A research report from Huatai Securities highlights that the Science and Technology Department of the Ministry of Industry and Information Technology has recently unveiled the 'Classification and Grading of Photovoltaic Products - Part 1: Photovoltaic Modules (Draft for Approval)'. In comparison to the prior draft national standard released for public feedback, this new draft substantially elevates the efficiency requirements for photovoltaic modules. Huatai Securities predicts that following the public comment phase, which runs from June 13 to July 12, the standard will progress through the approval, issuance, and implementation stages. This progression is likely to initially impact the market through centralized module procurement by central and state-owned enterprises. Huatai Securities is of the opinion that this initiative will expedite the reduction of surplus capacity, promoting the growth of high-efficiency battery modules like BC, HJT, and TOPCon3.0. Concurrently, it will lead to the gradual phasing out of second- and third-tier enterprises that rely on outdated technology or face financial constraints. Based on Huatai Securities' efficiency calculations for mainstream and top-performing products, the anticipated scale of product obsolescence is projected to be 327.6GW and 153.6GW, respectively, representing 33% and 15% of the total capacity. Given that the demand-side pressures in the photovoltaic industry are expected to subside in the latter half of 2026, a combination of market and regulatory actions will likely hasten the reduction of excess supply. This scenario suggests the potential emergence of an industry turning point, with leading battery module and paste manufacturers positioned to experience profit enhancements ahead of others.