Recently, the domestic DMC market prices have shown a downward trend, with the average market price dropping to 13250 yuan/ton, a decrease of 100 yuan/ton from the previous working day. Faced with market fluctuations, individual factories are planning to reduce production to stabilize the market. However, against the backdrop of overall industry pressure, Hesheng Silicon Industry has demonstrated a steady development trend with its strong technological strength and forward-looking strategic layout.
As a leading enterprise in the domestic industrial silicon and organic silicon industries, Hesheng Silicon Industry has always adhered to the strategic positioning of coordinated development of the "coal electricity silicon" industry chain, driven by technological innovation to reduce costs and increase efficiency. In 2024, the company made significant breakthroughs in the field of industrial silicon, achieving a daily output of over 70 tons per furnace through technological transformation, significantly reducing electricity consumption per ton, and significantly improving production efficiency and cost competitiveness. In the organic silicon sector, the company has not only increased single set production capacity but also significantly reduced energy consumption costs and further consolidated its market position through fluidized bed technology transformation and the application of energy-saving equipment.
Of particular note is that Hesheng Silicon Industry has achieved a leapfrog development in its silicon carbide business. The 6-inch substrate has been successfully mass-produced with a leading yield rate in the industry, and the 8-inch substrate has also entered the stage of small-scale production. The key technical indicators have reached the international advanced level, opening up new growth points for the company.
In terms of shareholder returns, Hesheng Silicon Industry also demonstrates a high sense of responsibility and mission. 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 to investors. The company is actively researching 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, demonstrating the management's firm confidence in the company's business prospects and their emphasis on long-term returns for investors.
To further enhance market recognition, Hesheng Silicon Industry has also clarified the strategic direction of market value management. The company has enhanced transparency by optimizing information disclosure and conducting multi-channel communication, and established a "online+offline" three-dimensional communication system to help investors gain a deeper understanding of the company's strategic layout and business dynamics. The previously completed share repurchase plan has also added important weight to market value management, and the repurchased shares intended for employee incentives in the future will further bind 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 its full industry chain layout and technological breakthroughs, coupled with high dividends and repurchase measures, demonstrating strong risk resistance and responsibility. Looking ahead to the future, with the continuous growth of demand for silicon-based materials in the global new energy and semiconductor industries, Hesheng Silicon Industry is expected to achieve significant long-term value enhancement through its capacity release and progress in new product research and development. The company will continue to focus on "improving quality and efficiency", balance scale expansion and efficiency improvement, and work together with investors to build a new future for the silicon-based industry.