Flat Glass Group (601865.SH): Navigating the Cyclical Trough – Profitability Poised for Recovery Amid Supply Rationalization

Date: August 31, 2025
Ticker: 601865.SH (Shanghai Stock Exchange)
Current Price: CNY 17.76
Rating: Outperform (Maintained)
Target Price Implied Valuation: 2025E PE 79x | 2026E PE 32x | 2027E PE 18x

Executive Summary

Flat Glass Group Co., Ltd. ("Flat Glass" or the "Company"), a global leader in photovoltaic (PV) glass manufacturing, released its interim financial results for the first half of 2025 on August 27, 2025. The reporting period was characterized by significant headwinds stemming from structural oversupply in the PV glass sector, which exerted substantial pressure on product pricing and, consequently, corporate profitability. In 1H 2025, the Company reported revenue of CNY 7.737 billion, a year-over-year (YoY) decline of 27.66%, and attributable net profit of CNY 261 million, representing a sharp YoY contraction of 82.58%. While the top-line and bottom-line figures reflect the severity of the current industry downturn, a granular analysis of the second quarter (2Q 2025) reveals early signs of stabilization, with sequential improvements in both revenue resilience and profit margins.

The core investment thesis for Flat Glass remains anchored in its robust competitive moat as a tier-one manufacturer, alongside the imminent inflection point in industry supply-demand dynamics. The prolonged period of low profitability has accelerated the cold repair (temporary shutdown for maintenance) of older, less efficient kilns across the industry, particularly among smaller players. Concurrently, new capacity expansions are being deferred or cancelled due to tighter financing conditions and stricter regulatory approvals. This supply-side rationalization, coupled with steady downstream demand, has led to a noticeable destocking trend since July 2025. Market data indicates a modest price recovery in August, with expectations for further price hikes in September 2025, which serves as a critical catalyst for margin restoration.

We maintain our "Outperform" (Recommend) rating on Flat Glass. Although near-term earnings are depressed, the Company’s dominant market position—holding over 50% combined market share with its primary competitor Xinyi Solar—provides it with superior cost control, technological advantages, and resource accessibility that allow it to withstand cyclical volatility better than second- and third-tier competitors. We project a V-shaped recovery in profitability, forecasting net profits to rebound significantly in 2026 and 2027 as prices normalize and volume growth resumes. Our financial models anticipate revenue of CNY 15.35 billion, CNY 18.38 billion, and CNY 23.54 billion for 2025, 2026, and 2027 respectively, with corresponding net profits of CNY 525 million, CNY 1.32 billion, and CNY 2.37 billion.

This report provides a comprehensive analysis of Flat Glass’s 1H 2025 performance, dissecting the operational challenges, evaluating the emerging positive trends in pricing and supply, and outlining the long-term strategic advantages that position the Company to emerge stronger from this cycle. We also detail our updated financial forecasts, valuation metrics, and key risk factors that investors should monitor.

Key Takeaways

1. Financial Performance: Deep Cyclical Trough with Sequential Stabilization

The first half of 2025 represented one of the most challenging periods for the PV glass industry in recent years, driven by a mismatch between aggressive capacity expansion in previous years and a temporary slowdown in the growth rate of downstream module installations. Flat Glass’s financial results accurately mirror these macro-industrial conditions.

1H 2025 Top-Line and Bottom-Line Analysis:
* Revenue: The Company generated CNY 7.737 billion in revenue, a decrease of 27.66% YoY. This decline was primarily attributable to the significant drop in average selling prices (ASP) of PV glass, rather than a proportional collapse in shipment volumes. The PV glass segment, which constitutes the vast majority of the Company’s business, saw revenues fall by 28.10% YoY to CNY 6.945 billion.
* Profitability: Attributable net profit stood at CNY 261 million, down 82.58% YoY. Deducted non-recurring net profit was CNY 227 million, down 84.64% YoY. The disproportionate decline in profit compared to revenue highlights the operating leverage inherent in the manufacturing sector; as fixed costs remain relatively stable, a reduction in price directly erodes the margin base, leading to amplified earnings volatility.
* Margin Compression: The gross margin compression was severe, reflecting the fact that while raw material costs (such as soda ash and natural gas) did not fall in tandem with glass prices, the selling price dropped sharply. The industry-wide average price for 2.0mm PV glass fell to CNY 12.88 per square meter in 1H 2025, a 26.25% YoY decline, according to Solarbe Consulting.

2Q 2025 Sequential Improvement:
Despite the bleak YoY comparisons, the second-quarter data offers a more nuanced view, suggesting that the worst of the downturn may have passed.
* Revenue Resilience: 2Q 2025 revenue was CNY 3.658 billion. While this represents a 26.41% YoY decline, the quarter-on-quarter (QoQ) decline was limited to 10.33%. This slower sequential decay indicates that volume shipments remained relatively robust, and the rate of price deterioration slowed.
* Profit Rebound: Crucially, 2Q 2025 attributable net profit was CNY 155 million, a 79.02% YoY drop but a significant 46.02% QoQ increase. Deducted non-recurring net profit rose 22.58% QoQ to CNY 125 million. This sequential improvement is a vital signal. It suggests that cost optimization measures, including the strategic cold repair of high-cost kilns, began to yield benefits, and that the pricing environment stabilized enough to allow for marginal profit recovery even before the anticipated September price hikes.

Source: Company Reports, Minsheng Securities Institute

The divergence between the YoY and QoQ trends is the key takeaway for institutional investors. The YoY numbers confirm the depth of the cycle, while the QoQ numbers confirm the beginning of the turnaround. The 46% sequential jump in net profit in 2Q, despite a revenue dip, underscores the effectiveness of the Company’s operational adjustments in response to market signals.

2. Industry Dynamics: Supply-Side Rationalization Driving Price Recovery

The PV glass sector is currently undergoing a classic cyclical adjustment phase. The fundamental driver of the 1H 2025 profitability crisis was structural oversupply. Following the boom in solar installations in 2023 and early 2024, numerous manufacturers expanded capacity. However, the growth rate of downstream demand, while still positive, did not keep pace with the sheer volume of new supply coming online, leading to inventory buildup and intense price competition.

The Mechanism of Correction:
The market is now self-correcting through supply-side constraints. This correction is driven by three main factors:
1. Profit-Driven Cold Repairs: As prices fell below the cash cost of production for many smaller, less efficient manufacturers, operating losses became unsustainable. Consequently, these players have been forced to initiate "cold repairs" on their kilns. A cold repair involves shutting down the furnace for extensive maintenance, which typically lasts several months to a year. This effectively removes capacity from the market. Flat Glass itself has cold-repaired three kilns by the end of August 2025.
2. Cancellation/Deferral of New Projects: The deteriorating profitability landscape, combined with tighter credit conditions and stricter environmental and energy consumption approval policies in China, has caused many planned new investments to be terminated or postponed. This halts the influx of new supply, allowing the demand-absorption process to catch up.
3. Inventory Destocking: Since July 2025, the industry has seen a consistent decline in inventory levels. As production cuts took effect, the excess stock accumulated in 1H 2025 began to clear. This destocking is a prerequisite for any sustainable price recovery.

Price Trends and Outlook:
According to Solarbe Consulting, the average price of 2.0mm PV glass in 1H 2025 was CNY 12.88/sqm, down 26.25% YoY. However, the trajectory has shifted in 3Q 2025.
* August 2025: Prices showed a slight rebound in early August as the supply-demand balance improved.
* September 2025 Outlook: Industry checks suggest that glass manufacturers are poised to raise quotes further in September. This expected price hike is not merely a tactical move but a reflection of the tightened supply situation. For Flat Glass, which operates at the lower end of the cost curve, every incremental increase in ASP flows disproportionately to the bottom line, given that its fixed costs are already covered by its scale.

The implication is clear: the industry has moved from a phase of "price war" to a phase of "supply discipline." This transition favors large-scale incumbents like Flat Glass, who can afford to wait for prices to recover, whereas smaller players are forced out of the market or into survival mode.

3. Competitive Moat: Scale, Resources, and Technology

Flat Glass Group, along with Xinyi Solar, forms a duopoly in the global PV glass market, with their combined market share exceeding 50%. This dominant position is not just a statistic; it translates into tangible competitive advantages that widen the profitability gap between tier-1 and tier-2/3 players, especially during downturns.

A. Scale Advantages:
* Cost Amortization: Large-scale production allows Flat Glass to spread fixed costs (R&D, management, depreciation) over a larger volume of units, resulting in a lower unit cost.
* Procurement Power: As one of the largest buyers of raw materials (quartz sand, soda ash) and energy (natural gas), the Company commands significant bargaining power, securing lower input costs compared to smaller rivals.
* Operational Efficiency: Larger kilns (typically 1,000 tons/day or more) are inherently more energy-efficient per ton of glass produced than smaller kilns. Flat Glass’s fleet consists predominantly of large, modern kilns, giving it a structural cost advantage.

B. Resource Advantages:
* Quartz Sand Reserves: High-transmittance quartz sand is a critical and somewhat scarce resource for PV glass. Flat Glass has secured long-term access to high-quality quartz sand mines, ensuring supply stability and cost control. This vertical integration mitigates the risk of raw material price spikes, which can severely impact margins for non-integrated players.
* Energy Access: The Company’s production bases are strategically located in regions with favorable energy policies and access to affordable natural gas, a major component of production costs.

C. Technological Leadership:
* Thin Glass Capability: As PV modules trend towards lighter and thinner designs (e.g., 2.0mm and 1.6mm glass), manufacturing yield becomes a critical differentiator. Flat Glass possesses advanced technology and high yield rates in producing thin glass, which commands a premium and is increasingly demanded by module manufacturers seeking to reduce weight and logistics costs.
* Large Format Glass: The industry is shifting towards larger wafer sizes (182mm, 210mm). Flat Glass’s production lines are optimized for these larger formats, reducing waste and enhancing efficiency.

Strategic Capacity Management:
As of late August 2025, Flat Glass’s operating capacity stands at 16,400 tons/day following the cold repair of three kilns. The Company has adopted a prudent approach to future expansions:
* Domestic Projects: The ignition of new projects in Anhui and Nantong will be timed according to market conditions. This flexibility prevents the Company from adding supply to an already saturated market, demonstrating disciplined capital allocation.
* International Expansion: The Company plans to invest in PV glass kilns in Indonesia. This strategy serves two purposes: it diversifies geographic risk, and it positions the Company to serve global customers who are seeking supply chains outside of China due to trade barriers (such as the U.S. Inflation Reduction Act or EU carbon border adjustments). This global footprint will be a key growth driver in the long term.

4. Financial Forecast and Valuation

Based on the assumption that PV glass prices will stabilize in 2H 2025 and begin a gradual recovery in 2026 and 2027, coupled with volume growth from eventual new capacity additions and market share gains from exiting competitors, we have updated our financial projections.

Revenue Projections:
* 2025E: CNY 15.35 billion (-17.9% YoY). The full-year decline reflects the weak pricing environment in 1H and the lagged effect of capacity rationalization.
* 2026E: CNY 18.38 billion (+19.8% YoY). Growth is driven by volume increases as demand accelerates and prices recover to sustainable levels.
* 2027E: CNY 23.54 billion (+28.1% YoY). Stronger growth anticipated as new international capacity comes online and the global solar adoption curve steepens.

Profitability Projections:
* 2025E: Net profit of CNY 525 million (-47.9% YoY). This reflects the full impact of the 1H slump, partially offset by 2H recovery.
* 2026E: Net profit of CNY 1.32 billion (+151.1% YoY). A significant rebound as margins normalize. We expect gross margins to expand from the compressed 13.41% in 2025E to 16.08% in 2026E.
* 2027E: Net profit of CNY 2.37 billion (+80.0% YoY). Continued operational leverage and scale effects drive further profit growth.

Valuation Metrics:
At the closing price of CNY 17.76 on August 29, 2025, the stock trades at:
* 2025E PE: 79x. This high multiple is misleading if viewed in isolation; it reflects the depressed earnings base of a cyclical trough. Institutional investors typically look through the trough year.
* 2026E PE: 32x. This represents a more reasonable valuation for a growth company in a recovering industry.
* 2027E PE: 18x. This multiple is attractive for a market leader with durable competitive advantages and double-digit earnings growth visibility.

Source: Minsheng Securities Institute Estimates

The Price-to-Book (PB) ratio remains stable around 1.7x-1.9x, indicating that the market is valuing the Company’s asset base conservatively. Given the high return on equity (ROE) potential in the upcycle (projected 9.65% in 2027E), the current PB offers a margin of safety.

Risks / Headwinds

While the outlook for Flat Glass is positive, institutional investors must carefully weigh the following risks that could impede the projected recovery or alter the investment thesis.

1. Downstream Demand Uncertainty

The primary driver of PV glass demand is the installation of solar modules. If global solar installation growth falls short of expectations due to:
* Policy Shifts: Changes in subsidy schemes or renewable energy targets in key markets such as the United States, Europe, or India.
* Grid Constraints: Bottlenecks in grid infrastructure that delay the connection of new solar farms.
* Macroeconomic Factors: High interest rates affecting the financing costs of utility-scale solar projects.
Then the absorption of supply will be slower than anticipated, prolonging the period of oversupply and delaying price recovery.

2. Intensified Market Competition

Although the industry is consolidating, the threat of renewed competition persists.
* Aggressive Pricing by Competitors: If larger competitors decide to prioritize market share over profitability, they might refrain from raising prices or even engage in predatory pricing, undermining the expected margin recovery.
* New Entrants: Despite current hurdles, if profitability returns quickly, it could incentivize new entrants or the reactivation of idle capacity by second-tier players, potentially leading to another supply glut in 2026-2027.

3. Raw Material and Energy Price Volatility

Flat Glass’s cost structure is heavily influenced by the prices of soda ash, natural gas, and quartz sand.
* Soda Ash: Any supply disruptions or price spikes in the soda ash market (often linked to environmental regulations on production) could squeeze margins, especially if glass prices cannot be passed through immediately.
* Natural Gas: As a key fuel source, volatility in natural gas prices directly impacts production costs. Geopolitical tensions or domestic energy policy changes could lead to higher energy costs.

4. Execution Risk in International Expansion

The Company’s plan to build capacity in Indonesia carries inherent execution risks:
* Regulatory Hurdles: Navigating foreign legal, environmental, and labor regulations can be complex and time-consuming.
* Construction Delays: Any delays in the construction or ignition of the Indonesian kilns would defer the expected benefits of geographic diversification and new capacity.
* Trade Policy Changes: While intended to mitigate trade barriers, unexpected changes in international trade policies (e.g., tariffs on Southeast Asian exports) could negate the strategic advantage of the Indonesia plant.

5. Technological Disruption

The PV industry is technologically dynamic.
* Alternative Materials: While unlikely in the short term, the emergence of alternative encapsulation materials or double-glass module design shifts could alter the demand dynamics for standard PV glass.
* Yield Challenges: As glass becomes thinner (1.6mm or less), maintaining high yield rates becomes technically challenging. Any failure to maintain technological leadership in thin glass production could erode the Company’s premium positioning.

Rating / Sector Outlook

Sector Outlook: Cautiously Optimistic with Clear Inflection Point

The PV glass sector is transitioning from a phase of excess and distress to rationalization and recovery. The events of 1H 2025 served as a necessary clearing mechanism, forcing inefficient capacity out of the market. The current supply-demand balance is tightening, evidenced by declining inventories and the willingness of manufacturers to raise prices in September 2025.

We view the sector as having passed its cyclical bottom. The key variable now is the pace of recovery. Given the disciplined approach of the top-tier players (Flat Glass and Xinyi Solar) and the financial distress of smaller players, we expect the recovery to be orderly rather than chaotic. This favors the leaders who will capture disproportionate benefits from the price normalization.

The long-term secular trend for solar energy remains intact. Global decarbonization goals continue to drive robust demand for solar installations. Therefore, the current downturn is a cyclical deviation within a strong secular uptrend. Investors should view this period as an accumulation phase for high-quality assets.

Company Rating: Outperform (Maintained)

We maintain our Outperform rating on Flat Glass Group (601865.SH).

Rationale:
1. Leadership Position: As a top-two global player, Flat Glass has the scale, cost structure, and financial resilience to survive the downturn and thrive in the recovery. Its market share is likely to increase as weaker competitors exit.
2. Imminent Catalyst: The expected price hikes in September 2025 provide a near-term catalyst for earnings revision. The sequential profit improvement in 2Q 2025 confirms that the Company is well-positioned to benefit from this trend.
3. Attractive Long-Term Valuation: While the 2025E PE appears high, the 2026E and 2027E multiples of 32x and 18x respectively, offer compelling value for a company with projected earnings growth rates of 151% and 80%. The market is currently pricing in prolonged stagnation, which we believe is overly pessimistic.
4. Strategic Foresight: The Company’s prudent capacity management (delaying domestic expansions) and strategic international expansion (Indonesia) demonstrate strong management quality and long-term vision.

Investment Horizon:
This recommendation is based on a 12-18 month investment horizon, allowing time for the full realization of the price recovery and the subsequent earnings rebound in 2026.

Investment View

Strategic Imperative: Buying Quality at Cyclical Lows

For institutional investors, Flat Glass presents a classic "buy the dip" opportunity in a high-quality industrial leader. The core of the investment argument rests on the asymmetry of risk and reward at current levels.

The Bear Case is Priced In:
The stock price and current valuation multiples largely reflect the grim realities of 1H 2025: low prices, oversupply, and compressed margins. The 82% drop in net profit is already known information. What is not fully priced in is the speed and magnitude of the recovery. The market tends to extrapolate current conditions linearly, assuming that low profits will persist indefinitely. Our analysis suggests that the structural changes in the industry (capacity exit) are creating a floor for prices, and the upcoming price hikes will trigger a non-linear recovery in earnings.

The Bull Case Offers Significant Upside:
If our forecast of a CNY 1.32 billion net profit in 2026 is realized, the stock’s valuation compresses rapidly to 32x PE. If the recovery is even stronger, driven by faster-than-expected demand or more aggressive supply cuts, the 2027E profit of CNY 2.37 billion implies an 18x PE, which is highly attractive for a growth stock in the renewable energy sector.

Key Monitoring Indicators:
Investors should track the following high-frequency data points to validate the investment thesis:
1. Weekly PV Glass Prices: Monitor quotes from Solarbe Consulting and other industry sources for 2.0mm and 3.2mm glass. Sustained price increases in September and October 2025 are critical confirmation signals.
2. Industry Inventory Levels: Continued decline in manufacturer and module maker inventories indicates healthy demand absorption.
3. Cold Repair Announcements: Track the number of kilns entering cold repair across the industry, particularly among second-tier players. More closures equal tighter supply.
4. Flat Glass’s Quarterly Margins: Watch for sequential expansion in gross margin in 3Q and 4Q 2025 reports. This will confirm the pass-through of higher prices to the bottom line.

Comparative Advantage vs. Peers

In the context of the PV glass sector, Flat Glass is often compared to Xinyi Solar. Both are excellent companies, but Flat Glass offers specific nuances:
* Pure Play Focus: Flat Glass is more focused on PV glass compared to Xinyi, which has a larger floating glass business. This makes Flat Glass a purer proxy for the solar cycle.
* Cost Curve Position: Flat Glass has consistently demonstrated one of the lowest cost structures in the industry, thanks to its large kiln size and resource integration. In a price war, the lowest-cost producer survives with the least damage.
* Growth Trajectory: With its planned expansions in Indonesia and potential future domestic projects, Flat Glass has a clear path to volume growth that outpaces the industry average, allowing it to gain market share.

Conclusion

Flat Glass Group is navigating a difficult but transient cyclical storm. The 1H 2025 results, while weak, mark the trough of the cycle. The convergence of supply-side rationalization, inventory destocking, and anticipated price hikes in September 2025 sets the stage for a robust profitability recovery in 2026 and 2027.

The Company’s entrenched position as a global leader, backed by superior scale, resources, and technology, ensures that it will not only survive this downturn but emerge with a stronger market position. The current valuation, when viewed through the lens of normalized 2026-2027 earnings, offers an attractive entry point for long-oriented institutional capital. We recommend investors accumulate positions in Flat Glass, leveraging the market’s short-term pessimism to secure exposure to a high-quality asset poised for significant earnings growth in the near future.

The path forward is clear: supply is shrinking, demand is steady, and prices are rising. Flat Glass is best positioned to capitalize on this triad of favorable trends.

Appendix: Detailed Financial Analysis & Assumptions

To provide transparency on our forecasting methodology, we detail the key assumptions underpinning our financial model for Flat Glass Group.

1. Revenue Assumptions

Volume Growth:
* 2025E: We assume flat to slightly negative volume growth for the full year. While 2Q showed resilience, the cold repair of three kilns reduces effective capacity for part of the year. We estimate total shipments to remain stable as the Company prioritizes maintaining market share over volume expansion in a low-price environment.
* 2026E: We project a 15-20% volume growth. This is driven by the expected resumption of normal operations from cold-repaired kilns, the potential ignition of new domestic capacity if market conditions improve, and the general growth in global solar installations.
* 2027E: We project a 25%+ volume growth, assuming the Indonesia project begins to contribute significantly and global solar demand continues its double-digit growth trajectory.

Average Selling Price (ASP):
* 2025E: We assume the ASP for PV glass averages CNY 13-14/sqm for the full year, reflecting the low 1H prices and a modest recovery in 2H. This is a conservative estimate compared to historical averages.
* 2026E: We assume ASP recovers to CNY 15-16/sqm. This assumes a return to a more balanced supply-demand environment where prices cover full costs plus a reasonable margin.
* 2027E: We assume ASP stabilizes or slightly increases to CNY 16-17/sqm, supported by the premium for thinner, larger-format glass and potential inflationary pressures on inputs.

2. Cost and Margin Assumptions

Cost of Goods Sold (COGS):
* Raw Materials: We assume soda ash and quartz sand prices remain relatively stable, with no significant spikes. Flat Glass’s long-term contracts help mitigate volatility.
* Energy: Natural gas prices are assumed to remain within current ranges. Any significant increase would be a downside risk to our margin forecasts.
* Unit Cost Reduction: We factor in a 2-3% annual reduction in unit manufacturing costs due to technological improvements, economies of scale, and learning curve effects in producing thin glass.

Gross Margin:
* 2025E: 13.41%. This reflects the depressed pricing environment.
* 2026E: 16.08%. A recovery of ~270 basis points as prices rise while costs remain controlled.
* 2027E: 18.33%. Further expansion as the product mix shifts towards higher-value thin glass and operational efficiency peaks.

Operating Expenses:
* Selling Expenses: Kept low as a percentage of revenue (approx. 0.3-0.4%) due to the Company’s strong brand and long-term customer relationships.
* Administrative Expenses: Expected to decrease as a percentage of revenue due to operating leverage as revenue grows in 2026-2027.
* R&D Expenses: Maintained at a robust level (approx. 2.5-3.0% of revenue) to sustain technological leadership in thin and large-format glass. This is a critical investment for long-term competitiveness.

3. Balance Sheet and Cash Flow

Capital Expenditure (CapEx):
* We project sustained CapEx levels of CNY 4.2-4.7 billion annually. This reflects the ongoing investment in the Indonesia project and potential domestic upgrades. However, the timing is flexible, allowing the Company to slow spending if cash flow is constrained.

Working Capital:
* Inventory: Expected to decrease in 2025 as the Company destocks, then normalize in 2026-2027.
* Receivables: Days Sales Outstanding (DSO) is projected to improve from 50 days to 35 days by 2027, reflecting stronger bargaining power and better cash collection practices.

Debt and Liquidity:
* The Company maintains a healthy balance sheet with an asset-liability ratio around 47-49%.
* Cash flow from operations is strong (CNY 4.6-6.5 billion annually), providing ample liquidity to service debt and fund CapEx without excessive reliance on external financing.

4. Sensitivity Analysis

To illustrate the potential range of outcomes, we provide a sensitivity analysis on the 2026E Net Profit based on variations in ASP and Gross Margin.

Note: This table is illustrative based on our model’s operating leverage assumptions.

The analysis shows that even in a conservative scenario, the Company remains profitable. However, in the base and optimistic scenarios, the earnings upside is significant, validating the "Outperform" rating.

Final Remarks

The 2025 interim report for Flat Glass Group is a document of two halves: a retrospective of cyclical pain and a prospective of strategic resilience. While the headline numbers of 1H 2025 are undeniably weak, they obscure the more important narrative of industry consolidation and the impending price recovery.

For the institutional investor, the key is to look beyond the trailing twelve months (TTM) earnings and focus on the forward-looking indicators. The supply-side discipline, the inventory destocking, and the September price hikes are real, tangible developments that change the earnings trajectory. Flat Glass, with its unassailable market position and cost advantages, is the prime beneficiary of this shift.

We reiterate our Outperform rating. The current market valuation offers a compelling risk-reward profile for investors willing to look through the short-term noise and capitalize on the long-term secular growth of the solar industry, led by one of its most capable and resilient champions.

Disclaimer:
This report is prepared by Minsheng Securities Institute for informational purposes only. It does not constitute an offer to sell or a solicitation of an offer to buy any securities. The information contained herein is based on sources believed to be reliable, but Minsheng Securities does not guarantee its accuracy or completeness. The opinions expressed are subject to change without notice. Investors should conduct their own independent research and consult with financial advisors before making any investment decisions. Past performance is not indicative of future results.