Summary of Conference Call Notes Industry Overview - The conference call focuses on the energy storage and lithium battery materials industry, particularly the midstream sector involving lithium iron phosphate (LiFePO4), lithium hexafluorophosphate (LiPF6), and separators [1][2]. Key Points and Arguments - **Policy Impact on Energy Storage Demand**: New policies have clarified that end users will bear capacity pricing, which is expected to stabilize long-term investment returns in energy storage. It is projected that domestic energy storage installations will reach 250 GWh by 2026, a 50% increase from 2025 [1][4]. - **Current Market Conditions**: The processing rates for lithium iron phosphate, LiPF6, and separators are above 80%, indicating a tight supply-demand situation. Prices for lithium hexafluorophosphate have risen by 150% from the bottom, while VC additives have increased by 40% [1][5]. - **Production Capacity Expansion**: Different segments are expected to see varying degrees of production capacity expansion in 2026, with lithium iron phosphate expected to increase by 10%-15%, LiPF6 by 20%-30%, and additives by over 30%. Overall capacity growth is manageable, and most segments are expected to remain tight [1][6]. - **Price Trends**: The price of lithium battery materials is on an upward trend, with some materials increasing by 40% from their lowest prices. Current prices are around 65,000 yuan, with some companies quoting over 70,000 yuan [1][8]. - **Market Concentration**: The market for key materials like lithium hexafluorophosphate and electrolytic solvents is highly concentrated, with the top three companies holding market shares of 70%, 70%, and 63% respectively [2]. Additional Important Insights - **Future Demand Drivers**: The new policies have positioned new energy storage alongside coal and pumped storage, providing stability for long-term returns. The iron phosphate market is expected to see price increases driven by rising costs [3][9]. - **Separator Market Outlook**: The separator market has a long expansion cycle and currently high operating rates, suggesting potential for future price increases due to supply-demand mismatches [3][11]. - **Investment Recommendations**: Companies to watch include Tianqi Co., Tianqi Materials, Shida Shenghua, and Shenzhen New Star in the lithium hexafluorophosphate sector. In the VC sector, focus on Huasheng Lithium Battery, Haike New Source, and Furi Co. In the lithium iron phosphate sector, consider Hunan YN Energy, Wanrun New Energy, and Longpan Technology [12]. This summary encapsulates the critical insights from the conference call, highlighting the current state and future expectations of the energy storage and lithium battery materials industry.

Market Performance - The A-share market saw a strong opening and closing, with the Shanghai Composite Index stabilizing above 4000 points, closing at 4016 points, up 0.7% [1] - The Shenzhen Component Index rose by 1.95%, while the ChiNext Index increased by 2.93%, and the North Star 50 Index surged by 8.41% [1] - Total market turnover reached 2.29 trillion yuan, an increase of 125.4 billion yuan compared to the previous trading day, with nearly 2700 stocks rising [1] Sector Performance - Leading companies reported positive Q3 earnings, with the photovoltaic equipment sector experiencing significant growth, including stocks like Longi Green Energy, Tongwei Co., and JA Solar Technology hitting the daily limit [1] - The Hainan sector also performed well, with companies like Hainan Airlines and Hainan Dewei seeing their stocks hit the daily limit [1] - The Chinese energy storage policy has driven lithium prices up, boosting lithium mining stocks, with Chuaneng Power hitting the daily limit [1] - The non-ferrous metals sector was active, with Nanshan Aluminum also hitting the daily limit [1] - Other sectors with notable gains included precious metals, BC batteries, and glass fiber [1] Declining Sectors - Banking stocks generally fell, with Chengdu Bank dropping nearly 6% [1] - The blind box economy saw a decline, with Shunwang Technology leading the losses [1] - The commercial retail sector also faced declines, with Xiamen Xinda falling over 7% [1] - Other sectors with significant declines included micro-trading stocks, shipbuilding, DRG/DIP concepts, and childcare services [1] Top Gainers and Fund Flows - The top gainers included sectors such as electrical engineering and power grid, basic metals, and precious metals, with respective increases of 4.57%, 4.40%, and 3.649% [2] - Other notable sectors included fertilizers and pesticides, forestry, and brokerage firms, with increases of 3.10%, 2.29%, and 2.279% respectively [2]

Core Viewpoint - The report from Guosheng Securities indicates that the performance of thermal power in Q3 continues to improve, with a rebound in coal prices enhancing expectations for stable electricity prices. Additionally, the improvement in hydropower due to autumn rainfall, along with a shift in investment styles, suggests a focus on asset allocation. The frequent introduction of energy storage policies and the need for improvements in the capacity compensation mechanism highlight the value of adjustable power sources, coupled with expectations for Q3 performance catalysts [1]. Demand Side - In September, the national electricity consumption increased by 4.5% year-on-year. According to data from the National Energy Administration, from January to September, the total electricity consumption reached 77,675 billion kilowatt-hours, a year-on-year increase of 4.6%, with industrial power generation accounting for 72,557 billion kilowatt-hours. In September alone, the total electricity consumption was 8,886 billion kilowatt-hours, also reflecting a 4.5% year-on-year growth [2]. Supply Side - In September, the electricity generation from large-scale industrial enterprises increased by 1.5% year-on-year. Overall, the power production from large-scale industries showed stable growth, with September's generation reaching 8,262 billion kilowatt-hours, marking a 1.5% year-on-year increase, and an average daily generation of 275.4 billion kilowatt-hours. From January to September, the total generation was 72,557 billion kilowatt-hours, reflecting a 1.6% year-on-year growth [4]. Breakdown by Type - In September, the electricity generation from large-scale industrial thermal power and wind power shifted from growth to decline, while hydropower saw a turnaround from decline to growth, nuclear power growth slowed, and solar power generation accelerated. Specifically, large-scale industrial thermal power decreased by 5.4% year-on-year, compared to a 1.7% increase in August; large-scale industrial hydropower increased by 31.9%, reversing from a 10.1% decline in August; nuclear power grew by 1.6%, slowing by 4.3 percentage points from August; wind power decreased by 7.6%, down from a 20.2% increase in August; and solar power generation increased by 21.1%, accelerating by 5.2 percentage points from August [5].

Core Insights - The report highlights that the total electricity consumption in society has exceeded 10 trillion kWh, showing a year-on-year growth of 5.0% [2] Industry Performance - The electricity equipment sector has shown significant performance with a 1-month increase of 17.7%, a 3-month increase of 41.0%, and a 1-year increase of 70.0% [2] - The electronics sector has also performed well, with a 1-month increase of 15.7%, a 3-month increase of 52.6%, and a 1-year increase of 118.4% [2] - The communication sector has seen a 1-month increase of 8.4%, a 3-month increase of 59.0%, and a 1-year increase of 114.4% [2] - The non-bank financial sector has underperformed, with a 1-month decrease of 9.5%, a 3-month increase of 6.3%, and a 1-year increase of 34.4% [2] - The defense and military sector has also seen a decline, with a 1-month decrease of 9.0%, a 3-month increase of 12.6%, and a 1-year increase of 49.0% [2] Electricity Generation Insights - In August, the growth rate of industrial wind power accelerated, while hydropower saw a decline, and the growth rates of thermal, nuclear, and solar power generation slowed down [2] - The report recommends focusing on the thermal power sector, highlighting companies such as Huaneng International, Guodian Power, and Baoneng New Energy as potential investment opportunities [2] - For green electricity, the report suggests prioritizing undervalued green electricity stocks and wind power operators, recommending companies like New Energy and Longyuan Power [2] - The hydropower sector is advised to focus on companies like Yangtze Power and State Power Investment Corporation [2] - The nuclear power sector includes recommendations for China National Nuclear Power and China General Nuclear Power [2]

Group 1 - The A-share market is approaching its third round of revaluation, driven by fundamental factors, with recommendations for investors to focus on high dividend assets, technology sectors, and unique structural opportunities in China's transformation [2] - Recent policies from the National Development and Reform Commission and the Energy Administration aim to deepen electricity market reforms, benefiting the storage and wind power sectors [3] - The indoor skiing market is emerging as a new real estate category, addressing the supply-demand gap in China's skiing resources, with potential investment opportunities in leading indoor ski operators and related industries [4] Group 2 - The A-share market experienced mixed performance, with the Shanghai Composite Index down 0.23% and the ChiNext Index up 1.52%, amid a trading volume of 2.28 trillion yuan, a decrease of 245.8 billion yuan from the previous trading day [1] - The gaming, pork, and automotive sectors showed strong gains, while precious metals and cultural media sectors faced declines [1] - The market's current upward trend is supported by global liquidity, long-term valuation recovery, and short-term catalysts, with a recommendation for investors to remain patient and wait for better entry points [2]

Core Viewpoint - The latest energy storage policy released by the National Energy Administration indicates that an additional 100 GW of energy storage capacity will be installed from 2025 to 2027, equating to 300 GWh, which is expected to drive an investment scale of 250 billion RMB over three years [1] Company Summary - Ningde Times (3750.HK), as a leading global manufacturer of electric vehicle and energy storage batteries, is anticipated to benefit from the favorable policy, with expected profit growth accelerating to 37% year-on-year this year [1] - The H-share target price for Ningde Times is set at 535 HKD with an "outperform" rating, while the A-share target price is set at 390 RMB with a "highly confident outperform" rating [1]

Core Viewpoint - The article discusses the significant impact of the "Document No. 136" on the new energy storage market, leading to a surge in new energy storage installations and a shift towards market-oriented development in the industry [2][4]. Policy Development - As of June 2025, approximately 2,740 energy storage-related policies have been issued nationwide, with 323 new policies released in the first half of the year [2][4]. - The government is focusing on two main areas to enhance the policy framework: accelerating the construction of spot markets and ancillary service markets, and injecting new development momentum through industrial support and model innovation [2]. Industry Trends - The article highlights the importance of tracking policy evolution and market trends, indicating that the industry should pay attention to the ongoing changes in national and local policies [4]. - A seminar titled "2025 Energy Storage Policy Half-Year Observation" is planned to analyze macro policy guidance, market policy progress, regional economic analysis, and industry policy trends [5][7]. Event Announcement - The 97th session of the "CNESA Energy Storage Lecture Hall" will focus on the 323 energy storage policies released in the first half of 2025, featuring a presentation by Li Zhen, Deputy Secretary-General of the China Energy Research Society's Energy Storage Committee [5][7].

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - In the first half of 2025, China's new energy storage installations reached 21.9GW/55.2GWh, with a capacity scale up 76.6% year-on-year. The full - year new installation is expected to reach 110.8GWh, a slight 3% increase year - on - year. However, the demand front - loading phenomenon is obvious, and the second - half installation may decline year - on - year [1]. - The US energy storage market is booming, with an expected annual new installation of 15.8GW/49.8GWh, a 34% increase year - on - year. In Europe, large - scale energy storage is on the rise while household energy storage remains weak. Emerging countries have slow commissioning speeds but high planned scales [2]. - In June 2025, energy storage battery exports rebounded, while inverter exports decreased. The domestic energy storage system bid price rebounded slightly, and overseas prices remained stable [3]. - From June to July, energy - storage - related policies were intensively introduced, focusing on power market mechanisms and energy storage subsidies, which is conducive to accelerating the marketization of independent energy storage and improving project profitability [4]. 3. Summary According to the Table of Contents 3.1 Domestic Market: New Installation Peak Front - loaded, Bid Scale Remains High 3.1.1 Domestic Energy Storage New Installation: Demand Front - loaded in June, "531" Rush - installation Drove High H1 Installations - In H1 2025, domestic new energy storage installations reached 21.9GW/55.2GWh, with a capacity scale up 76.6% year - on - year. The "531" rush - installation in new energy power stations drove synchronous energy storage installations, advancing the grid - connection peak to before June. In June, new installations were 4.1GW/10.3GWh, a 19.3% year - on - year decline [1][8]. - In terms of application scenarios, grid - side energy storage dominated, accounting for 60%. In terms of technology, lithium iron phosphate was mainstream, and long - duration energy storage was gradually penetrating [9]. 3.1.2 Domestic Energy Storage Future Installation: Bid Scale Keeps Rising, Annual Installation Expected to Slightly Increase - In June 2025, the energy storage bid scale continued to grow rapidly, reaching 4.6GW/23.5GWh, a 128% year - on - year increase in capacity. Independent energy storage projects accounted for 88% [13]. - The full - year new installation is expected to reach 110.8GWh, a 3% increase year - on - year. After the cancellation of mandatory energy storage policies, the bid scale still increased significantly. The proportion of independent energy storage in bid projects is expected to continue rising, and the average charge - discharge duration of front - of - meter energy storage is expected to drop to 2.3 hours [17]. - Behind - the - meter energy storage growth may be slower than expected due to time - of - use electricity price policy adjustments. It is expected to add 4.7GW/10GWh in 2025, a 27% increase year - on - year [18]. 3.2 Overseas Market: Planned Scales in Emerging Countries Keep Increasing, European and American Markets Perform Well 3.2.1 US Energy Storage Installation: Completion Rate Improves as Expected, Installation Forecast Remains High - In May, the new grid - connected energy storage (≥1MW) in the US was 1555.1MW, a 44% year - on - year increase, with a project planning completion rate of 57%. The annual new installation is expected to be 15.8GW/49.8GWh, a 34% increase year - on - year [21]. - In Q1 2025, the new installation was 2042MW/5034MWh, with a capacity installation up 39% year - on - year. Front - of - meter energy storage maintained high - speed growth, while behind - the - meter energy storage had different performances: weak commercial and industrial installations and strong household energy storage [26]. 3.2.2 European Energy Storage Installation: Large - scale Energy Storage Rises, Household Energy Storage Remains Weak - In June 2025, Germany's new energy storage installations were 243MW/456MWh, with a capacity down 7% year - on - year and up 12% month - on - month. Large - scale energy storage boomed, while household energy storage continued to be weak [29]. - In the UK, large - scale energy storage in Q2 2025 increased by 141% year - on - year, and the annual new installation is expected to be 3.4GWh, a 17% increase year - on - year. In Italy, the new installation in Q1 2025 decreased by 57.8% year - on - year, and the annual new installation is expected to be 5.1GWh, a 15% decrease year - on - year [33]. 3.2.3 Emerging Countries Installation: Slow Commissioning Speed, Planned Scales Keep Increasing - In Chile, the actual commissioning speed is slow, but the planned scale has increased significantly. The annual new installation is expected to be 4.3GWh, an 83% increase year - on - year [35][36]. - In Australia, the energy storage market construction accelerated in Q1 2025. The annual new installation is expected to be around 10GWh. In India, the mandatory energy storage policy has brought new increments [38][39]. 3.2.4 Energy Storage Battery and Inverter Export Tracking: Exports Recover, Overseas Demand is Stable and Positive - In June 2025, energy storage battery exports rebounded to 8.5GWh, a 35.2% year - on - year and 54.7% month - on - month increase. Inverter exports decreased to 512.9 million units, a 12.4% year - on - year and 13.1% month - on - month decrease [40]. - In June, exports to the US and Europe showed different trends. The cumulative exports of inverters to Europe from January to June increased by over 40% year - on - year, indicating strong European demand [40]. 3.3 Energy Storage Industry Price Tracking: Domestic Energy Storage System Bid Price Rebounds, Overseas Prices Remain Stable 3.3.1 Domestic Energy Storage - related Prices: Battery Cells Remain Stable, Terminal Bid Price Rebounds - In June, the average bid price of 2 - hour energy storage systems was 0.64 yuan/Wh, a 16.6% month - on - month increase, while that of 4 - hour systems was 0.432 yuan/Wh, a 9.6% month - on - month decrease [42]. - In June, energy storage battery cell prices remained stable. Enterprises' profits have recovered but are still at a low level. Inventory may face upward pressure after the end of the domestic rush - installation [48]. 3.3.2 Overseas Energy Storage - related Prices: Energy Storage System Prices Remain Flat, European Residential Electricity Prices Rise Slightly - In recent months, overseas energy storage system prices have remained stable. The US price is 0.835 yuan/Wh, Europe and Australia are 0.755 yuan/Wh, and Chile, South Africa, and the Middle East are 0.59 yuan/Wh [50]. - In June, European residential electricity prices rose slightly. Due to weak natural gas prices and soft Asian demand, European electricity prices are expected to fluctuate weakly [53]. 3.4 Policy Tracking: Independent Energy Storage Market Entry Accelerates, Capacity Subsidies are Imminent - From June to July, nine important energy - storage - related policies were introduced, focusing on power market mechanisms and energy storage subsidies. Independent energy storage marketization is accelerating, and capacity subsidy mechanisms in some regions are expected to improve project profitability [4][55].

Group 1 - TikTok is enhancing its presence in Latin America, emphasizing the need for localized systems to overcome barriers in logistics, payments, regulations, and culture for sustainable growth in this market [2] - The Chinese cross-border e-commerce platforms are competing to tap into the next trillion-dollar market by establishing localized capabilities [2] Group 2 - The Chinese Ministry of Commerce is promoting the healthy and orderly development of the second-hand car export market, with a focus on quality and safety [9] - In the first five months of 2024, Shenzhen exported electric vehicles worth 11.18 billion yuan, marking a year-on-year increase of 16.7% [9] - A new automotive logistics route has been established between China and the UAE, facilitating the export of nearly 4,000 domestic vehicles [9] Group 3 - Indonesia and Saudi Arabia signed cooperation agreements worth $27 billion, covering various sectors including clean energy and healthcare [10] - Alibaba Cloud plans to invest over 400 million yuan to support international partner ecosystem development, focusing on market activities and training [10] - Siemens announced that the U.S. has lifted export restrictions on chip design software to China, allowing full access for Chinese customers [10]

Policy Overview - In April 2025, a total of 64 energy storage-related policies were released or solicited for opinions, with 8 at the national level and the rest at the local level, primarily from Guangdong, Shandong, Anhui, and Zhejiang [2][9] - Among the 64 policies, 39 were classified as very important, accounting for 61% of the total [2][3] National Policies - The National Development and Reform Commission and the National Energy Administration announced the first batch of pilot cities for vehicle-grid interaction, identifying 9 cities and 30 pilot projects [7] - A list of 101 green low-carbon advanced technology demonstration projects was published, with over 50 energy storage projects totaling more than 5.4 GW/24 GWh [7] - The basic rules for the electricity auxiliary service market were released, allowing new business entities like energy storage companies to participate [7][8] Local Policies - Guangdong and Anhui provinces released their 2025 key project plans, with Guangdong listing 1,443 key projects, including 20 energy storage projects with a total capacity exceeding 3,406 MW/7,012 MWh [9] - The Anhui provincial government announced 11 energy storage-related projects, including 7 pumped storage projects and 4 energy storage stations [9] - Jiangxi province established a complete market system for independent energy storage, allowing independent storage stations to send electricity to the grid without bearing transmission and distribution costs [9] Energy Storage Development Plans - Jilin province aims to achieve a new energy storage scale of at least 1 GW by 2027 and 3 GW by 2030 [10] - Hefei city plans to build 60 new energy storage stations with a total capacity exceeding 1 GW by the end of 2025 [10] New Energy and Storage Integration - Henan province announced the implementation of the eighth batch of source-network-load-storage integration projects, including 42 projects across various categories [12] - Dongguan city set a target for distributed photovoltaic capacity to reach 3 million kW by the end of 2025, with a requirement for energy storage systems [12] Electricity Market Policies - Qinghai province initiated the second trial operation of its electricity spot market, allowing energy storage stations to participate in trading [14] - The Guangdong Electricity Trading Center issued implementation details for the electricity market, including spot energy trading and market registration [15] Auxiliary Services Policies - The National Energy Administration released operational rules for the Northeast electricity auxiliary service market, setting price limits for real-time deep peak shaving transactions [18] - Independent energy storage stations are allowed to provide frequency regulation auxiliary services [19] Electricity Pricing Policies - Anhui province proposed adjustments to peak and valley pricing policies, including changes to time slots for peak and low valley periods [21] - Jiangxi province also announced improvements to its time-of-use pricing mechanism [21] Subsidy Policies - Guangzhou city introduced a funding management approach to support the development of new energy storage industries, offering rewards for projects included in national and provincial pilot programs [24] Management Norms - Hangzhou city released fire design guidelines for electrochemical energy storage stations, focusing on safety measures [25] - The East China Energy Regulatory Bureau announced safety enhancement projects for energy storage stations [26] Demonstration Projects - Shanxi province announced adjustments to its new energy storage project library, including 119 new projects with a total capacity of 24.1 GW/47.15 GWh [28] - Jiangxi province is soliciting applications for provincial-level independent energy storage pilot demonstration projects [28]