The gross profit margin was 6.5% and the unit cost was 31,600/ton! Challenges for new polysilicon giants remain formidable

2026-09-15 17:40:26

As can be seen from the report card of "cost reduction by 30% and gross profit margin turning positive", the Asian silicon industry is quietly accumulating strength and waiting for the market to turn around.

Recently, the interim report on corporate bonds issued by Red Lion Holding Group Co., Ltd. The polysilicon business of Asia Silicon Industry, a subsidiary of Red Lion Holdings, has realized revenue of 1.548 billion yuan . It accounted for 10.33% of the Group's revenue (5.56% in the same period last year), an increase of 69. Hongshi Group " Cement + Cement Laosi Acquires Silicon Material Laoliu

Hongshi Holding Group's "Cement + Polysilicon" dual main business pattern began in 2023. In March

of that year, Red Lion Holding Group announced that it would buy about 181 million shares of Asian Silicon Industry, a giant in the field of polysilicon, at a price of 8.122 billion yuan, accounting for 68% of the total equity of Asian Silicon Industry.

At that time, Asian Silicon Industry had 90000 tons of polysilicon production capacity, ranking sixth in China. Red Lion Group ranks fourth in the cement industry with 72.54 million tons per year of clinker production capacity. At the company's business meeting in that year, Zhang Xiaohua, chairman and general manager of Hongshi Group, made it clear that he would base himself on the main cement industry and enter the polysilicon industry. The main cement industry would become stronger, supplemented by bigger ones. The polysilicon industry would speed up its layout and scale, and build a "cement + polysilicon" dual-industry pattern.

The gross profit rate is 6.5%, and the unit cost is 31,600/ton.

With the production of Haidong Project, Red Lion Group has become the head of the second echelon in the industry.

By the end of June 2026, the gross profit rate of Hongshi Group's polysilicon production capacity

in the first half of the year was 6.49%. In the first half

of 2026, the output of polysilicon was 55100 tons , an increase of 91.99% over the previous year, and the sales volume was 45800 tons.

It is noteworthy that in the first half of the year, the average price of polysilicon in Hongshi Group dropped by 13.38% (to 38.2 million yuan/ton), but the unit cost dropped sharply from 45.1 million yuan/ton in the same period last year to 31.6 million yuan/ton, a decrease of 29.86%. The cost decline outperformed the price decline, and the gross profit margin rose from -2.41% to 6.

The cost side has been greatly improved from the "silicon consumption" of Haidong Red Lion Project, " compared with the gross profit rate of peers-GCL Technology is-7.5%, Xinte Energy is about 1.4%, The gross profit rate of Tongwei Yongxiang and Daqo Energy has not turned positive yet-Red Lion Group 6.

The gross profit rate is 6.5%, and the unit cost is 31,600/ton!

of 2026, the net profit of Red Lion Group's polysilicon business was still a loss of 127 million yuan , and the gross profit rate has not yet been transmitted to the end of the profit statement, but compared with-170 million yuan in the same period last year. In terms of capacity utilization rate, the data of Red Lion Group in the first half of the year was still higher than industry average of 33.8% announced by the Silicon Branch, and also dropped from 63.08% in the same period last year to 47.71% . On June 27

this year, the mandatory national standard of "Energy Consumption Limit per Unit Product of Silicon Polycrystalline and Germanium" was issued and will be implemented on January 1, 2027. The photovoltaic industry chain, including polysilicon, will have no less than 30% of its stock capacity facing clearance due to substandard energy consumption.

However, in the first half of this year, the overall capacity utilization rate of the polysilicon industry was only about 30%, while the industry's inventory was approaching 600000 tons. At the same time, the price of polysilicon continues to hover below 40000/ton, although the production enterprises have the intention to push back above the cost line, but in the face of the "price without market" market is also powerless. In the short term, if only relying on the clearance of stock capacity has little effect on the restoration of industry profits, it is urgent to implement the "anti-involution" action of the industry.

At present, most of the cost reduction dividends of polysilicon industry have been realized. If the price in the second half of the year can not be substantially repaired under the promotion of "anti-involution" and strong energy consumption standards, the time point of turning around losses will continue to move back. Polysilicon production enterprises may also need to rely on their own reserves of "ammunition depots" to continue to "suffer" for some time . The interim report of

Red Lion Group's 2026 bonds shows that by the end of June, the interest-bearing liabilities of Red Lion Group were 43.230 billion yuan, and the asset-liability ratio was 56. Under the pressure of both main businesses, Red Lion Holdings really needs to carefully examine its own "burden" and think about how to "resist the winter".

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As can be seen from the report card of "cost reduction by 30% and gross profit margin turning positive", the Asian silicon industry is quietly accumulating strength and waiting for the market to turn around.

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