Group 1 - The core point of the article is that Xiandai Intelligent (300450) has filed an international patent application for a device related to the manufacturing of electrode materials, indicating ongoing innovation efforts [1] - The patent application number is PCT/CN2025/090669, with an international publication date set for November 6, 2025 [1] - This year, Xiandai Intelligent has announced a total of 62 international patent applications, which is a 24% increase compared to the same period last year [3] Group 2 - In the first half of 2025, the company invested 827 million yuan in research and development, reflecting a slight decrease of 0.41% year-on-year [3]

Investment Rating - The report maintains an "Overweight" rating for the lithium battery industry, expecting the industry index to outperform the market index by over 10% in the next six months [51]. Core Insights - The lithium battery index has shown strong performance, with a 5.82% increase over the past two weeks, outperforming the CSI 300 index by 3.93 percentage points. Year-to-date, the lithium battery index has risen by 57.70%, surpassing the CSI 300 index by 38.42 percentage points [5][14]. - The report highlights a significant surge in demand for energy storage, leading to tight supply of storage cells domestically. Major battery manufacturers are operating at full capacity, with a notable increase in production and sales in the new energy vehicle sector [46]. - The report emphasizes the rising prices of key materials in the lithium battery supply chain, particularly lithium hexafluorophosphate (6F), which has seen a price increase of over 140% since its lowest point in July [46]. - The ongoing development of solid-state batteries is expected to create additional demand for materials and equipment in the industry, with several companies leading in technology and cost advantages [46]. Summary by Sections Market Review - As of November 6, 2025, the lithium battery index has increased by 5.82% in the last two weeks and 57.70% year-to-date, outperforming the CSI 300 index significantly [5][14]. Price Changes in the Lithium Battery Supply Chain - Key materials have experienced price increases: - Battery-grade lithium carbonate averaged 79,800 CNY/ton, up 6.68% in two weeks [27]. - Lithium hexafluorophosphate rose to 119,000 CNY/ton, up 36.78% [34]. - Phosphate lithium increased to 34,800 CNY/ton, up 4.04% [30]. - Prices for other materials like NCM523, NCM622, and NCM811 also saw increases ranging from 1.54% to 2.45% [30]. Industry News - The report notes that major companies are expanding their production capabilities in response to rising demand, with significant contracts signed for the supply of electrolyte products [43][46]. - The solid-state battery market is projected to grow significantly, with global demand expected to exceed 206 GWh by 2030 [44]. Company Announcements - Key companies such as CATL and Yiwei Lithium Energy are highlighted for their strong financial performance and strategic positioning in the market, with substantial year-on-year profit growth reported [47].

Investment Rating - The report assigns a rating of "Accumulate" to the company, indicating a potential increase of 5% to 15% relative to the CSI 300 index over the next six months [30]. Core Insights - The company reported a significant increase in performance, with a revenue of 10.439 billion yuan for the first three quarters of 2025, representing a year-on-year growth of 14.56%. The net profit attributable to shareholders reached 1.186 billion yuan, up 94.97% year-on-year [7][8]. - The lithium battery industry is experiencing a notable recovery, driven by increased demand in domestic and international energy storage markets, leading to a substantial rise in new orders for the company [8][10]. - The company's gross margin for the first three quarters was 32.72%, a decrease of 3.7% year-on-year, but is expected to recover as new orders are confirmed [9][10]. - The company has established a strong position in the solid-state battery equipment sector, benefiting from partnerships with leading clients and expanding its market presence internationally [10][11]. Financial Performance Summary - For the first three quarters of 2025, the company achieved a net profit margin of 11.13%, an increase of 4.69 percentage points year-on-year, indicating improved profitability [9]. - The operating cash flow for the first three quarters was 3.848 billion yuan, showing significant improvement and reflecting better collection from downstream customers [9]. - Revenue projections for 2025 to 2027 are estimated at 14.016 billion yuan, 16.483 billion yuan, and 18.782 billion yuan respectively, with corresponding net profits of 1.603 billion yuan, 2.094 billion yuan, and 2.638 billion yuan [12][13].

Core Viewpoint - The renewable energy sector is experiencing significant growth, with various ETFs related to the industry showing strong performance, indicating a robust investment opportunity in the renewable energy chain [1][2]. Group 1: ETF Performance - Multiple renewable energy ETFs, including E Fund New Energy ETF and Battery ETF, have risen over 2%, reflecting a strong market sentiment towards the sector [1]. - The ETFs cover a wide range of the renewable energy industry, including lithium batteries, photovoltaics, wind power, hydropower, and nuclear power, with major companies like CATL and LONGi Green Energy included in their portfolios [1]. Group 2: Industry Developments - The "AI + Power" trend is emerging as a significant driver, with power supply becoming a bottleneck for AI chip expansion, as highlighted by Microsoft CEO Satya Nadella [3]. - Major companies in the battery supply chain are signing long-term supply agreements, such as Tianqi Materials and Jia Yuan Technology, indicating strong demand and commitment to future production [4]. - The solar industry is seeing a collaborative effort among leading companies to stabilize market prices and ensure a balanced supply-demand dynamic, with a joint venture expected to form among 17 major solar firms [5]. Group 3: Market Data and Trends - Recent statistics show a decline in new solar installations in September, with a year-on-year decrease of 54%, while the total installed capacity has grown by 45.7% year-on-year [5]. - Wind power installations also saw a significant drop in September, down 41% year-on-year, although the overall installed capacity has increased by 21.3% [5]. - Investment in power generation and grid infrastructure has shown modest growth, with power generation investment up by 0.6% and grid investment up by 9.9% in the first nine months of the year [6].

Group 1: Market Performance and Liquidity - The battery ETF managed by Jiashi has a turnover rate of 3.45% and a transaction volume of 49.24 million yuan as of November 6 [3] - The average daily transaction volume for the battery ETF over the past month is 126 million yuan, with a total scale reaching 1.428 billion yuan [3] - The net value of the battery ETF has increased by 5.90% over the past three years, with the highest monthly return since inception being 39.76% and the longest consecutive monthly gain lasting six months [3] Group 2: Industry Growth and Projections - As of September 30, China's new energy storage capacity exceeded 100 million kilowatts, representing a growth of over 30 times compared to the end of the 13th Five-Year Plan, accounting for over 40% of the global total [3] - China's new energy vehicle production and sales have ranked first globally for ten consecutive years, with a projected global market share of 63.7% in 2024 and an estimated sales volume of 16 million units in 2025 [3] - The lithium battery industry is expected to reach a scale of 1.2 trillion yuan by 2024, primarily driven by power batteries and energy storage batteries, with China's share of global power batteries increasing from 38.35% in 2020 to 68.79% in 2025 [3] Group 3: Market Sentiment and Stock Performance - The electric equipment (battery) industry is gaining market attention, with a shift in investment focus from TMT sectors to electric equipment, indicating increased investor interest [4] - As of October 31, 2025, the top ten weighted stocks in the China Securities Battery Theme Index include companies like Sungrow Power, CATL, and EVE Energy, collectively accounting for 56.8% of the index [4] Group 4: Stock Performance Details - The stock performance of key companies includes: Sungrow Power (-1.64%, 14.31% weight), CATL (-0.51%, 8.95% weight), EVE Energy (1.73%, 6.94% weight), and others with varying performance and weight [6]

Group 1: ETF Performance - The New Energy ETF has a turnover rate of 2.21% with a transaction volume of 33.46 million yuan [3] - The latest scale of the New Energy ETF reached 1.513 billion yuan, marking a new high since its establishment [3] - In the past week, the New Energy ETF saw a significant increase of 10.2 million shares [3] - Over the last five trading days, there were net inflows on three days, totaling 81.43 million yuan [3] - As of November 6, the net value of the New Energy ETF has increased by 69.97% over the past six months, ranking 151 out of 3850 in index equity funds, placing it in the top 3.92% [3] - The highest monthly return since inception was 25.07%, with the longest consecutive monthly increase being six months and a maximum increase of 67.53% [3] - The average return during the months of increase is 8.57% [3] Group 2: Market Trends and Opportunities - According to CITIC Securities research, the market is recovering, and there is a positive outlook on the global trend of energy storage [3] - The domestic energy storage sector is experiencing a significant economic turning point, driven by the marketization of new energy and capacity electricity prices [3] - The cumulative penetration rate of energy storage is still below 10%, with an upward adjustment of new domestic installations to 300 GWh for next year [3] - The largest overseas opportunity arises from the demand for energy storage in data centers, with leading companies already securing substantial orders [3] - Energy storage is expected to drive lithium battery demand growth exceeding 30% next year, presenting investment opportunities across materials, batteries, and integration [3] Group 3: Key Stocks in New Energy Index - As of October 31, 2025, the top ten weighted stocks in the CSI New Energy Index include: Sunshine Power, CATL, Longi Green Energy, EVE Energy, TBEA, Huayou Cobalt, Ganfeng Lithium, China Nuclear Power, Tongwei Co., and Lead Intelligent [5] - The combined weight of the top ten stocks accounts for 46.1% of the index [5]

Core Viewpoint - The green energy ETF (562010) opened with a slight decline of 0.19%, indicating a mixed performance among its major holdings [1] Group 1: ETF Performance - The green energy ETF (562010) opened at 1.035 yuan, reflecting a decrease of 0.19% [1] - Since its establishment on December 16, 2022, the fund has achieved a return of 4.07%, with a monthly return of 3.81% [1] Group 2: Major Holdings Performance - Major stocks within the ETF showed varied performance: - Contemporary Amperex Technology Co., Ltd. (宁德时代) decreased by 0.30% - BYD Company Limited (比亚迪) fell by 0.53% - Yangtze Power Co., Ltd. (长江电力) increased by 0.04% - Sungrow Power Supply Co., Ltd. (阳光电源) dropped by 1.65% - EVE Energy Co., Ltd. (亿纬锂能) decreased by 0.19% - LONGi Green Energy Technology Co., Ltd. (隆基绿能) fell by 0.60% - Huayou Cobalt Co., Ltd. (华友钴业) decreased by 0.93% - Ganfeng Lithium Co., Ltd. (赣锋锂业) increased by 0.26% - Lead Intelligent Equipment Co., Ltd. (先导智能) dropped by 1.30% - Tongwei Co., Ltd. (通威股份) fell by 0.64% [1]

Summary of Key Points from the Conference Call Industry Overview - **Industry**: Energy Storage Systems (ESS) within the Alternative Energy sector - **Context**: The global energy system is experiencing a significant transition, with the combined cost of solar and wind energy plus storage now lower than fossil fuel generation in most major markets [1][13] Core Insights - **Energy Mix Shift**: By 2024, fossil fuels will supply approximately 77% of primary energy globally, while wind and solar will account for over 12% of global electricity, a threefold increase from a decade ago. The IEA projects that non-fossil energy will surpass coal as the main electricity source by 2025 [2][20] - **Economic Drivers**: Over the past 15 years, costs for solar and batteries have decreased by around 90%. The levelized cost of electricity (LCOE) for wind/solar plus storage is now lower than new coal and gas plants in major economies [3][20] - **Policy Support**: In China, provincial incentives such as Gansu's capacity payment mechanism and Inner Mongolia's subsidy have driven internal rates of return (IRRs) for utility-scale ESS projects to approximately 28% and 15%, respectively [3][20] Growth Projections - **ESS Installation Growth**: Global ESS installations are forecasted to grow at a compound annual growth rate (CAGR) of approximately 27% from 2025 to 2030, with China expected to account for nearly half of all utility-scale additions by 2030 [4][20] - **AIDC Demand**: The demand for electricity from AI Data Centers (AIDCs) is projected to more than double to 950 TWh by 2030, significantly driving the need for ESS [4][20] Investment Opportunities - **Value Concentration**: The ESS sector's value is concentrated in batteries (48-55% of turnkey cost) and system integration (19-21% of cost). Companies like CATL, Sungrow, Kehua, Wuxi Lead, and Senior are highlighted as top picks based on their exposure to high-value segments [5][25] - **Stock Ratings and Price Targets**: Key stocks featured include: - CATL: BUY, Price Target Rmb521.00 - Wuxi Lead: BUY, Price Target Rmb76.00 - Sungrow: BUY, Price Target Rmb233.96 [6][7] Additional Insights - **Intermittency Challenges**: The rise in renewable energy usage increases intermittency challenges and grid strain, necessitating enhanced storage solutions to maintain grid stability [2][20] - **Market Fragmentation**: The market for ESS is fragmented, with significant opportunities for consolidation among system integrators and battery manufacturers [27][33] Conclusion - The energy storage sector is positioned for explosive growth driven by economic advantages, policy support, and increasing demand from emerging technologies like AI. Investors are encouraged to focus on high-value segments within the ESS value chain to capitalize on this transition [5][25]

Summary of Wuxi Lead Intelligent Equipment Conference Call Company Overview - **Company**: Wuxi Lead Intelligent Equipment (Ticker: 300450.SZ) - **Industry**: Capital Goods, specifically focused on automation equipment for lithium batteries, photovoltaic cells, consumer electronics, and film capacitors [12][26] Key Financial Highlights - **3Q25 Results**: - Earnings increased by 199% year-on-year (y-y) to CNY 446 million - Revenue grew by 14% y-y to CNY 3.8 billion - Gross Profit Margin (GPM) contracted by 5.7 percentage points (pp) y-y to 30.9% due to low-margin battery equipment orders recognized from FY24 [1][15] - **Order Intake**: - Strong order momentum with 9M25 new orders exceeding the full-year level for FY24 (CNY 17.5 billion) [1] - Management expects a recovery in GPM in 4Q25, driven by the recognition of higher-margin orders [1] Future Outlook - **FY26 Forecast**: - Positive outlook supported by demand for all-solid-state battery (ASSB) commercialization and energy storage system (ESS) capacity expansion [2] - Anticipated incremental orders for ASSB equipment from domestic manufacturers in 2H25 and FY26 [2] - Expected solid demand for battery equipment in FY26 due to supply shortages of ESS battery cells in China [2] Valuation and Target Price - **Target Price**: Increased from CNY 41 to CNY 70, based on a P/E ratio of 45x FY26F EPS of CNY 1.55 [3][5] - **Earnings Growth**: FY26-27F earnings expected to increase by 10-12% [3] - **Current Stock Valuation**: Trading at 35x FY26F P/E [3] Financial Projections - **Revenue Projections**: - FY25F: CNY 14.49 billion (new estimate) - FY26F: CNY 18.85 billion (new estimate) - FY27F: CNY 20.90 billion (new estimate) [4][16] - **Net Profit Projections**: - FY25F: CNY 1.67 billion - FY26F: CNY 2.42 billion - FY27F: CNY 2.76 billion [4][16] Risks and Considerations - **Downside Risks**: - Lower-than-expected orders from battery cell makers - Higher-than-expected bad debt provisions in the solar sector - Lower-than-expected commercialization of ASSBs [13][17] Additional Insights - **Market Performance**: The stock has shown a 205.3% increase over the past 12 months, despite a recent decline of 11.9% over the last month [9] - **ESG Considerations**: The company is viewed as ESG-friendly due to its role as an equipment supplier in the EV and solar sectors [14] This summary encapsulates the key points from the conference call, highlighting the company's financial performance, future outlook, valuation, and associated risks.

Event Overview - The 2025 Solid-State Battery Industry Conference and the Golden Ding Award Ceremony will take place on November 8, 2025, in Guangzhou [1] - The event aims to focus on new technologies and build a new ecosystem in the solid-state battery industry [4] Organizers and Participants - The event is organized by Qidian Solid-State Battery, Qidian Lithium Battery, and the SSBA All-Solid-State Battery Alliance [4] - Major sponsors include RuTian Technology, JinNa Technology, and other notable companies in the energy sector [2] Forum Activities - The conference will feature a main forum and several specialized sessions, including discussions on solid-state battery technology advancements and challenges [5][6] - A total of over 1000 participants are expected to attend, indicating significant interest in the solid-state battery sector [4] Agenda Highlights - The agenda includes a keynote address, the launch of the SSBA Solid-State Battery Alliance, and various presentations on solid-state battery technologies [5][6] - Notable speakers include industry leaders from RuTian Technology, Zhongke Goneng, and Tsinghua University [5][11] Key Topics of Discussion - Topics will cover the development of solid-state battery technologies, including sulfide electrolytes, polymer-based solid-state lithium-ion batteries, and manufacturing challenges [6][9] - Roundtable discussions will address innovation and challenges in solid-state battery technology and materials [10][12] Registration and Participation - Registration for the event is priced at 1688 RMB per person, which includes access to the conference, lunch, and an award ceremony ticket [20] - The event is expected to attract a diverse range of participants from academia, industry, and research institutions [11][12]