In-Depth Analysis of the Sustainability of Loss Narrowing for Aixu Co., Ltd.

Based on the collected data and information, I now provide you with a systematic and comprehensive analysis report.

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Aixu Co., Ltd. (600732.SS), as a domestic enterprise that first deployed N-type ABC cells, is currently in a critical period of strategic transformation. According to the latest financial data, the company expects a full-year net loss of RMB 1.2-1.9 billion in 2025, a significant narrowing compared to the loss of RMB 4.75-5.85 billion in 2024, showing a clear trend of narrowing loss magnitude [0]. In the first half of 2025, the company achieved total operating revenue of RMB 8.446 billion, a year-on-year increase of 63.63%; total profit was -RMB 368 million, a year-on-year increase of 81.79%; net profit attributable to shareholders of the listed company was -RMB 238 million, a year-on-year reduction in losses of 86.38% [1]. Notably, the company achieved a quarterly profit of RMB 62.8649 million in the second quarter, indicating that the business model of its ABC module business has begun to show results.

From the perspective of key financial indicators, the company’s current price-to-book ratio is 4.60x, price-to-sales ratio is 2.00x, but due to continuous losses, the price-to-earnings ratio is -9.84x [0]. The company’s current ratio is 0.56 and quick ratio is 0.41, indicating relatively large short-term debt repayment pressure. Return on net assets is -73.16%, and net profit margin is -20.33%, reflecting the significant erosion of the company’s profitability during the industry downturn. However, marginal improvements in these indicators are taking place, and the company is transforming from a pure traditional PERC cell supplier to a manufacturer of N-type ABC advanced modules and scenario-specific products.

Aixu Co., Ltd.'s ABC (N-type BC) cell technology has significant differentiated competitive advantages. The conversion efficiency of the company’s second-generation N-type ABC modules for mass production and delivery reaches as high as 24.4%, ranking first in the world in commercial mass production module efficiency for 29 consecutive months [1]. The core technical feature of ABC cells is that the PN junction and metal electrodes are all placed on the back of the cell, so that the front of the cell is free of grid line occlusion, maximizing the use of incident light and reducing optical losses, thereby achieving higher effective power generation area and conversion efficiency, with a more aesthetic appearance. This feature gives it differentiated competitiveness in the distributed photovoltaic and high-end markets.

In terms of product specifications, the average mass production power of 72-format ABC modules reaches 645W, and that of 78-format modules reaches 665W, with a maximum module efficiency of 24.2%. The power attenuation in the first year is ≤1%, and the annual attenuation in subsequent years is ≤0.35%, with a power temperature coefficient of -0.26%/℃, all better than traditional PERC modules [2]. In overseas high-end markets, the premium advantage of ABC modules is more prominent - the premium is about €0.1 per watt in the European market and about $0.2 per watt in the US market [3].

The cost of BC cells is a focus of market attention. According to calculations, the non-silicon cost of Aixu’s ABC cells was about RMB 0.23 per watt in 2024, which is still 7-8 fen per watt higher than that of TOPCon [4]. However, the path to cost optimization has gradually become clear:

: ABC low-oxygen high-resistivity silicon ingots have a more uniform resistivity distribution and low oxygen content at the top, eliminating the need for re-slicing basically; the crystal pulling crucible retention rate can be controlled at 10%-15% (30%-35% for TOPCon), resulting in a silicon wafer cost that is 1-2 fen per watt lower.

: Silver-free technology brings lower material costs, saving about 1 fen per watt compared to TOPCon.

: The single-side straight-line welding feature of ABC allows the use of lightweight encapsulant films and solder ribbons, resulting in lower material costs for the same area, with an advantage of about 1.5-2 fen per watt.

: The company plans to reduce costs by increasing module power through half-cut technology, side passivation, full-screen technology, etc., while reducing non-silicon costs through factory water and electricity conservation measures, equipment function upgrades and adjustments, and capacity maximization design. LONGi Green Energy predicts that by the end of 2025, the cost of BC modules is expected to be on par with or even lower than that of TOPCon [5]. After the launch of new products, Aixu’s Zhuhai Yiwu factory is expected to achieve module costs on par with TOPCon, and its Jinan factory can achieve costs 3-5 fen per watt lower than TOPCon.

Aixu Co., Ltd. is promoting the construction of its three major bases, planning to build approximately 35GW of ABC cell and module capacity and approximately 40GW of TOPCon cell capacity [2]. As of January 2025, the first module of the company’s Jinan Phase I 10GW high-efficiency module project has successfully rolled off the production line. The company expects to ship more than 20GW of ABC modules in 2025 [4]. With capacity expansion and shipment growth, the scale effect is accelerating, driving production costs into a downward channel.

TrendForce predicts that by the end of 2025, BC capacity will reach approximately 83 GW, accounting for 7.1%; output will be approximately 60 GW [5]. Driven by leading manufacturers, the BC Technology Alliance has initially taken shape - Aixu Co., Ltd. and Gaojing Solar have carried out collaborative cooperation in three major fields: silicon wafers, cells, and modules. Gaojing Solar’s Guangzhou base 2GW BC module project entered large-scale mass production phase in July 2025, with its BC cells supplied by Aixu.

China’s photovoltaic industry is experiencing severe structural overcapacity. Data from the China Photovoltaic Industry Association shows that enterprises in the main industrial chain of the photovoltaic sector suffered losses of RMB 31.039 billion in the first three quarters of 2025, with losses of RMB 6.422 billion in the third quarter [6]. Price wars have put the entire industry under loss pressure, and industrial chain prices remain under pressure. When module prices are pushed down to near the cash cost line, R&D investment becomes the first option to be cut, technological innovation stagnates, and the decline in quality of some products lays hidden long-term risks.

From the supply side, polysilicon capacity continues to be released, and the industry is under pressure from structural overcapacity and slow clearance of backward production capacity [7]. Currently adjusted costs show that the cost line in Xinjiang, Northwest China will still form a hard support, and a large amount of backward and low-quality production capacity, such as furnace models below 12500 kVA, has not been fully cleared. The existence of zombie capacity invisibly suppresses prices and keeps them under pressure.

In 2025, “anti-involution” has become the core consensus and action program for the photovoltaic industry to get rid of difficulties. Under the guidance of national policies, industry self-discipline and the policy’s “anti-involution” positioning have been established, and a cyclical inflection point for the photovoltaic equipment industry may have emerged [1]. In July 2025, market expectations for optimizing the industry development order and promoting capacity clearance continued to rise, and expectations for marginal improvement in industrial fundamentals began to take shape. The State Administration for Market Regulation held talks with the photovoltaic industry association and related enterprises, prompting the market, industry, and enterprises to deepen their understanding of “anti-involution” and promoting the industry to rethink how to reshape the industry ecosystem.

It is expected that the polysilicon supply pattern will shift from overcapacity to policy-guided structural adjustment in 2026, and supply will still be affected by the possible contraction of effective capacity in the industry under the dual pressure of “anti-involution” policies and mandatory new energy consumption national standards [7]. The information game and disturbances at the polysilicon level have not yet ended. The polysilicon futures price rose significantly in early December 2025, reflecting the market’s keen response to expectations of industry supply-side structural reform, policy support, and improved supply and demand relations.

Relevant person in charge of Aixu Co., Ltd. predicts that the photovoltaic industry is expected to recover in the second half of 2026, and the most fundamental way of capacity clearance is to eliminate backward production capacity through efficiency and power improvement [6]. Enterprises with efficiency and power advantages will be the first to navigate the cycle in the next one to two years. The bottom stabilization of polysilicon futures prices is also regarded as an important signal that the industry cycle has bottomed out.

: The company’s ABC module sales have more than doubled year-on-year, and ABC module revenue accounts for about 74% of total revenue. The company is gradually realizing its strategic upgrade and transformation from a third-party cell supplier to a manufacturer of N-type ABC advanced modules and scenario-specific products [1]. With capacity expansion and full production and sales, the scale effect will be further released, and unit costs are expected to continue to decline.

: Relying on product advantages of high power, high returns, and super safety, BC modules have a significant sales premium compared to TOPCon competitors in domestic and foreign markets through a value pricing business model. As of December 17, 2025, the average domestic price of BC modules is RMB 0.76 per watt, which is RMB 0.07 per watt higher than that of TOPCon modules [8]. The average prices of BC modules for residential and commercial-industrial projects in Europe reach $0.165 per watt and $0.115 per watt, respectively, which are much higher than the average TOPCon price of $0.086 per watt.

: Driven by “anti-involution” policies, inefficient production capacity will gradually withdraw from the market, and the industry competition pattern is expected to improve. Leading enterprises are expected to gain more market share in the process of capacity clearance by virtue of technological and scale advantages.

: With continuous cost reduction of BC technology, the production cost of BC is expected to be RMB 0.03-0.05 per watt lower than that of TOPCon in the future [5]. The narrowing of the cost gap will directly improve the company’s gross profit margin.

: The company achieved a profit of RMB 62.8649 million in the second quarter of 2025, proving that its business model is feasible in the current market environment.

: Photovoltaic industrial chain prices are still in the bottom range. Although marginal improvements are taking place, there are still multiple challenges to completely emerge from the adjustment period. The polysilicon and silicon wafer segments are still hard-hit by losses, and leading enterprises such as Tongwei Co., Ltd. and TCL Zhonghuan still have large loss amounts [1].

: The company’s current ratio is only 0.56, with high financial leverage, facing certain liquidity risks during the industry downturn. The company is supplementing liquidity through private placements and other means. In July 2025, the company’s application for issuing shares to specific targets was approved by the China Securities Regulatory Commission (CSRC), and it plans to raise no more than RMB 3.5 billion to invest in the Yiwu Phase VI 15GW high-efficiency crystalline silicon solar cell project and supplement working capital [1].

: The competition among photovoltaic technology routes is fierce, and the TOPCon camp is also responding to the challenges of BC technology through technological upgrades. The launch of TOPCon 2.0 technology may slow down the penetration speed of BC technology. Upgrading 1GW of TOPCon equipment costs approximately RMB 30-50 million. Transforming and upgrading more existing production capacity at the lowest cost, the value of TOPCon 2.0 is no less than that of BC [9].

: The utilization rate of photovoltaic power generation continues to decline. From January to October, the national photovoltaic power generation utilization rate was only 94.9%, a year-on-year decrease of 2.2 percentage points, and the absorption pressure continues to increase [6]. Overseas markets face challenges such as increasing trade barriers and stricter “carbon footprint” certification for supply chains, increasing the uncertainty of the export environment.

Overall, the sustainability of loss narrowing for Aixu Co., Ltd. is

, based on the following main reasons:

Evaluation Dimension	Evaluation Conclusion	Core Logic
Business Transformation	Positive	ABC module business accounts for 74% of total revenue, and quarterly profit has been achieved
Technological Advantages	Significant	24.4% mass production efficiency leads the world, and silver-free technology has great cost reduction space
Cost Trend	Improving	The cost gap between BC and TOPCon continues to narrow, and the scale-based cost reduction effect is emerging
Industry Environment	Marginal Improvement	“Anti-involution” policies promote capacity clearance, and the industry is expected to recover in the second half of 2026
Financial Pressure	Relatively Large	Current ratio is low, and private placement to supplement liquidity helps alleviate pressure

It is recommended to focus on the following indicators to verify the sustainability of the loss narrowing trend:

1. ABC Module Shipment Volume
   : Whether it maintains continuous month-on-month growth
2. Gross Profit Margin Change
   : Whether the cost gap between ABC modules and TOPCon continues to narrow
3. Sustainability of Quarterly Profit
   : Whether the profit is sustained in the third and fourth quarters
4. Progress of Industry Capacity Clearance
   : Exit speed of backward production capacity and changes in industry operating rate
5. BC Module Penetration Rate
   : Whether the BC penetration rate can reach the expected 13% in 2025

• Risk of continued downturn in photovoltaic industrial chain prices
• Risk of narrowed premium due to intensified competition among technology routes
• Liquidity pressure and financial risks
• Risk of exports being affected by changes in overseas trade policies
• Risk of industry capacity clearance falling short of expectations

Against the background of structural overcapacity in the photovoltaic industry, Aixu Co., Ltd. has achieved a significant narrowing of losses through the rapid development of its ABC module business, and has shown positive signals of quarterly profit. The company has obvious first-mover advantages and technological barriers in the field of BC cell technology, and the high-efficiency feature of ABC modules enables it to obtain a stable market premium. With the release of scale effects brought by capacity expansion, continuous cost optimization, and the implementation of industry capacity clearance policies, the company’s trend of loss narrowing has a certain degree of sustainability.

However, investors still need to pay attention to risk factors such as overall industry price pressure, liquidity status, and competition among technology routes. From a medium-to-long-term perspective, BC technology with efficiency and power advantages is expected to stand out in industry integration, and Aixu Co., Ltd., as a pioneer in BC technology, is expected to obtain greater elastic returns when the industry cycle reverses.

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[0] Jinling API - Financial and Market Data of Aixu Co., Ltd.
[1] Securities Market Weekly - “Opportunities for Photovoltaic Equipment Stocks Come! Aixu Co., Ltd.'s Mid-term Performance Surges 86.38%” (https://static.weeklyonstock.com/25/0816/wbf125657.html)
[2] Private Placement Prospectus of Shanghai Aixu New Energy Co., Ltd. (http://notice.10jqka.com.cn/api/pdf/e682b166602a89cf.pdf)
[3] East Money - Research Report on Aixu Co., Ltd.'s ABC Modules (https://pdf.dfcfw.com/pdf/H3_AP202304121585345693_1.pdf)
[4] Sina Finance - “Photovoltaic New Technology · In-Depth | Optimistic about BC from 1 to 10” (https://finance.sina.cn/2025-07-06/detail-infepnsp7298791.d.html)
[5] People’s Daily - “Photovoltaic Technology Routes Accelerate Differentiation” (http://paper.people.com.cn/zgnyb/pc/content/202508/18/content_30097384.html)
[6] Securities Times - “2025 Photovoltaic Industry Tough Battle: From Price Fights to Value Reconstruction” (https://www.stcn.com/article/detail/3550235.html)
[7] Guolian Futures - “2026 Annual Report on Photovoltaic Industry Chain” (https://www.glqh.com/u/cms/www/202512/24165135oomi.pdf)
[8] Kaiyuan Securities - “BC Leader Rides the Wave of Photovoltaic Anti-Involution, High Premium Drives High Performance Elasticity” (https://pdf.dfcfw.com/pdf/H3_AP202512291810623201_1.pdf)
[9] Securities Times - “Intensified Showdown of Photovoltaic Technology Routes: Will BC and TOPCon Split the Market Half and Half?” (https://stcn.com/article/detail/1491883.html)