Investment Rating - The industry investment rating is "Accumulate" [1] Core Insights - SAIC Motor Group has successfully implemented a semi-solid-state battery in its MG4 model, priced at 100,000 RMB, which balances performance and cost. The battery features a reduced electrolyte content of 5%, enhancing safety and low-temperature performance. It achieves an energy density of 400 Wh/kg, supports 12-minute fast charging for a range of 400 km, and has a cycle life improved by over 30% compared to traditional batteries [5] - The dry process technology is crucial for performance and cost efficiency. Qingtao Energy has achieved a pilot production of dry process positive electrodes, which significantly reduces costs by eliminating solvents and lowering energy consumption. This breakthrough lays the foundation for mass production of semi-solid-state batteries [5] - The solid-state battery industry is accelerating, with domestic and international manufacturers actively working on production lines. Companies like CATL, Qingtao, and BYD are establishing pilot lines for solid-state batteries, while QuantumScape and Solid Power are making strides in their respective technologies [5] - Investment recommendations highlight that equipment manufacturers are likely to benefit first from the acceleration of solid-state battery industrialization. Key recommendations include solid-state battery equipment suppliers such as XianDao Intelligent, laser welding equipment manufacturers like LianYing Laser, and formation and capacity equipment suppliers like HangKe Technology [5] Summary by Sections Industry Trends - The solid-state battery industry is witnessing rapid advancements, with significant progress in dry process technology and increased collaboration among manufacturers [5] Key Developments - The introduction of semi-solid-state batteries by SAIC Motor Group marks a significant milestone in the industry, showcasing improved safety, energy density, and performance in low temperatures [5] - Qingtao Energy's success in dry process technology represents a pivotal moment for cost reduction and efficiency in battery manufacturing [5] Investment Opportunities - The report emphasizes the potential for equipment suppliers to lead in benefits from the solid-state battery industry's growth, recommending specific companies for investment [5]

Summary of Soft Control Co., Ltd. Conference Call Company Overview - Soft Control Co., Ltd. specializes in lithium battery equipment, providing both wet and dry process equipment. The wet process is already in use with domestic customers, while the dry process is in discussions with universities and potential clients. The solid-state battery production lines are currently small-scale, mostly in laboratory or pilot testing stages, with some actual transaction contracts signed with domestic clients [2][6]. Key Points and Arguments Industry and Market Position - The company provides front-end equipment for lithium batteries, including material conveying, mixing, and coating, with an investment of approximately 20 million to 30 million yuan per GWh, accounting for about 20% of total investment [2][8]. - Soft Control's main clients include top domestic companies such as CATL, EVE Energy, Guoxuan High-Tech, and BYD [3]. - The company has a competitive edge in material conveying, while competitors like Hong Kong Technology excel in mixing [4][5]. Technical Challenges and Developments - The dry process for solid-state battery production faces significant technical challenges, including material uniformity, fiberization avoidance, hydrogen sulfide leakage, and precision temperature control during rolling [9]. - Currently, very few companies in China are capable of mass-producing solid-state batteries using the dry process, with most still in the research or small-scale testing phase [9][12]. Future Outlook and Orders - Orders for lithium battery equipment are primarily in pilot or mass production stages, with a production line capacity reaching 0.5 GWh, mainly targeting end users [2][11]. - The company anticipates an increase in orders for wet process solid-state batteries in the second half of this year and into next year, as discussions with clients progress [11]. Global Expansion and Strategy - Since 2024, Soft Control has actively expanded into overseas markets, leveraging the group's extensive global network to enhance local service capabilities [10][11]. - The company aims to meet international customer demands and further develop its global business [11]. Financial and Operational Insights - The delivery cycle for traditional lithium battery equipment typically spans 12 to 18 months, while rubber machinery has a shorter cycle of about 6 to 9 months [7][17]. - The company maintains a stable order situation in the rubber machinery sector, with expectations for steady performance through the first half of next year [13]. Research and Development - Soft Control invests approximately 4% to 5% of its total revenue in R&D annually, continuously introducing new products and processes to support future order growth [23]. Additional Important Information - Solid-state batteries are primarily used in sectors that prioritize safety and endurance over cost, such as drones, while their application in the electric vehicle market remains limited due to high costs [12]. - The company’s rubber machinery orders are expected to peak around 2025-2026 before gradually declining, influenced by the tire industry's investment trends [13].

Investment Rating - The report initiates coverage with a "Buy" rating for the company [2][5]. Core Insights - The company is focusing on dry process technology, which is expected to replace traditional wet processes in battery manufacturing, leading to significant cost savings and efficiency improvements [2][4]. - The company has established a joint venture, Qingyan Nako, to enhance its capabilities in dry electrode equipment, which is becoming a core component in future battery manufacturing [2][34]. - The performance of the company's roller press machines is leading the market, with strong partnerships with major new energy companies enhancing its competitive position [2][4]. Financial Projections - Expected revenues for 2025, 2026, and 2027 are projected to be 1.58 billion, 2.37 billion, and 3.56 billion RMB respectively, with net profits of 244 million, 362 million, and 544 million RMB [2][4]. - The company anticipates a revenue growth rate of 50% for 2025 and 2026, and 50.46% for 2027 [4]. Company Overview - The company specializes in high-precision lithium battery roller press equipment, with a focus on dry process technology for electrode production [16][25]. - It has received various accolades, including being recognized as a "National High-tech Enterprise" and a "Specialized and Innovative Small Giant" [16]. Market Trends - The dry process technology is gaining traction due to its compatibility with solid-state batteries, which are expected to see significant growth in the coming years [2][69]. - The overall lithium battery market is projected to grow, with a notable increase in demand for roller press equipment as manufacturers shift towards dry processing methods [2][66].

Summary of Solid-State Battery Equipment Conference Call Industry Overview - The solid-state battery technology is identified as a future trend, driven by key factors such as energy density and safety, presenting investment opportunities particularly in the equipment sector during the expansion and pilot testing phases [1][2][3] Core Insights and Arguments - **Solid-State Battery Advantages**: Solid-state batteries are viewed as the ultimate solution due to their higher energy density and safety, aligning with the overall direction of battery technology development [2][3] - **Investment in Equipment**: The equipment sector is expected to see continuous investment opportunities this year, especially for expansion and pilot testing, which require substantial equipment support [2][3] - **Cost and Production**: The production line for solid-state batteries requires approximately 1.1 billion yuan for front-end equipment and about 80 million yuan for mid-stage equipment, with total investment being double that of traditional liquid batteries [1][6] Key Technologies and Processes - **Half-Solid-State Battery Process**: The core technologies include in-situ curing and stacking techniques, which are compatible with existing liquid production lines and reduce costs while addressing interface issues [1][3] - **Full Solid-State Battery Innovations**: The full solid-state battery process replaces traditional wet methods with dry electrode manufacturing, increasing the value of single equipment by over 50% [1][4] - **Lithium Sulfide Cost Impact**: Lithium sulfide accounts for approximately 70% to 80% of the solid-state battery electrolyte cost, with potential cost reductions if domestic production increases [6] Equipment Investment Breakdown - **Front-End Equipment**: Investment focuses on dry electrode preparation and lithium sulfide electrolyte preparation, with significant suppliers including Xingdao, Manste, and Hai Moxing [7][11] - **Mid-Stage Equipment**: Investment is concentrated on stacking and isostatic pressing, with key suppliers being Liyuanheng and Hai Moxing [8][10] - **Investment Composition**: The front-end production segment includes dry electrodes, rolling film formation, and laser/ion beam cutting, with significant attention on the electrode and rolling film segments [9][10] Market Dynamics and Future Outlook - **Current Market Status**: The solid-state battery market is currently in a "mid-game pause," but equipment companies still present investment opportunities, with expected growth of 30% to 40% in the future [17] - **Focus on Undervalued Companies**: There is a recommendation to prioritize investment in undervalued equipment companies before expanding focus to material sectors [17] Additional Important Insights - **Technological Barriers**: The isostatic pressing stage is identified as a critical bottleneck with low domestic production rates, indicating a need for increased focus on companies involved in this area [5][8] - **Emerging Technologies**: PVD and CVD technologies are highlighted for their potential applications in solid-state battery manufacturing, particularly in lithium metal film preparation and copper foil treatment [16][17] This summary encapsulates the key points from the conference call regarding the solid-state battery industry, highlighting investment opportunities, technological advancements, and market dynamics.

Summary of Solid-State Battery Conference Call Industry Overview - The focus is on the solid-state battery industry, specifically the development and production processes of solid-state batteries, including the materials and equipment involved. Key Points and Arguments 1. **Material Composition and Production Process** - The company uses high-nickel ternary materials for the positive electrode and high-silicon carbon for the negative electrode, transitioning to dry processing by Q4 2024, with current thickness at 70-80 microns for the negative electrode [1][2][3] - The cell capacity is currently 50-60Ah, expected to increase to 70-80Ah by Q3 2025, with cycle life improving from 500-600 to 800-1,000 cycles, and energy density reaching over 800-1,000 km [1][2][3] 2. **Production Capacity and Equipment** - The pilot line capacity has surpassed 0.5 GWh, with actual production at 0.1-0.2 GWh. Key equipment partners include Galaxy, Xian Island, and Qingyan Narl [1][3] - The estimated cost for a solid-state battery production line with 0.2 GWh capacity is under 30 million yuan, with front-end processes accounting for 40-50% of costs [1][5] 3. **Technical Challenges** - Major challenges include the powdering of positive and negative electrodes, with current thickness at 40-50 microns needing optimization. Production speed is significantly lower than that of liquid batteries (3 m/min vs. 60-80 m/min) [1][6] - The choice of binder during the transition from liquid to solid phase for the positive electrode is critical, as is the compatibility of coating thickness and density [2][9] 4. **Equipment and Supplier Considerations** - The company collaborates closely with equipment manufacturers like Galaxy and Xian Island, preferring those with a strong cooperative history. New entrants like Qingyun and Xinyuren are also considered for their superior binder distribution capabilities [4][8][10] - The equipment demand is high, with a planned investment exceeding 500 million yuan, and the distribution of costs is approximately 50% for front-end, 15-20% for mid-stage, and 25% for back-end processes [12] 5. **Market Dynamics and Material Costs** - The price of pure silicon-carbon anodes has decreased from 600,000-700,000 yuan last year to 400,000-500,000 yuan this year, indicating a significant drop [28] - The company is exploring both external procurement and in-house development of solid-state electrolytes, with a preference for materials that offer better performance at a lower cost [24][30] 6. **Future Outlook** - The commercialization of solid-state batteries is anticipated to occur in 2026, with current projects not expected to significantly increase the application of silicon-carbon anodes this year [29] - The development of lithium metal technology is still in early stages, with concerns over lithium dendrite formation and the need for suitable carriers to contain lithium metal [32] Additional Important Information - The solid-state battery production line's efficiency is heavily reliant on the optimization of the heating system and the uniformity of material mixing [6][10] - The company is cautious about relying solely on major suppliers for materials, preferring to maintain flexibility in sourcing to avoid potential price increases post-commercialization [25][30]

Core Viewpoint - The lithium battery industry is experiencing an urgent demand for innovation in processes and equipment, with companies racing to adopt new technologies like dry electrode processes and solid-state batteries to capture market share and disrupt existing market structures [4][6]. Group 1: Dry Process Technology - The success of dry process technology is not merely about equipment but requires a systemic innovation involving materials, processes, and equipment [5]. - The goal of Qingyan Electronics is to control the density fluctuation of dry film to within 0.3%, matching the top levels of wet coating machines [5]. - By 2027, it is expected that dry electrode technology will enter a phase of industrialization, with more companies investing in production lines [5][24]. Group 2: Industry Challenges and Developments - Companies like Guoxuan High-Tech are facing significant challenges in engineering and scaling up production lines for semi-solid batteries, indicating that adjustments to existing wet production lines are insufficient [6]. - The dry process offers clear advantages, such as eliminating solvents, which leads to cost reductions and environmental benefits, while also improving electrode density and energy density [7]. - The integration of multiple production steps into a streamlined process significantly reduces production and investment costs, as seen in Tesla's adoption of this technology [7]. Group 3: Qingyan Electronics' Position - Qingyan Electronics has demonstrated three core advantages: deep technical roots from Tsinghua University, strong industry collaboration, and leading scale validation with the first fully automated dry electrode production line of 0.1 GWh launched in April 2025 [8]. - The company has achieved a material discharge rate of 99.5%, significantly higher than the industry average of about 95%, which is crucial for batch stability and precision [9]. - Qingyan's second-generation equipment has improved the uniformity of film density, targeting a fluctuation control of 0.3%, which is a leading level compared to wet coating machines [10]. Group 4: Market Trends and Future Outlook - The demand for dry process technology is particularly strong among automotive manufacturers, driven by cost considerations and the influence of companies like Tesla [22]. - The market for dry process technology is expected to grow, with both new production lines and retrofitting of existing wet lines being viable options, although the immediate focus is on new capacity [23]. - The anticipated timeline for large-scale industrialization of dry electrode technology is set for 2027, marking a pivotal year for the industry [24].

Investment Rating - The report maintains a "Positive" outlook on the solid-state battery industry, highlighting its potential as a next-generation battery technology with significant attention from the entire industry chain [4][9]. Core Viewpoints - Solid-state batteries face dual challenges of process and cost, but recent advancements indicate a consensus on mass production by 2027, with key players in the automotive and battery sectors actively releasing products [9][12]. - The manufacturing of solid-state batteries requires a comprehensive reconstruction of equipment and processes due to fundamental differences in material compatibility and bonding logic compared to liquid lithium-ion batteries [21][22]. - Equipment development is crucial for achieving scale production and cost reduction, with dry processing techniques being identified as effective methods for lowering costs and improving efficiency [22][34]. Summary by Sections Industry Overview - The solid-state battery industry is gaining traction, with a clear direction and trend towards mass production by 2027, driven by collaboration across the supply chain [4][9]. Manufacturing Challenges - The transition from laboratory to mass production faces significant technical challenges, particularly in scaling up cell sizes from the current average of 20Ah to the required 60Ah for automotive applications [12][21]. - Key challenges include the stability of material systems, consistency of processes, and safety of systems, all of which impact yield rates, production efficiency, and costs [12][21]. Equipment and Process Innovations - The report emphasizes the need for innovative equipment and processes, particularly in the areas of solid electrolyte film production and interface engineering, to address the unique requirements of solid-state batteries [21][35]. - Dry processing techniques are highlighted as essential for the production of solid-state batteries, offering advantages in efficiency and environmental impact [22][34]. Investment Recommendations - The report suggests focusing on companies that are closely collaborating with clients and have secured orders or achieved delivery in the key equipment sector, such as Naconor (832522), Honggong Technology (301662), and others [4][9].