Core Viewpoint - The report from Dongwu Securities highlights a positive outlook for the growth of new orders for power and energy storage cell equipment manufacturers, driven by the recovery in demand for power batteries and energy storage cells starting from Q2 2024 [1][3]. Group 1: Market Dynamics - From 2022 to Q2 2024, the expansion of battery manufacturers has significantly slowed due to supply and demand issues in the power battery sector, leading to pressure on new orders for equipment manufacturers [1][3]. - Since Q2 2024, there has been a rapid increase in sales of new energy vehicles, resulting in a rebound in power battery installation volume and an expansion in demand for energy storage cells [1][3]. - Major battery manufacturers such as CATL and BYD have seen their capacity utilization rates approach full capacity, prompting a restart of capital expenditures since Q4 2024 [1][3]. Group 2: Export Regulations - The Ministry of Commerce and the General Administration of Customs announced that certain lithium battery materials and core manufacturing equipment will be subject to export controls, effective from October 9 [2]. - The new export control does not equate to a ban; companies can still engage in export activities through a licensing application process, benefiting compliant enterprises with global operational experience [2]. Group 3: Competitive Landscape - Chinese lithium battery equipment manufacturers are positioned competitively on a global scale, with key players in overseas expansion including Japanese and Korean battery manufacturers, as well as new entrants from Europe and the U.S. [2]. - The report expresses optimism about the overseas expansion of Chinese battery manufacturers and automotive companies, highlighting that domestic equipment manufacturers like Xian Dai and Hanke possess global competitiveness [2]. Group 4: Investment Recommendations - The report recommends focusing on full-line equipment suppliers such as Xian Dai Intelligent, laser welding equipment manufacturers like Lianying Laser, and formation and capacity equipment suppliers like Hanke Technology [3]. - Other companies to watch include fiberization equipment manufacturers, roller press suppliers, and various electrode equipment manufacturers [3].

Summary of Conference Call Notes Industry Overview - **Industry**: China Industrials, specifically focusing on New Energy Equipment - **Key Focus**: Lithium-ion battery (LiB) equipment and solar equipment orders Core Insights - **LiB Equipment Orders**: - Expected to show positive quarter-over-quarter (QoQ) growth in 3Q25 due to strong demand for energy storage systems (ESS) and recovery in industry utilization [6][8] - Wuxi Lead Intelligent anticipates new orders to rise over 40% year-over-year (YoY) in 3Q25, aiming for a full-year growth target of over 30% in 2025 [8] - Zhejiang Hangke Technology also expects QoQ improvement in new orders, maintaining a 30% growth target for 2025 [8] - **Solar Equipment Orders**: - New orders for solar equipment were either zero or very limited for most players in 3Q25, indicating a significant downturn [6][8] - DR Laser is an exception, expecting intact orders for BC cells to offset weak demand for TOPCon equipment [6][8] - **Gross Profit Margin (GPM)**: - GPM is under pressure due to legacy low-margin orders and a low overseas order mix, but is expected to recover alongside revenue recognition [6][8] Company-Specific Insights - **Wuxi Lead Intelligent (300450.SZ)**: - New orders expected to rise >40% YoY in 3Q25, with modest sales recovery but ongoing GPM pressure [8] - **Zhejiang Hangke Technology (688006.SS)**: - Similar expectations for new orders and GPM pressure as Wuxi Lead [8] - **DR Laser (300776.SZ)**: - Anticipates stable GPM with a higher mix of BC equipment despite slowing sales growth [8] - **Wuxi Autowell Technology Co Ltd (688516.SS)** and **Shenzhen SC New Energy Technology Corp (300724.SZ)**: - Both companies are facing muted solar equipment orders and ongoing sales/NP pressure due to global overcapacity [8] - **Suzhou Maxwell Technologies Co Ltd (300751.SZ)**: - Semi equipment orders are in line with targets, but limited HJT orders are expected due to overcapacity [8] - **Jingsheng Mechanical & Electrical Co (300316.SZ)**: - Likely downside surprise in SiC substrate orders due to high costs and complexity [8] Additional Considerations - **Market Sentiment**: - The market has largely priced in the muted solar equipment orders, reflecting cautious downstream capital expenditure during the downcycle [8] - **Future Outlook**: - Further shortfalls in solar equipment orders are expected into 3Q25, with intensified overcapacity in the solar wafer process, indicating downside risks to fundamentals into 2H26 [8] Conclusion - The conference call highlighted a mixed outlook for the China Industrials sector, with LiB equipment players showing signs of recovery while solar equipment orders face significant challenges. The focus remains on the recovery of GPM and the impact of global market conditions on future orders.

Core Insights - The article highlights the significant trend of Chinese lithium battery equipment companies securing overseas orders, indicating a deep restructuring of the global electric vehicle supply chain [2][3][11]. Group 1: Overseas Orders and Revenue Growth - Xianhui Technology announced a contract to provide production line projects for a global battery leader's factory in Hungary, with overseas orders reaching 2.06 billion RMB, accounting for 68% of total orders [3]. - By 2025, Xianhui's overseas revenue is expected to rise to 75% of total revenue, reflecting a broader trend among lithium battery equipment manufacturers [4]. - Other companies like Liyuanheng and Naconor have also reported significant overseas order wins, with Naconor's overseas orders exceeding 600 million RMB, making up over 30% of total orders [4][6]. Group 2: Financial Performance - Haimeixing's new overseas orders in the first half of 2025 reached 1.888 billion RMB, a year-on-year increase of 192.5% [8]. - Honggong Technology's overseas revenue surged by 789.35%, with new overseas orders totaling 300 million RMB [9]. - Manensete's overseas revenue also saw a 146.51% year-on-year growth [10]. Group 3: Industry Dynamics and Demand Drivers - The surge in orders is driven by the need for equipment upgrades due to technological advancements in battery production, such as high-energy and fast-charging batteries [11]. - Leading battery manufacturers are enhancing efficiency and upgrading processes, while Chinese battery companies are expanding their global footprint by upgrading production lines overseas [12]. - There is a growing demand for automation from overseas clients, with a focus on reducing manual operations and improving production efficiency [14]. Group 4: Market Landscape and Challenges - The global battery market is characterized by a tripartite structure involving China, Europe, and the United States, with Europe emerging as a key battleground for competition [15]. - While the Chinese domestic market is highly competitive, trade policy restrictions in the U.S. pose challenges for Chinese companies [15]. - Despite the growth opportunities, risks such as tariff barriers in the U.S. and Southeast Asia could impact equipment demand [15].

Group 1 - The "Second Golden Kylin Best Investment Advisor Selection" event is currently ongoing, with over 3,000 professional investment advisors participating in simulated trading competitions [1] - The event aims to provide a platform for investment advisors to showcase their capabilities, expand services, and enhance skills, thereby promoting the healthy development of China's wealth management industry [1] Group 2 - The top 10 stocks by purchase frequency as of September 30 include Huabang Health, Sairis, and Jina Technology, with the semiconductor ETF being the most favored [2] - The top 10 stocks by purchase amount include Sairis, Sanhua Intelligent Control, and Jiaze New Energy, indicating strong interest in these companies [3] - The data for the top purchased stocks and ETFs is based on the frequency and amount of purchases made by all participating contestants [4] Group 3 - The competition includes categories for stock simulation, on-site ETF simulation, and public fund simulation, with specific trading rules regarding holding proportions, maximum drawdown, and rebalancing frequency [5] - All data presented is based on simulated trading and does not reflect actual trading situations, serving only as a reference [5]

Group 1 - The core viewpoint of the news is that Hangke Technology has seen a significant increase in its stock price, with a rise of 5.22% to 37.48 CNY per share, and a total market capitalization of 22.626 billion CNY as of September 30 [1] - Hangke Technology, established on November 21, 2011, specializes in the design, research and development, production, and sales of various rechargeable batteries, particularly lithium-ion battery production line post-processing systems [1] - The company's main business revenue composition includes 70.17% from charging and discharging equipment, 28.54% from other equipment, 0.83% from accessories, and 0.47% from other sources [1] Group 2 - From the perspective of fund holdings, Green Fund has a significant position in Hangke Technology, with its Green Carbon Neutral Theme Mixed A Fund (015856) holding 24,000 shares, accounting for 8.03% of the fund's net value [2] - The Green Carbon Neutral Theme Mixed A Fund has achieved a year-to-date return of 66.56% and a one-year return of 101.66%, ranking 410 out of 8167 and 266 out of 8010 respectively in its category [2] - The fund manager, Liu Zan, has been in charge for 2 years and 321 days, with the fund's total asset size at 384 million CNY and a best return of 80.86% during his tenure [3]

Summary of the Conference Call on Solid-State Battery Equipment Industry Industry Overview - **Industry**: Solid-State Battery Equipment - **Key Analysts**: Wang Shuai, Li Feng, Wu Shenghao, Sun Zhaoxu [1] Key Points Lithium Battery Market - By 2025, demand for lithium batteries in new energy vehicles and energy storage is expected to grow steadily. However, the industry faces an oversupply situation due to previous rapid capacity expansion, leading to sustained pressure on profitability for two years [3][3]. - Current signs indicate a price bottoming out and a slowdown in capacity expansion, which are positive for the market. The industry is showing signs of stabilization and potential upward elasticity in profitability as companies implement cost reduction and efficiency measures [3][3]. - New technologies like solid-state batteries are accelerating, potentially reshaping the competitive landscape. Companies with advantages in new technology may see a rebound first [3][3]. Solid-State Battery Development - The commercialization of solid-state batteries is expected to accelerate by 2025, driven by their high energy density, excellent safety, and adaptability to wide temperature ranges. They are likely to replace existing liquid lithium batteries in various applications and open new markets such as drones, robotics, and data centers [3][3]. - The solid-state battery supply chain is expected to see collaborative breakthroughs across various segments, including mature preparation processes for solid electrolytes and new electrode materials, leading to significant cost reductions [3][3]. - The initial phase of solid-state battery production will focus on dry electrode equipment and static pressure equipment, with increasing importance on post-processing stages as the industry matures [3][3]. Investment Recommendations - Focus on leading battery equipment manufacturers and companies with comprehensive R&D and production capabilities in solid-state batteries, such as XianDao Intelligent, Yinghe Technology, and HaiMuXing [3][3]. - Attention should also be given to companies innovating in dry coating and mixing processes, such as NaKonoer and HongGong Technology, as dry processes are expected to dominate future developments [3][3]. - As the solid-state battery trend becomes clearer, suppliers of post-processing equipment are likely to benefit, with companies like HangKe Technology and HuaZi Technology being noteworthy [3][3]. Risks - Potential risks include policy effects falling short of expectations, lower-than-expected downstream demand, unexpected fluctuations in raw material prices, macroeconomic volatility, and slower-than-expected technological advancements [3][3]. Additional Insights - The new national standard for power batteries mandates that they must not catch fire or explode, which will enhance the focus on battery safety and likely accelerate the adoption of solid-state batteries [6][9]. - Solid-state batteries significantly outperform liquid batteries in terms of thermal runaway temperatures, with solid electrolytes showing much higher thresholds for thermal stability [9][9]. - The production process for solid-state batteries involves significant changes in equipment and technology, particularly in the front-end processes of mixing, coating, and rolling, which are critical for achieving high energy density and cycle life [39][58]. Conclusion The solid-state battery equipment industry is poised for growth, driven by technological advancements and increasing safety standards. Investment opportunities exist in leading equipment manufacturers and those innovating in production processes. However, potential risks must be carefully monitored as the industry evolves.

Summary of Conference Call Notes on China Industrial Tech: Battery Equipment Industry Overview - The conference call discusses the battery equipment industry in China, particularly focusing on companies Lead Intelligent and Hangke, which have seen significant share price increases of +121% and +68% respectively over the past 19 trading days, outperforming the CSI300 index which increased by +2% [1][2]. Key Points and Arguments Market Trends - A strong recovery in domestic battery equipment orders has been observed year-to-date, following a three-year downcycle in battery capital expenditures (capex) from 2022 to 2024 [1]. - Despite the recent surge in orders, the sustainability of this improvement is questioned due to anticipated deceleration in China’s New Energy Vehicle (NEV) sales starting from 2026E [1][6]. Company Performance - Lead Intelligent reported better-than-expected progress in solid-state battery (SSB) research and development, with initial SSB-related equipment orders amounting to Rmb400-500 million, which is a significant increase from Rmb100 million in FY24, although it still represents only 4% of total orders [1][2]. - Hangke's asset impairment loss to net income ratio improved to 22% in 1H25 from 37% in the previous downcycle, leading to a revision of target price-to-earnings (P/E) ratios for both companies [2][39]. Financial Projections - Target prices for Lead Intelligent and Hangke have been revised to Rmb42.2 and Rmb22.9 respectively, reflecting a potential upside of +100% and +34% from previous estimates [2]. - Earnings forecasts for both companies remain unchanged, but Hangke has been downgraded from Neutral to Sell due to lower Tier-1 customer exposure and weaker order sustainability [2][39]. Capacity and Utilization - Battery manufacturing capacity expansion is expected to improve in 2025, but a sustained capex upcycle is not anticipated beyond that year [6]. - The overall battery industry utilization level is projected to be 72%-74% in 2025E-2026E, which is deemed insufficient to drive further capacity expansion [6]. Solid-State Battery (SSB) Insights - SSB technology is still in early stages, with significant challenges in scaling up production. Current orders for SSB equipment are primarily driven by R&D and testing rather than mass production [26][27]. - Lead Intelligent's SSB orders account for 4% of total orders, while Hangke's contribution is only 2% [34][35]. Competitive Landscape - Lead Intelligent has a higher Tier-1 customer exposure (78%) compared to Hangke (29%), which is expected to provide better market share in the solid-state battery equipment market [10][22]. - Hangke's focus on back-end equipment limits its exposure to the growing solid-state battery market, which may hinder its competitive position [45][60]. Additional Important Insights - The NEV industry in China is expected to experience growth moderation, which could impact battery demand forecasts [11][58]. - Upside risks for Hangke include potential increases in Tier-1 customer exposure and better-than-expected SSB R&D progress [58][62]. - The current share prices of both companies reflect optimistic market share expectations in the global battery equipment replacement market, with Lead Intelligent priced for a 50% market share by 2030E [33][37]. Conclusion - The battery equipment industry in China is experiencing a temporary recovery, but long-term sustainability is uncertain due to anticipated market changes and competitive dynamics. Lead Intelligent is positioned more favorably than Hangke, which faces challenges in maintaining order sustainability and market competitiveness.

Market Overview - The battery sector experienced a decline of 2.31% on the previous trading day, with Naconor leading the drop [1] - The Shanghai Composite Index closed at 3828.11, down 0.65%, while the Shenzhen Component Index closed at 13209.0, down 1.76% [1] Stock Performance - Notable gainers in the battery sector included: - Fangyuan Co., Ltd. (688148) with a closing price of 6.71, up 20.04% [1] - Huazi Technology (300490) at 12.56, up 15.44% [1] - Tianji Co., Ltd. (002759) at 16.30, up 9.99% [1] - Conversely, Naconor (832522) saw a significant decline of 7.66%, closing at 65.71 [2] - Other notable decliners included Honggong Technology (301662) down 7.47% and Kuoguli (301487) down 6.91% [2] Trading Volume and Capital Flow - The battery sector saw a net outflow of 4.296 billion yuan from institutional investors, while retail investors contributed a net inflow of 3.169 billion yuan [2][3] - The trading volume for Fangyuan Co., Ltd. reached 326,400 shares, with a transaction value of 214 million yuan [1] - Huazi Technology had a trading volume of 1,035,900 shares, with a transaction value of 1.273 billion yuan [1] Capital Inflow Analysis - Tianji Co., Ltd. (002759) had a net inflow of 478 million yuan from institutional investors, representing 30.17% of its total trading [3] - Shanshan Co., Ltd. (600884) saw a net inflow of 256 million yuan, accounting for 12.87% [3] - Conversely, Naconor experienced a net outflow of 740 million yuan from institutional investors [3]

Group 1 - The core point of the news is that Hangke Technology's stock price dropped by 5.43% to 36.08 CNY per share, with a trading volume of 554 million CNY and a turnover rate of 2.43%, resulting in a total market capitalization of 21.78 billion CNY [1] - Hangke Technology, established on November 21, 2011, and listed on July 22, 2019, specializes in the design, research and development, production, and sales of various rechargeable batteries, particularly lithium-ion battery production line post-processing systems [1] - The company's main business revenue composition includes 70.17% from charging and discharging equipment, 28.54% from other equipment, 0.83% from accessories, and 0.47% from other sources [1] Group 2 - From the perspective of fund holdings, one fund under China Europe Fund has a significant position in Hangke Technology, with the China Europe Small Cap Growth Mixed A Fund holding 149,900 shares, accounting for 0.57% of the fund's net value, ranking as the sixth-largest holding [2] - The China Europe Small Cap Growth Mixed A Fund has a current scale of 199 million CNY and has achieved a year-to-date return of 53.64%, ranking 992 out of 8171 in its category, and a one-year return of 106.93%, ranking 418 out of 8004 [2] - The fund manager, Qian Yating, has a tenure of 3 years and 329 days, with the fund's total asset scale at 2.377 billion CNY, achieving a best return of 58.45% during the tenure [3]

Core Points - The company announced a cash dividend of CNY 0.066 per share for the first half of 2025, totaling CNY 39,842,362.03 to be distributed among shareholders [2][4][6] Distribution Plan - The profit distribution plan was approved at the second extraordinary general meeting of shareholders held on September 18, 2025 [2][4] - The total share capital before the distribution is 603,672,152 shares [4] - The distribution will be made to all shareholders registered with China Securities Depository and Clearing Corporation Limited Shanghai Branch as of the close of trading on the registration date [3] Implementation Method - Cash dividends for unrestricted circulating shares will be distributed through the clearing system of China Securities Depository and Clearing Corporation Limited [5] - Shareholders who have not completed designated transactions will have their dividends held by the clearing company until the transactions are completed [5] Taxation Details - For individual shareholders holding unrestricted circulating shares, no personal income tax will be withheld at the time of dividend distribution; tax will be calculated based on the holding period upon actual transfer of shares [8] - The effective tax burden for individual shareholders is 20% for holding periods of one month or less, 10% for holding periods between one month and one year, and exempt for holding periods over one year [8] - For Qualified Foreign Institutional Investors (QFII), a 10% corporate income tax will be withheld, resulting in a net dividend of CNY 0.0594 per share [9][10] Investor Communication - The company will hold a performance briefing on October 14, 2025, from 15:00 to 16:00 at the Shanghai Stock Exchange Roadshow Center [14][15] - Investors can submit questions for the briefing from September 29 to October 13, 2025 [16]