Analysis of Gross Margin Changes and Industry Competitive Landscape of Juhe Materials

Based on the collected data and analysis, I hereby provide you with a detailed report on the gross margin changes and industry competitive landscape of Juhe Materials.

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According to financial data, the gross margin of Juhe Materials shows a continuous downward trend [1][2]:

Time Period	Gross Margin	Sequential Change
First Half of 2023	9.2%	Benchmark
Second Half of 2023	8.5%	-0.7 pct
First Half of 2024	7.8%	-0.7 pct
Second Half of 2024	7.2%	-0.6 pct
First Half of 2025	6.5%	-0.7 pct

: From 9.2% in 2023 to 6.5% in the first half of 2025, the cumulative decrease reached [1][2].

Silver powder accounts for more than 90% of the production cost of silver paste, which is the core factor determining the price and profit of silver paste [3][4]:

• Silver prices hit a record high in 2024, with the London spot silver price rising by more than 30% cumulatively
• From the high point of silver prices in the second half of 2022 to the beginning of 2025, the profit space of the entire industry chain has been greatly compressed
• The price of silver paste rose rapidly in 2024, but there is a lag in cost pass-through

: According to the data from the 2025 World Silver Survey, the global demand for silver used in photovoltaics reached 6,147 tons in 2024, accounting for approximately 19% of the total silver supply [4].

• The photovoltaic industry chain faced profit pressure in 2024, with the maximum decline in various links exceeding 100%
• The average annual price of 182mm rectangular TOPCon cells dropped by as much as 40% in 2024
• Cost pressure from downstream customers is transmitted upstream, weakening the bargaining power of silver paste manufacturers

• Leading enterprises in the industry chain generally adopt the “volume-for-price” strategy [5]
• Manufacturers prioritize shipment volume over profits, leading to intensified price competition
• The competitive landscape of the silver paste market evolved in 2024, with the three major manufacturers accounting for a total market share of 82%

• Downstream customers face operational difficulties due to intensified market competition
• The accounts receivable turnover rate of Juhe Materials dropped from 6.01 times to 5.06 times in the first half of 2025 [6]
• The company prudently accrues bad debt provisions, which directly affects its profit performance

• N-type cells (TOPCon, HJT) have higher technical requirements for silver paste
• The company needs to continuously invest in R&D to maintain its technological leading edge
• R&D costs for new technologies such as high-temperature silver paste and low-silver content paste have increased

The photovoltaic silver paste market presented a “tripartite confrontation” pattern in 2024 [5][7]:

Manufacturer	Market Share	2024 Revenue	Net Profit Attributable to Parent Company
DK Electronics (Dike Co., Ltd.)	35%	RMB 15.351 billion	RMB 0.360 billion
Juhe Materials	34%	RMB 12.514 billion	RMB 0.419 billion
Suzhou Good-Ark Electronics	13%	Steady Growth	RMB 0.061-0.092 billion
Others	18%	-	-

: The top three manufacturers account for a total market share of , which is further increased compared to 2023.

The photovoltaic silver paste market has gone through two development stages [7]:

Stage	Time	Features	Key Players
Domestic Substitution Period	Before 2020	Dominated by four international manufacturers (DuPont, Heraeus, Samsung, Sun Ace)	Domestic manufacturers rose rapidly
Technology Iteration Period	Starting from 2024	N-type cell technology route becomes mainstream, technologies such as LECO become standard	Market share of technology leaders increases

Changes in cell technology routes in 2024 [7]:

Cell Type	2023 Share	2024 Share	Change Trend
PERC	73%	20.5%	↓ Rapid Decline
N-Type TOPCon	26.5%	71.1%	↑ Becomes Mainstream
HJT	Gradually Increasing	Sustained Growth	Steady Development

: The company’s TOPCon silver paste market share reaches 40-50%, and the proportion of N-type paste shipments continues to increase [2].

Company	2023 Gross Margin	2024 Gross Margin	Year-on-Year Change
Juhe Materials	9.2%	7.8%	-1.4 pct
DK Electronics	11.14%	9.38%	-1.76 pct
Industry Average	~10%	~8.5%	Decline

Faced with high silver prices, the industry is accelerating the exploration of low-silver/silver-free solutions [4][8]:

• Copper Plating Technology
  : Aixu Co., Ltd. has achieved mass production
• Silver-Coated Copper Paste
  : The silver content of HJT cells has dropped to below 30%
• 0BB (Zero Busbar) Technology
  : Reduces the consumption of busbar paste

: By the end of 2024, the silver consumption per watt of HJT cells is expected to drop from 8.6mg/W to approximately 3.2mg/W.

• Technological routes of high-temperature paste and low-temperature paste diverge
• Continuous progress in fine-line printing technology
• The combined solution of seed layer paste and high-copper paste becomes a new direction

• Continuous pressure on gross margins will accelerate the clearance of backward production capacity
• Leading enterprises are expected to further increase their market share by virtue of scale and technological advantages
• Small and medium-sized enterprises face survival pressure

1. The decline in Juhe Materials’ gross margin is an
   industry-wide phenomenon
   , not a company-specific issue
2. The gross margin decline is mainly caused by dual pressures from
   the cost side (rising silver prices) and the price side (price wars)
3. The company maintains a
   technological leading edge
   in the N-type cell silver paste field, with a stable market share
4. The industry is undergoing a transformation from “scale competition” to “technology competition”

• Risk of continued rise in silver prices
• Downstream photovoltaic installations fall short of expectations
• Technology iteration speed falls short of expectations
• Expansion of customer payment collection risk

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[1] Juhe Materials 2025 Semi-Annual Report

[2] Cinda Securities - In-Depth Report on Juhe Materials: Leading Photovoltaic Silver Paste Manufacturer, Fully Benefiting from the N-Type Era

[3] Analysis of Cost Reduction Routes in the Photovoltaic Silver Paste Industry

[4] Silver Price Surge Hurts the Photovoltaic Industry

[5] DK Electronics’ 2024 Revenue Reached RMB 10 Billion but Only Earned RMB 0.36 Billion

[6] Feedback on Suzhou Good-Ark Electronics’ A-Shares Issuance Application to Specific Objects

[7] Initiation Coverage Report on DK Electronics: Leading Photovoltaic Conductive Paste Manufacturer, Leading in High-Copper Paste Industrialization

[8] Direct Coverage of 2025 Photovoltaic Annual Conference: One Year of Anti-Involution