Core Viewpoint - The renewable energy sector, once a golden opportunity in the A-share market, has faced significant downturns, but recent data indicates a potential recovery as production and sales of new energy vehicles (NEVs) show growth, suggesting a possible reversal in the market trend [1][4]. Group 1: Market Performance - Several renewable energy-related indices have shown a notable recovery this year, with the CSI New Energy Vehicle and CSI New Energy Vehicle Industry indices both increasing over 43% [2]. - Despite the recovery, investors have experienced poor holding performance due to significant drawdowns from 2019 to 2021, with maximum drawdowns exceeding 67% for key indices [2][3]. - The maximum drawdown for various renewable energy ETFs has surpassed 65%, leading to substantial losses for investors who bought at peak levels in 2021 [3]. Group 2: Industry Conditions - The new energy sector has seen a year-on-year increase in production and sales of NEVs by 37.3% and 36.7%, respectively, indicating strong end-user demand [5]. - The industry is experiencing technological advancements, particularly with solid-state batteries, which are optimizing the supply-demand structure and even leading to price increases in certain segments [5]. - The overall valuation of the sector is at historical lows, suggesting significant potential for recovery, especially as the market shifts towards growth sectors by 2025 [5]. Group 3: Future Outlook - There is uncertainty regarding whether the industry can achieve a full reversal this year, but certain conditions for recovery are present [4]. - Leading companies with technological and scale advantages are expected to navigate through the cycle successfully, with a focus on the rise of domestic brands and advancements in automation and autonomous driving [5].