Recently, GCL Technology Holdings (03800.HK) released its full-year results announcement for 2025. During the reporting period, the company recorded revenue of RMB 14.425 billion, while net profit attributable to shareholders was a loss of RMB 2.868 billion, with losses narrowing significantly year-on-year.

Notably, GCL Technology’s gross profit returned to positive territory last year, reaching RMB 1.336 billion, corresponding to a gross margin of 9.3%. The company’s core profitability indicator, EBITDA, also turned positive simultaneously, exceeding RMB 2.8 billion, substantially strengthening cash flow resilience. Its financial structure continued to improve, with the asset-liability ratio (excluding recourse factoring and discounted bills) declining by a further 2.8 percentage points quarter-on-quarter to just 37%, significantly enhancing risk resistance.

A representative of GCL Technology stated: “During the reporting period, the company achieved a substantial turnaround in both gross profit and cash flow, mainly driven by precise strategic adjustments and timely loss-control measures in the photovoltaic materials business, with business-side losses narrowing by 61% quarter-on-quarter. Supported by continuously declining granular silicon costs and steadily improving product quality, product prices rebounded rapidly alongside the industry recovery, while operating cash flow remained stable. However, the company’s performance during the period was still affected by policy-related factors, particularly delayed government subsidy payments, which resulted in significant provisions for receivables and asset impairment related to power plant operations, creating a temporary impact on overall profitability.”

From an operational perspective, GCL Technology’s average cash production cost for granular silicon (including R&D expenses) in 2025 was RMB 25.12/kg, down 25.1% from RMB 33.52/kg in 2024. The average external selling price excluding tax was approximately RMB 35.4/kg. In the fourth quarter of 2025, average cash production cost further declined to RMB 24.03/kg, while selling prices rose to RMB 48.49/kg.

Analysts pointed out that, based on the average selling price of RMB 35.4/kg last year, the unit loss for granular silicon was only around RMB 1–2/kg. Amid widespread deep losses across the industry, GCL Technology demonstrated strong operational resilience.

In terms of product quality, granular silicon products maintained industry-leading performance in controlling metallic impurity levels throughout 2025. GCL Technology’s granular silicon products have now essentially achieved the high-standard requirements of ≤0.5ppbw total metallic impurities for five elements and ≤1ppbw for eighteen elements.

Granular silicon turbidity also continued to improve significantly. The company has now largely achieved turbidity levels below 100NTU across its granular silicon products, while the proportion of products with turbidity ≤70NTU rose sharply from 25% in September 2024 to 96.9% in December 2025. The company also received a Life Cycle Assessment Verification Statement issued by the British Standards Institution (BSI), certifying that the “cradle-to-gate” carbon footprint of its granular silicon products was only 14.2756kg CO₂e/kg.

In terms of shipments, the company’s top five granular silicon customers in 2025 recorded shipment volumes of 59,500 metric tons, 59,300 metric tons, 33,200 metric tons, 26,300 metric tons, and 23,600 metric tons respectively. GCL Technology has further strengthened strategic partnerships with leading global wafer manufacturers, enhancing customer stickiness. Polysilicon production capacity remained stable at 480,000 metric tons, further consolidating the company’s market position during the industry downturn, while continuously improving the competitiveness of the granular silicon-based industrial and ecosystem chain.

While reinforcing its core advantages in granular silicon, GCL Technology has also actively expanded into frontier sectors such as perovskites and silicon-carbon anodes, building a “one core, multiple growth drivers” second growth curve.

In June 2025, the world’s first GW-scale perovskite industrial base officially commenced operations in Kunshan, marking the successful transition of the technology from laboratory development to commercialization. In October 2025, GCL Technology completed the world’s first 500MW tandem module production line, with mass-production efficiency of its 2.76㎡ full-size modules steadily surpassing 27%.

At the same time, GCL’s perovskite technology has embarked on its “journey to space.” Leveraging the Zhuque-2 Y3 launch vehicle, the company successfully completed the world’s first in-orbit space experiment for perovskite technology, verifying its exceptional stability under extreme cosmic conditions. Building on this achievement, the company officially launched its “Three-Step Space Strategy”: deepening deep-space endurance testing in 2026, achieving mass production of space-specific modules between 2027 and 2028, and striving to become the “standard power source” for Chinese spacecraft.

In addition, as the solar-plus-storage market enters a period of explosive growth, synchronized lifecycles for solar and storage systems are becoming achievable, ushering zero-carbon energy into a lower-cost era. Leveraging advantages such as 600,000 tons of self-produced silane gas, CVD technology, and low-carbon emissions, GCL is pioneering a new pathway for silicon-carbon anodes, laying a solid foundation for the high-quality development of next-generation advanced carbon materials. The company is also actively building a carbon-to-carbon recycling innovation ecosystem, driving the transition of carbon neutrality from a “cost center” to a “profit engine” to meet the future needs of frontier technologies such as solid-state batteries and black phosphorus batteries.

“Throughout 2025, the company strictly controlled capital expenditures, avoided blind capacity expansion, and focused on technological cost reductions and efficiency improvements, providing solid support for stable operations. 2026 will be a critical year for the company’s successful transformation and full value realization. We will focus on the core strategy of ‘global expansion + continuous exploration of a second growth curve’ to achieve high-quality leapfrog development,” GCL Technology stated.

This year, the company plans to accelerate its global capacity and market expansion, leveraging technological advantages in granular silicon and perovskites to focus on key markets including the United States, Europe, the Middle East, and Africa. It also aims to establish a globalized supply chain and service system featuring a “multi-region, multi-node, localized” supply chain structure.