【SMM Announcement】Announcement on the addition of a new mono-Si Topcon cell-210RN price point

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In order to facilitate upstream and downstream enterprises in the photovoltaic industry chain to better grasp the dynamics of the photovoltaic cell market, as well as timely reflect the price of the market spot market, reduce the transaction risk and transaction cost of enterprises, and continuously improve and deepen the research of the photovoltaic industry chain, SMM has released a new monocrystalline Topcon cell-210RN price point from May 13 after a period of precipitation and market research for market reference.

1. General principles of SMM price methodology

Shanghai Nonferrous Metals Network (hereinafter referred to as SMM) is a completely independent third-party service organization, which does not participate in any substantive transactions, but maintains close communication with buyers or sellers of transactions as market observers or organizers, and provides relevant services for the market. SMM continually develops, reviews and revises its methodology in consultation with industry insiders to adopt the most common product specifications, trade terms and trade terms in the industry. Equal attention is paid to normal transactions that meet the specifications. SMM reserves the right to exclude any price data information that is deemed to be less reliable or representative from its price assessments.

SMM publishes the spot price of metals (or indexes, etc.) on a daily basis, both in the Chinese market and outside of China, commonly referred to as SMM prices. SMM has formulated a corresponding methodology for the published SMM prices (all of which will be published on the SMM official website www.smm.cn for inquiry), which stipulates the methods and procedures for the formation and release of SMM prices, and forms and publishes SMM prices in strict accordance with the provisions of the methodology.

In order to conform to the actual situation of the spot market, SMM will make necessary revisions to the SMM price methodology, and will make an announcement on the SMM official website www.smm.cn 28 days before the official implementation, unless the notice period is shortened due to special circumstances, especially force majeure (natural disasters, wars, exchange bankruptcy, etc.). If you have any questions or suggestions about SMM prices and their methodology, please contact SMM customer service (please check the contact information on the SMM official website www.smm.cn).

This document sets out the criteria and management methods for the spot price of SMM mono Topcon cells-210RN, and the purpose of SMM is to establish a transparent and verifiable SMM price setting mechanism and provide an important pricing indicator for market participants.

2. The formation of the spot price of SMM monocrystalline Topcon cells-210RN

2.1 Definitions

Shanghai Nonferrous Metals Network (SMM) monocrystalline Topcon cell-210RN is formed and released by SMM according to this methodology, which can be used by both parties as a reference for the spot trade settlement of monocrystalline Topcon cell-210RN cells. The price is mainly based on the daily transaction price of mono-Si Topcon cell-210RN in China, including taxes, capital occupation costs and other related trade expenses.

2.2 The prices of new photovoltaic cells in SMM are as follows:

Monocrystalline Topcon cell-210RN

2.3 Generation of Quotation Methods

SMM collects data information used to evaluate the spot price of mono-Si Topcon cells-210RN through standard adoption (i.e., collecting raw data information that complies with the SMM data standard policy), including the unfilled buyer and seller quotations provided by the bid acquisition unit (i.e., the data provider), and the actual spot transaction price provided by the bid acquisition unit to complete the transaction.

The price of SMM is intended to reflect the true trading level of a commodity at a certain point in time or time period throughout the day, so when the transaction and quotation based on the same specifications and the same shipment period are announced in the market at the same time, the transaction information is more important than the quotation information. We also consider other factors in the evaluation process, but the actual transaction price (which takes precedence over the quotation) and the quotation always come first.

2.4 Methods of standard adoption

• SMM price analysts regularly collect data and information related to the price of mono-Si Topcon cells-210RN from bidders (between 9:30 a.m. and 11 a.m. on each trading day) by telephone, QQ, WeChat, fax and email. All instant messaging, email communications, and records of any face-to-face communications will be archived; The details of the telephone communication will be recorded in a summary and entered into the database. The price data must be a typical, repeatable transaction between non-affiliated market participants (financially and legally independent).
• SMM price analysts are subject to the Compliance Regime when reporting to their supervisors any coerced or threatened communications from market participants, or any inducement offers of any kind that seek to influence the outcome of the assessment. After the price is published, there will be no further correction or adjustment on the day of SMM.

2.4.1 Adoption objects

• Monocrystalline Topcon cell - 210RN cell manufacturer with an annual production capacity of more than 1GW, has a standardized sales model, smooth sales channels, relatively stable sales volume, has a certain influence and popularity, operates legally and honestly, and has a good market reputation.
• Mono-Si Topcon cell-210RN module manufacturers with an annual procurement volume of more than 1GW have a standardized procurement model, smooth procurement channels, and relatively stable procurement volumes, and have a certain influence and popularity, legal and honest management, and a good market reputation.

2.4.2 Collect bids from other objects

If the number of active trading participants in the market is very limited, or if the data submitted by a particular bidder(s) represents a significant proportion of the total data on which the assessment is based, SMM will continue to seek additional fully transparent and verifiable data from the market as a whole.

SMM's policy on the collection of data information on the market is that SMM welcomes all information from various sources or organizations, as long as the data submitter provides it for a bona fide and genuine purpose. However, all parties are required to agree to the SMM Data Submitter Code of Conduct. SMM does not accept instant communication requests from unknown persons and requires SMM price analysts to follow the procedures to confirm the identity of market participants before conducting instant messaging communications.

2.4.3 Standardization of information and data

Due to the progress of technology, the photoelectric conversion efficiency and module power of photovoltaic cells have been continuously improved. The SMM mono Topcon cell-210RN price point is based on the current market mainstream mass production cell efficiency, and is adjusted according to market changes.

2.4.4 Information data analysis, verification and screening

SMM will always do its best to confirm the quotation and transaction information with the relevant parties. SMM will endeavour to conduct multi-party verification of all market data information provided by the buyer/seller with the counterparty of the buyer/seller. When both parties to a transaction are unable or unwilling to confirm data, SMM will endeavour to seek cross-validation from other market participants.

If a received quote or deal is 20% higher or less than the arithmetic average of other normal data, SMM can define this data as data of questionable accuracy (outliers or suspicious transactions). The SMM price analyst will re-contact the bid taker to verify the accuracy, suitability and completeness of the data submitted. If it is confirmed that it is due to an error made during the submission process, such as an input error, the error is corrected and revalidated and filtered. If there are no errors in the submission process, or if it is verified that this data may not correspond to the reality of the current trading market. The SMM price analyst may exercise expert judgment to conclude that the data submitted by the bid taker is not a qualified data and needs to be excluded from the original data set.

2.5 Product Standards

Battery Grade: Class A

Battery size: 182mm*210mm

Wafer type: N-type monocrystalline silicon wafer with a wafer thickness of 130um

Conversion efficiency: Inbound conversion efficiency of 24.7% or above. (Based on the current market mainstream mass production cell efficiency, and adjusted with market changes, the current cell efficiency can be found in the quotation description next to the price point.) ）

2.6 Units and Expressions

Transaction price/quotation, etc., the unit is yuan/W, which is reflected in the form of interval price, including 13% VAT.

Price fluctuations are rounded to the nearest RMB0.01/W, and the volatility is limited to the lowest moving volume of RMB0.01/W.

2.7 Mode of Delivery

to the factory price

2.8 Payment Methods

Cash settlement

2.9 Updated Time

10:30-11:00 a.m. every trading day

3. Methodological changes

All markets are changing, and it is the responsibility of SMMs to ensure that the methodology reported for the market changes in tandem with the market. As such, SMM conducts regular internal reviews of the appropriateness of the methodology based on industry feedback. For all material, non-urgent, potential modifications, SMM will follow a formal external consultation process. Significant changes are then announced and a notice period of at least 28 days is given, inviting industry players to comment, unless exceptional circumstances, in particular force majeure (natural disasters, wars, exchange bankruptcy, etc.) result in a shortened notice period. SMM undertakes to carefully review all comments regarding proposed methodological changes, but in some cases may have to make methodological changes against the wishes of some market participants. In addition, SMM has a formal methodology consultation process.

Shanghai Nonferrous Metals Network Information Technology Co., Ltd. Silicon-based photovoltaic research team

May 13, 2024