Investment Rating - The report assigns a "Buy" rating to several companies in the battery industry, including Ningde Times, Yiwei Lithium Energy, Guoxuan High-Tech, and others, with target prices indicating potential upside [2][17]. Core Insights - The battery industry has seen significant growth in energy storage battery shipments in the first half of 2025, with a year-on-year increase of 106.1%, and is expected to reach a total shipment of 460.0 GWh for the year [4]. - The report highlights the strong demand for energy storage batteries and the commencement of new capacity expansions by leading battery companies, driven by robust orders [4]. - The solid-state battery sector is gaining attention as it progresses towards industrialization, with companies like Yiwei Lithium Energy and Guoxuan High-Tech making advancements in production [4]. Summary by Sections Industry Performance - In August 2025, the total installed capacity of power batteries in China reached 62.5 GWh, marking a year-on-year increase of 32.4% [4]. - The market share of lithium iron phosphate batteries remains high, accounting for 82.5% of the total installed capacity [4]. Company Performance - Ningde Times led the power battery installation with 26.5 GWh in August 2025, holding a market share of 42.4% [14]. - Yiwei Lithium Energy and Guoxuan High-Tech also showed strong performance, with significant increases in their energy storage business revenues [4]. Market Trends - The report notes a notable increase in stock prices for key battery companies, driven by sustained high demand for energy storage orders and advancements in solid-state battery technology [4]. - The solid-state battery market is expected to open new opportunities in emerging applications such as low-altitude flight and robotics [4].

Summary of the China Battery Sector Conference Call Industry Overview - The conference call focused on the **China Battery Sector**, highlighting recent trends and expectations regarding battery prices and market dynamics [1][2]. Key Points Price Trends and Market Dynamics - The **Wind China lithium battery index** has increased by approximately **40%** over the past **60 trading days**, outperforming the **CSI300** index, which gained **18%** [1]. - Major players like **CATL** have seen their A/H shares rise by **33%/40%**, while tier 2 manufacturers such as **EVE Energy**, **Gotion High-tech**, and **CALB** have experienced share price increases of **50-80%** [1]. - Despite the current tightness in the battery market, there is caution regarding the sustainability of price hikes due to expected seasonal weaknesses in **Q1 2026** and a balanced supply-demand dynamic [2][10]. Earnings Sensitivity and Valuation - A sensitivity analysis indicates that a **10%** increase in battery prices could lead to a **30%-60%** upside in earnings for **2026E** [2][10]. - The recent rally in share prices has already priced in **2%-5%** battery average selling price (ASP) hikes for **2026E** [3][15]. - Current trading P/E ratios for CATL-A, Gotion, EVE Energy, and CALB are **17x, 21x, 18x, and 21x** respectively, compared to target P/Es of **20x, 24x, 16x, and 18x** [3]. Company Preferences and Target Prices - **CATL** and **Gotion** are preferred within the coverage due to their potential benefits from a cyclical recovery and attractive valuations [4][27]. - Target prices have been raised as the market begins to price in a cyclical recovery for **2026E** [27]. Capacity Utilization and Capital Expenditure - Industry utilization is expected to recover to **72%/74%** in **2025E/26E** from **63%** in **2024** [10]. - Tier 1 and 2 capacity utilization is projected to remain above **90%** for the remainder of the year, with a **50%** recovery in capital expenditure likely to cap battery price increases [10][25]. Investment Theses for Key Companies - **CATL**: Expected to deliver a **24% EPS CAGR** from **2024-2030E**, driven by volume growth and improving product mix [32]. - **Gotion**: Positioned well for overseas expansion, particularly with partnerships like Volkswagen, and rated as a **Buy** [34]. - **EVE Energy**: Transitioning to EV/ESS battery supply with a focus on diversified demand, but rated **Neutral** due to potential profit caps [35]. - **CALB**: Gaining market share through competitive pricing, but profitability may be impacted; rated **Neutral** [37]. - **Farasis**: Facing challenges with high costs and increasing domestic market exposure, leading to a **Sell** rating [38]. Additional Insights - The market is currently navigating through a period of **seasonal supply tightness**, which is expected to last longer than previous instances [10]. - The potential for battery price hikes remains uncertain, influenced by market share dynamics and demand volatility into **2026E** [10]. - The report emphasizes the importance of monitoring quarterly earnings and market conditions as catalysts for share price movements [33]. This summary encapsulates the key insights and projections discussed during the conference call regarding the China Battery Sector, focusing on price trends, company performance, and market dynamics.

Core Viewpoint - The performance of lithium battery companies listed on the A-share market shows a significant divergence in net profits, with most companies experiencing revenue growth while net profits reveal a stark contrast, particularly for Funeng Technology, which continues to face operational challenges [1][4]. Group 1: Company Performance - Funeng Technology reported a revenue of 4.35 billion yuan in the first half of the year, a year-on-year decline of 37.6%, making it the only major lithium battery company to experience a revenue drop [1][3]. - The company's net profit attributable to shareholders was -160 million yuan, although this loss was reduced by 14.92% compared to the previous year, marking the fifth consecutive year of losses [1][4]. - In contrast, other companies like CATL and EVE Energy showed positive revenue growth, with CATL achieving 178.89 billion yuan in revenue, a 7.3% increase, and a net profit of 30.49 billion yuan, up 33.3% [3]. Group 2: Inventory and Production Issues - Funeng Technology's inventory increased to 3.565 billion yuan, a 58% year-on-year rise, with inventory turnover days extending to 149.27 days, up 71% [4][7]. - Despite the inventory buildup, the company is expanding production capacity, with a projected output of 20 GWh for 2023 and a capacity of 55 GWh by the end of the year [7]. - The company acknowledged that its new production capacity is still in the ramp-up phase, indicating potential underutilization of capacity [7]. Group 3: Ownership and Strategic Changes - In January 2023, Funeng Technology underwent a significant change in control, with the major shareholder shifting to Guangzhou Industrial Investment Holding Group, which is now the actual controller [7][8]. - Following this change, the company received support in terms of funding, financial coordination, and research collaboration, but faces challenges in balancing technological investment with profitability [8]. - The new shareholders have plans to reduce their stakes, indicating a potential shift in strategic focus as the company navigates its financial and operational hurdles [8].

Core Viewpoint - The performance of A-share lithium battery listed companies in the first half of 2025 shows a significant divergence in revenue growth and net profit, with some companies thriving while others, like Funeng Technology, are struggling with declining revenues and increasing inventory levels [1][3]. Group 1: Financial Performance - Funeng Technology reported a revenue of 4.35 billion yuan in the first half of 2025, a year-on-year decrease of 37.6%, making it the only major lithium battery listed company to experience a revenue decline [1]. - The company's net profit attributable to shareholders was -160 million yuan, although this loss was reduced by 14.92% compared to the previous year, leading to a cumulative loss of 4.5 billion yuan since its listing in July 2020 [1]. - In the second quarter of 2025, Funeng's revenue dropped to 2.03 billion yuan, a year-on-year decline of 49.92% [1]. Group 2: Inventory and Production Capacity - Despite the revenue decline, Funeng Technology's inventory increased to 3.565 billion yuan, a year-on-year growth of 58%, with inventory turnover days rising to 149.27 days, an increase of 71% [1]. - The company is facing issues with idle production capacity while simultaneously expanding production, indicating a potential mismatch between production capacity and market demand [1][3]. Group 3: Market Position and Future Outlook - Funeng Technology ranked among the top ten globally in terms of shipment volume in 2022, with a total installed capacity of 7.4 GWh, reflecting a year-on-year growth of 215.1% and a market share of 1.4% [2]. - The company is projected to achieve a total shipment volume of 20 GWh in 2023, with production capacity expected to reach 55 GWh by the end of 2023 and 100 GWh by the end of 2024 [2]. - Funeng Technology's recent change in control to Guangzhou Industrial Investment Holding Group has provided financial support and resources for research and development, but the company faces challenges in balancing technological investment with profitability [3].

Core Viewpoint - The lithium battery listed companies in A-shares have reported their mid-year results, showing overall revenue growth but significant divergence in net profits among companies, with some facing substantial losses [1][3]. Group 1: Company Performance - Contemporary Amperex Technology Co., Ltd. (CATL) achieved a revenue of 178.89 billion yuan, a growth of 7.3%, and a net profit of 30.49 billion yuan, increasing by 33.3% [3]. - EVE Energy Co., Ltd. reported a revenue of 28.17 billion yuan, a growth of 30.1%, but a net profit decline of 24.9% to 1.61 billion yuan [3]. - Affected by market conditions, Funeng Technology Co., Ltd. saw its revenue drop to 4.35 billion yuan, a decrease of 37.6%, and a net loss of 160 million yuan, although the loss narrowed by 14.92% year-on-year [1][3]. Group 2: Inventory and Production Capacity - Funeng Technology's inventory increased to 3.565 billion yuan, up 58% year-on-year, with inventory turnover days rising to 149.27 days, an increase of 71% [4]. - Despite the revenue decline, Funeng Technology is expanding production capacity, with a projected output of 20 GWh for 2023 and a capacity of 55 GWh by the end of 2023 [7]. - The company acknowledged that its new production capacity is currently in the ramp-up phase, indicating potential underutilization of capacity [7]. Group 3: Ownership and Strategic Changes - In January 2023, Funeng Technology underwent a significant change in control, with Guangzhou Industrial Investment Holding Group becoming the new controlling shareholder [7]. - Following the change in control, Funeng Technology received support in funding, financial coordination, and R&D collaboration, but faces challenges in balancing technological investment with profitability [8]. - Shareholders, including the previous controlling entity, have announced plans to reduce their stakes in the company, indicating a shift in investment strategy [8].

2025 年 9 月 第 1 页 孚能科技（赣州）股份有限公司 2025 年第三次临时股东大会 会议资料 孚能科技（赣州）股份有限公司 2025 年第三次临时股东大会会议资料 孚能科技（赣州）股份有限公司 2025 年第三次临时股东大会会议资料 目 录 | 2025 | 年第三次临时股东大会会议须知 | 3 | | --- | --- | --- | | 2025 | 年第三次临时股东大会会议议程 | 5 | | 议案一：关于新增公司 | 2025 年度日常关联交易预计额度的议案 | 6 | 第 2 页 2025 年第三次临时股东大会会议须知 为了维护孚能科技（赣州）股份有限公司（以下简称"公司"）全体股东的 合法权益，确保股东大会的正常秩序和议事效率，保证大会的顺利进行，根据《中 华人民共和国公司法》《中华人民共和国证券法》《上市公司股东会规则》以及 《孚能科技（赣州）股份有限公司章程》的相关规定，特制定公司本次股东大会 会议须知： 一、为确认出席大会的股东或其代理人或其他出席者的出席资格，会议工作 人员将对出席会议者的身份进行必要的核对工作，请被核对者给予配合。 二、为保证本次大会的严肃性和正常秩序，切实 ...

Group 1 - The Shanghai Stock Exchange Sci-Tech Innovation Board New Energy Index (000692) has seen a strong increase of 1.90%, with significant gains in constituent stocks such as Juhe Materials (688503) up 12.79%, Aotwei (688516) up 6.53%, and Yihua Tong (688339) up 5.29% [1] - The new energy sector is performing well, particularly in the photovoltaic concept, with domestic electric vehicle brands like Leap Motor, Xpeng, and NIO achieving record sales in August, indicating strong growth resilience [1] - The Sci-Tech Innovation New Energy ETF (588830) rose by 1.97%, with the latest price reported at 1.5 yuan [1] Group 2 - Dongwu Securities indicates that silicon material prices hit bottom in Q2 2025, with significant profit pressure; however, profitability is expected to turn positive in H2 2025 as industry competition drives prices up [2] - The silicon wafer market is experiencing oversupply, leading to competitive pricing; profitability is anticipated to improve in H2 2025 and into 2026 due to capacity consolidation and industry competition [2] - The overall price of components has entered a bottom range, with expectations for price recovery in Q2 2025 driven by installation surges and improved financial reporting [2] Group 3 - As of August 29, 2025, the top ten weighted stocks in the Shanghai Stock Exchange Sci-Tech Innovation Board New Energy Index include JinkoSolar (688223), Trina Solar (688599), and Daqo New Energy (688303), collectively accounting for 48.15% of the index [3] - The Sci-Tech Innovation New Energy ETF (588830) closely tracks the performance of the New Energy Index, which includes 50 large-cap stocks in the photovoltaic, wind power, and new energy vehicle sectors [2][3]

Core Viewpoint - The company, Funeng Technology, has announced its exclusive supply of the second-generation semi-solid eVTOL battery to Shanghai Time, highlighting its advancements in the eVTOL battery sector [1] Group 1: Product Development - The second-generation semi-solid battery has achieved an energy density of 330Wh/kg and is set to enter mass production this year [1] - The semi-solid battery has received recognition from major eVTOL clients, including Xiaopeng Huitian, Geely Wofei, and Zero Gravity [1] Group 2: Market Positioning - eVTOL batteries have significantly higher requirements for energy density, discharge rate, and safety compared to passenger vehicle batteries, indicating a high technical barrier and added value [1] - The eVTOL battery's contribution to the overall value of the eVTOL aircraft is substantial, suggesting a higher profit margin and new growth momentum for the company [1]

Core Viewpoint - The company, Funeng Technology, has announced its exclusive supply of the second-generation semi-solid eVTOL battery to Shanghai's leading eVTOL manufacturer, highlighting its advancements in battery technology and market positioning [1] Company Summary - Funeng Technology's semi-solid battery has been recognized by major eVTOL clients, including Xiaopeng Huitian, Geely Wofei, and Zero Gravity, indicating strong market acceptance and demand [1] - The second-generation semi-solid battery boasts an energy density of up to 330Wh/kg and is set to enter mass production this year, showcasing the company's technological capabilities [1] Industry Summary - eVTOL batteries have significantly higher requirements for energy density, discharge rate, and safety compared to passenger vehicle batteries, creating high technical barriers and added value [1] - The eVTOL battery segment represents a substantial portion of the overall value of eVTOL aircraft, suggesting a higher profit margin and growth potential for companies operating in this space [1]

第7笔成交价格为17.49元，成交14.30万股，成交金额250.11万元，溢价率为-11.98%，买方营业部为方 正证券股份有限公司总部，卖方营业部为东兴证券股份有限公司北京中关村大街证券营业部。 第8笔成交价格为17.43元，成交13.50万股，成交金额235.31万元，溢价率为-12.28%，买方营业部为广 发证券股份有限公司总部，卖方营业部为东兴证券股份有限公司北京中关村大街证券营业部。 第9笔成交价格为17.43元，成交11.50万股，成交金额200.45万元，溢价率为-12.28%，买方营业部为国 联民生证券股份有限公司深圳益田路证券营业部，卖方营业部为东兴证券股份有限公司北京中关村大街 证券营业部。 第3笔成交价格为17.43元，成交11.50万股，成交金额200.45万元，溢价率为-12.28%，买方营业部为机 构专用，卖方营业部为东兴证券股份有限公司北京中关村大街证券营业部。 第4笔成交价格为17.43元，成交11.50万股，成交金额200.45万元，溢价率为-12.28%，买方营业部为机 构专用，卖方营业部为东兴证券股份有限公司北京中关村大街证券营业部。 第5笔成交价格为17.43元，成交 ...