Gelonghui, June 20 | After experiencing a month of shock and rebound from the end of April to the end of May, the photovoltaic sector fell back and forth in June. The sector continued its collective decline today. Longji Green Energy closed down 4.77%, and its stock price hit a new low of more than 4 years since June 12, 2020. Dahaima, which once had a market capitalization of 500 billion yuan, has now fallen below 120 billion yuan; TCL Central fell nearly 5%, and its stock price hit a new low of nearly 4 and a half years since January 3, 2020, with a market value approaching 37 billion yuan; Tongwei shares fell more than 2% intraday, hitting a new low of about 3 years and 9 months since September 28, 2020, with a market value approaching 90 billion yuan. In terms of individual stocks, Longji Green Energy announced on the evening of June 18 that the controlling shareholder Li Zhenguo pledged 70 million shares of the company for personal capital turnover on June 17, 2024. As of the announcement disclosure date, Li Zhenguo had pledged a total of 21.1 million shares of the company, accounting for 2.78% of the company's total shares and 19.77% of its own shareholding ratio. Longji Green Energy also recently announced that a bill to publicly issue 10 billion yuan of corporate bonds has been passed by the shareholders' meeting. Coincidentally, TCL Central announced a reduction in the total amount of convertible bonds issued in late May, from no more than 13.8 billion yuan to no more than 4.9 billion yuan. It is worth mentioning that both companies issue bonds to finance and use surplus money for financial management. Yang Delong, chief economist at Qianhai Kaiyuan, said, “Manufacturing companies have large cash reserves in their accounts and then issue bonds to raise capital, mainly to prevent the breakdown of the company's capital chain during the downturn in the industry and price wars.” He said that also due to this consideration, the company may use temporarily idle funds for some financial management. In terms of exports, the latest data from the General Administration of Customs shows that in May, exports of solar cells and lithium batteries continued to “increase in volume and price drop”. In May, 590 million solar cells were exported, up 24.1% year on year. The export value was US$2,827 billion, down 38.7% year on year. Since this year, there has been a clear trend of increasing and decreasing the export volume of solar cells. In the previous five months, the cumulative export volume increased by 22.8% year on year, and the cumulative export value decreased by 33.3% year on year. In terms of price, as of the beginning of June this year, the average price of N-type polysilicon composite feed, N-type silicon wafer M10, Topcon module M10, and Topcon module M10 was about 39.5 yuan/kg, 1.08 yuan/piece, 0.30 yuan/W, 0.88 yuan/W, respectively, -66.95%/-68.42%/-48.24%, compared with the same period last year, -41.04%/-51.57%/-36.17%/-12.00% respectively. At the same time, the average cost in the P-type silicon/silicon wafer/battery/module industry is about 37.78 yuan/kg, 1.26 yuan/piece, 0.30 yuan/W, and 0.74 yuan/W, respectively. Donghai Securities believes that prices in many areas have exceeded the cost line, and that silicon materials, silicon wafers, etc. are already in a state of losing cash costs. Affected by current production capacity losses, cash cost pressure, and inventory accumulation, the current industrial chain operating rate is gradually declining, which is expected to accelerate into an inflection point between supply and demand, and bottoming out industry prices. Industry insiders also said that the global PV market demand growth rate will slow down this year and next two years, and the photovoltaic industry will enter a new round of supply-demand adjustment. The development model in the past is unsustainable. PV companies should seek out short-term irreplaceable product and technology layout routes in homogenized competition, raise awareness of intellectual property protection and innovation capabilities, and rationally plan the global industrial layout.