HK Stock Market Move | Photovoltaic stocks fell again, silver prices rose, squeezing the profits of photovoltaic companies. Several companies issued profit warning announcements.

Photovoltaic stocks fell again. As of the time of writing, IRICO NEWENERGY (00438) fell by 6.45% to HK$2.03, FLAT GLASS (06865) fell by 5.76% to HK$10.97, XINYI SOLAR (00968) fell by 4.29% to HK$3.35, and XINTE ENERGY (01799) fell by 3.54% to HK$7.64. On the news front, Tongwei Co., Ltd., LONGi Green Energy Technology, and Shanghai Aiko Solar Energy have successively released performance forecasts for 2025, all showing a loss. However, when it comes to the reasons for the expected losses, multiple companies mentioned the impact of rising silver prices on their performance. LONGi Green Energy Technology pointed out in its announcement that the costs of silver paste and silicon materials rose significantly in the fourth quarter, significantly pushing up the costs of silicon wafers, cells, and modules. Tongwei Co., Ltd. also mentioned the continuous rise in "core raw material prices such as silver" when discussing the reasons for the losses. It is reported that silver paste is a key material for CECEP Solar Energy's solar panels, used to make conductive contacts to transmit the electricity generated by the cells. Data shows that the use of trace silver in solar cells currently accounts for 29% of the total module cost, compared to only 3.4% in 2023 and 14% last year. The solar industry is actively resolving the pressure of rising silver prices through technological adjustments, accelerating plans to use cheaper materials such as copper to replace silver.