Industry Outlook: The photovoltaic industry is expected to see improvements in supply-demand dynamics by 2026, with potential profitability for key players, driven by regulatory advancements and energy storage developments.

Market Recovery: A report suggests that the main photovoltaic industry chain may begin to recover in the second half of 2025, despite a temporary weakening in demand anticipated for 2026.

Investment Recommendations: CICC recommends focusing on high-quality storage, commercial storage, high-power component companies, and silicon material firms as potential investment opportunities.

Company Performance: Specific companies like XINYI SOLAR, JINKO SOLAR, and GCL TECH are highlighted for their strong market positions and potential for profitability amidst ongoing market changes.

PV Glass Market Conditions: Demand for PV glass is low, leading to increased inventory days and a price drop to RMB11.5 per square meter, pushing profitability for leading companies close to breakeven while others face larger losses.

Price Forecast for Next Year: CICC anticipates that average prices for 2.0mm PV glass will stabilize next year at RMB13-13.5 per square meter, compared to this year's average of RMB12.59, which is a 15.83% decrease year-over-year.

Company Recommendations: CICC has recommended XINYI SOLAR and FLAT GLASS, maintaining their valuation and earnings forecasts for these companies.

Short Selling Data: As of December 22, 2025, XINYI SOLAR has a short selling of $25.85M with a ratio of 17.943%, while FLAT GLASS has a short selling of $1.92M with a ratio of 7.910%.

Market Downtrend: The PV sector's H- and A-shares experienced a decline on November 11, with GCL TECH dropping 6.19% and other companies like FLAT GLASS and XINYI SOLAR also seeing losses.

Short Selling Activity: Significant short selling was reported across various companies in the sector, with GCL TECH having a short selling ratio of 19.286% and XINYI SOLAR at 35.836%.

Negative Industry Outlook: Daiwa has expressed a negative view on the Chinese solar industry, suggesting that the market is overly optimistic about profitability.

Polysilicon Industry Developments: Reports indicate that Beijing Guanghe Qiancheng Technology Co., Ltd. is being positioned as a polysilicon capacity integration platform, but it has not yet begun operations.

Daiwa's Outlook on Solar Industry: Daiwa has a negative view on the solar industry in Mainland China, suggesting that market expectations for profitability in 2025 are overly optimistic, which could negatively impact solar stock prices.

DAQO New Energy Corp. Rating: The broker maintains an Outperform rating for DAQO New Energy Corp. (DQ.US), citing its long-term investment value due to its net cash value exceeding market value.

XINYI ENERGY and FLAT GLASS Ratings: XINYI ENERGY (03868.HK) is rated Hold with a target price increase to HKD0.9, while FLAT GLASS (06865.HK) and XINYI SOLAR (00968.HK) are rated Underperform, with significant reductions in their earnings forecasts.

Short Selling Data: The report includes short selling data for various companies, indicating varying levels of short interest, with XINYI SOLAR showing a notably high short selling ratio of 27.066%.

Hong Kong Stock Market Performance: Hong Kong stocks opened higher on the 12th, with the HSI gaining 58 points initially and reaching a high of 27,016 before closing at 26,890, up 193 points or 0.7%, with a turnover of approximately $125.4 billion.

Photovoltaic Stocks Decline: A-/H-shares of photovoltaic stocks experienced significant declines, with GCL TECH dropping 9.15% and other major players like XINYI SOLAR and LONGI GREEN ENERGY also facing substantial losses, reflecting a broader downturn in the sector.

Short Selling Activity: There was notable short selling activity in the photovoltaic sector, with GCL TECH and XINYI SOLAR seeing high short selling ratios, indicating bearish sentiment among investors.

Wind Power Equipment Stocks: GOLDWIND, a wind power equipment stock, also saw a decline of 4.76%, contributing to the overall negative trend in renewable energy stocks on the market.