Buzzing! GCL's granular silicon market share has already surpassed 24%!

The industry's "anti-involution" effort has entered deeper waters, enabling Xinxin Technology (03800.HK), which has long embraced a strategy of differentiated development, to showcase in its 2025 interim report positive signals that the company is successfully navigating the cyclical challenges.

 

On August 29, Xinxin Technology released its financial results for the first half of 2025, reporting revenue of 5.735 billion yuan and a gross loss of 700 million yuan. Notably, the company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the period stood at approximately 380 million yuan, representing a year-on-year increase of 325.8%—a solid performance that ensured the company maintained positive cash flow. Amidst the industry-wide downturn and widespread losses, Xinxin Technology still delivered an impressive set of results.

 

 

"By leveraging its innovative granular silicon technology, the company has established a robust intellectual property moat and cultivated core competitive advantages, enabling it to outperform industry trends and gain a significant edge. This, in turn, continues to enhance the company’s product capabilities, strengthen customer loyalty, and propel the business toward yet another pivotal milestone in achieving high-quality, next-generation productivity growth," said Xinxin Technology.

 

Xinxin Technology announced that as of the second quarter of 2025, the average cash production cost of granular silicon (excluding taxes) has dropped to 25.31 yuan/kg, a 6.5% decrease compared to the first quarter of this year, continuing to maintain the industry's highest level. Meanwhile, looking at individual quarters, after hitting its lowest sales price in the third quarter of last year, granular silicon prices—including taxes—have consistently exceeded its cash costs since the fourth quarter of 2024, effectively building a robust cash flow barrier. According to Infolink statistics, in July 2025, the transaction price of granular silicon surpassed that of traditional N-type dense blocks for the first time.

 

Most notably, the quality of granular silicon continues to improve steadily. The report reveals that, thanks to ongoing process optimization, technological advancements, and continuous material innovation, the company's granular silicon products have demonstrated consistent quality gains, consistently pushing the boundaries of what granular silicon can achieve. Moreover, driven by the exceptional purity and stability of these granular silicon products, customer loyalty toward the company is growing stronger every day, further solidifying and deepening the strategic partnership between both sides.

 

 

The financial report reveals that granular silicon has largely achieved a total metal impurity content of less than 1 ppb for all five elements, with products meeting the stringent ≤0.5 ppb threshold consistently maintaining a robust 95% market share—and there’s still room for further improvement. Meanwhile, in June, the company initiated its quality-testing standards for "products with total metal impurities of ≤0.3 ppb across the five elements," and by the same month, over 75% of its silicon products already met this ultra-high standard. Building on an even more rigorous measurement benchmark of "total metal impurities ≤1 ppb across 18 elements," the company saw its product compliance rate climb dramatically—from 55.8% in Q1 2024 to 91.8% by Q2 2025, marking a significant leap in overall product quality.

 

Meanwhile, the turbidity of granular silicon continues to improve steadily, with turbidity now fully optimized to below 100 NTU. Additionally, the proportion of granular silicon products achieving a turbidity of ≤70 NTU has risen from 25% in September 2024 to 57.4% by Q2 2025.

 

Thanks to the rapid, matrix-like improvement in various quality parameters, granular silicon has delivered exceptionally strong market performance. The top five customers accounted for 71% of total shipments, and in the first half of the year, the company achieved a market share of 24.32% in granular silicon production.

 

Xinxin Technology told reporters that the company firmly supports the central government's decisions and plans to deepen the construction of a unified national market and address low-price, disorderly competition. It is implementing the "production based on sales" strategy, strictly adhering to industry rules of "orderly competition," and continuously maintaining low inventory levels for its granular silicon products.

 

 

Notably, as Xinxin Technology's market share of granular silicon continues to rise, the company is experiencing a rapid decline in sales expenses, administrative costs, and financing costs. According to the financial report, during the reporting period, Xinxin Technology's sales expenses decreased by 21.2% compared to the same period last year, administrative expenses fell by 8.5%, and financing costs dropped by 10.5%. Meanwhile, the company's asset-liability ratio (excluding off-balance-sheet endorsed and discounted notes) has now fallen to 38.4%.

 

Additionally, in the ESG arena, GCL's "Carbon Chain Management Platform" stands out as an industry benchmark. GCL Technology has successfully spearheaded the transformation of the silicon material industry—from a "high-consumption, high-carbon" model to a "low-consumption, low-carbon" one. As a result, the carbon footprint of granular silicon, measured from "cradle to gate," is just 41 kgCO2e/kg—significantly lower than the internationally recognized carbon factor database (Ecoinvent 3.9.1) benchmark for rod-shaped silicon, which lists a characteristic factor of 81 kgCO2e/kg. This breakthrough effectively addresses the longstanding issue of companies being forced to rely passively on Europe's high-emission carbon factors for rod-shaped silicon, thereby avoiding inflated carbon accounting results. This milestone marks China's transition from being a "carbon factor taker" to a "carbon standard setter," empowering the entire industry chain to reduce carbon emissions more efficiently and accelerating the global shift toward a zero-carbon future.

 

A seasoned industry analyst stated: "Currently, the photovoltaic industry is at a critical juncture of supply-side reform, and a growing consensus on combating internal competition is rapidly taking shape. By leveraging its strengths—such as technological breakthroughs, disruptive production processes, cost reductions, and significantly lower carbon footprints—the company has taken the lead in breaking free from internal competition and setting a benchmark for navigating industry cycles. Based on the current intensity of regulatory measures and market pricing trends, we expect the company to turn profitable as early as August."

 

The seasoned analyst also believes: "Following this round of supply-side reforms, coupled with the stringent implementation of the EU carbon tax and the surging global ESG movement, Xinxin Technology's granular silicon is bound to become the mainstream product in the photovoltaic industry."