Analysis of Technical Barriers in the Photovoltaic Silver Powder Business of Yuegui Co., Ltd.

Based on the collected information, I will conduct a systematic analysis of the technical barriers in the photovoltaic silver powder business of Yuegui Co., Ltd. from multiple dimensions.

Yuegui Co., Ltd. (Stock Code: 000833) carries out its photovoltaic silver powder business through its holding subsidiary Huajing Technology. The project was established in September 2023 with a registered capital of RMB 50 million, with Yuegui Co., Ltd. holding 60% of the shares and Zhuhai Jingrui Electronic Materials Technology Co., Ltd. holding 40% [1]. Adopting a rapid evolution strategy of “from technology verification to large-scale production implementation”, the first-phase 300-ton annual output silver powder production line was completed and put into operation in November 2023, taking only 6 months from design to commissioning [1]. The second-phase 600-ton annual output production line started construction in June 2024, and is expected to be fully completed and put into trial production in 2025, by which time the total annual silver powder production capacity of Huajing Technology will reach 900 tons [2].

Huajing Technology has a clear product positioning. The first-phase production line focuses on producing silver powder suitable for TOPCon cell technology, which has passed multiple rounds of verification by silver paste enterprises and been officially launched into the market [2]. The second-phase production line focuses on the upgrading needs of N-type cell technology, reflecting the company’s forward-looking layout in response to market technology trends. In addition, Yuegui Co., Ltd. has jointly established Guangdong Guangye Haojing New Materials Co., Ltd. with Lianzhou Xinnanhao Anti-Backwash Quartz Mine Co., Ltd. to promote strategic layout in the related new material manufacturing field [1].

Huajing Technology has obtained core patent technologies for photovoltaic silver powder, which lays a foundation for the company to build a technological moat [1]. However, based on public information, the specific number of patents, technical details and core indicators have not been disclosed in detail. During the technology verification phase, the silver powder product underwent multiple rounds of verification by downstream silver paste enterprises and was eventually launched into the market, which in itself is a strong testament to its technical stability.

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Silver powder is the core raw material in photovoltaic silver paste production, accounting for about 97% of the silver paste cost [3]. Photovoltaic silver paste has extremely high quality requirements for silver powder, mainly reflected in the following key indicators:

Technical Indicator	Specific Requirements	Impact on Silver Paste Performance
Particle Size Distribution	Optimal range is 1.0-3.2μm; nano-scale and micro-scale silver powder need to be mixed	Excessively small particle size will lead to low silver content in the silver paste, while excessively large particle size will cause large gaps between silver powder particles and high resistance
Dispersibility	Silver powder must be uniformly dispersed and not prone to agglomeration	Poor dispersibility will cause screen clogging during silver paste printing, affecting printing performance
Tap Density	Determines the content of active conductive substances per unit volume of silver paste	Higher tap density can result in lower thick-film resistance, while lower tap density may cause voids, affecting conductive performance
Morphology Control	Spherical silver powder is the optimal form	Facilitates dense packing, improving the conductivity and printing performance of the silver paste

These technical indicators’ precise control constitutes the core barrier to silver powder production. As the world’s largest silver powder supplier, Japan’s DOWA is known for its silver powder’s “small particle size, good organic coating performance, and high quality stability” [3], which is exactly the technical difficulty that domestic silver powder needs to overcome.

The insufficient stability of domestic silver powder in China is a key factor restricting the industrialization of domestic silver powder. Since photovoltaic cell electrodes are one of the final steps in cell production, the sunk cost is high, so downstream cell manufacturers have extremely strict requirements for the stability of silver powder [3]. It is mainly reflected in:

• Batch Consistency
  : The quality difference between different batches of silver powder must be controlled within an extremely small range; otherwise, it will lead to fluctuations in silver paste performance and affect cell efficiency
• Process Compatibility
  : Silver powder needs to cooperate with other raw materials such as glass powder and organic carriers; any deviation in any link may affect the final silver paste performance
• Long-Term Reliability
  : Processes such as curing after silver paste printing and formation of ohmic contact put forward strict requirements on the physical and chemical properties of silver powder

Currently, domestic silver powder producers in China mainly include Suzhou Smarter, Ningbo Jingxin, etc. However, overall, domestic silver powder is mainly used as a supplement to imported silver powder and has not yet reached the standard for large-scale industrial application [3].

The photovoltaic silver powder market presents an obvious oligopolistic pattern:

Enterprise Type	Market Position	Main Characteristics
Japan’s DOWA	World’s largest silver powder supplier	The largest silver powder supplier for Chinese photovoltaic silver paste enterprises
Other Overseas Enterprises	Dominate the high-end market	Established multinational enterprises such as Samsung SDI and DuPont
Domestic Enterprises	Mid-to-Low End Supplement	Mainly provide mid-to-low end products or serve as import substitutes

According to industry data, in 2021, 82.2% and 67.6% of the silver powder supply of Juhe Co., Ltd. and Dike Co., Ltd. respectively came from DOWA, showing a high degree of import dependence [3]. This supply chain pattern on the one hand reflects the gap between domestic silver powder technology and overseas advanced levels, and on the other hand provides a huge market space for import substitution.

Photovoltaic cell technology is in a period of rapid iteration, shifting from P-type cells to N-type cells (TOPCon, HJT, BC, etc.), which puts forward higher requirements for silver paste and silver powder. With the continuous iteration and upgrade of TOPCon, processes such as laser sintering (LECO) and double-sided poly are introduced, requiring rapid adjustment and optimization of silver paste formulas. Therefore, both the process technical barriers and supplier access barriers of TOPCon silver paste have increased [4].

For silver powder enterprises, the technological iteration barriers are mainly reflected in:

• Formula Adaptability
  : Need to develop corresponding specifications of silver powder products according to different cell technology routes
• Rapid Response Capability
  : The rapid evolution of cell technology requires silver powder enterprises to have agile R&D and production capabilities
• Forward-Looking Layout
  : Conduct pre-research on silver powder materials required for next-generation cell technologies

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Huajing Technology’s planned total annual production capacity reaches 900 tons, which is in a leading position among domestic silver powder enterprises. The first-phase 300-ton capacity has already achieved mass production and been launched into the market, and the second-phase 600-ton capacity is under construction, so the scale effect is expected to gradually emerge [2].

The product has passed multiple rounds of verification by silver paste enterprises, which is an important milestone in breaking through downstream customer access barriers. The photovoltaic silver paste industry has high customer certification barriers; silver powder enterprises need to form a multi-level certification relationship with silver paste enterprises, and silver paste enterprises need to form such relationships with cell manufacturers [3]. Huajing Technology has completed this verification process, indicating that its product performance has met market requirements.

Huajing Technology has obtained core patent technologies for photovoltaic silver powder, which provides a basic guarantee for subsequent technological competition [1].

As a state-owned enterprise controlled by Guangdong Provincial Environmental Protection Group, Yuegui Co., Ltd. has advantages in capital strength, resource integration, government relations, etc., which is conducive to the long-term development of the silver powder business.

From the overall industry pattern, domestic silver powder still lags behind international leading products in terms of stability, batch consistency, etc. As a new entrant, Huajing Technology needs to continuously prove its product quality in market competition.

The downstream silver paste industry has a high degree of concentration; leading enterprises such as Juhe Co., Ltd., Dike Co., Ltd., Suzhou Good-Ark Electronics Co., Ltd. have established stable supplier systems [3]. As a new entrant, Huajing Technology needs to strive for market share in the existing pattern, facing greater market expansion pressure.

There is uncertainty in photovoltaic cell technology routes. If major changes occur in market technology routes, new requirements may be put forward for the adaptability of silver powder products, increasing the uncertainty of technological R&D.

Silver powder pricing is usually linked to the London Silver Price, with large price fluctuations, which puts forward high requirements for the enterprise’s inventory management and cost control capabilities.

Barrier Dimension	Barrier Level	Yuegui Co., Ltd.'s Response Capability
Raw Material Technical Barrier	High	Possesses core patents, passed downstream verification
Process Stability Barrier	High	Capacity has been scaled up, needs continuous improvement
Supply Chain Barrier	Medium-High	Opportunity window for import substitution
Customer Certification Barrier	Medium	Passed multiple rounds of verification
Technological Iteration Barrier	Medium-High	Focuses on TOPCon and N-type cells

Overall, the technical barriers of Yuegui Co., Ltd.'s photovoltaic silver powder business are at a

level. Although the overall technical barriers of the silver powder industry are high, the company has initially established a competitive moat through measures such as obtaining core patents, product verification, and capacity construction. However, to truly break the monopoly of international giants such as Japan’s DOWA, it still needs to continue investing in product stability, batch consistency, customer service, etc., to establish differentiated competitive advantages.

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The technical barriers of the photovoltaic silver powder business are mainly reflected in the control of the physical and chemical properties of silver powder itself, the stability of production processes, and the adaptability to downstream cell technologies. The combined effect of these barriers has made the silver powder market dominated by overseas enterprises for a long time, and also created a huge market space for import substitution.

Yuegui Co., Ltd. has deployed its silver powder business through Huajing Technology, choosing the right timing to enter the track. With the rapid penetration of N-type cell technology, the demand for silver powder continues to grow, providing market opportunities for new entrants. The company has completed the key leap from technology verification to large-scale production, and has the basic capabilities to participate in market competition.

From a long-term perspective, whether the technical barriers of Yuegui Co., Ltd.'s silver powder business can be continuously strengthened depends on the following aspects:

1. Sustainability of R&D Investment
   : Need to continuously increase R&D investment to improve product quality and stability
2. Deepening of Customer Relationships
   : Establish stable cooperative relationships with leading silver paste enterprises to gain more market share
3. Forward-Looking of Technological Innovation
   : Conduct pre-research on silver powder materials required for next-generation cell technologies to maintain technological leadership
4. Refinement of Cost Control
   : Through large-scale production and process optimization, reduce costs and enhance competitiveness

Overall, Yuegui Co., Ltd.'s photovoltaic silver powder business has certain technical foundations and first-mover market advantages, but to establish a lasting competitive advantage in this high-barrier industry, it still needs continuous technological accumulation and market cultivation.

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[1] 2023 Annual Report of Guangxi Yuegui Guangye Holding Co., Ltd. https://stockn.xueqiu.com/SZ000833/20240329718904.pdf

[2] 2024 Annual Report Summary of Guangxi Yuegui Guangye Holding Co., Ltd. https://file.finance.qq.com/finance/hs/pdf/2025/03/28/1222925479.PDF

[3] 2022 Short Report on China’s Photovoltaic Silver Paste Industry. https://pdf.dfcfw.com/pdf/H3_AP202208101577100351_1.pdf

[4] Volume and Profit Growth of Photovoltaic Silver Paste, Leading Front Silver Paste Enterprises Accelerate Growth. https://pdf.dfcfw.com/pdf/H3_AP202403181626965374_1.pdf