Group 1 - The global sales of new energy vehicles (NEV), including battery electric vehicles (BEV), plug-in hybrid electric vehicles (PHEV), and hydrogen fuel cell vehicles, are projected to reach 4.868 million units in Q2 2025, representing a 30% year-on-year growth. Including hybrid electric vehicles (HEV), total EV sales are expected to hit 6.456 million units, accounting for 29% of total global automobile sales [1] - CITIC Securities expresses a strong positive outlook on the configuration value of core battery assets in China. In the short term, battery prices are stabilizing due to ongoing supply-demand improvements, with lower upstream raw material costs and increased operating rates contributing to additional profit elasticity. The battery sector's performance is expected to exceed expectations [1] - In the medium to long term, the trend of supply-demand improvement remains clear, with electrification of commercial vehicles, AI data centers, and overseas markets likely to bring excess growth to leading companies. Chinese battery core assets are significantly more advantageous in valuation compared to Japanese and Korean companies [1] Group 2 - The CSI New Energy Vehicle Industry Index, which the New Energy Vehicle ETF closely tracks, selects 50 listed companies involved in various aspects of the new energy vehicle industry, reflecting the overall performance of leading companies in this sector [1] - As of July 31, 2025, the top ten weighted stocks in the CSI New Energy Vehicle Industry Index account for 55.33% of the index. These stocks include CATL, Huichuan Technology, BYD, Changan Automobile, and others [2] - The New Energy Vehicle ETF has several off-market connection options, including Ping An CSI New Energy Vehicle ETF Initiated Connection A, C, and E [2]

Group 1 - The report from CITIC Securities expresses a strong positive outlook on the investment value of core battery assets in China, driven by improving supply and demand dynamics [1] - In the short term, by Q2 2025, battery prices are expected to stabilize due to continuous improvement in supply and demand, along with a decrease in upstream raw material costs and increased operating rates, leading to additional profit elasticity [1] - In the medium to long term, the trend of supply and demand improvement remains clear, with electric commercial vehicles, AI data centers, and overseas markets likely to bring excess growth to leading companies [1] - Valuation-wise, China's core battery assets still hold significant advantages over Japanese and Korean companies, with the potential for further valuation uplift as more battery companies list H-shares [1] Group 2 - The New Energy Vehicle ETF closely tracks the CSI New Energy Vehicle Industry Index, with the battery sector accounting for nearly half of its weight [1] - As of July 31, 2025, the top ten weighted stocks in the CSI New Energy Vehicle Industry Index include CATL, Huichuan Technology, BYD, Changan Automobile, Huayou Cobalt, Sanhua Intelligent Control, EVE Energy, Ganfeng Lithium, Tianqi Lithium, and Gree Environmental, collectively accounting for 55.33% of the index [2] - The New Energy Vehicle ETF has several off-market connection options, including Ping An CSI New Energy Vehicle ETF Connect A, C, and E [2]

Group 1 - The recent news of the suspension of lithium mining by CATL has led to a significant increase in lithium carbonate futures prices, which in turn has caused a surge in the stock prices of domestic lithium mining companies, with Ganfeng Lithium's H-shares rising over 22% at one point this week [1] - Eight major dry-process lithium battery separator companies, including Xingyuan Material and Zhongxing New Material, have reached several agreements to combat industry overcapacity, including price discipline, scientific capacity release, and halting expansion [1] - According to Citic Securities' chief analyst Wu Weichen, the battery sector's performance is expected to exceed expectations due to improved supply and demand dynamics, with additional profit elasticity from lower raw material costs and increased operating rates anticipated by Q2 2025 [1] Group 2 - Wu Weichen expresses a strong outlook on the allocation value of China's core battery assets, highlighting that these assets have significant advantages over Japanese and Korean companies, and the valuation of Chinese battery assets is expected to rise further as more battery companies list H-shares [3]

Core Viewpoint - The report from CITIC Securities expresses a strong positive outlook on the investment value of core battery assets in China, highlighting both short-term and long-term growth potential [1] Short-term Outlook - By the second quarter of 2025, battery prices are expected to stabilize due to ongoing improvements in supply and demand, alongside a decrease in upstream raw material costs and increased operating rates, leading to additional profit elasticity [1] - The performance of the battery sector is anticipated to exceed expectations in the near term [1] Long-term Outlook - The trend of supply and demand improvement remains clear, with commercial vehicle electrification, AI data centers, and overseas markets expected to drive significant growth for leading companies [1] - The core battery assets in China are seen to have a significant valuation advantage over Japanese and Korean companies [1] Valuation Perspective - As more battery companies list on the H-share market, the global pricing system is likely to elevate the valuation center of Chinese battery assets further [1]

Core Viewpoint - The company is optimistic about the investment value of core battery assets in China, driven by improving supply and demand dynamics and favorable market conditions [1] Short-term Outlook - In Q2 2025, battery prices are stabilizing due to continuous improvement in supply and demand, with upstream raw material costs decreasing and operational rates increasing, leading to additional profit elasticity [1] - The performance of the battery sector is expected to exceed expectations [1] Long-term Outlook - The trend of supply and demand improvement remains clear, with electric commercial vehicles, AI data centers, and overseas markets likely to provide excess growth for leading companies [1] Valuation Perspective - Chinese battery core assets have a significant advantage over Japanese and Korean companies in terms of valuation [1] - With more battery companies expected to list on the H-share market, the global pricing system may further elevate the valuation center of Chinese battery assets [1]