SOLARGIGA has announced that the group expects to record an unaudited net loss attributable to owners of the company for the year ending December 31, 2025, of approximately RMB 2.70 billion to RMB 3.10 billion. This compares to a net loss attributable to owners of approximately RMB 2.27 billion for the 2024 financial year.

The primary reasons for the anticipated net loss in the reporting year include: 1. During the reporting year, the photovoltaic industry entered a period of transition and adjustment. Although industry-wide measures to counter overcapacity have yielded positive results and supply chain prices have gradually bottomed out and begun to recover, the lingering effects of previous structural overcapacity have led to a persistent supply-demand imbalance, resulting in overall weak performance. Throughout the reporting year, the average selling price of major products continued to decline, leading to a decrease in revenue from photovoltaic modules. Furthermore, persistently low capacity utilization rates have continued to pressure the group, further compressing the gross profit margin of its photovoltaic modules. 2. Due to litigation matters with several customers and considerations regarding the financial condition of certain debtors, the group recognized significant impairment losses on trade receivables and contract assets during the reporting year. This contrasts with the reversal of impairment losses on trade receivables and contract assets recorded in the 2024 financial year. 3. As a result of decreased sales volume and market prices, certain asset groups within the company incurred operating losses. Consequently, the group conducted impairment assessments on several long-term assets showing indications of impairment and recognized significant impairment losses on property, plant, and equipment during the reporting year.

Additionally, the group will continue to intensify its efforts to enhance operational efficiency and implement strict cost controls to improve its competitive edge. Despite current headwinds facing the industry, driven by the global long-term commitment to carbon neutrality and a clean energy future, the photovoltaic industry is expected to maintain stable growth. The board of directors and management remain confident in the company's long-term development prospects.