Company Performance - In the first half of the year, the company achieved operating revenue of 16.263 billion yuan, a year-on-year increase of 19% [1] - The net profit attributable to shareholders reached 2.110 billion yuan, up 39% year-on-year [1] - The net profit after deducting non-recurring gains and losses was 2.010 billion yuan, reflecting a 32% year-on-year growth [1] - For Q2, the company reported operating revenue of 8.593 billion yuan, a 19% increase year-on-year [1] - The net profit attributable to shareholders for Q2 was 1.207 billion yuan, also up 39% year-on-year [1] - The net profit after deducting non-recurring gains and losses for Q2 was 1.157 billion yuan, showing a 35% year-on-year increase [1] Dividend Announcement - The company proposed a semi-annual dividend plan, distributing 1.2 yuan for every 10 shares, totaling over 500 million yuan, with a dividend payout ratio of 24% [2] Industry Overview - According to industry data, the domestic household air conditioning industry achieved total sales of 123 million units in the first half of 2025, a year-on-year increase of 8% [3] - Domestic sales reached 66.54 million units, up 9% year-on-year, while exports were 56.56 million units, also reflecting an 8% increase [3] - The domestic market is expected to maintain stability in the second half of the year, supported by policies such as the old-for-new replacement program [3] - The company's revenue from refrigeration components was 10.389 billion yuan, a year-on-year increase of 25.49%, significantly outperforming the industry [3] - The net profit from refrigeration components was 1.29 billion yuan, up 59.15% year-on-year, with a net profit margin increase of 2.62 percentage points to 12.38% [3] - In the new energy vehicle sector, the company reported revenue of 5.874 billion yuan, an 8.83% year-on-year increase, which is lower than the industry growth rate [3] Profit Forecast - Based on strong growth in traditional cold chain business, the profit forecast for the company has been raised, expecting net profits of 3.75 billion, 4.16 billion, and 4.60 billion yuan for 2025-2027, representing year-on-year growth of 21%, 11%, and 11% respectively [4] - The corresponding current price-to-earnings ratios are projected to be 36, 32, and 29 times [4]

Core Viewpoint - Li Auto is facing significant challenges in the current market, with declining sales and increased competition impacting its growth strategy [2][5][17]. Financial Performance - In Q2, Li Auto reported revenue of 30.2 billion yuan, a year-on-year decrease of 4.5% [2]. - The company expects to deliver between 90,000 to 95,000 vehicles in Q3, which is lower than the same period last year [2]. - The vehicle gross margin remained high at 19.4% in Q2, with expectations to maintain around 19% in Q3 [2]. Market Competition - Li Auto's sales are under pressure from competitors like AITO and Xiaomi, with the L9 model's sales dropping below 5,000 units and the L6 model declining from nearly 27,000 to around 15,000 units [5][7]. - The market for new energy vehicles in China is becoming increasingly competitive, with a penetration rate hovering around 50%, leading to a fierce battle for market share [7]. Product Strategy - The launch of the Li i8 has not met expectations, with the company attempting to educate consumers on its value proposition, but market feedback indicates that price is currently more critical [8][10]. - Li Auto is considering a significant price reduction for the i6 model, potentially below 230,000 yuan, to enhance competitiveness [14][17]. Organizational Changes - Li Auto is restructuring its sales and service teams to improve efficiency and address internal management issues that have affected sales performance [8][9]. - The company aims to enhance its direct store experience and has made adjustments to its organizational structure to better support sales operations [9][10]. Future Outlook - Li Auto is focusing on its i6 model as a key product to drive sales, while also investing in self-developed chips and expanding into overseas markets [14][17]. - The company has established R&D centers in Germany and the U.S. and is building a sales and service network for international markets [14].

Core Viewpoint - The article highlights the significant growth in China's new energy vehicle (NEV) market and the corresponding increase in power battery installation capacity, indicating a pivotal year for GWh-level shipments in 2025 [2][3]. Summary by Sections New Energy Vehicle Sales - In the first seven months of 2025, China's NEV sales reached 8.22 million units, a year-on-year increase of 38.5%, with a penetration rate of 45.0%, up by 8.6 percentage points [2]. Power Battery Installation - The power battery installation capacity in China for the same period reached 343.52 GWh, reflecting a year-on-year growth of 40.2% [2]. Battery Enterprises and Clients - A total of 48 power battery companies provided installation for vehicles, a decrease of 3 companies compared to the previous year, primarily serving passenger vehicles [6]. - The top 10 battery enterprises by installation volume include CATL, BYD, and others, with a total installation of 153.46 GWh for the leading companies [7][8]. Market Concentration - The market concentration for the top 10 battery companies (CR10) was 95.3%, a decrease of 1.3 percentage points year-on-year, attributed to the market share gains of emerging companies [8]. Battery Material Types - In terms of battery materials, the installation of ternary batteries was 66.63 GWh, accounting for 19.4%, down by 7.2 percentage points year-on-year, while lithium iron phosphate batteries reached 276.56 GWh, making up 80.5%, an increase of 7.2% [8]. Battery Shapes - The installation of square batteries was 334.29 GWh, representing 97.3% of the total, an increase of 0.5 percentage points year-on-year. Cylindrical batteries accounted for 2.1% and soft-pack batteries for 0.6% [10]. - BMW announced the upcoming use of large cylindrical batteries in its new vehicles, which is expected to boost the market share of cylindrical batteries [10].

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - China's new energy vehicle market penetration rate exceeded 30% in 2023 and 50% in 2024. In 2025, high - competitiveness new car products are continuously launched, and price wars are gradually ending. Overseas markets face trade protectionism in Europe and the United States, so attention should be paid to new growth points such as Belt and Road countries and the Middle East. Domestic independent brands' market share continues to expand, and companies with strong product strength, smooth overseas expansion, and stable supply should be focused on [3][114]. 3. Summary According to the Directory 3.1 Financial Market Tracking - It presents the one - week price changes of related sectors and listed companies. For example, BYD's closing price on August 22 was 110.66 yuan, with a one - week increase of 4.33% [13][17]. 3.2.1 China's New Energy Vehicle Market Tracking - China Market Sales and Exports - Relevant charts show the sales volume, penetration rate, domestic sales, and exports of China's new energy vehicles [18][23]. 3.2.1 China's New Energy Vehicle Market Tracking - China Market Inventory Changes - The charts display the monthly new inventory of new energy passenger vehicles in channels and manufacturers [26][27]. 3.2.1 China's New Energy Vehicle Market Tracking - China's New Energy Vehicle Manufacturers' Deliveries - Charts show the monthly delivery volumes of various domestic new energy vehicle manufacturers such as Leapmotor, Li Auto, XPeng, and NIO [30][34]. 3.2.2 Global and Overseas New Energy Vehicle Market Tracking - Global Market - Relevant charts show the sales volume, penetration rate, and sales volume of EV and PHV in the global new energy vehicle market [42][45]. 3.2.2 Global and Overseas New Energy Vehicle Market Tracking - European Market - Charts show the sales volume, penetration rate, and sales volume of EV and PHV in the European new energy vehicle market, as well as the sales volume of EV and PHV in countries like the UK, Germany, and France [48][57]. 3.2.2 Global and Overseas New Energy Vehicle Market Tracking - North American Market - Charts show the sales volume, penetration rate, and sales volume of EV and PHV in the North American new energy vehicle market [61][62]. 3.2.2 Global and Overseas New Energy Vehicle Market Tracking - Other Regions - Charts show the sales volume, penetration rate, and sales volume of EV and PHV in other regions, including Japan, South Korea, and Thailand [64][74]. 3.2.3 Battery Power Chain - Charts show the battery loading volume, export volume, weekly average price of battery cells, cell material cost, and the prices and operating rates of various battery materials [78][97]. 3.2.4 Other Upstream Raw Materials - Charts show the daily prices of rubber, glass, steel, and aluminum [100][104]. 3.3.1 Hot News Summary - China: Policy Dynamics - The three - department joint release of the "Interim Measures for the Total Quantity Regulation and Management of Rare Earth Mining and Rare Earth Smelting and Separation" strengthens the total quantity regulation of rare earths. From January to July in Chengdu, the production of new energy vehicles increased by over 300% [106]. 3.3.2 Hot News Summary - China: Industry Dynamics - The Passenger Car Association expects 1.94 million passenger vehicle retail sales and 1.1 million new energy retail sales in August. From August 1 - 17, new energy retail sales increased by 9% year - on - year, and cumulative retail sales since the beginning of the year increased by 18% year - on - year [106][107]. 3.3.3 Hot News Summary - China: Enterprise Dynamics - Tesla China launched the Model Y L, a six - seat pure - electric SUV, with a starting price of 339,000 yuan and expected delivery in September. Dongfeng Group will delist, and Voyah will be listed on the Hong Kong Stock Exchange [108][109]. 3.3.4 Hot News Summary - Overseas: Enterprise Dynamics - Great Wall Motors' Brazilian factory opened, with an initial annual production capacity of 50,000 vehicles. BlueOval SK's first factory in Kentucky started delivering battery cells [110][111]. 3.4 Industry Views - The domestic market has faced high - base pressure since August, but the market has maintained stable growth. There is a trend of more refined subsidy regulation and diversified subsidy methods. Overseas, North American new energy vehicle sales increased in July, mainly due to the pre - sales caused by the upcoming end of the electric vehicle tax credit policy. Europe has launched a new round of subsidy measures, which are expected to drive the electric vehicle market [111][113]. 3.5 Investment Advice - China's new energy vehicle market penetration rate has reached a high level, and high - competitiveness new products are continuously emerging. Attention should be paid to new overseas growth points and domestic independent brand companies with strong comprehensive strength [3][114].

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - In the 33rd week of 2025 (August 11 - August 17), the sales of domestic passenger cars and new energy passenger cars increased month - on - month. The new energy penetration rate reached 57.0%, at a historically high level [2][13]. - The market pattern of new energy vehicles is constantly changing. Traditional car companies such as Geely, Changan, and Chery are achieving excellent new energy sales, and new brands like Xiaomi are bringing new variables to the market [3][22]. 3. Summary According to the Directory 3.1 Passenger Car Market Weekly Overview - In the 33rd week of 2025, passenger car retail sales were 432,000 units, a year - on - year increase of 7.6%; new energy passenger car retail sales were 246,000 units, a year - on - year increase of 13.7%. The cumulative new energy penetration rate this year was 51.4% [2][13]. - By power type, in passenger cars, traditional fuel, hybrid, and new energy vehicles retailed 171,000, 15,000, and 246,000 units respectively, with year - on - year changes of 1.6%, - 10.0%, and 13.7%. In new energy passenger cars, pure - electric, plug - in hybrid, and extended - range vehicles retailed 157,000, 69,000, and 21,000 units respectively, with year - on - year changes of 26.2%, - 2.6%, and - 5.5% [16]. - By production attribute, in passenger cars, self - owned and joint - venture brands retailed 289,000 and 144,000 units respectively, with year - on - year changes of 12.0% and - 0.3%. In new energy passenger cars, self - owned and joint - venture brands retailed 220,000 and 26,000 units respectively, with year - on - year changes of 15.0% and 3.4% [16]. 3.2 Key New Energy Vehicle Companies' Sales Analysis 3.2.1 BYD - Weekly sales were 71,000 units, with consecutive weeks of year - on - year negative growth. The cumulative sales this year were 2 million units, with a year - on - year growth rate of 6.7%. The sales of pure - electric and plug - in hybrid (including extended - range) models were basically half and half [25]. - From January to July this year, the global cumulative sales were 2.49 million units, and the overseas cumulative sales of passenger cars and pickups were 550,000 units. There were reports that BYD might slow down production and capacity expansion plans, and the annual sales target of 5.5 million units might be lowered [25]. 3.2.2 Geely Automobile - Weekly sales were 51,000 units, including 33,000 new energy vehicles. The electrification rate of the company was about 66%. The cumulative sales this year were 1.391 million units, a year - on - year increase of 50.2%, and the cumulative new energy sales were 813,000 units, doubling year - on - year [27]. - The company's 2025 sales target was raised from 2.71 million units to 3 million units [27]. 3.2.3 SAIC - GM - Wuling - Weekly sales of passenger cars were 18,000 units, including 17,000 new energy vehicles. The electrification rate was about 90%. The cumulative sales this year were 496,000 units, with a growth rate of 21.6%, and the new energy cumulative sales were 421,000 units, with a growth rate of 42.4% [29]. 3.2.4 Changan Automobile - Weekly sales of passenger cars were 22,000 units, including 12,000 new energy vehicles. The electrification rate was about 53%. The cumulative sales this year were 731,000 units, a year - on - year increase of 2.1%, and the new energy cumulative sales were 357,000 units, a year - on - year increase of 20.3% [34]. - The sales of its new energy brands Shenlan and Qiyuan were about 4,000 and 3,000 units respectively, and the sales of Avita were about 2,000 units [34]. 3.2.5 Chery Automobile - Weekly sales of passenger cars were 23,000 units, including 9,000 new energy vehicles. The electrification rate was about 37%. The cumulative sales this year were 750,000 units, a year - on - year increase of 27.4%, and the new energy cumulative sales were 263,000 units, a year - on - year increase of 71.2% [40]. - The sales of its new energy brands iCAR and Chery New Energy were both over 1,000 units [40]. 3.2.6 Tesla - The sales in China that week were 13,000 units. The cumulative sales this year were 342,000 units, a year - on - year negative growth of - 5.5%. Tesla has launched multiple promotional activities this year [45]. - On August 19, Tesla China launched the Model Y L, priced at 339,000 yuan. In the new energy vehicle countryside campaign in 2025, Tesla Model 3 and Model Y entered the countryside catalog for the first time [45][46]. 3.2.7 Hongmeng Zhixing - Weekly sales were 9,000 units, including about 8,000 units of Wenjie. The new Zunjie S800 started large - scale mass delivery in mid - August, aiming for a monthly production capacity of 3,000 units in September and 4,000 units by the end of the year [48]. 3.2.8 New Car - making Forces - In new car - making forces, Leapmotor sold 10,000 units, Wenjie and XPeng sold 8,000 units each, NIO and Xiaomi sold 7,000 units each, and Li Auto sold 6,000 units. XPeng, NIO, Leapmotor, Xiaomi, and Voyah maintained good year - on - year growth rates. The launch of NIO's new car LeDao L90 drove the sales recovery in the past three weeks [54].

Core Insights - The Chongqing market is projected to achieve a narrow passenger car sales volume of 224,800 units in the first half of 2025, representing a year-on-year growth of 8.7% [1] - Cumulative sales of new energy vehicles (NEVs) in Chongqing are expected to reach 124,300 units, showing a significant year-on-year increase of 30.7% [1] - The penetration rate of new energy vehicles in Chongqing is notably high at 54.3% [1]

Summary of Key Points from the Equity Research Report Industry Overview - **Chinese Stock Market**: The report highlights a rally in Chinese stocks driven by abundant domestic liquidity, despite ongoing foreign fund outflows [3][7][50]. Core Insights - **Liquidity Drivers**: - Mutual funds have seen a year-to-date (y-t-d) new issuance growth of **132%** year-on-year [3]. - Margin financing accounts exceeded **RMB 2 trillion** in August 2025 [3]. - Insurance funds are increasing their equity allocations [3]. - The National Team has been active in buying ETFs to protect market downside [3]. - Southbound net inflows reached **HKD 900 billion** y-t-d, marking a new high since the Stock Connect was introduced in 2014 [3]. - **Economic Fundamentals**: - Major economic indicators missed consensus expectations in July, including: - Retail sales growth at **+3.7%** y-o-y [3]. - Industrial production growth at **+5.7%** y-o-y [3]. - Fixed asset investment (FAI) growth at **+1.6%** y-o-y y-t-d, with a decline of **-5.3%** y-o-y in July [3]. - All major components of FAI (manufacturing, infrastructure, and property investment) are contracting on a y-o-y basis [3]. - **Sector Highlights**: - **New Energy Vehicles (NEV)**: NEV penetration reached **54.1%** in July, a historical high [3][60]. - **Battery Prices**: Prices of EV batteries and polysilicon have slightly rebounded from their trough levels [3]. - **Semiconductors**: Prices for NAND flash and DRAM continued to rise in August [3][70]. - **Gaming Industry**: Domestic game license issuances remained high at **127** in July [3][76]. - **Real Estate**: Property sales from the top 100 developers fell by **24.3%** y-o-y in July [3][82]. Additional Insights - **Global Economic Context**: Rising unemployment in the US (4.2% in July) and downward revisions to nonfarm payrolls have raised concerns about a cooling labor market, potentially leading to three 25 basis point rate cuts by the Federal Reserve in 2025 [4][7]. - **Market Valuation**: The Chinese market is trading at a **10.4% discount** compared to emerging markets (12.5x forward PE for FTSE China vs 13.9x for FTSE EM) [11]. - **Earnings Revisions**: In July 2025, healthcare and agriculture sectors saw the most upward earnings revisions, while real estate and computer sectors were revised down the most [13][14]. Conclusion - The report indicates a complex landscape for the Chinese stock market, characterized by strong liquidity support but weak economic fundamentals. Investors should remain cautious while monitoring sector-specific developments and macroeconomic indicators.

Core Viewpoint - The article discusses the dual dynamics of the Chinese electric vehicle (EV) market, highlighting the slowdown in domestic growth alongside strong export expansion, which is reshaping the competitive landscape and growth pathways for the battery industry [3][5]. Domestic Market Trends - In July, the production of new energy passenger vehicles reached approximately 1.15 million units, showing a year-on-year increase of 22%, but a month-on-month decline of 3%. Retail sales were about 990,000 units, with a year-on-year growth of 12% but a significant month-on-month drop of 11% [5][6]. - The penetration rate of new energy vehicles in the domestic market has remained stagnant between 50% and 54% for nearly a year, failing to surpass the 55% mark [5]. - The retail market for pure electric vehicles grew by about 25% year-on-year, while plug-in hybrid sales saw a slight decline of 0.2%, and range-extended models dropped significantly by 11% [5][6]. - The market share of domestic brands in new energy vehicles stabilized at 70%, with a penetration rate of 75%, while luxury brands had a penetration rate of 30% and mainstream joint ventures only 7% [5][6]. Price Competition and Cost Pressures - The average price reduction for new energy vehicles in July was approximately 17,000 yuan, representing an 11.1% decrease, indicating ongoing price wars that are transferring cost pressures to battery manufacturers [6][7]. - The average price of plug-in hybrid models dropped by about 33,000 yuan, with a reduction rate of 14%, which is higher than that of pure electric vehicles [6][7]. Battery Supply Chain Dynamics - In July, lithium iron phosphate batteries accounted for 81% of the domestic battery installations, with a year-on-year growth of 49%, while the installation of ternary batteries decreased by 4% [7]. - The market concentration of domestic power battery manufacturers continued to decline, with the top two companies' market share dropping by 4.5 percentage points year-on-year [7]. Export Growth and Global Market Trends - In July, exports of new energy passenger vehicles reached 210,000 units, a year-on-year increase of 120%, accounting for 45% of total passenger vehicle exports [9][10]. - Exports of pure electric vehicles constituted 65% of new energy exports, with A00 and A0 class small pure electric vehicles' share rising from 26% to 43% [9][10]. - BYD's exports reached 80,000 units in July, a year-on-year increase of 160%, particularly strong in the European market, where sales grew by 470% [10][11]. - The overall export volume of domestic power batteries increased by approximately 48%, surpassing domestic sales for the first time [10]. High-End Market Opportunities - Despite price competition in the low-end market, the high-end market (vehicles priced above 250,000 yuan) is emerging as a new battleground, with several brands launching new models in this segment [11][12]. - The global production of ternary materials reached a historical high in July, indicating a strong demand for high-performance batteries [11][12]. Future Outlook - The transition of automotive consumption subsidies from direct grants to loan interest subsidies signals a shift in policy direction, with a focus on service consumption areas such as battery testing and maintenance [12]. - As some hybrid models begin to retract in the domestic market, automakers must find ways to expand their advantages over traditional fuel vehicles rather than competing within the pure electric segment [12].

Group 1 - The core viewpoint of the article highlights a positive trend in the new energy vehicle (NEV) sector, with significant net inflows into the NEV ETF (159806) and expectations for profit recovery amid a "de-involution" backdrop [1] - In July, wholesale sales of electric vehicles reached 1.18 million units, representing a year-on-year increase of 25% and a month-on-month decrease of 5%, with a penetration rate of 53.2%, up 5.4 percentage points year-on-year and 3.7 percentage points month-on-month [1] - The share of domestic car manufacturers in wholesale sales was 1.58 million units in July, a year-on-year increase of 21% and a month-on-month decrease of 5%, with a domestic market share of 71%, marking a record high [1] Group 2 - The article maintains that the risk of a severe "price war" in the industry remains low, with expectations for company profitability to remain at a good level [1] - The Central Financial Committee's sixth meeting on July 1 emphasized the need to focus on key challenges, regulate low-price disorderly competition, enhance product quality, and facilitate the orderly exit of outdated production capacity [1] - The trend of price wars in the automotive sector is expected to be suppressed under the "de-involution" trend [1] Group 3 - The NEV ETF (159806) tracks the CS New Energy Vehicle Index (399976), which is compiled by China Securities Index Co., Ltd., focusing on A-share listed companies in the new energy vehicle industry chain [2] - The index includes key sectors such as lithium batteries, electric motors, electronic controls, and vehicle manufacturing, reflecting the overall performance of the new energy vehicle industry [2] - The industry configuration is highly concentrated in the new energy vehicle manufacturing sector, with a growth-oriented style [2]

Core Insights - The Chinese automotive market has shown significant growth in the first seven months of the year, with production and sales reaching 18.23 million and 18.27 million units, respectively, marking year-on-year increases of 12.7% and 12% [1][3] - July saw a seasonal decline in production and sales, attributed to traditional market slowdowns and manufacturers' equipment maintenance schedules, with production and sales dropping by 7.3% and 10.7% month-on-month, but still showing year-on-year growth of 13.3% and 14.7% [1][3] Production and Sales Performance - In July, the production and sales of passenger vehicles reached 2.29 million and 2.29 million units, reflecting year-on-year growth of 13% and 14.7% [4] - From January to July, passenger vehicle production and sales totaled 15.84 million units, with year-on-year increases of 13.8% and 13.4% [4][7] - The market share of Chinese brand passenger vehicles reached 70.1% in July, with sales of 1.60 million units, a year-on-year increase of 21.3% [4][7] Commercial Vehicle Insights - Commercial vehicle production and sales in July were 298,000 and 306,000 units, respectively, showing month-on-month declines of 15.8% and 17.1%, but year-on-year growth of 16.3% and 14.1% [7][8] - From January to July, commercial vehicle production and sales reached 2.40 million and 2.43 million units, with year-on-year increases of 6% and 3.9% [8] New Energy Vehicles (NEVs) - NEVs continued to be a highlight in the automotive market, with July production and sales reaching 1.24 million and 1.26 million units, respectively, marking year-on-year growth of 26.3% and 27.4% [9][11] - NEVs accounted for 48.7% of total new car sales in July, with domestic sales surpassing 50% for the first time since December [9][11] - From January to July, NEV production and sales totaled 8.23 million and 8.22 million units, with year-on-year growth of 39.2% and 38.5% [11] Export Trends - NEVs have become a major driver of export growth, with total automotive exports reaching 3.68 million units from January to July, a year-on-year increase of 12.8% [11][14] - Traditional fuel vehicle exports decreased by 7%, while NEV exports surged by 84.6% [11][14] Market Outlook - The industry anticipates the need for stable policy expectations and improved market competition regulations to support healthy market operations in the second half of the year [14]