Atlas: The PV industry is still in a period of deep adjustment, and capacity clearance will continue for some time.

2026-09-01 09:46:00

Atlas believes that the overall operating environment of the photovoltaic industry is still grim, and the industry is still in a period of deep adjustment. Atlas judges that China's photovoltaic installed capacity is expected to decline annually this year, and the global photovoltaic installed capacity is expected to decline for the first time in many years.

On August 31, Atlas said in its disclosed record of investor relations activities in August that the photovoltaic industry is still in a period of deep adjustment, and capacity clearance is expected to continue for some time. In the first half

of 2026, the company achieved a total operating income of 12.784 billion yuan, down 39.27% from the same period last year ; Net profit attributable to parent company was RMB300 million, representing a year-on-year decrease of 59. During the reporting period, the photovoltaic industry continued to be under pressure, and the Company took the initiative to shrink production capacity in order to adhere to the principle of profit priority. Photovoltaic " In addition, price competition in the photovoltaic industry chain still existed during the reporting period. The increase in amortization of fixed costs brought about by the company's active contraction and the increase in the cost of upstream materials for energy storage have led to a squeeze on gross profit. Business adjustment in the United States is in a transitional period, which has a phased impact on the company's operating performance.

Atlas believes that the overall operating environment of the photovoltaic industry is still grim, and the industry is still in a period of deep adjustment. Atlas judges that China's photovoltaic installed capacity is expected to decline annually this year, and the global photovoltaic installed capacity is expected to decline for the first time in many years.

But it also said that at the bottom of the cycle, more and more positive signals are gradually emerging . With the upgrading of energy efficiency standards, the acceleration of technology iteration and the enhancement of industry self-discipline consensus, although the supply-demand relationship can not be restored to the level of supporting the overall improvement of industry profitability in the short term, the industry is gradually entering a new stage of supply-side adjustment.

In the future, with the new demand brought by technology iteration, supply-side adjustment and energy storage application, photovoltaic business will enter a stable state of development after a period of time. Capacity clearance is expected to continue for some time , and only companies that can differentiate themselves can achieve growth.

For the company's energy storage business, the company's large-scale energy storage system shipped 6.1G Wh in the first half of the year, an increase of more than 103 over the same period last year. The energy storage system business realized revenue 56. Energy storage has grown from the second growth curve to the "ballast stone" of Atlas's current revenue and profit.

The following is the full text:

I. Overview of Results for the First Half of 2026:

During the reporting period, the Company achieved an operating income of RMB12.784 billion. Net profit attributable to the shareholders of the listed company 3. The changes in the Company's results were mainly affected by the following factors: (1) The gross profit of the energy storage business was partially affected by the overall continuous pressure on the photovoltaic industry, and at the same time, the upstream material prices of the energy storage industry rose, and the intensified market competition led to a decline in prices; (2) The amortization of fixed costs increased due to the active contraction of the photovoltaic business; (3) The passive restructuring of the U.S. business had a transitional integration period, which had a short-term periodic impact on the company's operating performance in the first half of the year. From the perspective of the

PV sector, the overall operating environment of the PV industry is still grim. The global PV

energy storage sector is concerned, during the reporting period, the company's large-scale energy storage system shipped 6.1G Wh, an increase of more than 103 over the same period last year. The energy storage system business realized revenue 56. Energy storage has grown from the second growth curve to the "ballast stone" of revenue and profit at this stage. As of the end of the reporting period, the Company delivered more than 23 GWh of large-scale energy storage systems, and continued to maintain its position as a leading energy storage system integrator overseas. With the continuous improvement of self-developed battery core, PCS and energy storage product matrix, the company's energy storage system solution capability is continuously enhanced. Main contents of questions and answers for

investors:

1. China's PV installed capacity is expected to decline on a month-on-month basis this year, and the global PV installed capacity is expected to decline for the first time in many years. In the future, with the new demand brought by technology iteration, supply-side adjustment and energy storage application, photovoltaic business will enter a stable state of development after a period of time. Capacity clearance is expected to continue for some time, and only companies that can differentiate themselves can achieve growth.

2. The change in gross profit was mainly due to the upstream battery core, etc.

3. This year, the installed capacity of grid-side energy storage in the United States is growing rapidly, and AIDC distribution and storage may become standard in the future, with positive market prospects. Which business models in the field of AIDC distribution and storage are mature and have the possibility of signing the bill? The energy storage behind the meter and on the rack side is still in the process of breakthrough, and is communicating with customers to promote, and the whole industry is in the early stage of large-scale breakthrough. Energy storage behind the meter is mainly large-scale energy storage to ensure power supply demand, and conventional products can be used; energy storage at the rack side provides millisecond response, and separate products or integrated technical solutions need to be developed.

4. The company expects prices to stabilize early next year and move above MIP prices. Atlas has an early layout, although it bears the risks and costs of the pioneers, but it is expected to enjoy dividends after the policy landing.

5. The overall demand for energy storage is still in the stage of rapid growth, and the growth of demand has a stabilizing effect on prices. Demand for industrial and commercial energy storage is also increasing due to losses caused by rising electricity prices and energy instability.

6. Atlas takes a relatively pragmatic, conservative and steady approach to balance long-term reliability. Existing battery capacity, if willing to do transformation, all TOPCon capacity can meet the higher level requirements of the strong standard requirements. However, technological transformation requires cost, which is not necessarily economical from the perspective of return on investment according to the current component price, and will be adjusted accordingly according to market demand and shipment expectations. 7.8

. In terms of energy storage PCS, the company has long-term European partners' PCS products overseas, and there is no compliance problem at present, but it may sacrifice some gross profit margin because of the high price of overseas PCS. At the same time, Atlas's own PCS products have been sold on a large scale in the UK this year. With the company's global capabilities, the company has the confidence to address policy and compliance challenges.

Atlas said that price competition in the energy storage market is gradually intensifying, but the overall demand for energy storage is still in a rapid growth stage, and demand growth has a stabilizing effect on prices. Demand for industrial and commercial energy storage is also increasing due to losses caused by rising electricity prices and energy instability.

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Correlation

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2026-09-01 10:20:03

Atlas believes that the overall operating environment of the photovoltaic industry is still grim, and the industry is still in a period of deep adjustment. Atlas judges that China's photovoltaic installed capacity is expected to decline annually this year, and the global photovoltaic installed capacity is expected to decline for the first time in many years.

2026-09-01 09:46:00

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