Industry Overview - In the first half of 2025, the global installed capacity of power batteries reached 504.4 GWh, representing a year-on-year increase of 37.3%. In June 2025, the global installed capacity was 103.1 GWh, up 32.9% year-on-year and 11.1% quarter-on-quarter. In Q2 2025, the global installed capacity was 282.6 GWh, showing a year-on-year growth of 36.1% and a quarter-on-quarter increase of 27.4% [1]. Chinese Companies - In the first half of 2025, Chinese companies (including CATL, BYD, AVIC, Guoxuan, EVE, and Honeycomb) collectively installed 347.0 GWh, marking a year-on-year increase of 46.4% and accounting for approximately 68.8% of the global market share, an increase of 4.3 percentage points year-on-year. Among them, CATL's installed capacity from January to June was 190.9 GWh, with a year-on-year growth of 37.9%, holding a global market share of 37.9%, an increase of 0.2 percentage points year-on-year [1]. Japanese and Korean Companies - In the first half of 2025, Japanese and Korean companies (including LG Energy Solution, Samsung SDI, SK On, and Panasonic) collectively installed 101.6 GWh, reflecting a year-on-year increase of 5.0% and a total market share of 20.1%, a decrease of 6.2 percentage points year-on-year. Specifically, LG Energy Solution's installed capacity from January to June was 47.2 GWh, with a year-on-year growth of 4.4%, holding a global market share of 9.4%, a decrease of 2.9 percentage points year-on-year [1].

Core Viewpoint - The company reported a mixed performance in its energy business for Q2 2025, with revenue growth in certain areas but challenges in others, particularly in vehicle products due to market conditions and policy changes [1][2]. Group 1: Q2 2025 Performance - Energy business revenue for Q2 2025 was 10.94 billion yuan, showing a year-on-year increase of 3.5% but a quarter-on-quarter decrease of 3.8% [1]. - Revenue breakdown: Power battery revenue was 5.30 billion yuan, while energy storage and other revenues were 5.59 billion yuan [1]. - Operating profit reached 1.59 billion yuan, with a year-on-year increase of 10.3% and a quarter-on-quarter increase of 40.3% [1]. - Adjusted operating profit was 1.59 billion yuan, reflecting a year-on-year increase of 10.1% and a quarter-on-quarter increase of 25.7% [1]. - Adjusted operating profit margin was 14.5%, up 4.3 percentage points year-on-year and 3.4 percentage points quarter-on-quarter [1]. Group 2: Revenue Change Drivers - The decline in vehicle product sales was attributed to price adjustments reflecting lower raw material costs, despite an increase in sales volume from the North American factory [2]. - Sales in the industrial and consumer sectors increased, particularly due to higher sales of energy storage systems for data centers [2]. - The increase in operating profit was driven by growth in vehicle product sales and industrial/consumer sectors, despite rising initial costs in some factories [2]. Group 3: FY 2026 Outlook - Overall revenue is projected at 7.8 trillion yen, with a net profit of 310 billion yen [3]. - Concerns remain regarding electric vehicle demand due to U.S. tariff policies and the termination of the IRA 30D tax credit, although long-term trends in vehicle electrification are expected to continue [3]. - Demand for energy storage systems in data centers is anticipated to exceed expectations due to significant investments related to generative AI [3]. - The company is facing challenges in the consumer sector, with expected low demand for consumer devices [3]. Group 4: Tax Policy Changes and Responses - The termination of the IRA 30D tax credit will impact vehicle products, while the company will continue to benefit from the IRA 45X tax credit [4]. - U.S. tariffs have been reduced from 25% to 15%, and the company is negotiating with customers to share some of the tax burden [4].

Core Viewpoint - The Next P7 was unveiled with features such as dual-chamber suspension, Ultra (Turing chip) intelligent driving, and a maximum range of 820 km. The pricing will be announced at the end of August, with a formal launch to follow [1]. Group 1: Product Features - The Next P7 has dimensions of 5017*1970*1427 mm, making it longer and wider than the current P7, but lower in height. The design emphasizes a futuristic feel rather than luxury [1]. - The vehicle features a dual-motor version that can accelerate from 0 to 100 km/h in 3.9 seconds [1]. Group 2: Design Perspective - The design of The Next P7 is described as original and futuristic, aiming to inherit the low stance and overall proportions of the previous model while innovating on its appearance. The design reflects the brand's attitude of being bold and different [1]. Group 3: Sales Outlook - The sales performance of The Next P7 will largely depend on its pricing, which is expected to be in the range of 250,000 to 300,000 yuan. The pre-sale has started, but the price has not yet been disclosed. Monthly sales are projected to reach 3,000 to 4,000 units [1].

Overall Analysis - The total delivery volume of passenger vehicles reached 470,000 units, a week-on-week increase of 4.8%, with new energy vehicles (NEVs) at 248,751 units, up 3.6% from the previous week, resulting in a penetration rate of 52.89% [1] - The recent launch of new models and increased production capacity of popular models have stimulated the NEV delivery market, with expectations for steady growth in the coming weeks [1] - The penetration rate is expected to stabilize around 53-54% due to the introduction of purchase tax next year and the inherent demand from fuel vehicle consumers [1] Brand Analysis - BYD delivered 60,900 units this week, with significant contributions from the Sea Lion 06 model, which saw 3,200 pure electric and 1,600 plug-in hybrid units delivered, marking a week-on-week increase of 2,600 units [2] - The sales target of 5.5 million units for 2025 may be adjusted due to challenges in achieving this goal [2] - Li Auto delivered 5,500 units this week, a decrease of nearly 2,000 units, with significant declines in L series models due to the impact of the new i8 model [5] - NIO's L90 model achieved nearly 2,000 deliveries in three days, indicating a potential for stable monthly sales of 5,000 units, with the possibility of exceeding 10,000 in certain months [6] - Xpeng's G7 model saw significant growth, approaching 3,000 deliveries, while the new P7 model is expected to be officially priced soon [8] - Aion delivered 9,600 units this week, with the M8 and M9 models leading in the 400,000+ and 500,000+ SUV markets respectively [9] - Leap Motor delivered over 10,000 units this week, with the B01 model contributing 2,100 units, showcasing effective cost control [9] Battery Procurement and Market Trends - BYD is focusing on balancing performance and cost in battery cell procurement [11] - CATL is experiencing growth in the energy storage market, which is outpacing the growth in the power battery sector [11] - BYD is expanding its presence in Southeast Asia [11]

Core Viewpoint - The article discusses the advantages of manganese-based semi-solid-state batteries, emphasizing their safety and low-temperature performance, which could enhance the adoption of electric vehicles in colder regions [1]. Group 1: Safety Performance - The battery has a liquid content of 5%, which fundamentally prevents self-ignition, and it has been tested to withstand multiple punctures without emitting smoke or catching fire [1]. - The battery's design allows it to handle punctures from multiple directions, which typically increases short-circuit risks, yet it remains safe under such conditions [1]. Group 2: Low-Temperature Performance - At -10°C, the battery can charge from 10% to 80% in 39 minutes, while at -20°C, it takes 43 minutes, and at -30°C, it can support a discharge power of 100 kW, addressing the challenges of electric vehicle usage in colder climates [1]. Group 3: Technical Insights - The use of manganese-based cathodes is justified by their high voltage platform, good power performance, and excellent low-temperature characteristics [1]. - The compatibility of semi-solid-state technology with manganese-based cathodes is highlighted, as the semi-solid state prevents manganese dissolution that can occur in liquid systems, achieving over 3000 cycles at 1C rate [1]. - The company is progressing well with the development of all-solid-state batteries, which are soon to undergo vehicle testing [1].

Group 1: Overall Automotive Industry Performance in July - The overall retail sales in July are approximately 1.78 million units, flat year-on-year but down 16% month-on-month [1] - Wholesale data from 12 key automakers shows a year-on-year increase of 22% in overall wholesale, but a month-on-month decline of 6% [1] - New energy vehicle (NEV) wholesale increased by 31% year-on-year, but also saw a 6% month-on-month decline [1] Group 2: BYD July Sales Analysis - BYD's total passenger car wholesale sales in July reached 341,000 units, flat year-on-year but down 10% month-on-month [2] - Pure electric vehicle sales were 178,000 units, a 37% year-on-year increase but a 14% month-on-month decline [2] - Exports saw a significant year-on-year increase of 167%, although month-on-month sales decreased by 11% [2] Group 3: BYD Growth Drivers - Future sales growth is expected to be driven by new model launches, including the Sea Leopard 06DMI and Sea Lion 06 [3] - Enhancements to existing models without price increases are anticipated to boost sales [3] - Expansion in export markets, particularly with new vehicle introductions and production ramp-up in Brazil, is expected to sustain high growth in exports [3] Group 4: Great Wall Motors July Sales Analysis - Great Wall's total wholesale sales in July were 104,000 units, a 14% year-on-year increase but down 6% month-on-month [4] - New energy vehicle wholesale sales reached 35,000 units, a 43% year-on-year increase [4] - The Haval brand sold 56,000 units, with notable contributions from models like the Big Dog and Tank series [4] Group 5: Great Wall Motors Growth Drivers - Future sales growth will rely on new vehicle cycles and export market expansion, with new models expected to launch in August [5] - The Tank 500 and other models are anticipated to significantly boost sales figures [5] - Continued growth in exports, particularly in the Russian market, is expected to contribute positively to overall sales [5] Group 6: Li Auto and Geely July Sales Analysis - Li Auto's total deliveries in July were approximately 30,000 units, a 40% year-on-year decline [6] - Geely's sales reached 238,000 units in July, a 58% year-on-year increase [7] - New energy vehicle sales for Geely were 130,000 units, reflecting a 120% year-on-year increase [7] Group 7: Geely's Future Outlook - Geely plans to launch several new models, including the Galaxy A7, which is expected to drive significant sales [7] - The recovery of the Russian market and new vehicle launches in non-Russian markets are anticipated to boost export sales [7]

Group 1 - The core viewpoint of the article emphasizes the importance of balancing performance and cost in battery cell procurement by major manufacturers [5] - BYD is expanding its operations in Southeast Asia, indicating a strategic move to tap into new markets [5] - CATL is experiencing growth in the energy storage market, which is outpacing the growth in the power battery sector [5]

Domestic Sales Expectations - Domestic demand in the second half of 2025 is under pressure, with expected new energy vehicle sales of 15.5-16 million units, representing a growth of 20-25% and a penetration rate of 55%. BYD's sales target of 5.5 million units for 2025 may face challenges, with an overall market share of 17% [1] - The focus will be on the A-class car market, with A-class market share increasing from 17% last year to 21% [1] High-end and Overseas Markets - The expected sales for high-end vehicles in 2025 is 350,000-400,000 units, showing a year-on-year increase of over 80%. Overseas sales are projected to reach 900,000 units, more than doubling [1] - Hong Kong and Singapore rank first in all categories of sales, contributing 89% of the growth in Latin America for new energy vehicles, while Europe contributes 50% [1] - The Thailand factory has commenced production, with the Hungary factory expected to start production between the end of this year and Q2 next year, and the Brazil factory is under construction. High-end and overseas average selling prices (ASP) are expected to increase [1] Tengshi Positioning - Tengshi's transaction price for 2024 is set at 367,000 yuan, with plans to launch new models including MPVs, SUVs, and sedans, while maintaining a no-discount policy [1] - The core attributes of Tengshi include technology and safety, featuring a safety architecture with independent drive motors, independent steering for the rear wheels, and advanced safety technologies [1] - The future strategy involves appointing Li Hui, the former general manager of the direct sales division, as the general manager of Tengshi's sales division, focusing on user-centric product development, enhancing professional teams, strengthening brand communication, and expanding channel touchpoints [1]

Battery Production - In August, C produced 63 GWh, a month-on-month increase of 15% and a year-on-year increase of 40% [1] - B produced 25.2 GWh in August, with a month-on-month increase of 10% and a year-on-year increase of 50% [1] - E's preliminary production in August was over 12 GWh, showing a month-on-month increase of 2% and a year-on-year increase of 60% [1] - Z's production in August was close to 11 GWh, with a month-on-month increase of 5% and a year-on-year increase of 50% [1] - G produced nearly 10 GWh in August, reflecting a month-on-month increase of 10% and a year-on-year increase of 65% [1] Material Production - For ternary materials, production in August was 0.8 million tons, remaining flat month-on-month but down 30% year-on-year due to lower-than-expected demand in the US [1] - Lithium iron phosphate (LiFePO4) production was 1.8 million tons in August, flat month-on-month and unchanged year-on-year [1] - Another LiFePO4 production line produced 2.5 million tons, with a month-on-month increase of 10% and a year-on-year increase of 10% [1] - Separator production reached over 400 million square meters, remaining flat month-on-month and up 24% year-on-year [1] - Another separator line produced nearly 1 billion square meters, with a month-on-month increase of 9% and a year-on-year increase of 50% [1] - Anode production was 2.7 million tons in August, showing a month-on-month increase of 6% and a year-on-year increase of 30% [1] - Copper foil production was 8,000 tons, flat month-on-month and up 23% year-on-year [1] - Another copper foil line produced over 12,000 tons, with a month-on-month increase of 2% and a year-on-year increase of 33% [1] - Aluminum foil production was over 18,000 tons, remaining flat month-on-month and up 40% year-on-year [1] Industry Trends - The main engine manufacturers are focusing on balancing performance and cost in battery cell procurement [3] - BYD is expanding its presence in Southeast Asia [5] - CATL is experiencing growth in the energy storage market that exceeds that of the power market [5]

Group 1 - The article discusses the order situation of the L90 model, highlighting its popularity and the quick reflection of orders in delivery numbers [1] - The upcoming ES8 model is expected to demonstrate the potential of large three-row SUVs in the electric vehicle market [2] - The company is considering user feedback regarding the option of a 60 kWh battery for the L90 model, indicating technical feasibility [3] Group 2 - The pricing strategy for the L90 model is designed to ensure reasonable profit margins, supported by an efficient sales team [4] - Marketing strategies for the L90 include a compact schedule for vehicle delivery and promotional events, which have proven beneficial [5] - The company had anticipated high demand for the L90, leading to preparations in the sales department [6] Group 3 - Successful large three-row SUVs must prioritize user needs and balance design elements such as aesthetics, aerodynamics, and space [7] - The new ES8 is positioned for both business and family use, with a product launch scheduled for late August [8] - The production capacity for the L90 is reportedly on track, with partners confirming readiness for manufacturing [9] Group 4 - The product definition for the L90 is based on cost targets and market expectations, ensuring alignment with consumer needs [10] - The design philosophy emphasizes user benefits and practical functionality, achieving a low drag coefficient through engineering optimizations [12] - The shift towards electric vehicles is gaining momentum, with increasing acceptance among consumers and improvements in technology [13] Group 5 - The company plans to maintain a limited product line for the time being, focusing on the L90, L60, and the upcoming L80 model [14] - The ability to deliver vehicles immediately upon launch is seen as a strategic choice rather than a core capability [15] - There is a significant number of locked orders for the L90, exceeding the available inventory, indicating strong demand [16]