Summary of the Conference Call for Multi-Fluoro Co., Ltd. Company Overview - **Company**: Multi-Fluoro Co., Ltd. - **Industry**: New Energy Materials, Lithium Battery, Electronic Information Materials Key Points and Arguments Financial Performance - In the first half of 2025, Multi-Fluoro reported a revenue of 4.328 billion yuan, a decrease of 6.65% year-on-year [4] - Net profit attributable to shareholders was 51.33 million yuan, down 16.55% year-on-year [4] - Revenue breakdown: - Inorganic New Materials: 1.315 billion yuan (30.35%) - Electronic Information Materials: 240 million yuan (5.5%) - New Energy Materials: 1.514 billion yuan (34.97%) - New Energy Batteries: 1.095 billion yuan (35.3%) [4] Sales and Production - New energy materials and batteries saw significant sales growth: - New energy materials sales increased by 31.4% - New energy batteries sales surged by 136% [2] - Lithium battery shipments reached 3GWh in the first half, with expectations of over 50% growth in the second half, totaling 8.5GWh for the year [10] - The company plans to maintain a production capacity of 5.5 million tons of lithium hexafluorophosphate in 2025, with no new capacity plans unless market conditions improve [5][6] Market Dynamics - The electronic information materials segment faced a 45% decline in sales due to the downturn in the photovoltaic industry [2][4] - The company is shifting focus towards semiconductor and chip clients, despite longer certification cycles [3][24] - The small power battery market is expected to grow significantly, with strong demand for two-wheeled vehicles and energy storage [14] Pricing and Cost Management - The rise in lithium carbonate prices has alleviated cost pressures, with expectations for improved profitability in Q4 2025 [12] - The company does not have plans for proactive price increases but will adjust prices in line with lithium carbonate fluctuations [12] - Aiming for a gross margin target of 10-15%, with challenges to exceed 20% [13] Strategic Initiatives - Multi-Fluoro is exploring the Southeast Asian market for small power batteries, where demand is high and supply is currently insufficient [2][14] - The company has a planned 20,000-ton expansion project that can be initiated quickly if market demand increases [7] - The company is also involved in solid-state battery development, focusing on material compatibility and cost reduction [20][21] Challenges and Future Outlook - The electronic information materials segment is expected to continue facing challenges due to the photovoltaic sector's struggles [23] - The company anticipates that the overall market conditions will improve, allowing for potential capacity expansion in 2026 if demand rises [6][25] - The company is cautious about the construction of new facilities in South Korea due to regulatory and market uncertainties [11] Conclusion - Multi-Fluoro Co., Ltd. is navigating a complex market landscape with a focus on expanding its new energy materials and battery segments while managing cost pressures and shifting strategic priorities towards semiconductor applications. The company remains optimistic about future growth opportunities, particularly in the small power battery market and potential recovery in the lithium market.

Core Viewpoint - Gotion High-Tech is strategically entering the small power battery market, aiming to create a third growth engine by focusing on technological innovation and product upgrades in collaboration with Hefei Lujiang High-tech Zone [2][3]. Group 1: Market Expansion - Gotion High-Tech's subsidiary, Hefei Gotion Jitai Battery Technology Co., is the key player in the small power battery strategy, targeting applications in electric two-wheelers, three-wheelers, low-altitude aircraft, electric ships, and construction machinery [4]. - The electric two-wheeler market in China has over 400 million units, with a lithium battery penetration rate below 10%, indicating a potential market worth hundreds of billions due to the "lead-acid to lithium" technology shift [4]. - The daily electricity consumption of new energy vehicles in China is only 3.3 billion kWh, representing 1.2% of the national average, suggesting significant market potential for energy storage lithium batteries [4]. Group 2: Battery Market Data - In 2024, the shipment volume of lithium batteries for electric two-wheelers in China is projected to be 9.3 GWh, a year-on-year increase of 4.5%, with expectations to reach 10.1 GWh in 2025, growing by 8.6% [5]. - The shipment volume for electric three-wheeler batteries is expected to reach 0.9 GWh in 2024, a 28.6% increase, with projections of 9.4 GWh by 2030 [5]. - The shipment volume for lithium batteries in electric tools is anticipated to be 22.1 GWh in 2024, growing by 18.2%, and 24.6 GWh in 2025, an 11.3% increase [5]. Group 3: Technological Advancements - Gotion High-Tech has developed a comprehensive product matrix covering various battery types, including square, cylindrical, soft-pack, and technologies such as lithium iron phosphate, ternary, manganese iron phosphate, sodium batteries, and solid-state batteries [7]. - The company has previously partnered with Didi Chuxing to enter the shared electric bicycle market, utilizing large cylindrical batteries, which currently have a penetration rate of about 45% in the two-wheeler lithium battery market [7]. Group 4: Financial Performance - In 2024, Gotion High-Tech's total shipment volume is estimated at 63 GWh, with energy storage shipments reaching 22.05 GWh, a 200% year-on-year increase [8]. - The company's revenue for 2024 is projected to reach 35.392 billion yuan, an 11.98% increase year-on-year, with net profit attributable to shareholders at 1.207 billion yuan, up 28.56% [8]. - The revenue from the power battery business is expected to be 25.648 billion yuan, accounting for 72.47% of total revenue, while energy storage battery revenue is projected at 7.832 billion yuan, making up 22.13% of total revenue [8]. Group 5: Investment and Infrastructure - Gotion High-Tech has invested significantly in Hefei, with plans for over 80 GWh of production capacity and hundreds of billions in investment to establish a comprehensive new energy industry chain [15]. - The company has established a complete new energy industry chain in Lujiang, with projects ranging from lithium iron phosphate to high-nickel ternary battery materials and battery recycling [12][14]. - Gotion High-Tech is also collaborating with Jin Jing New Energy to build a battery recycling and after-sales service system, planning to establish 100 service outlets globally [13].