Core Viewpoint - Ningbo Haicheng, a shareholder of Xiamen Tungsten New Energy, announced a plan to reduce its stake by up to 1% of the total share capital, which was adjusted to a maximum of 5,040,000 shares after the company's equity distribution on July 3 [1] Group 1 - From July 21 to September 22, Ningbo Haicheng reduced its holdings by 5,035,204 shares, representing 1% of the total share capital [1] - The reduction was executed at a price range of 48.00 to 90.96 yuan per share, totaling approximately 289,892,187.50 yuan [1] - Following the reduction, Ningbo Haicheng's shareholding percentage decreased to 5.64% [1] Group 2 - The reduction plan did not trigger a mandatory bid and did not affect the company's control or operations [1] - The reduction plan has been fully implemented [1]

Core Viewpoint - Ningbo Haicheng has completed its share reduction plan for Xiamen Tungsten New Energy, reducing its stake from 6.64% to 5.64% through the sale of 503.52 million shares, totaling 290 million yuan [1] Group 1 - Ningbo Haicheng held 33.5048 million shares before the reduction, representing 6.64% of the total share capital [1] - The share reduction was executed through centralized bidding, with a maximum of 5.04 million shares planned for sale, equating to 1% of the total share capital [1] - The actual reduction period spanned from July 21, 2025, to September 22, 2025 [1] Group 2 - After the reduction, Ningbo Haicheng now holds 28.4696 million shares, which is 5.64% of the total share capital [1] - The total amount raised from the share reduction was 290 million yuan [1]

Core Insights - The solid-state battery industry is entering a "sprint phase" towards commercialization, with significant advancements in sodium-based solid-state batteries [1][2] - A new sodium-based solid-state battery developed by the University of Chicago and Singapore's Agency for Science, Technology and Research can operate stably in sub-zero temperatures, enhancing its competitiveness [1] - The global solid-state battery shipment is expected to reach 614.1 GWh by 2030, with a market size projected to exceed 100 billion yuan [2] Industry Developments - The solid-state battery industry is experiencing accelerated progress driven by both policy and technology, with a key conference scheduled for September 2025 to discuss future trends and challenges [2] - The demand for solid-state battery materials is expected to grow significantly, with investments in equipment projected to reach hundreds of billions [2] - Several A-share listed companies are making strides in solid-state battery technology, with Li Yuan Heng successfully developing manufacturing processes for solid-state battery equipment [2][3] Market Activity - Recent data shows that financing clients have significantly increased their positions in 26 solid-state battery concept stocks, with notable net purchases exceeding 1 billion yuan [4] - Leading companies in this sector include Xian Dao Intelligent, CATL, and others, with some stocks projected to have a net profit growth rate exceeding 20% in the coming years [4][5] - As of September 22, 2023, several stocks in this sector have rolling price-to-earnings ratios below 40, indicating potential investment opportunities [4][5]

- The report discusses a "Momentum Sentiment Indicator" model, which is used for market timing based on the proportion of stocks with positive returns in the CSI 300 Index over a specific period. The model calculates the proportion of stocks with positive returns over N days and applies smoothing with two moving averages (N1 and N2). When the short-term moving average exceeds the long-term moving average, it signals a bullish market sentiment[26][27][29] - The "Moving Average Sentiment Indicator" is another model that evaluates the CSI 300 Index's sentiment by comparing the closing price with eight moving averages (parameters: 8, 13, 21, 34, 55, 89, 144, 233). If the closing price exceeds more than five of these moving averages, the model signals a bullish sentiment[33][34] - The report evaluates the "Cross-Sectional Volatility" factor, which measures the dispersion of stock returns within an index. A higher cross-sectional volatility indicates a favorable alpha environment. Recent data shows a decline in cross-sectional volatility for the CSI 300, CSI 500, and CSI 1000 indices, suggesting a short-term deterioration in the alpha environment[39][41] - The "Time-Series Volatility" factor is also analyzed, which measures the historical volatility of index returns. The report notes a recent decline in time-series volatility for the CSI 300, CSI 500, and CSI 1000 indices, indicating a less favorable alpha environment in the short term[40][44] - The "Fund Concentration Divergence" indicator is introduced to monitor the degree of fund clustering. It calculates the standard deviation of cross-sectional returns within a fund portfolio. A lower standard deviation indicates higher clustering, while a higher standard deviation suggests fund divergence. The report notes a slight decrease in divergence in the most recent week[80][83] - The "Momentum Sentiment Indicator" model's backtest results show that the fast line is currently above the slow line, indicating a bullish sentiment for the CSI 300 Index[27][29] - The "Moving Average Sentiment Indicator" model's backtest results indicate that the CSI 300 Index is currently in a positive sentiment zone, as the closing price exceeds more than five of the eight moving averages[34][36] - The "Cross-Sectional Volatility" factor's recent values are as follows: CSI 300 (1.98%), CSI 500 (2.12%), and CSI 1000 (2.37%) for the past quarter, with respective percentile rankings of 69.77%, 69.84%, and 65.34% over the past two years[41] - The "Time-Series Volatility" factor's recent values are as follows: CSI 300 (0.62%), CSI 500 (0.44%), and CSI 1000 (0.24%) for the past quarter, with respective percentile rankings of 58.18%, 74.60%, and 57.37% over the past two years[44] - The "Fund Concentration Divergence" indicator shows a slight decrease in divergence, with fund and stock excess returns improving week-over-week[80][83]

Market Overview - The main funds in the Shanghai and Shenzhen markets experienced a net outflow of 58.733 billion yuan, with the Sci-Tech Innovation Board seeing a net outflow of 8.018 billion yuan [1] - A total of 203 stocks saw net inflows, while 385 stocks experienced net outflows [1] Sci-Tech Innovation Board Performance - On the Sci-Tech Innovation Board, 187 stocks rose, with one stock, Fuxin Technology, hitting the daily limit, while 394 stocks declined [1] - The top three stocks with the highest net inflows were Shijia Photon (net inflow of 251 million yuan), Xiamen Tungsten New Energy (net inflow of 140 million yuan), and Baiwei Storage (net inflow of 133 million yuan) [1][2] Continuous Fund Flow Analysis - There are 48 stocks that have seen continuous net inflows for more than three trading days, with Hanwujing leading at 23 consecutive days of inflow [2] - Conversely, 161 stocks have experienced continuous net outflows, with Naike Equipment leading at 16 consecutive days of outflow [2] Top Fund Inflows - The top stocks by net inflow include: - Shijia Photon: 250.85 million yuan, 8.28% inflow rate, 3.17% increase [2] - Xiamen Tungsten New Energy: 140.05 million yuan, 7.10% inflow rate, 7.45% increase [2] - Baiwei Storage: 133.20 million yuan, 4.49% inflow rate, 2.74% increase [2] Top Fund Outflows - The stocks with the highest net outflows include: - Haiguang Information: 1.230 billion yuan outflow, 3.22% decline [1] - Lanqi Technology: 565 million yuan outflow [1] - Huafeng Technology: 348 million yuan outflow [1]

Market Overview - The battery sector experienced a slight decline of 0.07% on the previous trading day, with Tianji Co. leading the drop [1] - The Shanghai Composite Index closed at 3820.09, down 0.3%, while the Shenzhen Component Index closed at 13070.86, down 0.04% [1] Stock Performance - Notable gainers in the battery sector included: - Xatu Tungsten New Energy (688778) with a closing price of 86.70, up 7.45% and a trading volume of 227,500 shares, totaling 1.973 billion yuan [1] - Zhongyi Technology (301150) closed at 42.00, up 5.53% with a trading volume of 219,100 shares [1] - Yema Battery (605378) closed at 29.29, up 4.98% with a trading volume of 191,800 shares, totaling 556 million yuan [1] - Major decliners included: - Tianji Co. (002759) closed at 15.76, down 9.99% with a trading volume of 1,147,300 shares, totaling 1.862 billion yuan [2] - Shanshan Co. (600884) closed at 14.13, down 7.10% with a trading volume of 1,587,500 shares, totaling 2.292 billion yuan [2] - Yihua Road (688339) closed at 25.95, down 6.05% with a trading volume of 168,800 shares [2] Capital Flow - The battery sector saw a net outflow of 2.157 billion yuan from institutional investors, while retail investors contributed a net inflow of 2.057 billion yuan [2][3] - Key stocks with significant capital flow included: - Ningde Times (300750) with a net inflow of 396 million yuan from institutional investors [3] - Xatu Tungsten New Energy (688778) with a net inflow of 15.2 million yuan from institutional investors [3] - Tianhua New Energy (300390) with a net inflow of 93.886 million yuan from institutional investors [3]

Group 1 - The Shanghai Stock Exchange Sci-Tech Innovation Board New Energy Index (000692) has shown strong performance, with significant increases in constituent stocks such as Xiamen Tungsten New Energy (688778) up 10.14%, SANY Heavy Energy (688349) up 8.70%, and Electric Wind Power (688660) up 5.75% [1] - The solid-state battery concept has gained momentum, particularly following the announcement of the 2025 Suining International Lithium Battery Industry Conference, where the Ministry of Industry and Information Technology emphasized the need to enhance lithium battery technology innovation and accelerate the development of solid-state batteries and other advanced battery technologies [1] - The New Energy ETF (588830) closely tracks the performance of the New Energy Index, which includes 50 large-cap stocks from the photovoltaic, wind power, and new energy vehicle sectors, with battery stocks accounting for 38.5% of the index [2][3] Group 2 - According to China International Capital Corporation (CICC), the demand for new energy vehicles is catalyzing the acceleration of solid-state battery industrialization, with new processes such as dry electrode technology and high-pressure formation being introduced [2] - The value of the entire battery production line is expected to increase from 100-200 million yuan for traditional lithium batteries to 200-300 million yuan for solid-state batteries, with the front, middle, and back segments accounting for approximately 35%, 40%, and 25% of the value, respectively [2] - The top ten weighted stocks in the New Energy Index account for 48.15% of the index, with companies like JinkoSolar (688223) and Trina Solar (688599) among the leading constituents [3]

Core Viewpoint - The company reported strong growth in its H1 2025 performance, with significant increases in revenue and net profit, driven by robust demand for lithium battery materials, particularly lithium cobalt oxide [1][2]. Financial Performance - In H1 2025, the company achieved revenue of 75.34 billion yuan, a year-on-year increase of 18.04% - The net profit attributable to shareholders reached 3.07 billion yuan, up 27.76% year-on-year - The non-recurring net profit was 2.91 billion yuan, reflecting a 32.24% year-on-year growth - In Q2 2025, revenue was 45.57 billion yuan, showing a year-on-year increase of 47.78% and a quarter-on-quarter increase of 53.10% - The net profit for Q2 was 1.90 billion yuan, up 47.55% year-on-year and 63.02% quarter-on-quarter [1]. Product Performance - The company’s lithium battery cathode material sales volume reached 60,700 tons in H1 2025, a year-on-year increase of 35.50% - Lithium cobalt oxide sales were 28,800 tons, up 56.64% year-on-year, driven by government subsidies and increased demand in the 3C consumer electronics sector - Sales of power battery cathode materials were 31,900 tons, reflecting a year-on-year growth of 20.76% [1]. Cost Management and Profitability - The company maintained good cost control, with a gross margin of 9.99%, an increase of 0.48 percentage points year-on-year - The net profit margin was 4.06%, up 0.28 percentage points year-on-year - The expense ratios for sales, management, R&D, and finance were 0.25%, 1.29%, 3.23%, and 0.01%, respectively, with a total decrease of 0.51 percentage points [2]. Strategic Positioning - The company has a strong position in the solid-state battery sector, focusing on cathode materials and electrolytes - It has successfully supplied cathode materials for oxide route solid-state batteries and is actively collaborating with leading domestic and international companies for sulfur-based solid-state battery materials - The company has achieved ton-level production of oxide solid-state electrolytes and developed a unique lithium sulfide synthesis process, with positive testing results from clients [2]. Earnings Forecast and Valuation - The company is projected to achieve revenues of 171.85 billion yuan, 214.42 billion yuan, and 249.17 billion yuan for 2025-2027, with year-on-year growth rates of 29.24%, 24.77%, and 16.21%, respectively - Expected net profits attributable to shareholders are 7.46 billion yuan, 10.71 billion yuan, and 11.19 billion yuan, with growth rates of 51.04%, 43.58%, and 4.48% - Corresponding price-to-earnings ratios are estimated at 54.74, 38.13, and 36.49 times, maintaining a "buy" rating [3].

Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative increase in stock price of over 20% compared to the benchmark index within six months [5][12]. Core Insights - The company reported strong growth in the first half of 2025, with revenue reaching 7.534 billion yuan, a year-on-year increase of 18.04%, and a net profit attributable to shareholders of 307 million yuan, up 27.76% year-on-year [3][4]. - The demand for lithium cobalt oxide is favorable, with a significant increase in sales volume of lithium battery cathode materials, which reached 60,700 tons, a year-on-year growth of 35.50% [3]. - The company has a strong position in the solid-state battery sector, focusing on cathode materials and electrolytes, with successful supply of cathode materials for oxide-based solid-state batteries [4]. Financial Performance - The company's gross margin for the first half of 2025 was 9.99%, an increase of 0.48 percentage points year-on-year, while the net profit margin was 4.06%, up 0.28 percentage points year-on-year [4]. - Revenue projections for 2025-2027 are 17.185 billion, 21.442 billion, and 24.917 billion yuan, with expected year-on-year growth rates of 29.24%, 24.77%, and 16.21% respectively [5][10]. - The forecasted net profit attributable to shareholders for the same period is 746 million, 1.071 billion, and 1.119 billion yuan, with growth rates of 51.04%, 43.58%, and 4.48% respectively [5][10].

Core Viewpoint - Xiamen Tungsten New Energy's stock price has shown significant volatility, with a year-to-date increase of 116.31%, but a recent decline of 4.42% over the last five trading days [1] Financial Performance - For the first half of 2025, Xiamen Tungsten New Energy reported revenue of 7.534 billion yuan, a year-on-year increase of 19.58%, and a net profit attributable to shareholders of 307 million yuan, up 28.36% [2] - Cumulative cash dividends since the company's A-share listing amount to 839 million yuan, with 713 million yuan distributed over the past three years [3] Shareholder Information - As of June 30, 2025, the number of shareholders increased by 3.41% to 14,700, while the average circulating shares per person decreased by 3.29% to 28,584 shares [2] - The top ten circulating shareholders include Hong Kong Central Clearing Limited and Southern CSI 500 ETF, with notable increases in holdings [3]