Core Viewpoint - 威马电机 is focusing on expanding its motor business, particularly in the wind power and new energy vehicle sectors, with significant progress in both areas [1] Group 1: Wind Power Motor Business - 威马电机 has successfully scaled its main product, the yaw asynchronous motor, and has completed bulk supply to leading domestic wind turbine manufacturers such as Goldwind Technology, Envision Energy, Dongfang Electric, CRRC Wind Power, and Mingyang Smart Energy [1] - The company aims to deepen cooperation with existing top clients in the wind power sector [1] Group 2: New Energy Vehicle Drive System - The new energy vehicle drive system business has made substantial progress, with prototype deliveries completed for multiple cooperative clients, some of which have entered the installation testing and performance validation phase [1] - Testing progress is meeting expectations, and the company plans to optimize product details based on client feedback to lay the foundation for revenue generation in this new business [1] - 威马电机 is targeting both commercial and passenger vehicle markets to transition the drive system business from prototype validation to bulk delivery [1] Group 3: Business Strategy - The company is committed to a "dual expansion" strategy in its motor business, focusing on both wind power and new energy vehicles to enhance market competitiveness and revenue contribution [1]

Core Viewpoint - The company reported strong revenue and profit growth in H1 2025, driven by its lithium battery segment and strategic investments in raw material production [1][2] Financial Performance - In H1 2025, the company achieved revenue of 7.029 billion yuan, a year-on-year increase of 28.97% - The net profit attributable to shareholders was 268 million yuan, up 12.79% year-on-year - The net profit excluding non-recurring items was 235 million yuan, reflecting a growth of 26.01% year-on-year - The lithium battery segment generated revenue of 6.302 billion yuan, with a growth of 33.18% and a gross margin of 17.05%, down 0.06 percentage points - The daily chemical materials and specialty cosmetics segment reported revenue of 614 million yuan, a 12.93% increase, with a gross margin of 30.27%, down 0.51 percentage points [1] Strategic Initiatives - The company is enhancing its cost advantages through an integrated layout and increasing production capacity of key raw materials such as lithium hexafluorophosphate and LiFSI - It has established a high-purity lithium carbonate refining production line and is planning capacity for ore smelting to improve product cost competitiveness - Systematic hedging of lithium carbonate futures and resource acquisition in Nigeria and Zimbabwe are being pursued to ensure supply chain stability - The company is building a circular industrial chain through the recycling of tailings, securing a sustainable cost advantage [1] Technological Development - The company is developing solid-state electrolytes to address future technological advancements, leveraging its existing liquid lithium salt production platform - It has successfully completed kilogram-level production of lithium sulfide-based solid-state electrolytes, forming initial patents and products - This development creates a dual-driven business model of "liquid + solid-state," providing a competitive edge [2] Business Expansion - The company is horizontally expanding into positive electrode materials, battery recycling, and battery adhesives - It possesses industry-leading liquid lithium hexafluorophosphate process technology, with costs below the industry average, gaining recognition from major international clients - In battery recycling, the company has scaled its channel network and collaborated with strategic partners to achieve a closed-loop ecosystem of "resources - materials - recycling" - The specialty chemicals segment, including positive and negative electrode binders and battery adhesives, is experiencing rapid growth and has completed a closed-loop system [2] Investment Outlook - The company is projected to achieve revenues of 16.22 billion yuan, 20.83 billion yuan, and 25.03 billion yuan for the years 2025, 2026, and 2027, respectively - Expected net profits attributable to shareholders are 830 million yuan, 1.32 billion yuan, and 1.98 billion yuan for the same years - Earnings per share (EPS) are forecasted to be 0.44 yuan, 0.69 yuan, and 1.03 yuan, with price-to-earnings (PE) ratios of 50, 32, and 21 times [2]