Q1: What is the overall capacity plan for the Company’s LFP business?

As at July 2026, the Company’s LFP business is being advanced through two principal entities (of which GCL Lithium is not yet consolidated; it is a related party and is managed by the Company on its behalf):

• GCL Lithium (Renshou Base): current effective capacity of approximately 150,000 tonnes; the Phase II project has been confirmed, and Phase I and Phase II combined can reach 400,000 tonnes of capacity. Batch shipments to CATL commenced in 2025, and the business was profitable for the full year 2025. Over the longer term, the business is moving towards a scale of 600,000-800,000 tonnes.

• Leshan Xinneng (Leshan Base): Phase I of 200,000 tonnes will reach design capacity in September 2026 and full utilisation in October 2026; the products have been certified by, and introduced in batches to, leading domestic power battery and energy storage companies.The average tax-inclusive selling price is RMB 60,320/tonne, and the business has been profitable since commencement of production.With subsequent capacity ramp-up and the realisation of economies of scale, the cathode materials business is expected to have a positive impact on the Group’s financial performance. Total planned capacity is 400,000 tonnes, and Phase II has entered the project implementation stage.

To date, the Company (including GCL Lithium) has built 350,000 tonnes of LFP capacity, and its capacity under construction and planned is positioned within the global first tier over the medium to long term.

Q2: What is the shareholding structure of the Leshan Xinneng project?

Leshan Xinneng is consolidated by GCL Technology, which holds a 30% equity interest (a local government guidance fund holds approximately 70%). The Company holds the majority of the seats on the board of Leshan Xinneng and enjoys control.

Q3: When and in what manner will GCL Lithium be injected into the listed company?

GCL Lithium is currently controlled by GCL Group. Since 2025 it has been placed under the management of the listed company, which has assigned an experienced management team to be responsible for its daily operations and strategic R&D. At present, there is no clear plan or timetable for the acquisition of GCL Lithium.

Q4: How is the order book for the Company’s LFP products, and can the capacity be absorbed?

The Company currently has a sufficient LFP order backlog, and customers have pre-booked the planned capacity, with demand for high-end products being particularly strong:

• Customer structure: batch supply to customers including CATL, HiTHIUM, Ganfeng LiEnergy and Penghui Energy

• Order locking: long-term agreements signed with major customers secure future performance, and the order backlog is sufficient;

• Premium on high-end products: fourth-generation and above high-compaction products are in short supply, and high-end products command a certain premium on processing fees;

• Strong customer stickiness: under the automotive-grade IATF 16949 system, the validation cycle lasts 1-2 years, and once certification is obtained, the switching cost is extremely high

• Product roadmap: Mature products such as C16 have passed batch certification with leading battery companies and entered volume supply; the fifth-generation C18 high-compaction product is closely tailored to 800V high-voltage fast-charging and 1,000-kilometre long-range vehicle models; the C10L customised product targets large-capacity residential and commercial and industrial long-duration energy storage applications.

Q5: What unique advantages does the iron red process adopted by the Company for LFP offer?

The Company adopts its proprietary GCL-PHY physical iron red (one-step) process, whose core advantages are as follows:

Q6: How is the technology iteration of the Company’s LFP products progressing, and which generation has been reached?

The Company leads the industry in product iteration and continues to drive product upgrading through fundamental research and process innovation. The technology generations are broadly characterised by “four generations in mass production, a fifth generation in reserve, and research on fifth-and-a-half generation and newer products advancing in real time”. Within two years of being placed under management, its products have rapidly iterated from 3.5-generation material to 4.5-generation material, and the technology reserve for fifth-generation material has been completed:

• Third generation (C3/C7): supplied to energy storage customers (such as HiTHIUM), with a compaction density of 2.48-2.55 g/cm³;

• Fourth generation (C10): powder compaction density of ≥2.6 g/cm³ and 1C discharge capacity of ≥143 mAh/g; supplied in volume to leading power battery customers such as CATL;

• Fourth-and-a-half generation (C16): powder compaction density of ≥2.65 g/cm³; the fourth-and-a-half generation product is not yet supplied in volume and remains at the process validation and sample delivery stage;

• Fifth generation (C18): launched in May 2026, with a typical powder compaction density of 2.68 g/cm³, a 1C discharge capacity of 142.3 mAh/g and a 3.2V plateau capacity share of 94.4%; energy density is 6%-8% higher than that of the fourth generation, with native support for 800V high-voltage platforms. Samples have been delivered to leading battery manufacturers for validation.

• Fifth-and-a-half generation product (C20): planned for launch in H1 of 2027, namely 5.5-generation high-compaction products at 2.73-2.75 g/cm³, to match downstream cells’ dual requirements of “high energy density + long cycle life”, with energy density gradually approaching the level of ternary lithium batteries.

• Energy per unit weight (Wh/kg) and energy per unit volume (Wh/L)

Calculation formula: Wh/kg = capacity × voltage; Wh/L = capacity × compaction density × voltage. 3.4V is the discharge plateau voltage of LFP cathode material against lithium metal, that is, the material-level basis referenced to lithium, while 3.2V is the nominal voltage of a full cell, that is, the cell-level voltage basis.

At 3.4V, the fifth-generation product C18 delivers approximately 10.2% higher energy per unit volume than the third-generation product C3. (Only at the material level. When manufacturing into cells or batteries, the improvement needs to take into account the specific manufacturing processes of each manufacturer.)

Technology dividend window: the Company’s iron red high-compaction technology has established a technology barrier of 3-5 years; the R&D team holds 29 core patents in iron red double-sintering processes, and the Company’s energy storage research institute and seven major R&D laboratories support continuous product upgrading.

Fundamental research support: the Company conducts LFP mechanism research jointly with external universities; the compaction process has increased loading by more than 30% compared with earlier levels; carbon coating research is being advanced in parallel, and other frontier processes beyond the iron red route are continuously explored, providing underlying technical support for continuous product iteration.

Q7: What are the market demand and competitive landscape for high-compaction LFP?

The Company believes that the LFP industry presents a clear divergence of “overcapacity at the low end and shortage at the high end”:

• Industry capacity: in 2025, industry-wide shipments approached 4 million tonnes against total industry capacity of approximately 6.4 million tonnes, yet shipments of high-compaction LFP were less than 1 million tonnes, leaving a substantial gap in high-end capacity;

• Demand growth expectation: the Company expects China’s LFP cathode material shipments to exceed 10 million tonnes in 2026-2027 and to reach 15 million tonnes by 2030;

• High-end supply landscape: for high-compaction materials (fourth-and-a-half generation and above) used in 800V fast-charging and high-end energy storage applications, few manufacturers can currently supply on a stable basis, and the supply shortage is expected to persist at least until 2028;

• Competitive barriers: high-compaction products require complex processes such as precursor particle morphology control and double sintering, and present technical difficulties in particle control and secondary phase formation; customer validation takes 1-2 years, so technology and customer certification together create high barriers to entry in the industry.

Q8: What model does the Company adopt to address lithium price volatility, and what is its profitability?

The Company adopts a “processing fee + risk hedging” model, which effectively mitigates the risk of lithium price volatility while capturing premiums on high-end products. As upstream resources such as phosphorus and iron gradually become self-sufficient, the per-tonne profit level is expected to rise further.

Q9: Why is customer stickiness in LFP generally high?

1. Automotive-grade standards: battery cell companies follow the IATF 16949 system, and key material suppliers for the same product are generally not changed easily;

2. Long validation cycle: it takes approximately one year from material validation to product development, and each material requires customer-specific development;

3. High switching risk: materials from different suppliers differ in impurities and elemental composition, and arbitrary substitution may affect the chemical stability of the battery;

4. Delivery rigidity: all supply agreements constitute legal documents, and delivery is bound by contractual terms.

Q10: How large is the overall market size of the LFP industry?

The Company believes:

• LFP demand will exceed 10 million tonnes in 2026-2027;

• It is expected to reach 15 million tonnes by 2030, leaving significant room for growth from the current market size, with faster technology iteration and more enduring competitive barriers.

Q11: What is the Company’s view on the sodium-ion battery technology route, and does it have any related plans?

The Company is firmly advancing its sodium-ion battery technology layout with a clear “lithium and sodium in parallel” development strategy:

• Strategic positioning: sodium-ion is a strategic choice for the Company’s future; leveraging its already successful iron red LFP technology platform, the Company is pursuing both lines and focusing its efforts on iron red sodium-ion technology;

• Technology route: the iron red sodium-ion process is highly synergistic with the Company’s existing iron red LFP process and can fully reuse existing production lines and technology accumulation;

• Commercialisation progress: the Company is seizing the window for product finalisation of sodium-ion batteries in AIDC (artificial intelligence data centre) applications and accelerating industrial implementation;

• Economic assessment: if lithium prices remain above RMB120,000/tonne over the long term, energy storage manufacturers will be more inclined to choose sodium-ion, and the cost advantage of sodium-ion will become more pronounced;

• Process synergy: sodium-ion and LFP have strong synergies in processes and equipment, and the Company can enter quickly based on existing production lines and technology accumulation while reducing capital expenditure.

Q12: What is the Company’s positioning in battery recycling?

The Company is concurrently conducting R&D on battery recycling and material restoration technologies. Since 2025, it has worked with universities and research institutes to complete three technology routes for the restoration and recycling of lithium battery cathode materials, building a circular ecosystem of “material manufacturing - battery application - recycling and regeneration” and reducing the overall preparation cost of cathode materials through resource circulation.

Q13: What is the Company’s positioning in upstream resources for cathode materials?

The Company is actively advancing upstream resource integration to achieve controllable material costs and a secure, self-reliant supply chain from the source. The following matters are currently under internal discussion:

• Resource strategy: to advance the integration and securing of core mineral resources such as iron, phosphorus and lithium on a global basis, building an integrated “resource-to-material” industrial chain;

• Lithium resources: apart from part of the lithium source supplied by core customers, the Company plans to establish lithium mining, lithium salt processing and black mass recycling businesses in the future to achieve 10%-30% self-sufficiency;

• Iron resources: the Company plans in the future, in the course of silane gas cracking and high-purity purification, to treat by-products such as ferrosilicon and waste materials and to produce, in situ and continuously as a by-product, high-purity industrial iron oxide with excellent micro-activity (high-purity iron red);

• Phosphorus resources: the Company plans to achieve full self-sufficiency in the future by acquiring phosphorus resources and investing in phosphorus chemicals;

Q1: What is the current capacity of the Company’s granular silicon?

• Total capacity: 480,000 tonnes per year, with a global granular silicon market share of more than 90% and a polysilicon market share of approximately 23% by output;

• Production bases: four major production bases in Xuzhou, Leshan, Baotou and Hohhot;

• Capacity flexibility: granular silicon production lines and silicon-carbon anode share a high degree of engineering commonality; approximately 180,000 tonnes of granular silicon capacity at the Xuzhou and Leshan bases combined can be converted into silicon-carbon anode production in line with market conditions, enabling efficient reuse of existing assets;

• Overseas layout: the Company continues to explore overseas capacity and plans to build 60,000 tonnes of granular silicon capacity, so as to be close to target regional markets, capture green energy premium opportunities and hedge regional trade and geopolitical risks.

Q2: What is the cash cost of granular silicon, and what advantages does it have over peers?

• The average cash manufacturing cost of granular silicon for the full year 2025 was RMB25.12/kg (including R&D), down 25.1% from 2024 and firmly the lowest in the industry;

• In the first half of 2026, the utilisation rate was 53.2% and the cash cost remained at RMB25.23/kg, an industry-leading level; the average external tax-inclusive selling price of granular silicon was approximately RMB36.13/kg (tax-inclusive). The Company’s cash cost continues to decline; with rising utilisation and process optimisation, the cash cost for 2026 is expected to decrease further year on year

(127,691/240,000 = 53.2%, i.e. the nominal capacity utilisation rate derived from interim report output and capacity)

• During the deep adjustment phase of the industry, the Company’s lowest-cost advantage enables its cash flow to continue to support normal production and operations, demonstrating very strong resilience through the cycle.

• Profitability in the same period: in the first half of 2026, the Group’s overall gross margin was negative 7.5% (negative 12.2% in the first half of 2025), and the gross margin of the photovoltaic materials business was approximately negative 7.5% (negative 12.7% in the first half of 2025); the gross loss narrowed from approximately RMB700 million in the first half of 2025 to approximately RMB434 million, with the improvement mainly attributable to higher average selling prices of granular silicon products compared with the same period last year.

• Cost results: lower energy consumption, lower unit consumption and lower manufacturing expenses.

Q3: What are the essential differences in process between granular silicon and conventional rod silicon?

The core difference lies in the reaction mechanism:

• Modified Siemens process: epitaxial deposition on a solid surface; ultra-high voltage current is required to maintain the silicon rods at a high temperature of 1,050-1,100°C, with substantial heat radiation losses, extremely high power consumption and intermittent batch production;

• FBR silane fluidised bed process: silane gas is injected upwards from the bottom of the reactor, fluidising the polysilicon seed particles, and silane molecules undergo in-situ vapour-phase thermal decomposition and deposition on the surface of the suspended seeds; the reaction temperature is only 600-700°C and production is continuous.

Granular silicon consumes more than 75% less power than the Siemens process, creating an insurmountable cost advantage on the energy consumption side.

Q4: What is the product quality of granular silicon, and what are the key indicators?

The quality of the Company’s granular silicon has fully met and exceeded the high standards for N-type electronic-grade monocrystalline pulling:

• The proportion of high-purity products with total metal impurities of the five elements (iron, chromium, nickel, copper and zinc) of ≤0.5 ppbw reached 99.45%, essentially achieving 100% full coverage;

• Lower detection limit for the five elements: for some products, total metal impurities of the five elements (iron, chromium, nickel, copper and zinc) are already below the industry detection limit of 0.05 ppb, an industry-leading level;

• Total metal impurities of 18 elements of ≤1 ppbw, essentially achieving 100% full coverage;

• The proportion of ultra-high-quality products with turbidity of ≤70 NTU rose to 97.3%, and small batches can achieve below 30 NTU;

• Carbon content is controlled within 0.3 ppma and can be reduced to 0.1 ppma on request;

• Fines content is controlled within 1 mg/g;

• The problems of low crystallisation yield and high breakage rate caused by hydrogen jumping have been resolved, and the overall breakage rate is comparable to that of rod silicon.

Q5: How is granular silicon applied in BC cells?

• BC cells impose extremely high requirements on polysilicon in terms of high resistivity and low metal impurities; granular silicon, with its low impurity content, has become the preferred feedstock for BC cell wafers;

• Leading customers such as TCL Zhonghuan and LONGi have launched product series using 100% granular silicon, validating the feasibility of applying granular silicon in full proportion;

• According to internal Company statistics, since 2026 the proportion of wafers made from granular silicon feedstock purchased by BC cell manufacturers has increased markedly.

Q6: What is the Company’s granular silicon inventory level, and what is the inventory situation in the industry?

• The Company operates a “produce-to-order” model, maintaining inventory at a low level of the order of one thousand tonnes, with turnover days of only within 7 days, far better than the industry average;

• By contrast, peers’ rod silicon enterprises generally hold inventories of more than 10,000 tonnes, and cumulative polysilicon inventory in the industry amounts to approximately 500,000 tonnes;

• Industry destocking progress: as the market gradually recovered in the first quarter of 2026, industry destocking accelerated, and the Group’s inventories amounted to approximately RMB1,661.6 million, down 12.4% from approximately RMB1,896.9 million as at 31 December 2025; since March, the Company’s utilisation rate has increased significantly and has returned to the level of the same period in previous years;

• Inventory advantage: the low-inventory strategy enables the Company to effectively avoid inventory write-down risk at the bottom of the industry cycle, with more robust cash flow, providing a solid safeguard for navigating the cycle.

Q7: What is the customer structure of the Company’s polysilicon business, and what is the proportion of granular silicon used downstream?

The Company’s polysilicon business is deeply tied to leading global wafer manufacturers, with customers including LONGi, TCL Zhonghuan, JinkoSolar and Gaojing; long-term agreement orders account for a relatively high proportion of total shipments, and inventory write-down risk is therefore relatively low. Granular silicon has long maintained a “produce-to-order” status, with a sufficient order backlog.

Downstream penetration continues to rise:

• The average proportion of granular silicon used by downstream wafer manufacturers has reached more than 45%, a significant increase over previous years;

• Leading customers such as TCL Zhonghuan have launched product series using 100% granular silicon, validating the feasibility of applying granular silicon in full proportion;

• The proportion of wafers made from granular silicon feedstock purchased by BC cell manufacturers has increased markedly; BC cells impose extremely high requirements on polysilicon in terms of high resistivity and low metal impurities, and granular silicon, with its low impurity content, has become the preferred feedstock for BC cell wafers;

• As the penetration of N-type cells continues to rise, growing demand for high-quality polysilicon will further drive up the proportion of granular silicon used.

• In the first half of 2026, the top five granular silicon customers accounted for 34%, 26%, 12%, 6% and 5% of shipments respectively, reflecting a stable customer structure

Q8: Other competitors are also developing granular silicon. Where do the Company’s technology barriers lie?

The Company believes that GCL’s FBR fluidised bed granular silicon technology barriers are deep and difficult to replicate:

1. Ten years of iteration: after a decade of systematic large-scale industrial upgrading and iteration, the Company has cultivated top-tier teams in multiphase fluid dynamics and microscale thermal field control, and has overcome world-class engineering challenges such as non-uniform fluidisation and internal wall coking;

2. Patent system: the Company owns a complete granular silicon patent system, which is distinct from mere imitation of physical form;

3. Difficult to convert: converting Siemens-process lines to granular silicon requires substantial cash investment and carries risk;

4. Hard to catch up on quality: even if other manufacturers produce granular silicon, achieving the same quality level still requires prolonged process accumulation.

Q9: What are the plans for overseas polysilicon capacity?

The Company is firmly advancing its internationalisation strategy; within a lawful and compliant framework, and through industrial capital cooperation and the establishment of overseas operating entities, it is extending its integrated industrial chain with differentiated advantages overseas:

• Global layout: the Company continues to seek and engage the most suitable partners worldwide, and the related commercial negotiations and preliminary preparations are proceeding prudently and methodically;

• Strategic significance: an overseas capacity layout can effectively avoid geopolitical trade barriers and enable localised supply, immediate technical response and full-process carbon footprint traceability for core customers, fully leveraging the low-carbon advantages of granular silicon;

• Financing arrangements: overseas projects will introduce external financing, making full use of capital leverage to optimise cash utilisation efficiency.

As overseas projects involve cross-border cooperation, details such as the specific host countries, investment scale and phased progress will be further disclosed once actual progress is made. The Company will timely perform its information disclosure obligations in strict accordance with the relevant regulatory requirements; please refer to official announcements for further developments.

Q10: What is the carbon footprint of granular silicon, and what certifications does it hold?

Following rigorous life cycle assessment (LCA) audit certification by the British Standards Institution (BSI), the “cradle-to-gate” carbon footprint of GCL Technology’s granular silicon has been confirmed at 14.2756 kgCO₂e/kg, more than 70% lower than conventional rod silicon, setting a new record for low-carbon production of silicon-based materials. To date, the Company’s granular silicon has obtained carbon footprint certifications in China, France, Germany and the United Kingdom.

Against the backdrop of green trade policies such as the EU’s CBAM carbon border adjustment mechanism and battery regulations, this low-carbon attribute serves as a “green passport” commanding high export premiums, enabling downstream products to be naturally equipped with the strongest low-carbon compliance defence.

Q1: What are the core content and objectives of the Company’s strategic transformation?

On 17 May 2026, the Company announced the launch of a comprehensive strategic transformation, with the core objective of leaping from being “a single-product champion in granular silicon” to “a global multi-product new energy materials platform”. Looking towards the AI era, the Company has further established a new strategic positioning of “silicon-lithium-carbon isomorphism and photovoltaic-storage-computing integration”, anchoring the energy + AI era to build a photovoltaic, energy storage and computing materials technology company.

Industrial main lines: build silicon, lithium and carbon as the three core tracks and extend into a matrix of frontier new energy materials; implement the “One Body, Two Wings + International Expansion” strategy to create a high-value zero-carbon new materials industrial chain covering upstream resource integration, advanced materials intelligent manufacturing, industry standard setting and a closed loop of frontier technology R&D.

Underlying logic of the transformation: respond to the deep cyclical adjustment of the photovoltaic industry and mitigate the risk of insufficient resilience to fluctuations arising from a single polysilicon business; reuse the Company’s long-accumulated capabilities in high-purity purification, fluidised bed (FBR), CVD engineering and integrated silane manufacturing to enter the new energy storage materials track and build diversified growth curves that transcend the cycle. In the face of the era’s opportunity presented by the explosive growth of AI computing power, the Company’s silicon-based materials technology foundation can naturally extend into optical communications, semiconductors and other AI infrastructure materials, opening up long-term growth space.

Strategic framework: “One Body, Two Wings” + International Expansion + AI Materials as a New Growth Engine

• One Body: with polysilicon as the foundation (strategic cornerstone), driving the comprehensive transformation of polysilicon from a single polysilicon product into a broad silicon-based product portfolio;

• Two Wings: cathode materials as the scale-driving core and silicon-carbon anode as the second growth curve;

• Internationalisation: overseas capacity layout + global resource integration, with the North American base covering granular silicon, silicon-carbon anode and cathode materials;

• AI materials as a new growth engine: optical fibre preforms, silicon-based semiconductor materials, electronic-grade silane gas and others, empowering AI computing infrastructure.

Four major directions of business transformation:

1. Product diversification: spanning the three major fields of photovoltaics, lithium batteries and optical communications, and covering granular silicon, cathode materials, anode materials and optical fibre preforms;

2. Globalised capacity: bases in China and North America to avoid geopolitical barriers and stay close to end markets;

3. Value integration: achieving internal synergy and cost reduction through silane self-supply, equipment reuse and element-based premium capture;

4. Profit structure optimisation: high-gross-margin optical fibre preforms anchor profitability, cathode materials contribute revenue scale, balancing cyclical fluctuations and enhancing resilience.

Q2: What exactly do the “silicon, lithium and carbon” trinity refer to, and how should “photovoltaic-storage-computing integration” be understood?

The Company is building an industrial structure of “silicon-lithium-carbon isomorphism and photovoltaic-storage-computing integration”, in which the three core segments share a common technology foundation and, at the same time, expand into the new track of computing infrastructure materials for the AI era:

Strategic implications of “photovoltaic-storage-computing integration”:

• Photovoltaics (solar): granular silicon + perovskite, continuously consolidating the generational technology advantage in photovoltaic materials;

• Storage (energy storage): LFP cathodes + silicon-carbon anodes, creating a dual-engine drive in lithium battery materials;

• Computing (AI computing power): optical fibre preforms + silicon-based semiconductor materials + electronic-grade silane gas, entering the AI computing infrastructure materials track.

All three share a common technology foundation (silane gas, CVD processes, fluidised bed technology and high-purity purification capabilities), forming an industrial ecosystem of “silicon-lithium-carbon value isomorphism” while achieving a strategic extension from energy materials to computing infrastructure materials.

Frontier materials in reserve: silane electronic specialty gases, silicon carbide (SiC), silicon nitride (Si₃N₄), high-purity quartz sand, lithium sulfide, carbon nanotubes and others, continuously building a broad silicon-based materials platform.

Silicon-Carbon Anode

Q1: What are the progress and plans of the silicon-carbon anode business?

Silicon-carbon anode is the core of the Company’s “carbon” segment and a key part of the second growth curve under the “One Body, Two Wings” strategy; it is being developed leveraging the world’s largest silane gas capacity and the advantages of FBR fluidised bed technology:

• Current progress: the silicon-carbon anode pilot line in Xuzhou has entered the trial run stage, and sample validation by leading downstream battery manufacturers has commenced in parallel; the Group subsequently plans to carry out technical upgrading and conversion of the granular silicon lines in Leshan and Xuzhou, entering the high-growth next-generation anode materials track through flexible retrofitting of existing assets;

• Technology route: CVD chemical vapour deposition process, porous silicon + carbon coating, and digital-grade porous carbon skeleton design to mitigate silicon expansion;

• Capacity plan: to deploy 350,000 tonnes of silicon-carbon anode capacity globally in the future, making full use of efficient reuse of existing assets;

• Market assessment: China’s silicon-based anode material shipments exceeded 15,000 tonnes in 2025; global silicon-based anode shipments are expected to reach 600,000 tonnes by 2030; from 2026, thousand-tonne-scale silicon-carbon projects will successively enter production and ramp-up, and the industry is about to enter a year of volume growth;

• Application scenarios: high-energy-density applications such as high-end power batteries, consumer electronics and the low-altitude economy; the stable high specific capacity of silicon-carbon anode is an excellent physical pathway for cells to achieve fast charging;

• Strategic positioning: silicon-carbon anode is a key initiative in the Company’s extension from single-product polysilicon to a broad silicon-based product portfolio; the theoretical specific capacity of high-silicon anodes is 6 times that of conventional graphite anodes, and low-silicon anodes reach 1.8 times, making it a key material for the next energy revolution.

• Production usage: each GWh of battery capacity at 8%-10% silicon content (450 mAh/g) requires approximately 800 tonnes of silicon-carbon anode active material, and at 5% silicon content (400 mAh/g), approximately 900 tonnes of silicon-carbon anode active material. The figures already include N/P margin (to prevent lithium plating) and 5% process loss.

• Calculation formula: 10⁹ Wh ÷ 3.2V × 1,000 × 1.1 ÷ 450 mAh/g ÷ 10⁶ × (1 + 5%) = 802 tonnes

Q2: How is the process synergy between silicon-carbon anode and granular silicon reflected?

The synergy is extremely high, with a technology reuse rate of more than 80%:

1. Identical feedstock: both use silane gas as the main raw material, and the Company’s 600,000 tonnes of silane gas capacity can be flexibly allocated;

2. Similar processes: the fluidised bed cracking and phase change for granular silicon and the CVD vapour deposition for silicon-carbon anode are highly similar in large-scale industrial controls such as high-temperature gas path control and gas-solid transport;

3. Convertible production lines: granular silicon lines can be rapidly retrofitted in situ into silicon-carbon anode reactors, greatly reducing upfront capital expenditure and construction time;

4. Transferable equipment: high-value core assets such as fluidised bed core reactors and silane gas path control networks can be reused across businesses.

Perovskite

Q3: What are the latest progress and commercialisation timetable of the perovskite business?

Perovskite is the Company’s strategic technology reserve for the future; following 16 years of development across three stages, it is in the industry’s first tier:

• Mass production progress: the GW-scale perovskite mass production line at the Kunshan base has been commissioned, with mass production efficiency exceeding 27%;

• Tandem efficiency: perovskite tandem cell efficiency has exceeded 29.5%, continuously setting world records;

• Certification: the Company has obtained the world’s first dual-standard IEC lifetime certification, with product reliability recognised by an authoritative international institution;

• Space strategy in “three steps”: deepen deep-space endurance testing in 2026 and, in 2027-2028, achieve space-specific modules in mass production, striving to become the “standard power source” for Chinese spacecraft. Perovskite, with its high power-to-weight ratio and good low-light performance, offers unique advantages in space solar applications. The Company has entered into cooperation with Ziwei Yutong, China Commercial Satellite and Xianxiang Photovoltaics, and is expected to carry out in-orbit space tests on satellites successively in the second half of the year; once radiation-resistant encapsulation is qualified, it is expected to enter the space application sequence within five years;

• Commercialisation expectation: the perovskite business has moved from technology validation to a new stage of commercial delivery, with engineering reliability, volume manufacturing and system cost optimisation continuing to advance; since the beginning of this year, it has won several megawatt-scale commercial orders and, together with Huaneng, has commissioned several demonstration power plants;

• Financing: in August 2026, the Company completed a Series D1 financing of more than RMB100 million, and has cumulatively received more than RMB1 billion in strategic investment from CATL, TCL, Tencent, Temasek and others. The Group holds a 39.75% equity interest in Kunshan GCL Optoelectronic Materials Co., Ltd.

• 

• Strategic value: perovskite is the core direction of next-generation photovoltaic technology and forms technology synergy with the Company’s granular silicon business, jointly building a generational technology advantage in photovoltaics.

Optical Fibre Preforms (AI Computing Infrastructure Materials)

Q1: Why is the Company entering the optical fibre preform business, and what is its strategic positioning?

Optical fibre preforms are an important new growth engine in the Company’s strategic layout for the AI era and the core vehicle of the “computing” segment under the “photovoltaic-storage-computing integration” strategy:

• AI computing-driven demand: the Company believes that the explosive growth of AI computing and 5G and 6G communications is driving a continued rise in demand for optical fibre and cable; the current global supply-demand gap for optical fibre preforms is 1,000-4,000 tonnes, and 2026 to 2028 represents the industry’s optimal window;

• Strong process synergy: as a world-leading granular silicon producer, the Company can achieve a closed “polysilicon - silicon tetrachloride - optical fibre preform” process loop; high-purity silicon tetrachloride is the core raw material for optical fibre preforms, with a high degree of technology reuse;

• High gross margin: optical fibre preforms sit in the most profitable link of the optical communications value chain; the high-gross-margin preform business can anchor the Company’s profit structure, balance cyclical fluctuations and enhance overall earnings resilience;

• Strategic significance: extending from energy materials to AI computing infrastructure materials opens up the Company’s long-term growth ceiling and builds a new value dimension as a “silicon-based materials platform”.

Q2: What are the capacity plan and product layout of the optical fibre preform business?

• Capacity plan: the Company plans to build annual capacity of more than 1,000 tonnes, focusing on pure preform manufacturing, with module-based construction in line with market pace;

• Product portfolio: a multi-dimensional product matrix, including general-purpose G.652.D, ultra-low-loss G.652.E and high-barrier specialty preforms;

• Technology route: leveraging the Company’s deep accumulation in high-purity purification, vapour deposition and large-scale chemical engineering, advanced processes are adopted to produce high-quality optical fibre preforms;

• Market positioning: targeting high-growth scenarios such as AI data centre interconnection, 5G/6G communications and long-haul trunk transmission, providing high-quality preform products.

Silicon-Based Electronic Materials and Semiconductors

Q1: What is the Company’s positioning in the field of silicon-based electronic materials?

Leveraging its silicon-based materials technology accumulation and with the New Materials Research Institute as its core, the Company continues to build a presence in semiconductor silicon-based materials, driving the extension from photovoltaic-grade silicon materials to electronic-grade silicon materials:

• Electronic-grade silane gas: as the world’s largest silane gas producer, the Company notes that silane gas is a key electronic specialty gas in semiconductor manufacturing and can be used in core processes such as thin film deposition and etching; the market has long been oligopolistically controlled by European, US and Japanese companies, leaving substantial room for domestic substitution;

• Silicon carbide (SiC): the Company is building a presence in silicon carbide micropowder, silicon carbide thermal field materials and silicon carbide substrates; SiC is a core material for third-generation semiconductors and is seeing rapid demand growth in new energy vehicles, photovoltaic inverters and AI computing power supplies;

• Silicon nitride (Si₃N₄): high alpha-phase silicon nitride is a key material for semiconductor packaging and ceramic substrates;

• High-purity quartz sand: semiconductor-grade high-purity quartz sand is a core raw material for wafer manufacturing and high-end photovoltaic quartz components;

• High-purity silicon tetrachloride: a key raw material for optical fibre preforms and semiconductor wafer manufacturing.

• Silicon nitride powder: used in new energy vehicle motor bearings and power device substrates

Q2: What is the synergy logic behind these electronic materials initiatives?

The core logic of the Company’s silicon-based electronic materials layout is “shared technology origin, reusable production lines and market synergy”:

• Shared technology origin: all are based on core technologies such as high-purity purification, chemical vapour deposition (CVD) and fluidised bed (FBR), in which the Company has more than 20 years of engineering accumulation;

• Capacity flexibility: granular silicon lines can flexibly adjust their product mix in line with market demand and extend into higher value-added silicon-based electronic materials;

• Customer synergy: downstream coverage spans photovoltaic, lithium battery, semiconductor and optical communications and other high-growth tracks, with the customer base extending from the energy industry to AI computing and semiconductor industries;

• Strategic value: transitioning from a “photovoltaic materials company” to a “silicon-based materials platform company”, opening up valuation headroom and growth ceilings and enhancing resilience to cycles.

Financial and Capital Markets

Q1: How were the Company’s 2025 results, and what is the operating trend for 2026?

Full-year 2025 results:

• Revenue: RMB14.425 billion;

• Net profit attributable to shareholders: -RMB2.868 billion (loss narrowed by 39.6%);

• Gross profit: RMB1.336 billion (successfully turned profitable), with a gross margin of 9.3%;

• EBITDA: more than RMB2.8 billion (turned positive);

Operating trend for 2026:

• For the six months ended 30 June 2026, the Group’s revenue was approximately RMB5,776.7 million

• Gross profit: -RMB434 million (-7.5%)

• Net profit attributable to shareholders: -RMB2.081 billion (loss widened by 17.2%)

• Reasons: (net other losses of approximately RMB288 million (net gain of approximately RMB9 million in the same period of 2025), including impairment losses on property, plant and equipment of approximately RMB172 million, exchange losses of approximately RMB105 million, loss on deemed partial disposal of associates of approximately RMB73 million and net fair value loss on investments at fair value through profit or loss of approximately RMB26 million, partly offset by fair value gains on derivative financial instruments of approximately RMB54 million and fair value gains on convertible bonds of approximately RMB34 million; impairment losses recognised on financial assets of approximately RMB298 million (approximately RMB264 million in the same period of 2025); and share of losses of associates of approximately RMB211 million.)

• EBITDA: RMB486 million

• In the first half of 2026, granular silicon achieved an average external tax-inclusive selling price of approximately RMB36.13/kg and an average production cash cost (including R&D) of approximately RMB25.23/kg, maintaining an industry-leading level

• Since March 2026, the Company’s utilisation rate has increased significantly and has returned to the level of the same period in previous years;

• Profitability of the LFP business continued to improve.

Q5: What are the Company’s share buyback and shareholder return policies?

• Three-year shareholder return plan: over the three years from 2024 to 2026, the aggregate amount of share buybacks for cancellation and/or dividend distributions shall be no less than RMB2.5 billion and no more than 60% of the aggregate net profit for the three years, to be pursued in light of market conditions, with timely announcements of any changes;

• 2026 buyback progress: buybacks have continued on a regular basis, with cumulative buybacks of more than HK$700 million year to date as at July;

• Management shareholding increase: since the beginning of this year, the Company’s management has successively increased its shareholdings, expressing recognition of the Company’s value and stabilising market confidence.

Q6: What are the Company’s gearing ratio and cash flow position?

• Gearing ratio of 41.28% (on a basis excluding endorsed and discounted notes from the balance sheet);

• Total liabilities of RMB28,877.7 million / total assets of RMB69,952.1 million = 41.28%

• Cash and bank balances of RMB9.724 billion, with no short-term solvency risk;

• EBITDA turned positive to RMB2.828 billion in 2025; in 2026 H1, EBITDA of the photovoltaic segment remained positive at RMB486 million

• Free cash flow improved significantly and turned positive.

Q7: What are the progress and use of proceeds of the Company’s convertible bond issuance?

The Company is optimising its capital structure through diversified financing tools such as convertible bonds to support its strategic transformation:

• Use of proceeds: the proceeds may be used for the construction of new materials capacity such as LFP and silicon-carbon anode, as well as to supplement working capital, supporting the Company’s strategic transformation;

• Capital structure optimisation: as an equity-debt hybrid financing instrument, convertible bonds help reduce the Company’s overall financing cost and optimise the debt maturity structure;

• Impact on shareholders: the conversion price is set at a reasonable level, and the dilution effect on existing shareholders at the current share price level is limited; as the Company’s new materials business gradually delivers results, the increase in corporate value will cover the potential dilution;

• Subsequent arrangements: the Company will reasonably arrange the pace and scale of financing in light of the market environment and funding needs to maximise shareholder interests. Please refer to the Company’s official announcements for specific issuance progress.

Q8: What is the Company’s capital expenditure plan, and how does it balance expansion with cash flow?

The Company adheres to a prudent capital expenditure strategy and makes full use of capital leverage to achieve sustainable development:

• Investment principles: strictly control capital expenditure intensity and give priority to projects with high returns on investment and strong technology barriers; make full use of industrial capital cooperation and external financing to reduce the Company’s own funding proportion;

• Cathode materials: unit investment intensity is approximately 40% lower than the industry average; external financing will be introduced, with the Company contributing 30%-40%;

• Silicon-carbon anode: leveraging the retrofitting of existing granular silicon production lines to substantially reduce incremental capital expenditure; the estimated project investment is far below the cost of newbuild in the industry;

• Optical fibre preforms: module-based construction in line with market pace;

• US project: substantial external financing and industrial partners will be introduced, with the Company contributing approximately 30%-40%;

• Cash flow support: EBITDA has remained positive and free cash flow has improved significantly, which can support capital expenditure requirements during the strategic transformation period.

Other

Q9: What is the Company’s R&D investment and R&D team profile?

The Company attaches great importance to R&D investment and regards technology R&D as its core strength for navigating industry cycles, having built the GCL Central Research Institute system to support technological breakthroughs and innovation:

• R&D investment scale: the New Materials Research Institute has a project budget of RMB180 million for 2026; 10 key R&D projects are being advanced during the year, and initial breakthroughs have been achieved in 5 core products;

• AI for Science R&D foundation: GCL’s first AI for Science R&D foundation has been launched, with software and hardware delivery and large model tuning expected to be completed in 2027, to support fine-tuning of vertical models in the three major materials fields of silicon, lithium and carbon; a 16-channel, 24-hour uninterrupted AI high-throughput experimental platform will also be deployed, with preliminary deployment expected to be completed within the year;

• R&D team size: as at the end of 2025, the R&D team comprised 2,161 people, accounting for as much as 24% of total employees and covering the three major R&D directions of silicon materials, lithium-carbon materials and frontier materials;

• Talent strategy: led by more than 10 academicians of the Chinese Academy of Sciences and the Chinese Academy of Engineering, supported by a team of 100 external expert advisers; through the “Starlight Plan” and “Polaris Plan”, master’s and doctoral talents are recruited in batches from Tsinghua University, Peking University, Zhejiang University and other institutions; for overseas expansion and globalisation, a large number of materials and chemical engineering PhDs returning from Europe, the United States and Japan have been recruited, and overseas R&D centres have been established;

• Patent layout: dozens of core patents will be filed in the second half of the year to build technology barriers, with 68 R&D directions planned for 2026-2028; the LFP iron red double-sintering process has 29 core patents;

• R&D commercialisation mechanism: a scientist partnership profit-sharing mechanism is in place, under which core R&D personnel serve as project CTOs with returns tied to project performance, accelerating the industrialisation of the institute’s technological achievements;

• Board professional background: of the 10 board members, 3 hold doctorates and 2 hold master’s degrees, covering diverse professional fields such as photovoltaic technology and chemical manufacturing;

• Industry-academia-research cooperation: deep cooperation has been established with a number of universities and research institutions to jointly tackle energy storage materials technologies, including fundamental research directions such as LFP mechanisms and carbon coating.

Q10: What other new R&D areas is the Company pursuing?

Leveraging its silicon-based materials technology accumulation and with the New Materials Research Institute as its core, the Company is building a broad silicon-based materials platform featuring “silicon-lithium-carbon isomorphism and photovoltaic-storage-computing integration”, and continues to expand into multiple frontier materials fields:

Silicon-based semiconductor and optical communications materials:

• Electronic-grade silane gas (a key electronic specialty gas for semiconductor manufacturing)

• Silicon carbide micropowder, silicon carbide thermal field materials and silicon carbide substrates (third-generation semiconductors)

• Silicon nitride (high alpha phase, semiconductor packaging material)

• High-purity quartz sand (semiconductor grade / photovoltaic grade)

• High-purity silicon tetrachloride (core raw material for optical fibre preforms)

• Optical fibre preforms (key materials for AI computing infrastructure)

• Core catalysts for granular silicon

Frontier directions for cathode materials:

• DES lithium extraction technology

• Black mass recycling and material restoration (battery circular economy)

• Iron red sodium-ion cathodes (“lithium and sodium in parallel” strategy)

• Lithium sulfide and other frontier lithium battery materials

Carbon-based materials:

• Carbon nanotubes

• Porous carbon

• Micro-carbon enrichment

• Conductive paste

These frontier materials initiatives all rely on the Company’s core technology foundation (high-purity purification, CVD processes and fluidised bed technology), offering strong technology synergy and production line reusability, and reserving ample growth momentum for the Company’s long-term development.

Q11: What are the Company’s board and governance structure?

• The board comprises 10 members, including 4 independent non-executive directors, accounting for 40%;

• Six specialised committees are established under the board: Audit Committee, Remuneration Committee, Nomination Committee, Corporate Governance Committee, Strategy and Investment Committee and ESG Committee;

• All members of the Audit Committee and the Remuneration Committee are independent non-executive directors;

• In 2025, one shareholders’ meeting, 37 board meetings and 19 board committee meetings were held, with a director attendance rate of 100%;

Q12: What are the channels and frequency of investor communications?

The Company attaches great importance to investor relations:

• In 2025, 985 investor communication activities were conducted during the year;

• Results announcements and voluntary announcements are published on a regular basis;

• Roadshows, strategy conferences, reverse roadshows and other activities are continuously conducted;

• A Securities Affairs and Investor Relations Centre has been established, dedicated to investor relations work;

• The Company’s official website (www.gcltech.com) features an investor relations section and accepts investors’ daily telephone enquiries and emails.