GCL Technology Holdings Limited provided group earnings guidance for the first quarter ended March 31, 2024. For the quarter, the unaudited profit attributable to the owners of the company was approximately RMB 33 million; and revenue of the Group was approximately RMB 5.47 billion. The Board believes that the decrease in the unaudited profit attributable to the owners of the company for first quarter as compared to that for the quarter ended 31 March 2023 was mainly due to (1) the significant decrease in the market average selling price of polysilicon and
wafer products for first quarter of 2024 as compared to that for first quarter of 2023; (2) the Company's new production capacity in Hohhot, Inner Mongolia is in the ramp-up phase. It is expected to achieve full production in the second half of 2024. After that, the overall average cost of granular silicon of the Company will be further reduced, leading to a significant increase in profitability; (3) the continuous research and development investment in core areas such as perovskite single-junction and tandem, CCz, silane, silica carbon anode material and clean material improvement in granular silicon production, with research and development expenses exceeding RMB 400 million for first quarter of 2024; and (4) the losses in the wafer business, which were attributable to the rapid decline in the wafer market for first quarter of 2024, resulting in a year-on-year decrease in sales revenue.