made a lock-in commitment to 19.5 million shares held directly, while other indirect shares did not make a lock-in commitment.

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Beijing News Shell Financial News (Reporter Zhu Yueyi) "Considering that the current polysilicon price has stabilized for several weeks in a row and the price is relatively limited, the company's polysilicon production bases have no plans to overhaul or reduce production for the time being." Silicon leader Tongwei shares (600438.SH) in a research record disclosed on July 1 on the company's production capacity, the follow-up company will continue to pay attention to the market supply and demand situation, dynamic assessment of the optimal operating rate of silicon links.

Silicon prices remain at rock bottom. According to the in stock quotation of SMM of Shanghai Nonferrous Metals Network, as of July 2, the in stock quotation of polycrystalline silicon compact material has been temporarily maintained at 34-37 yuan/kg, with an average price of 35.5 yuan/kg, which has already fallen below the average cost of polycrystalline silicon industry.

"Things are really tough this year." A silicon company told Shell Finance that the price of silicon has fallen to the lower limit of manufacturing costs, and there may have been a full loss in the second quarter, and companies with insufficient cash reserves will be eliminated.

Statistics from the Silicon Industry Branch of the China Nonferrous Metals Industry Association on June 26 showed that as of the week, the number of domestic polysilicon companies in production was 19, and the number of companies that have begun maintenance and shutdown remained at 15. Tongwei expects the polysilicon industry to produce about 150000 tons in June, down more than 30000 tons from the previous month.

Tongwei shares also mentioned in the records disclosed yesterday that the difference in cash costs of the three major polysilicon production bases in Leshan, Baoshan and Baotou is mainly reflected in the difference in electricity prices, while there is no significant difference in core production indicators such as comprehensive electricity consumption, silicon consumption and steam consumption. With the advent of the flood season in June, it is expected that the electricity prices of the company's Leshan base and Baoshan base will drop significantly compared with the previous dry season, which will reduce the company's polysilicon production costs to a certain extent.

A number of head silicon companies have previously started buybacks and disclosed their progress a few days ago.

Tongwei shares disclosed that as of June 28, 2024, the company had repurchased 49.2602 million shares through centralized bidding transactions, accounting for 1.0942 of the company's current total share capital, and the total transaction amount was 1.037 billion yuan.

Daquan Energy (688303.SH), another head silicon company, disclosed that as of June 30, 2024, the company had repurchased 8.1369 million shares through centralized bidding, accounting for 0.3794 percent of the company's total shares, and paid a total of 0.275 billion yuan.

The repurchase programs disclosed by the above companies all plan to use the repurchased shares for the implementation of employee stock ownership plans or equity incentives, rather than repurchase write-offs.

shell financial reporters are concerned that daquan energy will usher in a large-scale lifting of the ban on July 22, with 1.625 billion shares and a market value of 33.133 billion yuan.

in this context, Xu Guangfu, the actual controller and chairman of Daquan Energy, issued a letter of commitment not to reduce the shares of the company in late June, promising not to reduce the shares directly held by the company in any way within six months from July 23, 2024 (that is, from July 23, 2024 to January 22, 2025).

Xu Guangfu said that the commitment to lock up shares is based on confidence in the future development prospects of Daqo Energy and recognition of the long-term value of Daqo Energy. At the same time, it is to enhance the confidence of investors and effectively safeguard the rights and interests of investors and the stability of the capital market. However, Xu Guangfu only directly holds 19.5 million shares, a 0.91 per cent stake, with a more core stake coming from his indirect holdings through the Cayman encyclopedia, while Xu Guangfu has not made a lock-in commitment to other indirect holdings.

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