On 16 September,GCL Technology Holdings Limited(03800.HK),a leading provider of high-tech granular polysilicon for photovoltaics,announced a strategic financing agreement with Infini Capital,a prominent global investor with backing from Middle Eastern sovereign funds.Under the terms of the agreement,the company will issue approximately 4.736 billion new shares via private placement,raising HK$5.446 billion(around$700 million).There will be a six-month lock-up period to strengthen the stability of its shareholding structure.
According to the announcement,the funds will be allocated to three key areas.Firstly,the funds will act as reserves for supply-side reform,supporting structural adjustments to polysilicon production capacity.Secondly,they will be used to enhance the company’s'second growth curve'by leveraging its leading global silane gas production capacity and output to replace overseas supplies.This is in response to the rising demand for silane driven by semiconductor integrated circuits,the shift from TOPCon to BC batteries,and the quality requirements of solid-state and semi-solid-state lithium-ion batteries for display panels.Thirdly,the funds will optimise the company’s capital structure and reinforce its shareholding'moat'.
An industry analyst has noted that the polysilicon sector is undergoing supply-side reform,while demand for silane gas is rising rapidly.With demand for high-quality silane growing across PV cell upgrades,energy storage,integrated circuits and display panels,financing will help GCL Technology Holdings Limited to build a second growth curve,creating synergistic development across granular polysilicon,silane gas and other businesses,and securing funds to gain an edge in countering industry'involution'.The analyst added that capital support would drive positive interaction between the company’s granular polysilicon technology application,silane gas advantages and perovskite incubation.This would strengthen the company's strengths,foster growth engines and expand its'anti-involution'cash pool.They also highlighted the critical juncture of technological iteration and capacity consolidation in the PV industry,stating that collaborating with Infini Capital will help the company expand its competitive advantage,convert its carbon emission advantages into pricing power,and overcome the constraints of'involution'.The analyst noted that the counter-cyclical financing highlights the company’s intention to use technological differentiation to end homogeneous competition.They added that,with China intensifying policies to address PV'involvement',curb disorderly competition and protect intellectual property,GCL Technology Holdings Limited is well-positioned to be the first PV firm to turn losses into profits this year.They concluded that the financing optimises the company’s capital structure,solidifies the position of the controlling shareholder and provides resources for technological iteration and the phase-out of outdated capacity.This demonstrates international investor confidence and shows that firms with leading technology and cash reserves will gain greater bargaining power in this'anti-involution'phase.
Infini Capital has dual headquarters in Abu Dhabi(UAE)and Hong Kong(China).It maintains a diversified investment portfolio covering strategic emerging technologies,artificial intelligence,humanoid robots,and smart manufacturing.The company has also provided over HK$10 billion to support Chinese high-tech firms.
A GCL representative indicated that the two parties will launch a dedicated industrial fund focused on integrating inefficient and low-quality excess capacity through market-based acquisitions,professional restructuring,and innovative upgrades.The fund aims to put an end to chaotic,low-price competition and ease'involuntary'resource waste,while guiding the industry back towards value creation and building a sustainable industrial ecosystem.
Financial data shows that in the first half of 2025,GCL Technology Holdings Limited’s EBITDA reached approximately RMB 380 million,a year-on-year increase of 325.8%,maintaining positive cash flow.As of the second quarter of 2025,the average cash cost(excluding tax)of its granular polysilicon fell to RMB 25.31 per kilogram,a 6.5%decrease from the first quarter and the lowest in the industry.In the first half of 2025,its granular polysilicon output accounted for 24.32%of market share.As of the close of trading on 15 September,the share price of GCL Technology Holdings Limited stood at HK$1.26,marking a cumulative year-to-date increase of 16.67%.
