Key Points Summary of Jingjin Equipment Conference Call Company Overview - **Company**: Jingjin Equipment - **Industry**: Filter Press Manufacturing - **Market Position**: Leading player with over 40% market share in the filter press industry [3] Core Competitiveness - **Technical Strength**: Over 30 years of industry experience, high self-manufacturing rate of 95%, ensuring product quality and rapid customer response [3] - **Strategic Focus**: Concentration on filter press manufacturing, enhancing professionalism and competitiveness [3] - **Cost Advantage**: Ability to reduce overall investment costs for clients by at least 30% and operational costs by 30% to 50% [3] Financial Performance and Projections - **Recent Performance**: Q3 2025 net profit approximately 100 million, indicating a bottoming out [2] - **2026 Projections**: Expected revenue of 6.5 billion (up 15%) and net profit of 700 million (up 28%) [2][16] - **Valuation**: Current PE ratio below 14, with potential to recover towards 20 [2][16] Business Segments and Growth Drivers - **Integrated Equipment Business**: Expected to contribute significantly, with market value 2-3 times that of the filter press main unit [4] - **Consumables and Services**: Potential for 1x growth compared to equipment sales, with overseas margins exceeding 50% [6] - **Overseas Market Expansion**: Global filter press market projected to grow from 4.5 billion in 2024 to nearly 7 billion by 2030, providing substantial growth opportunities [7] Marginal Changes and Market Dynamics - **Downstream Demand Recovery**: Improvement in demand from the lithium battery sector and mining capital expenditures expected to drive orders in 2026 [3][11] - **Pricing Strategy**: Company considering price increases to restore pricing power as demand recovers and raw material costs rise [12] Cash Flow and Shareholder Returns - **Cash Flow Management**: High cash flow with 80%-100% payment received before delivery, supporting robust dividend potential [4][14] - **Dividend Projections**: Anticipated dividend yield of approximately 5.4% for 2025, with total dividends of about 5.18 billion [15] Industry Trends and Future Outlook - **Mining Sector Growth**: Anticipated 50% increase in global mining capital expenditures over the next five years, benefiting Jingjin Equipment [13] - **Environmental Sector Demand**: Continued growth in demand for filter presses driven by stricter regulations and increased sludge disposal needs [13] Governance and Management - **Management Stability**: Chairman has resumed duties, indicating a return to normal operational governance [14] Conclusion - **Long-term Growth Potential**: Overall potential market growth estimated at 8 times current scale, driven by integrated equipment, consumables and services, and overseas market expansion [10]

Summary of Lithium Industry Conference Call Industry Overview - The lithium industry is experiencing persistent supply disruptions, particularly due to tightened export policies in Zimbabwe and the implementation of the new Environmental Code in China, which will significantly increase compliance costs and restrict capacity release [1][4]. - In 2026, a sharp supply-demand imbalance is expected, with demand estimated at approximately 2 million tons, leading to a potential supply shortfall exacerbated by the bullwhip effect [1][6]. - After 2027, the market is anticipated to maintain a tight balance, as new projects will require high price sustainability (13-15 million CNY/ton), making it difficult to continue the previous capital expenditure cycle [1][6]. Demand Dynamics - Demand remains robust, driven by increased energy capacity in electric vehicles and rapid expansion in the energy storage market, with an expected growth rate exceeding 30% this year [1][2]. - The inventory levels have dropped below 100,000 tons, indicating a fragile state in terms of absolute demand and inventory turnover days [2]. Supply Chain and Pricing Mechanisms - The price transmission mechanism within the industry is gradually improving, with rising processing fees for lithium iron phosphate and adjustments in energy storage cell pricing contributing to a more optimized profit distribution [1][5]. - The average valuation of the lithium sector is currently around 15 times earnings, based on a lithium price assumption of 150,000 CNY/ton, which is considered historically low [1][6]. Key Risks and Regulatory Environment - Zimbabwe's export policy is a focal point, with current supply estimated at 120,000 to 150,000 tons. The likelihood of a quick recovery in exports is diminishing, especially with the government's strong stance on requiring processed products for export by 2027 [3][4]. - Domestic environmental regulations are tightening, which will increase compliance costs and complicate the resumption of production in regions like Ningde and Jiangxi [4]. Investment Strategy - The investment strategy prioritizes domestic lithium and salt lake resources (e.g., Guocheng Mining, Salt Lake Co.) over companies with full industry chain layouts (e.g., Ganfeng Lithium) and those with overseas processing advantages or undervalued stocks [1][8]. - The market's main divergence lies in the skepticism regarding the sustainability of energy storage demand, with some analysts fearing a sharp decline in growth after a high-growth phase [6][8]. Conclusion - The lithium sector is positioned for a recovery in fundamentals and valuation, driven by geopolitical factors, resource scarcity, and rising prices in traditional energy sectors, which may enhance the market's acceptance of lithium price increases [8].

Investment Rating - The report rates the industry as "Outperform" [2] Core Insights - The production of domestic batteries in February 2026 decreased by 15.71% month-on-month but increased by approximately 41.18% year-on-year, with a total output of 141.6 GWh [2] - The price of battery-grade lithium carbonate has risen to 153,500 CNY/ton, while the price of battery-grade ethylene carbonate increased by 23.30% to 6,400 CNY/ton as of March 13, 2026 [2] - The demand for lithium iron phosphate batteries saw a monthly shipment of 20.60 GWh in February 2026, which is a year-on-year decrease of 24.46% and a month-on-month decrease of 37.00% [2] Summary by Sections Production - In February 2026, domestic production of lithium iron phosphate cathode materials reached 268,000 tons, reflecting a month-on-month increase of 9.34% and a year-on-year increase of 67.92% [2] Prices - The average price of lithium iron phosphate (power type) was reported at 54,100 CNY/ton, showing a slight decrease of 0.18% from March 3, 2026 [2] - The average price of lithium hexafluorophosphate remained stable at 111,000 CNY/ton as of March 9, 2026 [2] Domestic Demand - The newly awarded capacity for energy storage in China reached 34.45 GWh in February 2026, marking a month-on-month increase of 46.97% and a year-on-year growth of 6.03% [2] - The monthly shipment of ternary power batteries was 5.70 GWh in February 2026, which is a year-on-year decrease of 10.94% and a month-on-month decrease of 39.36% [2] Overseas Demand - The export volume of Chinese power batteries in February 2026 was 16.90 GWh, representing a year-on-year increase of 32.03% but a month-on-month decrease of 4.52% [2] - Global sales of new energy vehicles in January 2026 totaled 1.1829 million units, reflecting a year-on-year decrease of 5.99% and a month-on-month decrease of 45.04% [2]

Investment Rating - The industry is rated as "Strongly Outperforming the Market" [2] Core Insights - The demand for power batteries and energy storage batteries is robust, with average prices for storage cells and systems on the rise [2][3] - In January 2026, domestic battery production reached 168.0 GWh, a year-on-year increase of approximately 55.84%, while the production of lithium iron phosphate cathode materials was 245,100 tons, up 37.77% year-on-year [2] - The price of industrial-grade lithium carbonate increased to 170,000 CNY/ton as of February 27, 2026, reflecting a weekly increase of 19.72% [2] - The average price of lithium iron phosphate (power type) was reported at 52,100 CNY/ton on February 13, 2026, a decrease of 6.13% from February 2 [2] - The average price of lithium hexafluorophosphate decreased to 127,400 CNY/ton as of February 28, 2026, down 2% from February 21 [2] - The monthly loading volume of lithium iron phosphate batteries in January 2026 was 32.7 GWh, a year-on-year increase of 8.28% [2] - The export volume of Chinese power batteries in January 2026 was 17.7 GWh, a year-on-year increase of 59.46% [2] Summary by Sections Production - In January 2026, domestic battery and lithium iron phosphate cathode material production significantly exceeded the same period in 2025 [2] Prices - The average price of storage cells and systems has shown an upward trend, with specific increases noted in various battery types [2][3] Domestic Demand - The monthly loading volume of lithium iron phosphate and ternary power batteries showed varying trends, with significant year-on-year growth in lithium iron phosphate batteries [2] Overseas Demand - The export of power batteries from China has seen a notable increase compared to the previous year, indicating strong international demand [2]

Investment Rating - The report maintains a "Buy" rating for the company [2][7] Core Insights - The company's profit forecast for 2025 exceeds expectations, with a projected net profit of RMB 20.25 to 21.93 billion, representing a year-on-year increase of 140% to 160% [7] - The significant increase in net profit is attributed to the company's leading technology products experiencing high growth in passenger vehicles, commercial vehicles, and energy storage sectors, along with strong market demand and optimized product structure [7] - The company aims to establish itself as a global battery core brand, benefiting from its core value creation [7] - The company achieved a domestic power battery installation of 53.6 GWh in 2025, capturing a market share of 7.0%, ranking third in the industry [7] - The company has seen a 630% year-on-year increase in commercial battery deliveries in January 2026, indicating a successful market strategy and capacity layout [7] - The demand for lithium batteries is expected to grow significantly, with total shipments in China projected to reach over 2.3 TWh in 2026, a year-on-year increase of approximately 30% [7] Financial Data and Profit Forecast - Revenue projections for the company are as follows: - 2023: RMB 27,006 million - 2024: RMB 27,752 million - 2025E: RMB 43,800 million - 2026E: RMB 73,300 million - 2027E: RMB 92,700 million - The year-on-year growth rates for revenue are projected at 32.54% for 2023, 2.76% for 2024, 57.83% for 2025, 67.35% for 2026, and 26.47% for 2027 [6][8] - The net profit attributable to ordinary shareholders is forecasted as follows: - 2023: RMB 294 million - 2024: RMB 591 million - 2025: RMB 1,379 million - 2026: RMB 2,731 million - 2027: RMB 3,997 million - The projected PE ratios are 138 for 2023, 69 for 2024, 30 for 2025, 15 for 2026, and 10 for 2027 [6][8]

Investment Rating - The industry is rated as "Outperform" [2] Core Insights - The production of positive materials in December showed a year-on-year increase, with domestic battery production reaching 201.7 GWh in December 2025, a growth of approximately 62% year-on-year and 14% month-on-month [2] - Lithium carbonate prices have decreased, with industrial-grade lithium carbonate priced at 134,000 CNY/ton as of February 6, 2026, reflecting a weekly decline of 9.46% [2] - The average price of energy storage cells has significantly increased, with prices for various types of lithium iron phosphate cells rising by 3.02% to 4.96% as of February 6, 2026 [2] - The demand for lithium iron phosphate batteries reached a monthly shipment of 79.8 GWh in December 2025, marking a year-on-year increase of 30.82% [2] - The global sales of new energy vehicles reached 2.1521 million units in December 2025, showing a year-on-year growth of 11.50% [2] Summary by Sections Production - In December 2025, the production of lithium iron phosphate positive materials was 26,930 tons, a year-on-year increase of 32.48% [2] Prices - The average price of lithium iron phosphate (power type) was reported at 47,100 CNY/ton on January 9, 2026, an increase of 4.43% from January 4, 2026 [2] - The average price of liquid-cooled container energy storage systems increased slightly, with prices reaching 0.48 and 0.55 CNY/Wh as of February 6, 2026 [2] Domestic Demand - The monthly shipment of ternary power batteries remained stable at 18.2 GWh in December 2025, with a year-on-year increase of 27.27% [2] Overseas Demand - The export volume of Chinese power batteries in December 2025 was 19.0 GWh, reflecting a year-on-year increase of 47.29% [2]

Report Title - "Carbonate Lithium Weekly Report: Market Sentiment Dominates, Carbonate Lithium Awaits Stabilization" [1] Analyst Information - Analyst: Zhang Qing [2] - Consulting Account: Z0019679 [2] - Institution: Zhonghui Futures Research Institute [2] - Date: February 6, 2026 [2] Market View Summary Macroeconomic Overview - In January, China's manufacturing PMI was 49.3 (previous value 50.1), and non - manufacturing PMI was 49.4 (previous value 50.2), both falling below the boom - bust line, indicating weak domestic and foreign demand and potential acceleration of growth - stabilizing policies; the US manufacturing PMI was 52.6, non - manufacturing PMI was 53.8, higher than previous values and expectations, with ADP employment adding 22,000, lower than expectations and previous values. The Fed paused rate cuts, and the new chairman nomination increased uncertainty in future rate - cut paths, leading to sharp corrections in precious metals, non - ferrous metals, and global equity markets [3] Supply Side - This week, carbonate lithium production declined slightly due to the Spring Festival holiday and maintenance. However, in January, Chile exported 16,950 tons of carbonate lithium to China, a 44.82% month - on - month increase, which may offset the domestic supply reduction in February [3] Demand Side - In January, national passenger car retail sales were 1.794 million, a 12.1% year - on - year and 31.9% month - on - month decline. The share of self - owned brands rose to 61%. National new - energy vehicle wholesale was estimated at 900,000, a 1% year - on - year increase. Tesla China's wholesale sales were 69,129 [4] Cost and Profit - This week, ore prices dropped significantly. African SC 5% was quoted at $1,650/ton, a $250/ton week - on - week decline; Australian 6% lithium spodumene CIF was $1,843/ton, a $502/ton decline; lithium mica was priced at 5,900 yuan/ton, an 800 yuan/ton decline. The carbonate lithium industry profit was 36,139 yuan/ton, a 3,529 yuan/ton decrease [4] Total Inventory - As of February 5, the total inventory was 105,463 tons, a 2,019 - ton decrease from last week. Upstream smelter inventory was 18,356 tons, a 647 - ton decrease [4] Market Outlook - The basis strengthened compared to last week. The discount range for battery - grade carbonate lithium was 800 - 2,000 yuan/ton, and for industrial - grade and quasi - battery - grade was 1,600 - 3,000 yuan/ton. In actual transactions, the discount range for battery - grade was 500 - 2,000 yuan/ton. Lithium salt producers were less willing to sell spot orders, while traders were active. Downstream material producers had basically completed pre - holiday inventory preparations. The main carbonate lithium contract dropped sharply, erasing all January gains. Weak external precious metals and non - ferrous sectors, along with insufficient market liquidity, led to the continuous decline of carbonate lithium prices in search of support. The fundamentals showed no obvious negative factors, with inventory reduction continuing during the off - season. Downstream buyers were active in price - fixing when prices dropped sharply, with large volumes traded at the limit - down price. Due to the terminal's rush for exports, demand was slightly advanced, and downstream mainstream material producers maintained high operating rates, less affected by the Spring Festival. Upstream smelter production declined from the peak, and lithium salt producers' maintenance and production cuts were gradually evident. In February, the overall inventory reduction trend continued. The significant month - on - month increase in Chile's shipments in January led to concerns about inventory accumulation in the peak season in March. Coupled with high pre - holiday market volatility, funds actively left the market to avoid risks, resulting in a continuous decline in carbonate lithium positions. It is recommended to wait for price stabilization before establishing long positions and to hold no positions during the Spring Festival [5] Lithium - Battery Industry Price List - Various lithium - battery products showed price declines from January 30 to February 6, such as lithium spodumene (6% CIF: from $2,345/ton to $1,843/ton, - 21.41%; African SC 5%: from $1,900/ton to $1,650/ton, - 13.16%), lithium mica (from 6,700 yuan/ton to 5,900 yuan/ton, - 11.94%), battery - grade carbonate lithium (from 157,000 yuan/ton to 135,000 yuan/ton, - 14.01%), etc. Some products like metal lithium and certain grades of artificial and natural negative electrode materials remained unchanged [6] Weekly Market Review - As of February 6, the LC2605 contract closed at 132,920 yuan/ton, a 10.3% decline from last week. The spot price of battery - grade carbonate lithium was 135,000 yuan/ton, a 14% decline. The basis changed from discount to premium, and the main contract position was 328,000. The sharp decline of the main contract was mainly due to the deep correction in non - ferrous and precious metal sectors, increasing the risk of market panic selling. Exchange position limits and pre - holiday risk - aversion needs led to a shortage of market liquidity. Despite the off - season inventory reduction in the fundamentals, prices continued to decline without new capital inflows [7] Production Situation of Related Products Carbonate Lithium - As of February 6, carbonate lithium production was 23,685 tons, a 375 - ton week - on - week decrease. The enterprise operating rate was 51.44%, a 0.81% decline. Due to the approaching Spring Festival, some enterprises arranged maintenance or holidays, resulting in a seasonal production decrease. The 16,950 - ton increase in Chile's exports to China in January offset the domestic reduction [9] Lithium Hydroxide - As of February 6, lithium hydroxide production was 6,450 tons, a 90 - ton week - on - week decrease. The enterprise operating rate was 43.28%, a 0.61% decline. Affected by the Spring Festival and enterprise maintenance, the operating rate remained low. Downstream material producers mainly fulfilled long - term contracts, and with sharp price fluctuations, they only made rigid purchases [11] Lithium Iron Phosphate - As of February 6, lithium iron phosphate production was 97,653 tons, a 1,950 - ton week - on - week decrease. The enterprise operating rate was 86.01%, a 1.72% decline. Affected by the decline in power orders and some enterprises' production load reduction and Sichuan's maintenance, production decreased slightly, but mainstream enterprises still maintained high operating rates [13] Ternary Materials - The report mentions that demand for ternary materials was slightly advanced, and production operating rates increased, but specific production data is not detailed [15] Other Cathode Materials - In the traditional off - season of consumer electronics, the production and operating rates of manganese acid lithium and cobalt acid lithium declined, but detailed production change data is not provided in a comprehensive manner [23][28] Inventory Situation Carbonate Lithium Total Inventory - As of February 5, the total carbonate lithium industry inventory was 105,463 tons, a 783 - ton decrease from last week, and the warehouse - receipt inventory was 33,777 tons, a 3,146 - ton increase. The total inventory has been declining for four consecutive weeks. As prices fell, lithium salt producers' off - season inventory reduction accelerated. Terminal demand was advanced due to export rush, and the Spring Festival had limited impact on production. After price drops, traders were active in purchasing, leading to an increase in warehouse receipts [32] Downstream Inventory - For lithium iron phosphate, as of February 6, the total industry inventory was 27,293 tons, a 785 - ton decrease. The finished - product inventory continued to decline. Downstream energy - storage demand provided support, promoting enterprises to actively sell goods. Most enterprises prioritized shipping existing inventory to accelerate inventory reduction, but the risk of inventory accumulation due to the continuous decline in power demand should be noted [35] - For ternary materials, the report only shows the inventory trend chart, and there is no specific description of the inventory change situation. For manganese acid lithium, cobalt acid lithium, and ternary precursors, the same situation exists, with only inventory trend charts provided and no detailed change descriptions [38][40][45] Cost and Profit Situation Cost - Side - As of February 6, the African SC 5% ore was quoted at $1,650/ton, a $250/ton week - on - week decline; the Australian 6% lithium spodumene CIF was $1,843/ton, a $502/ton decline; the lithium mica market price was 5,900 yuan/ton, an 800 yuan/ton decline. Lithium salt producers' inventory replenishment was basically completed, and new purchases were few. The basis of lithium ore remained stable. The Australian ore shipment volume was moderately low, and the raw - material supply was still tight [46] Profit - Side - For carbonate lithium, as of February 6, the production cost was 121,050 yuan/ton, a 5,056 - yuan week - on - week decrease, and the industry profit was 29,550 yuan/ton, a 14,452 - yuan decrease. Lithium ore prices dropped significantly following the market, reducing the cost pressure on enterprises using imported ore, while the profits of enterprises with their own mines and salt lakes were not significantly affected. The lithium mica processing fee increased slightly, and the industry was still in the profit range [48] - For lithium hydroxide, as of February 6, the production cost was 110,259 yuan/ton, a 7,536 - yuan week - on - week decrease, and the industry profit was 37,972 yuan/ton, a 5,072 - yuan decrease. This week, the spot trading of aluminum hydroxide was light, downstream procurement basically ended, and the sharp decline in carbonate lithium prices led to a lack of support for lithium hydroxide prices and a marginal weakening of industry profits [50] - For lithium iron phosphate, as of February 6, the production cost was 50,655 yuan/ton, a 5,495 - yuan week - on - week decrease, and the loss was 2,056 yuan/ton, a 134 - yuan/ton decrease. This week, the sharp drop in raw - material prices dragged down the lithium iron phosphate price, but due to some enterprises' price - holding and reluctant - to - sell behavior, the transaction price remained relatively high, with a smaller price decline than the raw - material side, leading to a slight narrowing of the industry loss [53] - For ternary materials, the report shows the cost and profit trend charts, but there is no specific description of the cost and profit change data. The same situation exists for cobalt acid lithium, manganese acid lithium, and ternary precursors [57][60][62]

Core Viewpoint - The phosphochemical industry is an essential raw material sector in the national economy, with products widely used in agriculture, food, pharmaceuticals, electronics, construction materials, and new energy [1] Group 1: Industry Outlook - By the second half of 2025, the lithium battery industry is expected to show significant recovery, with steady increases in production scheduling and operating rates across the entire industry chain [1] - The strong demand for phosphorus-containing materials is expected to drive consumption of upstream raw materials such as phosphate rock and high-purity phosphoric acid, supporting the recovery of the phosphochemical industry chain [1] Group 2: Resource Constraints - China has limited phosphate rock resources and strong environmental constraints, leading to a continuous tightening of domestic supply [1] - Phosphate rock is the core raw material for the phosphochemical industry, with China supporting nearly half of the global production with only 5% of the world's reserves, highlighting significant resource security pressures [1] Group 3: Market Dynamics - The long-term price center for phosphate rock is expected to remain high, with leading companies currently enjoying a gross profit margin of around 80% [1] - Downstream demand for phosphate fertilizers remains rigid, but its proportion is expected to decrease from 78% in 2015 to 54% in 2024; meanwhile, the consumption share of wet phosphoric acid is projected to increase from 7% in 2021 to 17% in 2024, partly driven by new energy demand [1]

Core Viewpoint - The company expects a net profit loss of 90 million to 110 million yuan for the fiscal year 2025, primarily due to changes in the supply-demand structure and a slowdown in capacity expansion within the lithium battery industry [1] Industry Summary - In 2024, the lithium battery industry is anticipated to face challenges such as changes in supply-demand dynamics and a deceleration in production expansion, leading to fewer new orders for the company as an upstream lithium battery equipment provider [1] - Despite an overall recovery in demand for the lithium battery industry in 2025, the company's revenue from coating applications and energy systems is expected to decline year-on-year due to intensified market competition, price pressures on certain orders, and extended project delivery and acceptance cycles [1] - The company's new signed orders for coating applications are projected to increase year-on-year, driven by a steady rise in capacity utilization rates among downstream customers [1]

Domestic Overview - In December, the production of domestic power and other batteries reached 201.7 GWh, representing a year-on-year increase of 62.1% and a month-on-month increase of 14.4%. The production of ternary and lithium iron phosphate batteries was 40.6 GWh and 160.5 GWh, accounting for 20.1% and 79.5% respectively [1] - The installed capacity of domestic power batteries in December was 98.1 GWh, showing a year-on-year increase of 35.1% and a month-on-month increase of 4.9%. The installed capacity for ternary and lithium iron phosphate batteries was 18.2 GWh and 79.8 GWh, making up 18.6% and 81.3% respectively [2] - The top three companies in terms of installed capacity for domestic power batteries in December were CATL with 45.71 GWh (46.6%), BYD with 17.63 GWh (18.0%), and Zhongxin Innovation with 7 GWh (7.1%) [3] Annual Overview - From January to December, the cumulative production of domestic power and other batteries reached 1755.6 GWh, a year-on-year increase of 60.1%. The cumulative production of ternary and lithium iron phosphate batteries was 347.6 GWh and 1405.1 GWh, accounting for 19.8% and 80.0% respectively [4] - The cumulative installed capacity of domestic power batteries from January to December was 769.7 GWh, reflecting a year-on-year increase of 40.4%. The cumulative installed capacity for ternary and lithium iron phosphate batteries was 144.1 GWh and 625.3 GWh, representing 18.7% and 81.2% respectively [4] - The top three companies for cumulative installed capacity of domestic power batteries from January to December were CATL with 333.57 GWh (43.3%), BYD with 165.77 GWh (21.5%), and Zhongxin Innovation with 53.61 GWh (7.0%) [4] Global Overview - In November, the global installed capacity of power batteries was 112.5 GWh, showing a year-on-year increase of 13.8% but a month-on-month decrease of 7.6% [5] - The top three companies in global installed capacity for November were CATL with 44.8 GWh (39.8%), BYD with 17.3 GWh (15.4%), and LG with 10.4 GWh (9.2%) [6] - From January to November, the cumulative global installed capacity of power batteries reached 1046.0 GWh, a year-on-year increase of 32.6% [7] - The top three companies for cumulative global installed capacity from January to November were CATL with 400.0 GWh (38.2%), BYD with 175.2 GWh (16.7%), and LG with 96.9 GWh (9.3%) [8]