合盛矽業股份有限公司（HeSheng Silicon Industry Co., Ltd.） stated on April 17 that the total profit, net profit attributable to the shareholders of the listed company, and net profit attributable to the shareholders of the listed company after deducting non-recurring gains and losses all experienced a decline in 2025. The net profit showed a loss of 2.991 billion yuan (RMB), a decrease of 271.84% compared to the previous year. This is the first time HeSheng Silicon Industry has incurred a loss since its establishment in 2005.
On April 17, HeSheng Silicon Industry released its “2025 Annual Report”. The report indicates that the total profit, net profit attributable to the shareholders of the listed company, net profit attributable to the shareholders of the listed company after deducting non-recurring gains and losses, basic earnings per share, diluted earnings per share, basic earnings per share after deducting non-recurring gains and losses, weighted average return on net assets, and weighted average return on net assets after deducting non-recurring gains and losses all changed by -225.71%, -271.84%, -302.07%, -272.30%, -272.30%, -303.05%, decreased by 14.98 percentage points, and decreased by 14.76 percentage points respectively compared to the same period last year.
The report points out that the main reasons for the loss were “mainly due to the decrease in prices of primary products and the provision for impairment of inventories and long-term assets leading to reduced profits”.
Public data shows that HeSheng Silicon Industry is one of the few companies capable of simultaneously producing industrial silicon, organic silicon, and graphite electrodes, possessing a complete silicon industry chain. The company went public on the Shanghai Stock Exchange main board in 2017.
Industrial silicon and organic silicon are the two major flagship products of HeSheng Silicon Industry. According to the “2025 Annual Report”, the full-year sales revenue of industrial silicon was 9.077 billion yuan, accounting for 44.84% of total operating income, a decrease of 34.05% from the previous year; the full-year sales revenue of organic silicon was 9.575 billion yuan, accounting for 47.3% of total operating income, a decrease of 21.52% from the previous year.
Along with the decline in sales revenue, the gross profit margins of these two major products also decreased. In 2025, the overall gross profit margin of its industrial silicon products decreased by 9.62 percentage points year-on-year, and the organic silicon margin decreased by 4.94 percentage points.
The significant loss incurred by HeSheng Silicon Industry reflects the current situation of the entire photovoltaic industry. From an industry perspective, in 2025, due to changes in the supply and demand relationship of the photovoltaic industry chain, the industrial silicon market demand contracted. Additionally, with the ongoing global economic geopolitical games and trade frictions, the industrial silicon, organic silicon, and polysilicon industries are in a period of deep structural adjustment of supply and demand, facing downward price pressure. The average annual price in 2025 continued to decline. According to Baichuan Yingfu statistics, the average price of metal silicon 553 in 2025 decreased by about 27% year-on-year.
Furthermore, the “Huaxia Times” speculates that the losses of HeSheng Silicon Industry may be related to the rise in raw material costs. In 2025, the average price of raw materials and ores decreased by 32.98% year-on-year, but in the fourth quarter, it increased by 24.54% compared to the third quarter, significantly raising cost pressures.
Regarding future market trends, the “Huaxia Times” believes that the polysilicon market is still constrained by short-term insufficient demand and high inventory, with a noticeable slowdown in photovoltaic installations. The industry is currently undergoing a period of deep adjustment characterized by transformation and restructuring.