According to the announcement, the reason for the increase in revenue is the year-on-year increase in sales of photovoltaic glass during this reporting period.

During the reporting period, the company actively responded to the risks and challenges of industry and market cyclic adjustments, focused on the development of new energy materials, optimized resource allocation in multiple dimensions, and continuously enhanced development resilience. During the reporting period, the production of photovoltaic glass products by the company reached 0.196 billion square meters, and the sales volume reached 0.194 billion square meters, with year-on-year growth of 27% and 31% respectively. The total yield of photovoltaic glass products increased by about 2 percentage points. However, the photovoltaic glass market was greatly affected by short-term inventory pressure, weak market demand, and the combined impact of seasonal factors. Since November 2023, the market price has continued to oscillate at a low level, resulting in a year-on-year decline in the company's product gross margin of approximately 4.3 percentage points, and a loss in operating performance during this reporting period.

During the reporting period, the company continued to adhere to lean management and cost reduction, benchmark optimization, and innovative development. Each production base was guided by annual targets to promote product research and development and enhance technology management. China National Building Material Tongcheng New Energy Materials Co., Ltd. successfully developed and launched a new product of 1.6mm anti-glare high-transparency photovoltaic rolled glass; China National Building Material (Yixing) New Energy Co., Ltd.'s project on the development and application of 1.6mm ultra-thin photovoltaic embossed glass won the second prize in the solar PV track of the 1st Energy Electronics Industry Innovation Competition, and the project on photovoltaic glass automatic packaging technology won the second prize in the 2024 national machinery, metallurgy, and building materials industry technical innovation achievement exhibition, and was named an excellent enterprise in the "465" modern industry cluster development in Wuxi, China. Kaisheng (Zigong) New Energy Co., Ltd. steadily improved the yield of raw glass products, and the kiln energy consumption gradually decreased from 1540 cal/kg at the beginning of the period to 1510 cal/kg at the end of the period, saving about 3000m3 gas consumption per day, and was awarded the title of "Sichuan Province Green Factory".

Despite the significant impact of the mismatched supply and demand rhythm and multiple rounds of accelerated decline in the prices of the photovoltaic industry chain since the second half of 2023, which has put pressure on profitability of production companies, industry consolidation and survival of the fittest will promote the high-quality development of China's photovoltaic industry in the long run. Technological innovation, quality improvement, and green development will be the important core for achieving sustainable development. Although the industry faces many challenges, the global photovoltaic market still maintains optimistic expectations. According to China Photovoltaic Industry Association's forecast, the global newly added installed capacity is expected to be 390-430GW in 2024, while China's newly added installed capacity is expected to be 190-220GW during the same period.

Despite the significant impact on production companies due to the mismatched supply and demand rhythm and multiple rounds of accelerated decline in the prices of the photovoltaic industry chain since the second half of 2023, which has put pressure on profitability, in the long run, industry integration and survival of the fittest will promote the high-quality development of the Chinese photovoltaic industry. Technological innovation, quality improvement, and green development will be the important core for achieving sustainable development. Despite facing numerous challenges, the global photovoltaic market still maintains optimistic expectations. According to the forecast of the China Photovoltaic Industry Association, the global newly added installed capacity is expected to be 390-430GW in 2024, while China's newly added installed capacity is expected to be 190-220GW during the same period.