--- title: "Hoshine Silicon's private placement progresses further: responds to inquiries to clarify doubts, fundraising targets energy costs and green compliance barriers" type: "News" locale: "en" url: "https://longbridge.com/en/news/288871505.md" description: "Hoshine Silicon responded to the Shanghai Stock Exchange's inquiry regarding the private placement, clarifying that the fundraising project is for the energy support of the Shanshan base, aimed at reducing energy costs and strengthening green compliance barriers, without adding new production capacity for its main business. Although the company is expected to report its first loss in 2025, its cash flow remains robust, and the gross profit margin is expected to significantly recover in the first quarter of 2026. With the recovery of the silicone industry and the implementation of new EU regulations, the company is likely to consolidate its market position through cost advantages and compliance capabilities" datetime: "2026-06-05T13:35:51.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/288871505.md) - [en](https://longbridge.com/en/news/288871505.md) - [zh-HK](https://longbridge.com/zh-HK/news/288871505.md) generator: "portal-rs" --- # Hoshine Silicon's private placement progresses further: responds to inquiries to clarify doubts, fundraising targets energy costs and green compliance barriers On the evening of June 5th, Hoshine Silicon (603260.SH) officially disclosed its response report to the Shanghai Stock Exchange's inquiry letter regarding the private placement review, addressing core issues such as the necessity of the 8×75MW back-pressure unit project (Phase I) at the Shanshan silicon-based new materials industrial base and the rationality of capacity planning. **Fundraising Project Focused on Core Energy Support** The response to the private placement inquiry indicates that the main construction content of the fundraising project includes the establishment of 4 new 75MW back-pressure units and supporting facilities, utilizing "low-quality coal graded conversion and clean comprehensive utilization" technology to convert low-grade coal into coal and pyrolysis gas, supplying electricity and heat to the silicon-based new materials project in the industrial park. The Shanshan base, as Hoshine Silicon's core production hub, currently has an industrial silicon capacity of 800,000 tons and a polysilicon monomer capacity of 1 million tons, accounting for 65.57% and 57.80% of the company's total capacity, respectively. After the project is put into production, the self-sufficiency rate of electricity and heat at the Shanshan base will further increase, forming a complete closed loop from upstream raw materials to terminal energy. It is noteworthy that this fundraising project is a key energy support construction around the existing business and will not add any new main business product capacity. The company clearly stated that the use of the raised funds is highly consistent with the strategic direction of focusing on the silicon-based new materials core business and strengthening cost competitiveness, as well as meeting the practical needs of responding to industry cycle fluctuations and solidifying the operational foundation. **Industry Recovery Transmission, Significant Restoration of Core Profitability** Hoshine Silicon's 2025 annual report shows that due to the cyclical downturn in the industry and the drag from the photovoltaic business, the company's net profit attributable to shareholders experienced its first loss since going public, but the net cash flow from operating activities still reached 4.013 billion yuan. Entering 2026, the prosperity of the organic silicon industry has significantly rebounded. As of early June, the mainstream market price of organic silicon DMC remained at 14,800-15,100 yuan/ton, significantly rebounding from the low point of about 11,300 yuan/ton in October 2025. In the first quarter of 2026, Hoshine Silicon achieved a gross profit margin of 19.08%, an increase of 4.46 percentage points year-on-year, indicating a significant restoration signal of the company's overall profitability. **EU D4/D5 Restriction Order Fully Effective, Green Compliance Capability Establishes Market Competitiveness** On June 6, 2026, the EU REACH regulation (EU) 2024/1328's comprehensive restriction nodes are about to be officially implemented. According to the new regulations, the concentration of D4, D5, and D6 in all substances or mixtures placed on the EU market must not exceed 0.1%. Currently, the EU market has become an important growth pole for China's organic silicon exports, accounting for over 30% of the increase in China's organic silicon exports in 2025. Hoshine Silicon, in accordance with the REACH regulation requirements, has optimized its catalytic and neutralization technologies, combined with deep desorption processes to continuously reduce the residual values of D4, D5, and D6. The industrial-grade and organic silicon deep processing-related products produced have fully met the EU's 0.1% content limit. The early construction of compliance barriers has become the company's "invisible pass" to obtain high value-added orders in the EU market **Employee Stock Ownership Plan Launched, Management and Core Staff Deeply Bound** While focusing on strategy, Hoshine Silicon is simultaneously advancing the improvement of its internal incentive mechanisms. On the evening of June 5th, the company announced its 2026 Employee Stock Ownership Plan. This equity incentive plan serves as a supplementary addition to the 25-year incentive plan, utilizing a novel model funded by the company's special incentive fund with repurchased shares as the underlying asset, deeply binding the interests of middle management and core technical staff. In terms of the lock-up period, this employee stock ownership plan has a lock-up period of 12 months from the date the last batch of underlying shares is transferred to the plan. After the lock-up period expires, the stock rights held by the employee stock ownership plan will vest based on the holders' annual assessment results for 2026 and 2027, with vesting ratios of 75% and 25% respectively. Regarding the participants, this employee stock ownership plan includes executives in the incentive scope, achieving a full-chain talent binding from senior management to middle management and core technical (business) personnel. This move deeply ties the core team's personal interests to the company's annual operational results, demonstrating management's full confidence in improving the company's operations. From private placement to equity incentives, Hoshine Silicon has formed a clear strategic layout in areas such as internal circulation of energy costs, alignment with green compliance standards, and improvement of incentive mechanisms. Against the backdrop of the global dual carbon strategy and energy structure transformation, the company is leveraging private placement to consolidate its advantages in energy costs and compliance capabilities, actively responding to changes in market dynamics and laying a solid foundation for future development ### Related Stocks - [603260.CN](https://longbridge.com/en/quote/603260.CN.md) ## Related News & Research - [Home Invest Belgium cuts portfolio energy use to 95 kWh/m², beating 2026 target](https://longbridge.com/en/news/297540382.md) - [China Energy Engineering Renews Connected Transaction Frameworks With Controlling Shareholder](https://longbridge.com/en/news/297424776.md) - [SED Energy Holdings announces extraordinary general meeting](https://longbridge.com/en/news/297491981.md) - [India's state-backed infra fund secures $2 bln commitment from global, local investors](https://longbridge.com/en/news/297478396.md) - [Jinding Capital-backed Galactic Energy achieves first orbital launch of ZhiShenXing-1 rocket](https://longbridge.com/en/news/297597527.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**