Domestic DMC prices have declined, with the current market average price dropping to 13250 yuan/ton, a decrease of 100 yuan/ton from the previous working day. To stabilize the market, individual factories plan to reduce production in the next two days. Today's market quotation is still at a high level, and due to the pressure of destocking, the actual transaction price has decreased. Downstream demand is weak, the market has a strong wait-and-see atmosphere, bearish sentiment is strong, the enthusiasm for inquiry and procurement is not high, and the volume of new orders is poor. On the raw material side, the price of silicon metal is fluctuating at the bottom, and without significant favorable conditions, it is difficult to break out of the bottom range in the short term. Supply side: The scale of production reduction by individual factories may continue to increase. On the demand side: downstream bearish sentiment is evident, and the market atmosphere is light.
As a leading enterprise in the domestic industrial silicon and organic silicon industry, Hesheng Silicon Industry has always focused on the "coal electricity silicon" industry chain synergy strategy, driven by technological innovation to reduce costs and increase efficiency. In 2024, the company's industrial silicon business will achieve a daily output of over 70 tons per furnace through technological transformation, and the electricity consumption per ton will be reduced to below 10000 kWh; The organic silicon sector has increased its production capacity by over 10% and significantly reduced energy consumption costs through fluidized bed technology and the application of energy-saving equipment. In addition, breakthrough progress has been made in the silicon carbide business, with 6-inch substrates achieving mass production and industry-leading yield rates, and 8-inch substrates entering the stage of small-scale production. Key technical indicators have been comparable to international leading enterprises, laying the foundation for the company to open up a second growth curve. In terms of shareholder returns, the company has accumulated cash dividends of 3.461 billion yuan in the past three years, accounting for 64.91% of the average net profit attributable to shareholders during the same period, and continues to fulfill its profit distribution commitment. The announcement reveals that the company is studying and formulating a shareholder dividend plan for 2025-2027, and plans to use 30% of the net profit attributable to the parent company in 2024 for cash dividends. The relevant plan will be implemented after being reviewed and approved by the board of directors and shareholders' meeting. This measure demonstrates the management's confidence in the business prospects and their emphasis on long-term returns for investors. Strengthening market value management and facilitating investor communication to enhance market recognition, Hesheng Silicon Industry has clearly stated that it will improve its market value management system, enhance transparency through optimizing information disclosure and conducting multi-channel communication. The company has established a "online+offline" three-dimensional communication system, including the Shanghai Stock Exchange e-interactive platform, performance briefing meetings, and on-site research receptions, to help investors gain a deeper understanding of strategic layout and business dynamics. The previously completed share repurchase plan is also an important part of market value management - as of the end of 2024, the company spent 500 million yuan to repurchase 9.77 million shares, which will be used for employee incentives in the future, further binding the interests of the core team and shareholders. Against the backdrop of cyclical fluctuations in the silicon-based materials industry, Hesheng Silicon Industry has continuously consolidated its cost advantage through a full industry chain layout and technological breakthroughs, coupled with high dividends and repurchase measures, demonstrating strong risk resistance and responsibility. With the increasing demand for silicon-based materials in the global new energy and semiconductor industries, the release of production capacity and the progress of new product research and development may become the key to medium - and long-term value enhancement for the company. Hesheng Silicon Industry stated that in the future, it will continue to focus on "improving quality and efficiency", balance scale expansion and efficiency improvement, build investor trust through solid operations and positive returns, and help promote high-quality development of the capital market.