Investment Rating - The investment rating for the company is "Buy" and it is maintained [6]. Core Views - The company reported a revenue of 6.248 billion yuan for H1 2025, a year-on-year decrease of 9.28%, with a net profit attributable to shareholders of -0.68 billion yuan and a non-recurring net profit of -0.79 billion yuan. In Q2 2025, the revenue was 3.285 billion yuan, showing a year-on-year growth of 2.77% and a quarter-on-quarter growth of 10.82%, with a net profit attributable to shareholders of -0.53 billion yuan and a non-recurring net profit of -0.54 billion yuan [2][4]. Summary by Sections Financial Performance - For H1 2025, the company sold 50,000 tons of ternary products, with an actual profit of approximately 0.77 billion yuan after excluding new industry investments. The estimated actual profit for the ternary business in H1 2025 is between 1.3 billion and 1.4 billion yuan, considering asset impairment losses of 0.55 billion yuan and credit impairment losses of 0.04 billion yuan. The profit per ton in Q2 2025 remained stable compared to Q1 2025, despite fluctuations in shipments due to customer demand affecting profitability [9]. New Business Developments - The company is actively progressing in new business layouts, including: 1. The sodium battery anode production line in Xiangyang, with an annual capacity of 6,000 tons expected to ramp up in H2 2025 to 2026. 2. Manganese iron lithium shipments in H1 2025 reached the total for the entire year of 2024, with sales in the commercial vehicle sector exceeding 1,000 tons and agreements signed with leading international clients. 3. A new production process for lithium iron phosphate is being implemented, with plans to establish the first European production line in Poland. 4. Lithium-rich manganese-based materials have achieved kilogram-level shipments in solid-state applications, with bulk orders secured. 5. Sulfide electrolyte materials are leading in performance metrics, with pilot production lines under construction and expected to be completed by Q4 2025 [9]. Market Outlook - Despite short-term fluctuations in operational performance, the company's proactive layout in new technologies and the expected increase in overseas production capacity are anticipated to drive growth [9].

Investment Rating - The report maintains an "Accumulate" rating for the company [1] Core Views - The company has experienced significant growth in shipments, but profitability is under pressure due to industry downturns. Attention is drawn to potential breakthroughs in new technologies [1][3] - The company has positioned itself early in the lithium battery technology cycle, particularly in sulfide solid electrolyte materials, which may lead to large orders in the industry [3] Performance Summary - For the first half of 2025, the company achieved revenue of 5.8 billion RMB, a year-on-year increase of 20%. However, it reported a net loss of 100 million RMB, a decline of 132% year-on-year. The gross margin was 15.5% [1] - In Q2 2025, the company generated revenue of 3 billion RMB, with a year-on-year increase of 24% and a quarter-on-quarter increase of 11%. The net loss for this quarter was also 100 million RMB, reflecting a significant decline compared to the previous year [1][8] Future Earnings Forecast - The company is expected to achieve net profits of 200 million RMB, 500 million RMB, and 900 million RMB for the years 2025, 2026, and 2027, respectively [3] - The revenue projections for the company are 11.315 billion RMB in 2025, 13.407 billion RMB in 2026, and 16.139 billion RMB in 2027, with growth rates of 11.33%, 18.49%, and 20.38% respectively [7] Market Position and Strategy - The company is focusing on maintaining high production capacity and has significantly increased its shipment pace, which is expected to help solidify its market position during the industry's downturn [3][8] - Recent industry meetings have led to agreements among key manufacturers to implement price discipline and manage production capacity, which may help stabilize the market [8]

中金研究 展望2H25，我们认为产业链价格整体有望运行平稳、部分细分方向或存在涨价弹性，各环节龙头在高稼动率支撑下、部分还受益新品溢价，基本面有 望率先进入修复通道。同时，以固态电池为主线的新技术有望迎来产业化向上拐点，相关设备、材料环节需求有望逐步释放。 点击小程序查看报告原文 Abstract 需求：景气度延续向上，新场景多点扩容。 新能源车方面，我们认为国内市场在以旧换新政策刺激下，叠加26年购置税退坡或带来抢装，2H25新能源车 销量有望延续较高增速；欧洲市场受碳排政策以及补贴政策回温，需求有望持续回暖；同时，受益于重卡/工程机械等电动化新场景增量、新能源车出口 高增长以及乘用车带电量弹性释放，我们看好动力电池需求更高的成长弹性。储能方面，我们认为短期国内新能源配储受政策影响或存在扰动，但美国关 税短期下降、出口有望再迎抢装，同时欧洲高电价叠加补贴政策驱动工商业需求释放，我们仍看好储能需求韧性；此外，数据中心发展亦有望带来储能新 应用场景。 产业链：价格底部已至，龙头基本面有望持续修复。 产业链价格经历2023-2024年大幅下降后，4Q24逐步进入底部区间，部分价格超跌环节如6F、铜箔、 铁锂正极等 ...

Core Viewpoint - The overall price stability in the industry chain is expected in 2H25, with potential price elasticity in certain segments, supported by high operating rates of leading companies and benefits from new product premiums, indicating a recovery in fundamentals [1][3]. Demand - The demand for new energy vehicles (NEVs) is anticipated to maintain high growth in China due to the old-for-new policy and the expected decline in purchase tax in 2026, while the European market is expected to recover due to carbon policies and subsidies [3][6]. - In the first four months of 2025, China's NEV wholesale sales increased by 46% year-on-year, with exports also showing strong growth, benefiting from the recognition of Chinese brands in overseas markets [7][9]. - The commercial vehicle sector in Europe is experiencing strong growth, with a 47% year-on-year increase in NEV commercial vehicle sales in the first four months of 2025, driven by various subsidies [16]. Industry Chain - After significant price declines in 2023-2024, the industry chain prices are entering a bottoming phase, with certain segments like 6F, copper foil, and iron lithium cathodes showing signs of price stabilization [3][26]. - The supply-demand structure is improving, with leading manufacturers maintaining high operating rates, indicating a potential recovery in their fundamentals [28][31]. New Technologies - The solid-state battery technology is expected to see accelerated industrialization in 2H25, driven by demand from NEVs, eVTOLs, and robotics, with significant advancements in testing and pilot production [4][45]. - The second-generation semi-solid batteries are entering a critical phase for commercialization, with various companies making progress in production and application [47][48]. Global Manufacturing Layout - The lithium battery industry chain is accelerating its global manufacturing layout, particularly in Europe and Southeast Asia, with expected production capacity coming online from late 2H25 to 2026 [41][44]. - The U.S. Inflation Reduction Act (IRA) is promoting domestic production of batteries and components, which is expected to enhance local supply capabilities and reduce reliance on foreign products [42][43].