Core Viewpoint - Jinli Permanent Magnet (06680) experienced a stock price increase of over 3% following the announcement of its mid-year results for 2025, with a current price of HKD 19.99 and a trading volume of HKD 1.33 billion [1] Financial Performance - The company reported a revenue of approximately CNY 3.507 billion for the first half of 2025, representing a year-on-year growth of 4.33% [1] - The net profit attributable to shareholders was approximately CNY 305 million, showing a significant year-on-year increase of 154.81% [1] - The net profit excluding non-recurring gains and losses was CNY 234 million, reflecting a remarkable growth of 588.18% year-on-year [1] - Basic earnings per share were reported at CNY 0.22 [1] Segment Performance - In the new energy vehicles and automotive parts sector, the company achieved sales revenue of CNY 1.675 billion, with a corresponding sales volume growth of 28.14% year-on-year [1] - The variable frequency air conditioning sector generated sales revenue of CNY 1.050 billion, with a sales volume increase of 19.85% year-on-year [1] - The wind power generation sector reported sales revenue of CNY 214 million [1] - The robotics and industrial servo motor sector achieved sales revenue of CNY 133 million [1] - The 3C sector generated sales revenue of CNY 101 million [1] Research and Development - The company's R&D expenses for the first half of 2025 amounted to CNY 170 million, accounting for 4.84% of total revenue [1] - The company has developed its own core technologies and patent system, holding a total of 136 authorized and pending patents in regions including Europe, America, and Japan as of June 30, 2025 [1]

Core Insights - Jinli Permanent Magnet (300748) reported a significant increase in net profit for the first half of 2025, with a year-on-year growth of 154.81% to approximately 305 million yuan [1] - The company's revenue for the same period reached about 3.507 billion yuan, reflecting a year-on-year increase of 4.33% [1] - The stock price rose by 3.16% to 19.99 HKD following the earnings announcement, with a trading volume of 133 million HKD [1] Revenue Breakdown - Sales revenue from the new energy vehicles and automotive parts sector amounted to 1.675 billion yuan, with a corresponding sales volume increase of 28.14% [1] - The variable frequency air conditioning sector generated sales revenue of 1.050 billion yuan, with a sales volume increase of 19.85% [1] - Other sectors included wind power generation with 214 million yuan, robotics and industrial servo motors with 133 million yuan, and the 3C sector with 101 million yuan in sales revenue [1] Research and Development - The company invested 170 million yuan in R&D, accounting for 4.84% of its total revenue [1] - As of June 30, 2025, the company holds 136 authorized and pending patents across various regions including Europe, America, and Japan [1]

Report Summary 1. Report Industry Investment Rating No industry investment rating was provided in the report. 2. Core View The fundamentals of the lithium carbonate market remain weak, but there is still uncertainty in supply - side fluctuations. It is expected that the short - term lithium carbonate price will fluctuate widely. It is recommended to short on rebounds [1]. 3. Summary by Relevant Content Market Data - **Futures Prices**: On August 4, 2025, the closing price of the near - month contract was 69,200 yuan/ton (+700), the closing price of the continuous - one contract was 68,920 yuan/ton (unchanged), the closing price of the continuous - two contract was 69,040 yuan/ton (-200), and the closing price of the continuous - three contract was 69,040 yuan/ton (-200) [1]. - **Trading Volume and Open Interest**: The trading volume of the active lithium carbonate futures contract was 247,898 lots (-92,772), and the open interest was 207,770 lots (-8,333) [1]. - **Inventory**: The registered warehouse receipt was 12,603 tons (+5,998), and the social inventory decreased. The inventories of smelters and other sectors decreased, while the downstream inventory was tight [1]. - **Price Spreads**: The spread between the near - month and continuous - one contracts was 280 yuan/ton (+700), the spread between the continuous - one and continuous - two contracts was - 120 yuan/ton (+200), and the spread between the continuous - two and continuous - three contracts was 0 yuan/ton (unchanged) [1]. - **Spot Prices**: The average price of SMM battery - grade lithium carbonate was 71,350 yuan/ton (unchanged), the average price of industrial - grade lithium carbonate was 69,250 yuan/ton (unchanged), and the spread between them was 2,100 yuan/ton (unchanged) [1]. Cost and Supply - **Cost**: The price of spodumene concentrate increased to 760 US dollars/ton (+5), while the price of mica remained flat [1]. - **Supply**: The production of lithium carbonate decreased last week [1]. Downstream Demand - **Last Week**: The production of lithium iron phosphate decreased, while the production of ternary materials increased. The production of power batteries decreased [1]. - **August**: The production of lithium carbonate decreased, while the production of lithium hydroxide increased. The production of energy - storage batteries increased [1]. Terminal Demand - **New Energy Vehicles**: In July, the production and sales of new energy vehicles continued to grow year - on - year but declined month - on - month. The wholesale sales of new energy passenger vehicles by manufacturers were 1.18 million, a year - on - year increase of 25% and a month - on - month decrease of 4% [1]. - **3C Products**: The shipment volume was average [1].

Group 1: Investor Relations Activities - The company held an earnings briefing on May 8, 2025, from 15:00 to 16:00 [3] - Participants included the chairman, vice chairman, CFO, board secretary, and sponsor representative [3] - Various channels for investor communication include earnings briefings, online roadshows, site visits, and responding to investor inquiries [4] Group 2: Market and Product Insights - Solid-state batteries are identified as a key future direction due to their high energy density and safety, with applications in electric vehicles, energy storage, and consumer electronics [5] - The company is one of the early participants in solid-state battery production equipment development and has received customer orders [5] - The company plans to expand its international presence, focusing on Europe, North America, and Southeast Asia to enhance its competitive edge [6] Group 3: Financial Performance and Strategy - The decline in Q1 2025 performance is attributed to reduced equipment acceptance, leading to lower revenue recognition [7] - The company is actively working to improve customer service and efficiency to recover from the downturn [7] - The company reported a positive trend in operating cash flow and a sufficient backlog of orders for Q1 2025 compared to Q1 2024 [8] Group 4: Future Plans and Developments - The company will participate in the CIBF2025 International Battery Exhibition from May 15-17, 2025, showcasing dry electrode and solid-state battery equipment [9][10] - The company is open to mergers and acquisitions to enhance its market position and achieve stable growth [13] - Future strategic goals include maintaining domestic market leadership in lithium battery production equipment while exploring new fields for growth [15]