Core Viewpoint - The company, Zhongwei Co., Ltd. (300919.SZ), is focusing on high nickel and ultra-high nickel materials for solid-state battery precursors, with significant market shares projected for 2024 [1]. Group 1: Market Position - According to Frost & Sullivan, the global market share for the company's high nickel and ultra-high nickel ternary precursors is expected to be 31.7% and 89.5% respectively in 2024 [1]. - The company is collaborating with leading domestic and international solid-state battery clients, launching products such as "9-series single crystal positive electrode material precursors" and "ultra-fine particle lithium-rich manganese-based material precursors" [1]. Group 2: Research and Development - The company's research direction is evolving from high nickel to ultra-high nickel and lithium-rich manganese-based materials, which will enhance the energy density of all-solid-state batteries [1]. - The company has achieved relevant certifications and is supplying over fifty tons of these materials [1].

Report Summary 1. Report Industry Investment Rating No information provided. 2. Core View of the Report The lithium carbonate futures main contract showed a volatile and slightly stronger trend, with an increase of 0.93% at the close. The fundamentals suggest stable supply and positive demand expectations. The option market sentiment is bullish, and the implied volatility has slightly increased. Technically, the 60 - minute MACD shows the double - line above the 0 - axis with an expanding red column. The recommended operation is to go long on dips with a light position and control risks by paying attention to the trading rhythm [2]. 3. Summary According to Relevant Catalogs Futures Market - The main contract closing price was 74,040 yuan/ton, up 1,160 yuan; the net position of the top 20 was - 167,185 hands, down 8,304 hands. - The main contract open interest was 261,141 hands, up 487 hands; the spread between near - and far - month contracts was - 260 yuan/ton, down 80 yuan/ton. - The Guangzhou Futures Exchange warehouse receipts were 39,749 hands/ton, up 300 hands [2]. Spot Market - The average price of battery - grade lithium carbonate was 73,750 yuan/ton, down 100 yuan; the average price of industrial - grade lithium carbonate was 71,500 yuan/ton, down 100 yuan. - The basis of the Li₂CO₃ main contract was - 290 yuan/ton, down 1,260 yuan [2]. Upstream Situation - The average price of spodumene concentrate (6% CIF China) was 876 US dollars/ton, unchanged; the average price of amblygonite was 7,285 yuan/ton, up 75 yuan. - The price of lithium mica (2 - 2.5%) was 2,645 yuan/ton, unchanged [2]. Industry Situation - The monthly lithium carbonate output was 45,880 tons, up 1,280 tons; the monthly import volume was 21,846.92 tons, up 8,001.60 tons. - The monthly export volume was 368.91 tons, up 2.56 tons; the monthly enterprise operating rate was 46%, down 2 percentage points. - The monthly power battery output was 139,600 MWh, up 5,800 MWh [2]. Downstream and Application - The output and sales of new energy vehicles increased, with the monthly output at 1,391,000 vehicles, up 148,000 vehicles, and the monthly sales at 1,395,000 vehicles, up 133,000 vehicles. - The cumulative sales penetration rate of new energy vehicles was 45.53%, up 0.54 percentage points; the cumulative sales were 9,620,000 vehicles, up 2,583,000 vehicles. - The monthly export volume was 224,000 vehicles, down 10,000 vehicles; the cumulative export volume was 1.532 million vehicles, up 714,000 vehicles [2]. Option Situation - The total call open interest was 217,754 contracts, up 5,066 contracts; the total put open interest was 104,293 contracts, down 1,074 contracts. - The total open - interest put - call ratio was 47.89%, down 1.6458 percentage points; the at - the - money IV implied volatility was 0.43%, up 0.0225 percentage points [2]. Industry News - Whensheng Technology introduced its progress in solid - state lithium battery cathode materials, lithium - rich manganese - based materials, etc. - Cui Dongshu of the Passenger Car Association was optimistic about the automotive industry during the "15th Five - Year Plan" period, expecting a total output of 40 million vehicles. - Enjie Co., Ltd. announced that its pilot production line of lithium sulfide was completed and in the process of capacity ramping [2].

Group 1: Market Overview and Competition - The company views both ternary materials and lithium iron phosphate (LFP) as mainstream lithium battery cathode materials with significant market demand and application differences [2][3] - Ternary materials are primarily used in long-range electric vehicles and emerging markets like drones and eVTOLs, while LFP is focused on mid-range electric vehicles and energy storage [3] - The company has diversified its product offerings in both ternary materials and LFP, achieving significant sales growth, with LFP monthly shipments nearing 10,000 tons [3][4] Group 2: Financial Performance - In the first half of 2025, the company achieved a revenue of CNY 443,249.77 million, a year-on-year increase of 25.17% [4] - The net profit attributable to shareholders was CNY 31,115.43 million, reflecting an 8.47% year-on-year growth [4] Group 3: Solid-State Battery Materials - The company has established a comprehensive layout in solid-state lithium battery materials, including oxides, sulfides, and halides [5] - It has developed semi-solid and all-solid-state cathode materials that address safety and performance issues, achieving industry-leading technology [5][6] - In the first half of 2025, solid-state lithium materials saw significant growth, with sulfide solid-state battery cathode materials achieving ton-level shipments [8] Group 4: Lithium Manganese Rich Materials - The company has developed two generations of lithium manganese-rich materials, achieving industry-leading performance in capacity and density [9][10] - Key customer development has been completed, with shipments reaching hundreds of kilograms [10] Group 5: Phosphate Lithium Iron Production Capacity - The company has a strong technical foundation for LFP, with plans to build a production capacity of 300,000 tons/year in Panzhihua, Sichuan [11] - The first phase of 120,000 tons/year is underway, with 40,000 tons already completed and operational [11] - The second phase is expected to be completed and operational by the second half of 2025, significantly boosting production capacity [11] Group 6: Competitive Advantages - The company emphasizes comprehensive competitive advantages in technology, customer relationships, product quality, and cost management [12] - It has established long-term partnerships with major global battery manufacturers and automakers, ensuring a stable customer base [12] - The company is focused on innovation and efficiency in production processes, maintaining industry-leading manufacturing capabilities [12] Group 7: International Market Development - The company has expanded its international customer base, with a growing proportion of international clients in the first half of 2025 [13] - Strategic agreements with international clients like LG and SK are expected to drive future growth [13] - The Finnish production base is under construction, aimed at meeting local supply demands and enhancing international market presence [13]

Investment Rating - The investment rating for the company is "Outperform the Market" [6][4][23] Core Views - The company has seen a rapid increase in shipments of cobalt and phosphate materials, maintaining a leading position in ternary precursors [1][2] - The demand for cobalt tetroxide has surged due to a recovery in the consumer electronics market, resulting in a 30% year-on-year revenue increase to 1.45 billion yuan in H1 2025 [2] - The company is actively developing solid-state battery materials and enhancing the efficiency of phosphate resource development [3] Financial Performance Summary - In H1 2025, the company achieved a revenue of 21.32 billion yuan, a year-on-year increase of 6%, with a net profit of 733 million yuan, down 15% year-on-year [1] - The gross margin for H1 2025 was 12.10%, a decrease of 0.67 percentage points year-on-year, while the net margin was 3.30%, down 2.46 percentage points year-on-year [1] - The company’s cobalt products performed well, with cobalt tetroxide revenue increasing by 30% year-on-year to 1.45 billion yuan, and production rising by 34% to 16,000 tons [2] - The ternary precursor revenue decreased by 15% year-on-year to 7.49 billion yuan, with production down 20% to 91,700 tons, but still maintaining the top global position [2] - Phosphate iron revenue surged by 172% year-on-year to 670 million yuan, with production increasing by 388% to 71,800 tons [3] - The company’s new energy metal products generated 9.27 billion yuan in revenue, a 44% year-on-year increase, despite a decline in profitability due to nickel price fluctuations [3] Earnings Forecast and Financial Indicators - The company’s earnings forecast for 2025-2027 has been adjusted to net profits of 1.723 billion yuan, 2.133 billion yuan, and 2.586 billion yuan respectively, reflecting year-on-year growth of 17%, 24%, and 21% [4][5] - The expected earnings per share (EPS) for 2025, 2026, and 2027 are projected to be 1.84 yuan, 2.27 yuan, and 2.76 yuan respectively, with dynamic price-to-earnings ratios of 24.5, 19.8, and 16.3 [4][5] - The company’s revenue is expected to grow from 34.27 billion yuan in 2023 to 60.47 billion yuan in 2027, with a compound annual growth rate of approximately 8.9% [5][21]

Investment Rating - The investment rating for the company is "Outperform the Market" [6][4][23] Core Views - The company has seen a rapid increase in shipments of cobalt and phosphate materials, maintaining a leading position in ternary precursors [1][2] - The demand for cobalt tetroxide has surged due to a recovery in the consumer electronics market, resulting in a 30% year-on-year revenue increase to 1.45 billion yuan in H1 2025 [2] - The company is actively developing solid-state battery materials and enhancing the efficiency of phosphate resource development [3][2] Financial Performance Summary - In H1 2025, the company achieved a revenue of 21.32 billion yuan, a year-on-year increase of 6%, with a net profit of 733 million yuan, down 15% year-on-year [1] - The gross margin for H1 2025 was 12.10%, a decrease of 0.67 percentage points year-on-year, while the net margin was 3.30%, down 2.46 percentage points year-on-year [1] - The company’s cobalt products performed well, with cobalt tetroxide revenue increasing by 30% year-on-year to 1.45 billion yuan, and production rising by 34% to 16,000 tons [2] - The ternary precursor revenue decreased by 15% year-on-year to 7.49 billion yuan, with production down 20% to 91,700 tons, but still maintaining the top global position [2] - Phosphate iron revenue surged by 172% year-on-year to 670 million yuan, with production increasing by 388% to 71,800 tons [3] Earnings Forecast and Financial Indicators - The company’s earnings forecast for 2025-2027 has been adjusted to net profits of 1.723 billion yuan, 2.133 billion yuan, and 2.586 billion yuan respectively, reflecting a year-on-year growth of 17%, 24%, and 21% [4][5] - The projected earnings per share (EPS) for 2025-2027 are 1.84 yuan, 2.27 yuan, and 2.76 yuan, with dynamic price-to-earnings ratios (PE) of 24.5, 19.8, and 16.3 respectively [4][5] - The company’s revenue is expected to grow from 34.27 billion yuan in 2023 to 60.47 billion yuan in 2027, with a compound annual growth rate (CAGR) of approximately 12.9% [5][21]

Core Viewpoint - Shenzhen Sufang New Energy Technology Co., Ltd. has completed a tens of millions RMB angel round financing, which will be used for the research and development of lithium-rich manganese-based cathode materials and production line construction [1] Company Overview - Sufang New Energy was established in 2023 and focuses on developing ultra-low voltage drop lithium-rich manganese-based cathode materials. The founder, Liu Qi, is a tenured professor at City University of Hong Kong with over 10 years of experience in lithium-ion battery research [1][5] - The company has successfully overcome the voltage decay issue of lithium-rich manganese-based cathode materials and has already put a hundred-ton production line into operation [1][5] Product Development - Sufang New Energy has developed high-pressure pure lithium-rich manganese-based cathode materials that have been sent to several leading battery manufacturers for sampling [1][3] - The company has also launched a lithium-rich manganese-based cathode lithium supplement product, aiming for commercial breakthroughs in mid-to-low voltage applications [1] Technical Achievements - The voltage decay of lithium-rich manganese-based materials occurs mainly within the first 200 cycles, which is a critical threshold for their application as main materials [3] - The company employs a multi-level precise doping method to stabilize the honeycomb structure of lithium-rich manganese-based materials during production, with research results published in the journal Nature Energy [1][3] Market Strategy - Sufang New Energy is pursuing a two-pronged strategy: long-term investment in high-pressure pure lithium-rich manganese-based cathode materials and the introduction of lithium supplement products to accelerate commercialization [4] - The company aims to develop a lithium-rich manganese-based material that can perform comparably to existing high-nickel ternary materials at 4.5V, with a cost advantage of approximately 30% [4] Future Prospects - The company has initiated a new round of financing to advance research and the construction of a thousand-ton production line [5] - The development trend in lithium-ion batteries includes increasing energy density and reducing costs, with lithium-rich manganese-based materials recognized as the next generation of high-energy cathode materials [5]