Core Viewpoint - CATL (Contemporary Amperex Technology Co., Limited) reported impressive third-quarter results, achieving a record net profit and significantly outpacing revenue growth [1][3]. Financial Performance - In Q3, CATL achieved operating revenue of 104.186 billion yuan, a year-on-year increase of 12.90%, and a net profit attributable to shareholders of 18.549 billion yuan, up 41.21% year-on-year [3]. - For the first three quarters, total revenue reached 283.072 billion yuan, a 9.28% increase year-on-year, with net profit at 49.034 billion yuan, reflecting a 36.20% growth [3]. - The company reported a daily profit of approximately 201.6 million yuan in Q3, nearing last year's total profit within the first nine months [1][3]. Market Demand and Production Capacity - Strong market demand is driving performance, with China's power battery production and sales increasing by 51.4% and 55.8% respectively from January to September [3]. - CATL's production capacity utilization remained high at around 90%, with Q3 shipments totaling approximately 180 GWh, of which 20% was for energy storage and 80% for power batteries [3][4]. Expansion Plans - CATL is accelerating global capacity expansion to meet surging customer orders, with significant expansions planned in multiple domestic bases and ongoing projects in Germany, Hungary, Spain, and Indonesia [4]. - The company anticipates that its market share will improve as new capacities come online next year, despite a slight decline in market share to 42.75% in Q3 [4]. Future Outlook - Analysts view CATL's Q3 performance as "better than expected," although rising raw material prices pose potential challenges [6]. - The company has a robust supply chain strategy to mitigate the impact of raw material price increases, maintaining a competitive edge in the market [6]. - CATL is also focusing on sodium-ion battery technology, which offers advantages in performance and cost, and is expanding its battery swapping business through strategic partnerships [7].

1. Report Industry Investment Rating No relevant information provided. 2. Core Viewpoint of the Report - The downstream lithium battery industry is in the peak production season of the year, resulting in a temporary supply - demand imbalance with supply less than demand for domestic lithium carbonate. Social inventory is continuously decreasing, and the available spot in the market is tight after the holiday. This week, the exchange warehouse receipts have significantly decreased, and lithium prices have moved up, with a short - term possibility of fluctuating in a relatively high range. If strong consumption and the macro - environment resonate, there is potential to break through the upper price limit. Meanwhile, Zangge Lithium Industry has officially obtained the mining license and resumed production, alleviating concerns about domestic resource supply. It is recommended to monitor the fulfillment of supply recovery expectations [12]. 3. Summary by Directory 3.1 Week - on - Week Assessment and Strategy Recommendation - **Spot and Futures Market**: On October 17, the morning quote of the Mysteel MMLC lithium carbonate spot index was 75,535 yuan, with a weekly increase of 3.46%. The average price of MMLC battery - grade lithium carbonate was 75,750 yuan. On the same day, the closing price of the LC2601 contract on the Guangzhou Futures Exchange was 75,780 yuan, with a weekly increase of 3.95% [12]. - **Supply**: On October 16, the weekly output of domestic lithium carbonate was 21,066 tons, a 2.1% increase from the previous week. The weekly output of domestic lithium carbonate continued to reach new highs. In September 2025, the domestic lithium carbonate output was 87,260 tons, a 2.4% increase from the previous month and a 51.7% increase year - on - year. The cumulative output in the first nine months increased by 41.7% year - on - year. In September 2025, Chile exported 15,900 tons of lithium carbonate, a 13% year - on - year decrease and a 6% month - on - month decrease. Among them, 11,100 tons were exported to China, a 14% month - on - month decrease. From January to September 2025, Chile exported a total of 164,700 tons of lithium carbonate, an 8.5% year - on - year decrease, and 120,900 tons were exported to China, a 17% year - on - year decrease. The reduction in South American exports from September to October alleviated the domestic import pressure [12]. - **Demand**: In September 2025, the global sales of new energy vehicles were approximately 2.1 million, with a cumulative year - on - year increase of 23.6% from January to September. According to the China Association of Automobile Manufacturers, in September, the production and sales of domestic new energy vehicles were 1.617 million and 1.604 million respectively, with year - on - year increases of 23.7% and 24.6%. The sales of new energy vehicles accounted for 49.7% of the total new vehicle sales. From January to September, the production and sales of new energy vehicles were 11.243 million and 11.228 million respectively, with year - on - year increases of 35.2% and 34.9%. The sales of new energy vehicles accounted for 46.1% of the total new vehicle sales. From January to September, the cumulative output of domestic lithium iron phosphate increased by 47.0% year - on - year, and the output of domestic ternary materials increased by 15.4% year - on - year. October is the traditional peak season for battery materials, which will drive the continued growth of lithium carbonate demand [12]. - **Inventory**: On October 16, the weekly inventory of domestic lithium carbonate was reported at 132,658 tons, a decrease of 2,143 tons (1.6%) from the previous week. After the holiday, the warehouse receipts continued to decrease. On October 17, the registered warehouse receipts of lithium carbonate on the Guangzhou Futures Exchange were 30,686 tons, a 28.1% decrease from the previous week [12]. - **Cost**: On October 17, the quotation of SMM's Australian imported SC6 lithium concentrate was 830 - 870 US dollars per ton, with a weekly increase of 2.72%. The supply pressure of hard - rock mines has recently begun to ease, and the lithium concentrate previously held back by Western Australian mining companies will be released. It is expected that subsequent lithium ore imports will increase significantly [12]. 3.2 Spot and Futures Market - The average price of the spot index of Mysteel MMLC lithium carbonate increased by 3.46% this week, and the closing price of the LC2601 contract on the Guangzhou Futures Exchange increased by 3.95% [12]. - The average discount of the exchange's standard electric carbon trading market was at par. The net short position of the main contract of the lithium carbonate was approximately 121,000 lots [23]. - The price difference between battery - grade and industrial - grade lithium carbonate was 2,250 yuan, and the price difference between battery - grade lithium carbonate and lithium hydroxide was 270 yuan [27]. 3.3 Supply Side - **Domestic Production**: On October 16, the weekly output of domestic lithium carbonate was 21,066 tons, a 2.1% increase from the previous week. In September 2025, the domestic lithium carbonate output was 87,260 tons, a 2.4% increase from the previous month, a 51.7% increase year - on - year, and a 41.7% cumulative increase in the first nine months year - on - year [32]. - **Production by Source**: In September, the output of lithium carbonate from lithium spodumene was 55,950 tons, a 4.9% increase from the previous month and a 98.8% increase year - on - year, with a 74.7% cumulative increase in the first nine months year - on - year. The output of lithium carbonate from lithium mica was 11,580 tons, a 15.5% decrease from the previous month, with a 16.0% cumulative increase in the first nine months year - on - year. The output of lithium carbonate from salt lakes decreased by 9.5% to 11,960 tons, with a 9.1% cumulative increase in the first nine months year - on - year. The output of lithium carbonate from the recycling end was 7,770 tons, a 6.6% increase from the previous month, with a 22.9% cumulative increase in the first nine months year - on - year [35][38]. - **Imports**: In August 2025, China imported 21,845 tons of lithium carbonate, a 57.8% increase from the previous month and a 23.5% increase year - on - year. Among them, 15,608 tons were imported from Chile and 4,253 tons from Argentina. From January to July, the total import volume of lithium carbonate in China was approximately 153,000 tons, a 3.5% increase year - on - year. In September 2025, Chile exported 15,900 tons of lithium carbonate, a 13% year - on - year decrease and a 6% month - on - month decrease. Among them, 11,100 tons were exported to China, a 14% month - on - month decrease. The reduction in South American exports alleviated the domestic import pressure from September to October [41]. 3.4 Demand Side - **Battery - Related Demand**: The battery sector dominates lithium demand, accounting for 87% of global consumption in 2024. The main growth point of future lithium salt consumption still depends on the growth of the lithium - battery industry, while traditional application areas have limited and weak growth [45]. - **New Energy Vehicle Sales**: In September 2025, global new energy vehicle sales were approximately 2.1 million, with a cumulative year - on - year increase of 23.6% from January to September. In September, domestic new energy vehicle production and sales were 1.617 million and 1.604 million respectively, with year - on - year increases of 23.7% and 24.6%. From January to September, the production and sales of domestic new energy vehicles were 11.243 million and 11.228 million respectively, with year - on - year increases of 35.2% and 34.9%. From January to August, the total sales of new energy vehicles in Europe were 2.324 million, a 26.7% increase year - on - year, and in the United States were 1.063 million, an 8.1% increase year - on - year [12][48][51]. - **Battery Production**: In September, the total production of power and other batteries in China was 151.2 GWh, an 8.3% increase from the previous month and a 35.4% increase year - on - year. From January to September, the cumulative production of power and other batteries was 1,121.9 GWh, a 51.4% increase year - on - year [54]. - **Material Production**: From January to September, the cumulative output of domestic lithium iron phosphate increased by 47.0% year - on - year, and the output of domestic ternary materials increased by 15.4% year - on - year. October is the traditional peak season for battery materials, which will drive the continued growth of lithium carbonate demand [57]. 3.5 Inventory - **Lithium Carbonate Inventory**: On October 16, the weekly inventory of domestic lithium carbonate was 132,658 tons, a 1.6% decrease from the previous week. On October 17, the registered warehouse receipts of lithium carbonate on the Guangzhou Futures Exchange were 30,686 tons, a 28.1% decrease from the previous week [64]. - **Other Inventory Indicators**: The inventory cycle of cathode materials is about one week. The sales - to - inventory ratio of power batteries is at a recent median, and the inventory of energy - storage batteries is at a multi - year low due to export rush [67]. 3.6 Cost Side - **Lithium Concentrate Price**: On October 17, the quotation of SMM's Australian imported SC6 lithium concentrate was 830 - 870 US dollars per ton, with a weekly increase of 2.72% [12]. - **Lithium Concentrate Imports**: In August, domestic lithium concentrate imports were 471,000 tons, a 4.0% decrease year - on - year and an 18.3% decrease from the previous month. From January to August, domestic lithium concentrate imports were 3.85 million tons, the same as the previous year. In August, lithium concentrate imports from Australia decreased by 50% month - on - month, while those from Africa increased by 82.2% month - on - month. From January to August, lithium concentrate imports from Australia increased by 3.4% year - on - year, and those from Africa decreased by 8.8% year - on - year. The supply pressure of high - cost hard - rock mines has recently begun to ease, and it is expected that subsequent lithium ore imports will increase significantly [77].

Core Viewpoint - The A-share market has seen a surge in interest in solid-state batteries, with Wuxi-based company XianDao Intelligent (300450.SZ) experiencing an 80% stock price increase within a month, reaching a market capitalization of 858.1 billion yuan [1] Company Overview - XianDao Intelligent has transitioned from a small workshop to a major player in the global new energy equipment sector, covering lithium batteries, photovoltaics, and hydrogen energy [4] - The founder, Wang Yanqing, has a significant stake in the company, with a personal fortune exceeding 251 billion yuan [1] Industry Context - The Chinese lithium battery industry has shifted from being dominated by foreign companies to achieving a leading position globally, aided by breakthroughs in equipment manufacturing [4] - XianDao Intelligent's development reflects the broader progress of the Chinese lithium battery sector [4] Strategic Partnerships - XianDao Intelligent has established a long-term relationship with CATL, which has significantly contributed to its revenue, with CATL accounting for 26.8% of XianDao's revenue in 2020 [5][6] - The companies renewed their strategic cooperation agreement in 2024, extending their collaboration into solid-state batteries and perovskite technologies [6] Financial Performance - In 2024, XianDao Intelligent achieved a global market share of 22.4% in lithium battery equipment, with a gross margin of 36%, surpassing the industry average [6] - Despite a challenging market environment, the company increased its R&D expenditure from 1.4 billion yuan in 2022 to 1.676 billion yuan in 2024, representing 14.14% of its revenue [7] Product Development - XianDao Intelligent has made significant advancements in solid-state battery technology, with new orders expected to account for 30% of its annual revenue [10][11] - The company has developed a comprehensive solid-state battery production line solution, achieving industry-leading production efficiencies [12] Global Expansion - The company has seen a 26.31% increase in overseas revenue in 2024, contributing to 23.88% of total revenue [12] - XianDao Intelligent is pursuing a secondary listing in Hong Kong to fund overseas R&D and acquisitions, with plans to raise 10 billion HKD [13][14]

1. Report Industry Investment Rating No relevant information provided. 2. Core Viewpoints of the Report - Around the National Day holiday, the downstream demand for lithium batteries is strong. In the short term, the supply of domestic lithium carbonate is less than the demand, and the social inventory is continuously decreasing, which supports the bottom price. However, the planned resumption of production at Jianxiaowo and the resolution of the mining license issue at Zangge Lithium Industry suppress the upside potential due to the expected supply increase. Currently, both long and short funds are cautious. The lithium carbonate futures have been oscillating within a narrow range for three weeks, and the time for the market to choose a direction may be approaching. It is recommended to pay attention to the sustainability of resource - end supply, the realization of strong demand expectations, and the atmosphere in the equity market [12]. 3. Summary by Directory 3.1 Monthly Assessment and Strategy Recommendation - **Prices**: On October 10, the MMLC lithium carbonate spot index reported 73,011 yuan in the morning, down 5.3% from early September, with the average price of MMLC battery - grade lithium carbonate at 73,250 yuan. On the same day, the closing price of LC2511 on the Guangzhou Futures Exchange was 72,740 yuan, down 3.73% from early September [12]. - **Supply**: On October 9, the weekly domestic lithium carbonate production was 20,635 tons, a 0.6% increase from the previous week, reaching a new high. In September 2025, the domestic lithium carbonate production was 87,260 tons, a 2.4% increase from the previous month and a 51.7% increase year - on - year, with a cumulative 41.7% increase in the first nine months. In September 2025, Chile exported 15,900 tons of lithium carbonate, a 13% year - on - year and 6% month - on - month decrease. Among them, 11,100 tons were exported to China, a 14% month - on - month decrease. From January to September 2025, Chile exported a total of 164,700 tons of lithium carbonate, an 8.5% year - on - year decrease, and 120,900 tons were exported to China, a 17% year - on - year decrease. The export volume from South America decreased from September to October, alleviating the domestic import pressure [12]. - **Demand**: According to the Passenger Car Association, from September 1 to 27, the retail sales of new energy passenger vehicles in China reached 1.039 million, a 9% increase compared to the same period in September last year and a 17% increase from the previous month. The new energy retail penetration rate of passenger vehicles was 58.5%. The cumulative retail sales this year reached 8.609 million, a 24% year - on - year increase. The "two new" policies in various regions from September to December 2024 significantly boosted car sales. It is expected that the year - on - year growth rate of domestic cars will slow down due to the high base. The traditional peak season for battery materials from September to October will drive the continued growth of lithium carbonate demand [12]. - **Inventory**: On October 9, the weekly domestic lithium carbonate inventory was reported at 134,801 tons, a decrease of 2,024 tons (1.5%) from the previous week. On the same day, the registered warehouse receipts of lithium carbonate on the Guangzhou Futures Exchange were 42,379 tons [12]. - **Cost**: On October 10, the quoted price of SMM's Australian imported SC6 lithium concentrate was 815 - 840 US dollars per ton, a 0.9% decrease from before the holiday. The supply pressure of high - cost hard - rock mines has started to ease recently. The lithium concentrate previously held back by Western Australian mining companies will be released, and it is expected that subsequent lithium ore imports will increase significantly [12]. 3.2 Futures and Spot Market - **Prices**: On October 10, the MMLC lithium carbonate spot index reported 73,011 yuan in the morning, down 5.3% from early September, with the average price of MMLC battery - grade lithium carbonate at 73,250 yuan. The closing price of LC2511 on the Guangzhou Futures Exchange was 72,740 yuan, down 3.73% from early September [20]. - **Basis and Position**: The average discount in the standard electric carbon trading market on the exchange is about - 200 yuan. The net short position of the main contract of lithium carbonate is about 125,000 lots [23]. - **Price Spreads**: The price spread between battery - grade and industrial - grade lithium carbonate is 2,250 yuan, and the price spread between battery - grade lithium carbonate and lithium hydroxide is 70 yuan [27]. 3.3 Supply Side - **Domestic Production**: On October 9, the weekly domestic lithium carbonate production was 20,635 tons, a 0.6% increase from the previous week, reaching a new high. In September 2025, the domestic lithium carbonate production was 87,260 tons, a 2.4% increase from the previous month, a 51.7% increase year - on - year, and a cumulative 41.7% increase in the first nine months [32]. - **Production by Raw Material**: In September, the production of lithium carbonate from lithium spodumene was 55,950 tons, a 4.9% increase from the previous month and a 98.8% increase year - on - year, with a cumulative 74.7% increase in the first nine months; the production from lithium mica was 11,580 tons, a 15.5% decrease from the previous month, with a cumulative 16.0% increase in the first nine months; the production from salt lakes decreased by 9.5% to 11,960 tons, with a cumulative 9.1% increase in the first nine months. Some salt lakes reduced or stopped production, and the production of lithium carbonate from salt lakes decreased year - on - year during the peak season. Subsequently, Zangge Lithium Industry will resume production, and a new project of Salt Lake Co., Ltd. will be put into operation, so the reduction during the traditional off - season will be limited; the production from the recycling end was 7,770 tons, a 6.6% increase from the previous month, with a cumulative 22.9% increase in the first nine months [35][38]. - **Imports**: In August 2025, China imported 21,845 tons of lithium carbonate, a 57.8% increase from the previous month and a 23.5% increase year - on - year. Among them, 15,608 tons were imported from Chile and 4,253 tons from Argentina. From January to July, the total import volume of lithium carbonate in China was about 153,000 tons, a 3.5% increase year - on - year. In August 2025, Chile exported 16,903 tons of lithium carbonate, a 19.2% decrease from the previous month. Among them, 12,982 tons were exported to China, a 4.8% decrease from the previous month and a 6.9% increase year - on - year. It is expected that the domestic imports in September will decrease month - on - month [41]. 3.4 Demand Side - **Consumption Structure**: The battery sector dominates lithium demand. In 2024, it accounted for 87% of global consumption. The main growth point of future lithium salt consumption still depends on the growth of the lithium - battery industry, while the traditional application areas have limited and weak growth. The proportion of lithium used in ceramic glass, lubricants, flux powders, air - conditioning, and medicine is only 5% [45]. - **New Energy Vehicle Sales**: In August 2025, global new energy vehicle sales were about 1.7 million, with a cumulative 23.7% increase from January to August year - on - year. From September 1 to 27, the retail sales of new energy passenger vehicles in China reached 1.039 million, a 9% increase compared to the same period in September last year and a 17% increase from the previous month, with a new energy retail penetration rate of 58.5%. The cumulative retail sales this year reached 8.609 million, a 24% year - on - year increase. From January to August, the total sales of new energy vehicles in Europe were 2.324 million, a 26.7% increase year - on - year, and in the United States were 1.063 million, an 8.1% increase year - on - year [48][51]. - **Battery Production**: In August, the total production of power and other batteries in China was 139.6 GWh, a 4.4% increase from the previous month and a 37.3% increase year - on - year. From January to August, the cumulative production was 970.7 GWh, a 54.3% increase year - on - year. From January to August, the cumulative production of domestic lithium iron phosphate increased by 46.2% year - on - year, and the production of domestic ternary materials increased by 13.1% year - on - year. The traditional peak season for battery materials from September to October will drive the continued growth of lithium carbonate demand [53][56]. 3.5 Inventory - **Lithium Carbonate Inventory**: On October 9, the weekly domestic lithium carbonate inventory was reported at 134,801 tons, a decrease of 2,024 tons (1.5%) from the previous week. The registered warehouse receipts of lithium carbonate on the Guangzhou Futures Exchange were 42,379 tons [63]. - **Other Inventory Indicators**: The inventory cycle of cathode materials is about one week. The sales - to - inventory ratio of power batteries is at a recent median, and the inventory of energy - storage batteries is at a recent low due to export rush [66]. 3.6 Cost Side - **Lithium Concentrate Price**: On October 10, the quoted price of SMM's Australian imported SC6 lithium concentrate was 815 - 840 US dollars per ton, a 0.9% decrease from before the holiday [73]. - **Lithium Concentrate Imports**: In August, domestic lithium concentrate imports were 471,000 tons, a 4.0% decrease year - on - year and an 18.3% decrease from the previous month. From January to August, domestic lithium concentrate imports were 3.85 million tons, the same as the previous year. In August, the lithium concentrate from Australia decreased by 50% month - on - month, and that from Africa increased by 82.2% month - on - month. From January to August, the import of lithium concentrate from Australia increased by 3.4% year - on - year, and that from Africa decreased by 8.8% year - on - year (a 13.7% decrease in the first seven months). The supply pressure of high - cost hard - rock mines has started to ease recently. The lithium concentrate previously held back by Western Australian mining companies will be released, and it is expected that subsequent lithium ore imports will increase significantly [76].

Core Viewpoint - The solid-state battery sector is experiencing a surge in the A-share market, with XianDao Intelligent (300450.SZ) seeing its stock price increase by 80% within a month, reaching a market capitalization of 858.1 billion yuan [1] Company Overview - XianDao Intelligent is recognized as a leading equipment provider for solid-state battery solutions, poised to benefit from the impending industrialization of solid-state batteries [3] - The founder, Wang Yanqing, has transformed the company from a small workshop into a significant player in the global new energy equipment market, covering lithium batteries, photovoltaics, and hydrogen energy [5] Market Position and Performance - XianDao Intelligent's market share in lithium battery equipment reached 22.4% in 2024, with a gross profit margin of 36%, significantly higher than the industry average [7][10] - The company has maintained a strong relationship with CATL, which has been a major customer since 2014, contributing to a stable revenue stream [6][7] Financial Highlights - Despite industry challenges, XianDao Intelligent increased its R&D expenditure from 1.4 billion yuan in 2022 to 1.676 billion yuan in 2024, representing 14.14% of its revenue [8] - In 2023, the company's photovoltaic equipment revenue reached 3.2 billion yuan, a 45% year-on-year increase, while energy storage equipment orders exceeded 200 GWh [9] Technological Advancements - The company has been proactive in developing solid-state battery technology since 2018, with significant advancements in key manufacturing processes [11][13] - XianDao Intelligent's solid-state battery equipment has entered the supply chains of leading global battery manufacturers and automotive companies, with repeat orders being secured [12][13] Global Expansion - In 2024, XianDao Intelligent's overseas revenue reached 2.831 billion yuan, a 26.31% increase, with international sales accounting for 23.88% of total revenue [14] - The company is pursuing a secondary listing in Hong Kong to raise funds for overseas R&D and acquisitions, indicating a strategic move towards global market expansion [14]

Group 1 - The CINE2025 Solid-State Battery Exhibition and Industry Annual Conference will be held from November 6-8, 2025, in Guangzhou, with over 200 exhibitors and 20,000 professional attendees expected [1] - The event will feature the first batch of exhibitors and sponsors, including companies like Jin Na Technology, Ru Tian Technology, and Rong Jie Energy [1] - The conference aims to promote the solid-state battery industry and recognize outstanding contributions through the 2025 Qidian Solid-State Battery Golden Ding Award ceremony [1] Group 2 - The Chuangming cylindrical lithium battery project, with a total investment of 5 billion yuan, is being constructed in Yantai, Shandong, covering an area of approximately 350 acres [2] - The project includes the establishment of a fully automated cylindrical lithium battery production line and aims to serve as a northern battery base for Chuangming New Energy [2] - The project is expected to enhance the local lithium battery industry and create synergies with other bases in Southwest China [2] Group 3 - Chuangming New Energy has maintained its position in the top tier of the 32 series cylindrical battery market, being a pioneer in high-capacity cylindrical batteries [3][6] - The company has achieved seven capacity breakthroughs and is actively expanding its product range, including large cylindrical batteries and sodium batteries [6] - The 32 series cylindrical battery products are designed for various applications, including small-scale energy storage and smart home devices, with significant market demand [6][7] Group 4 - The global cylindrical battery shipments are projected to reach 151.2 GWh in 2024, representing a 24% year-on-year increase, with Chuangming New Energy ranking tenth in overall shipments [7] - The company is positioned eighth in the large cylindrical battery segment, indicating strong market presence and growth potential [7] Group 5 - Major players in the lithium battery market, including CATL, BYD, and Xinwanda, are investing over 100 billion yuan in Shandong, contributing to the local lithium battery industry's growth [8][14] - CATL has established a comprehensive industrial chain in Shandong, with a planned capacity of 160 GWh across multiple locations [9][10] - BYD's investment in Yantai includes a 560 billion yuan project for a new energy power industry park, which will significantly enhance local production capabilities [12][14]

Core Viewpoint - Major shareholders of Xinde New Materials (301349.SZ) are planning to reduce their holdings, despite the company reporting a significant year-on-year increase in revenue and net profit for the first half of 2025, indicating underlying issues in its core business profitability [1][2]. Financial Performance - In the first half of 2025, Xinde New Materials reported revenue of 510 million yuan, a year-on-year increase of 41.31%, and a net profit attributable to shareholders of 9.81 million yuan, marking a 169.28% increase compared to a loss of 14.16 million yuan in the same period of 2024 [1]. - However, the company's net profit after deducting non-recurring gains and losses was a loss of 3.78 million yuan, indicating that the core business remains unprofitable [2]. Liquidity and Financial Structure - As of June 2025, Xinde New Materials had a high inventory balance of 297 million yuan, a 41% increase from the end of 2024, and accounts receivable of 275 million yuan, a 65% year-on-year increase, which significantly outpaced the revenue growth [2][3]. - The company faced a negative operating cash flow of 166 million yuan in the first half of 2025, indicating ongoing cash flow issues, with previous years also showing negative cash flows [6]. Profitability Challenges - The gross profit margin of Xinde New Materials has declined from 53% in 2020 to 11% in the first half of 2025, reflecting a significant reduction in core profitability [6][8]. - The competitive landscape in the lithium battery materials industry has intensified, leading to price adjustments and overall low profitability levels, which further impacts the company's margins [8]. Market Dynamics - The market for anode materials, particularly artificial graphite, has seen a significant increase in output, with 1-6 months of 2025 showing a 37% year-on-year increase in output, indicating a highly competitive environment [8]. - Xinde New Materials' focus on optimizing product structure and targeting high softening point products aims to stabilize prices, but the current gross margin remains low compared to historical levels [8].

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - In the peak season, domestic demand remains high, and lithium carbonate inventories have declined for eight consecutive weeks. Especially, the inventories of upstream salt plants are 30.7% lower than the same period last year. Downstream enterprises still have inventory replenishment demand around the National Day holiday. Before the resumption of production at Ningde Times' Jianxiawo Mine, the domestic lithium carbonate spot market may remain tight, and the support for lithium prices at the bottom is strong. Both long and short funds are cautious, waiting for directional drivers. It is recommended to pay attention to the sustainability of supply from the resource end, the fulfillment of strong demand expectations, and the atmosphere in the equity market in the future [12]. 3. Summary by Directory 3.1. Weekly Assessment and Strategy Recommendation - **Weekly Key Points Summary**: - **Futures and Spot Markets**: On September 19, the morning quote of the Mysteel MMLC lithium carbonate spot index was 72,987 yuan, with a weekly increase of 2.46%. The average price of MMLC battery-grade lithium carbonate was 73,250 yuan. On the same day, the closing price of the LC2511 contract on the GZEE was 73,960 yuan, with a weekly increase of 3.93% [12]. - **Supply**: On September 18, the weekly output of domestic lithium carbonate by SMM was 20,363 tons, a month-on-month increase of 2.0%. The weekly output of lithium carbonate from spodumene increased, driving the domestic weekly output of lithium carbonate to a new high. In August 2025, the domestic output of lithium carbonate was 85,240 tons, a month-on-month increase of 4.6%, a year-on-year increase of 39.5%, and the cumulative year-on-year increase in the first eight months was 40.4%. In July and August 2025, the export volumes of lithium carbonate from Chile were 20,900 tons and 16,900 tons respectively, of which the exports to China were 13,600 tons and 13,000 tons, a year-on-year decrease of 13% and an increase of 6.9% respectively [12]. - **Demand**: In August 2025, the global sales volume of new energy vehicles was about 1.7 million, with a cumulative year-on-year increase of 23.7% from January to August. According to the CAAM, in August, the production and sales of new energy vehicles in China reached 1.391 million and 1.395 million respectively, a year-on-year increase of 27.4% and 26.8% respectively. From January to August, the cumulative production and sales of new energy vehicles in China reached 9.625 million and 9.62 million respectively, a year-on-year increase of 37.3% and 36.7% respectively. The sales volume of new energy vehicles accounted for 45.5% of the total sales volume of new vehicles. From January to August, the cumulative output of domestic lithium iron phosphate increased by 46.2% year-on-year, and the output of domestic ternary materials increased by 13.1% year-on-year. It is expected that the production schedule of lithium iron phosphate will continue to increase in September [12]. - **Inventory**: On September 18, the weekly inventory of domestic lithium carbonate was reported at 137,531 tons, a month-on-month decrease of 981 tons (-0.7%). On September 19, the registered warehouse receipts of lithium carbonate on the GZEE were 39,484 tons, a week-on-week increase of 2.2% [12]. - **Cost**: The ore price adjusts following the lithium salt price. On September 19, the quoted price of SMM's imported Australian SC6 lithium concentrate was 810 - 850 US dollars per ton, a weekly increase of 3.75%. The supply pressure of high-cost hard rock mines in Africa has begun to ease recently. The lithium concentrate previously held back by Western Australian mining enterprises will be released, and it is expected that the subsequent import of lithium ore will be significantly supplemented [12]. 3.2. Futures and Spot Markets - On September 19, the morning quote of the Mysteel MMLC lithium carbonate spot index was 72,987 yuan, with a weekly increase of 2.46%. The average price of MMLC battery-grade lithium carbonate was 73,250 yuan. On the same day, the closing price of the LC2511 contract on the GZEE was 73,960 yuan, with a weekly increase of 3.93% [20]. - The average discount in the standard electric carbon trading market of the exchange is about -200 yuan. The net short position of the main contract of lithium carbonate is about 120,000 lots [23]. - The price difference between battery-grade and industrial-grade lithium carbonate is 2,250 yuan. The price difference between battery-grade lithium carbonate and lithium hydroxide is 550 yuan. In September, the lithium carbonate futures price declined, and the spot quotation adjustment of lithium hydroxide lagged, resulting in an inverted price difference [26]. 3.3. Supply Side - On September 18, the weekly output of domestic lithium carbonate by SMM was 20,363 tons, a month-on-month increase of 2.0%. The weekly output of lithium carbonate from spodumene increased, driving the domestic weekly output of lithium carbonate to a new high. In August 2025, the domestic output of lithium carbonate was 85,240 tons, a month-on-month increase of 4.6%, a year-on-year increase of 39.5%, and the cumulative year-on-year increase in the first eight months was 40.4% [31]. - In August, the output of lithium carbonate from spodumene was 53,330 tons, a month-on-month increase of 19.0% and a year-on-year increase of 83.3%. The cumulative year-on-year increase in the first eight months was 71.1%. The output of lithium carbonate from lepidolite in August was 13,700 tons, a month-on-month decrease of 23.9%, and the cumulative year-on-year increase in the first eight months was 17.5% [34]. - In August, the output of lithium carbonate from salt lakes decreased by 11.5% month-on-month to 10,920 tons, and the cumulative year-on-year increase from January to August was 10.8%. Some salt lakes reduced production or stopped production, and the output of lithium carbonate from salt lakes declined year-on-year during the peak season. The output of lithium carbonate from the recycling end in August was 7,290 tons, a month-on-month increase of 14.3%, and the cumulative year-on-year increase from January to August was 21.3% [37]. - In July 2025, China imported 13,845 tons of lithium carbonate, a month-on-month decrease of 21.8% and a year-on-year decrease of 42.7%. Among them, 8,584 tons were imported from Chile and 3,950 tons from Argentina. From January to July, the total import volume of lithium carbonate in China was about 132,000 tons, a year-on-year increase of 0.8%. In July 2025, the export volume of lithium carbonate from Chile was 20,900 tons, a month-on-month increase of 43% and a year-on-year increase of 4%. Among them, 13,600 tons were exported to China, a month-on-month increase of 33% and a year-on-year decrease of 13%. In August, Chile exported 16,903 tons of lithium carbonate, a month-on-month decrease of 19.2%. Among them, 12,982 tons were exported to China, a month-on-month decrease of 4.8% and a year-on-year increase of 6.9% [40]. 3.4. Demand Side - The battery sector dominates lithium demand, accounting for 87% of global consumption in 2024. The main growth point of future lithium salt consumption still depends on the growth of the lithium battery industry, while the traditional application sectors have limited proportion and weak growth. The proportion of lithium used in sectors such as ceramic glass, lubricants, flux powders, air conditioners, and medicine is only 5% [44]. - In August 2025, the global sales volume of new energy vehicles was about 1.7 million, with a cumulative year-on-year increase of 23.7% from January to August. According to the CAAM, in August, the production and sales of new energy vehicles in China reached 1.391 million and 1.395 million respectively, a year-on-year increase of 27.4% and 26.8% respectively. From January to August, the cumulative production and sales of new energy vehicles in China reached 9.625 million and 9.62 million respectively, a year-on-year increase of 37.3% and 36.7% respectively. The sales volume of new energy vehicles accounted for 45.5% of the total sales volume of new vehicles [47]. - From January to July, the total sales volume of new energy vehicles in Europe was 2.081 million, a year-on-year increase of 25.8%. From January to July, the total sales volume of new energy vehicles in the United States was 896,000, a year-on-year increase of 6.9% [50]. - In August, the total output of power and other batteries in China was 139.6 GWh, a month-on-month increase of 4.4% and a year-on-year increase of 37.3%. From January to August, the cumulative output of power and other batteries in China was 970.7 GWh, a cumulative year-on-year increase of 54.3% [52]. - From January to August, the cumulative output of domestic lithium iron phosphate increased by 46.2% year-on-year, and the output of domestic ternary materials increased by 13.1% year-on-year [55]. 3.5. Inventory - On September 18, the weekly inventory of domestic lithium carbonate was reported at 137,531 tons, a month-on-month decrease of 981 tons (-0.7%). On September 19, the registered warehouse receipts of lithium carbonate on the GZEE were 39,484 tons, a week-on-week increase of 2.2% [62]. - The inventory cycle of cathode materials is about one week. The inventory-to-sales ratio of power batteries is at a recent median, and the inventory of energy storage batteries is at a recent low due to the rush for exports [65]. 3.6. Cost Side - The ore price adjusts following the lithium salt price. On September 19, the quoted price of SMM's imported Australian SC6 lithium concentrate was 810 - 850 US dollars per ton, a weekly increase of 3.75% [73]. - In July, the domestic import of lithium concentrate was 576,000 tons, a year-on-year increase of 4.8% and a month-on-month increase of 34.7%. From January to July, the domestic import of lithium concentrate was 3.38 million tons, a cumulative year-on-year increase of 0.6%. From January to July, the import of lithium concentrate from Australia increased by 7.3% year-on-year, and the import of lithium concentrate from Africa decreased by 13.7% year-on-year. The supply pressure of high-cost hard rock mines in Africa has begun to ease recently. The lithium concentrate previously held back by Western Australian mining enterprises will be released, and it is expected that the subsequent import of lithium ore will be significantly supplemented [76].

Core Insights - The lithium battery industry in China is emerging from a recession, with significant growth in revenue and profit reported for the first half of 2025 [2][4]. - The overall revenue of over 100 listed lithium battery companies reached 682.33 billion yuan, marking a year-on-year increase of 10.09%, with a notable acceleration in growth compared to 2024 [2][4]. - The net profit attributable to shareholders was 48.67 billion yuan, reflecting a year-on-year growth of 37.93%, significantly higher than the previous year's performance [2][4]. Financial Performance - Total assets for the industry amounted to 3,099.28 billion yuan, with an increase of 11.28% compared to the same period in 2023 [4]. - Total liabilities reached 1,778.37 billion yuan, also up by 11.88% year-on-year [4]. - The operating cash flow showed a robust increase of 45.26%, totaling 87.27 billion yuan [4]. Market Concentration - The top 20 companies in the lithium battery sector accounted for 68.29% of total revenue, 89.15% of net profit, and 89.22% of operating cash flow, indicating a significant concentration of resources and profits among leading firms [5][6]. - The financial strength of these top companies is evident, as they hold 90.40% of the total net asset value and 71.49% of the net financing cash flow [6]. Company Rankings - The leading companies by revenue include CATL with 178.89 billion yuan, followed by Huayou Cobalt and EVE Energy, showcasing varied growth rates among the top players [10][11]. - Notable performers include Jiangsu Guotai and Ganfeng Lithium, with significant year-on-year growth in revenue [10][11]. Investment Trends - The data indicates a shift in investment patterns, with total external investments by lithium battery companies amounting to 264.25 billion yuan, reflecting a decrease of 9.94% compared to the previous year [4][32]. - The industry is expected to continue evolving, with ongoing analysis and tracking of financial metrics to identify future trends and opportunities [8].

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - Since August, lithium carbonate contracts have been significantly affected by sentiment. After supply disruptions in lithium mines such as Jianxiawo, lithium prices soared, with the main contract once reaching the 90,000 yuan mark. Recently, funds have rationally returned to the fundamentals, sentiment has continuously cooled, and the market has adjusted weakly. [11] - As the lithium - battery industry enters the traditional peak season, downstream demand has been released. Domestic lithium mica production has declined, the supply - demand relationship of lithium carbonate has improved, and social inventories of lithium carbonate have continuously decreased. [11] - In the first week of September, the lithium - battery sector in the equity market performed strongly, and the optimistic sentiment may drive the lithium carbonate futures to stabilize and rebound. At the same time, the resource supply in regions such as Jiangxi, Qinghai, and Africa is unstable, and attention should be paid to the impact of industry news on the market. [11] 3. Summary by Relevant Catalogs 3.1 Monthly Assessment and Strategy Recommendation - **Spot and Futures Market**: On September 5, the MMLC spot index of lithium carbonate reported 73,657 yuan in the morning, down 4.44% week - on - week and up 5.5% compared to early August. The average price of MMLC battery - grade lithium carbonate was 74,000 yuan. On the same day, the closing price of LC2511 on the GZFE was 74,260 yuan, down 3.78% within the week. [12] - **Supply**: On September 5, SMM's weekly domestic lithium carbonate production was 19,419 tons, a 2% increase from the previous week. The estimated monthly production of lithium carbonate from lithium mica dropped to around 10,000 tons, basically in line with the expectation of large - mine shutdowns. The production of lithium carbonate from lithium spodumene continued to reach new highs, compensating for the reduction in mica production. In August 2025, domestic lithium carbonate production was 85,240 tons, a 4.6% increase from the previous month and a 39.5% increase year - on - year. The cumulative output in the first eight months increased by 40.4% year - on - year. In July and August 2025, Chile's lithium carbonate export volumes were 20,900 tons and 16,900 tons respectively, with exports to China being 13,600 tons and 13,000 tons, a 13% year - on - year decrease and a 6.9% year - on - year increase respectively. [12] - **Demand**: The Passenger Car Association estimated that the wholesale sales of new - energy passenger vehicles by domestic manufacturers in August were 1.3 million, a 24% year - on - year increase and a 10% month - on - month increase. From January to August this year, the cumulative wholesale sales were 8.93 million, a 34% year - on - year increase. The combined production of domestic lithium iron phosphate and ternary materials has remained at a high level since March. As the traditional peak season for lithium batteries approaches, the growth of lithium - battery demand has accelerated. In August, the production of lithium iron phosphate increased by 7.7% month - on - month, and it is expected to reach a new high in September. [12] - **Inventory**: On September 5, the weekly domestic lithium carbonate inventory was reported at 140,092 tons, a decrease of 1,044 tons (- 0.7%) from the previous week. On September 4, the registered warehouse receipts of lithium carbonate on the GZFE were 34,948 tons, a 20.7% increase from the previous week. The early industrial hedging products were accelerating into the warehouse. [12] - **Cost**: The ore price adjusted following the lithium salt price. On September 5, the SMM quoted the price of imported Australian SC6 lithium concentrate at 830 - 870 US dollars per ton, a 5.03% decrease from the previous week and a 14.09% increase compared to early August. The supply pressure of high - cost hard - rock mines in Africa has recently begun to ease. The lithium concentrate previously held back by Western Australian mining enterprises will be released, and it is expected that subsequent lithium ore imports will be significantly supplemented. [12] 3.2 Spot and Futures Market - The average discount price in the standard electric - carbon trading market of the exchange is about 50 yuan. The net short position of the main contract of lithium carbonate is about 100,000 lots. [23] - The price difference between battery - grade and industrial - grade lithium carbonate is 2,250 yuan. The price difference between battery - grade lithium carbonate and lithium hydroxide is 800 yuan. In September, the lithium carbonate futures declined, while the spot price of lithium hydroxide adjusted with a lag, resulting in an inverted price difference. [26] 3.3 Supply Side - On September 5, SMM's weekly domestic lithium carbonate production was 19,419 tons, a 2% increase from the previous week. In August 2025, domestic lithium carbonate production was 85,240 tons, a 4.6% increase from the previous month, a 39.5% increase year - on - year, and a 40.4% cumulative year - on - year increase in the first eight months. [31] - In August, the production of lithium carbonate from lithium spodumene was 53,330 tons, a 19.0% increase from the previous month, an 83.3% increase year - on - year, and a 71.1% cumulative year - on - year increase in the first eight months. The production of lithium carbonate from lithium mica was 13,700 tons, a 23.9% decrease from the previous month, and a 17.5% cumulative year - on - year increase in the first eight months. [34] - In August, the production of lithium carbonate from salt lakes decreased by 11.5% month - on - month to 10,920 tons, with a 10.8% cumulative year - on - year increase from January to August. Some salt lakes reduced production or shut down, and the production of lithium carbonate from salt lakes showed a year - on - year decline during the peak season. The production of lithium carbonate from the recycling end in August was 7,290 tons, a 14.3% month - on - month increase, and a 21.3% cumulative year - on - year increase from January to August. [37] - In July 2025, China imported 13,845 tons of lithium carbonate, a 21.8% month - on - month decrease and a 42.7% year - on - year decrease. Among them, 8,584 tons were imported from Chile and 3,950 tons from Argentina. From January to July, the total import volume of lithium carbonate in China was about 132,000 tons, a 0.8% year - on - year increase. In July 2025, Chile's lithium carbonate export volume was 20,900 tons, a 43% month - on - month increase and a 4% year - on - year increase. Among them, 13,600 tons were exported to China, a 33% month - on - month increase and a 13% year - on - year decrease. In August, Chile exported 16,903 tons of lithium carbonate, a 19.2% month - on - month decrease. Among them, 12,982 tons were exported to China, a 4.8% month - on - month decrease and a 6.9% year - on - year increase. [40] 3.4 Demand Side - The battery field dominates lithium demand. In 2024, its global consumption accounted for 87%. The main growth point of future lithium salt consumption still depends on the growth of the lithium - battery industry, while the traditional application fields have limited proportion and weak growth. The proportion of lithium used in fields such as ceramic glass, lubricants, flux powder, air - conditioning, and medicine is only 5%. [44] - In July 2025, the global sales volume of new - energy vehicles was about 1.6 million, with a 25.1% cumulative year - on - year increase from January to July. The Passenger Car Association estimated that the wholesale sales of new - energy passenger vehicles by domestic manufacturers in August were 1.3 million, a 24% year - on - year increase and a 10% month - on - month increase. From January to August this year, the cumulative wholesale sales were 8.93 million, a 34% year - on - year increase. [47] - From January to July, the total sales volume of new - energy vehicles in Europe was 2.081 million, a 25.8% year - on - year increase. From January to July, the total sales volume of new - energy vehicles in the United States was 896,000, a 6.9% year - on - year increase. [50] - In July, the combined production of power and other batteries in China was 133.8 GWh, a 3.6% month - on - month increase and a 44.3% year - on - year increase. From January to July, the cumulative production of power and other batteries in China was 831.1 GWh, a 57.5% cumulative year - on - year increase. [53] - In July, the production of lithium iron phosphate increased by about 3.1% month - on - month. In August, the production of cathode materials increased by 7.7% month - on - month. [56] 3.5 Inventory - On September 5, the weekly domestic lithium carbonate inventory was reported at 140,092 tons, a decrease of 1,044 tons (- 0.7%) from the previous week. On September 4, the registered warehouse receipts of lithium carbonate on the GZFE were 34,948 tons, a 20.7% increase from the previous week. [63] - The inventory cycle of cathode materials is about one week. The inventory - to - sales ratio of power batteries is at a recent median, and the inventory of energy - storage batteries is at a recent low due to export rush. [66] 3.6 Cost Side - The ore price adjusted following the lithium salt price. On September 5, the SMM quoted the price of imported Australian SC6 lithium concentrate at 830 - 870 US dollars per ton, a 5.03% decrease from the previous week and a 14.09% increase compared to early August. [74] - In July, the domestic import of lithium concentrate was 576,000 tons, a 4.8% year - on - year increase and a 34.7% month - on - month increase. From January to July, the domestic import of lithium concentrate was 3.38 million tons, a 0.6% cumulative year - on - year increase. From January to July, the import of lithium concentrate from Australia increased by 7.3% year - on - year, and the import from Africa decreased by 13.7% year - on - year. The supply pressure of high - cost hard - rock mines in Africa has recently begun to ease. The lithium concentrate previously held back by Western Australian mining enterprises will be released, and it is expected that subsequent lithium ore imports will be significantly supplemented. [77]