Core Viewpoint - The company is currently focusing on the development of foil materials required for lithium metal batteries, solid-state batteries, and silicon-carbon anodes in collaboration with downstream customers [1] Group 1 - The company has not yet engaged in the research and development of metal-air batteries [1] - Future business developments will be disclosed in accordance with information disclosure standards through designated media [1]

Core Viewpoint - The collaboration between KAIST and LG Energy Solution has led to the development of a new lithium metal battery electrolyte that enables electric vehicles to charge in 12 minutes and achieve a range of 500 miles (approximately 804.7 kilometers) [2]. Group 1: Breakthrough in Battery Technology - The new lithium metal battery electrolyte claims to have completely resolved the "dendrites" issue that has plagued battery technology [3]. - Unlike mainstream lithium-ion batteries that use graphite anodes, lithium metal batteries utilize pure lithium metal anodes, which significantly increases energy density but also leads to the growth of dendritic lithium crystals during charging [4]. Group 2: Mechanism and Innovation - The research team discovered that dendrite growth is triggered by "uneven interfacial cohesion forces" on the lithium metal surface [5]. - Based on this discovery, the team developed a novel "liquid electrolyte that suppresses cohesion," which has a weaker affinity for lithium ions, ensuring uniform lithium deposition on the anode even during rapid charging, effectively inhibiting dendrite formation [5]. Group 3: Performance and Testing - Experimental data indicates that batteries using this electrolyte perform excellently over more than 350 cycles, capable of charging from 5% to 70% in just 12 minutes [6]. - Modeling confirms that a high-density battery design (with an energy density of 386 Wh/kg) can charge from 10% to 80% in 17 minutes, providing a new pathway for ultra-fast charging and high energy density [6].

Investment Rating - The report maintains a "Buy" rating for the company [4] Core Views - The company achieved a revenue of 28.2 billion yuan in H1 2025, a year-on-year increase of 30%, while the net profit attributable to shareholders decreased by 25% to 1.605 billion yuan. Excluding stock incentive expenses and specific bad debt provisions, the net profit attributable to shareholders was 2.22 billion yuan, a year-on-year increase of 3.78% [1] - The revenue from power batteries in H1 2025 was 12.7 billion yuan, up 42% year-on-year, with shipments of 21.48 GWh, a 59% increase. The average price was 0.59 yuan/Wh, with a gross margin of 17.60% [1] - The revenue from energy storage batteries was 10.3 billion yuan, a 32% year-on-year increase, with shipments of 28.71 GWh, a 37% increase. The average price was 0.36 yuan/Wh, with a gross margin of 12.03% [2] - The company has successfully developed a prototype of an Ah-level sulfide-based solid-state battery and plans to put a 100 MWh pilot line into operation in 2025 [2] - The company has adjusted its net profit forecasts for 2025 down by 11% to 4.71 billion yuan, while increasing forecasts for 2026 and 2027 by 2% and 8% respectively [3] Summary by Sections Financial Performance - In H1 2025, the company reported a revenue of 28.2 billion yuan, with a net profit of 1.605 billion yuan, reflecting a decrease of 25% year-on-year. The adjusted net profit, excluding certain expenses, was 2.22 billion yuan, showing a slight increase [1] - The second quarter of 2025 saw a revenue of 15.4 billion yuan, a 25% increase year-on-year, but a significant drop in net profit by 53% year-on-year [1] Product Segments - Power Battery: Revenue reached 12.7 billion yuan, with a gross margin of 17.60% and significant growth in shipments [1] - Energy Storage Battery: Revenue was 10.3 billion yuan, with a gross margin of 12.03%, indicating potential for profit recovery [2] - Consumer Battery: Revenue was 5.1 billion yuan, with a gross margin of 26.68%, benefiting from a recovery in demand [2] Future Outlook - The company is expanding its production capacity for large cylindrical batteries and has positioned itself as a leader in the global market for energy storage batteries [2] - The report indicates a strong competitive position in the energy storage battery segment and anticipates improved profitability from power battery sales [3]

Market News - The three major US stock indices closed nearly flat, with the S&P 500 up 0.03%, the Nasdaq down 0.01%, and the Dow down 0.02%. Major tech stocks mostly rose, with Intel up over 7%, Amazon and Netflix up over 2%, while Tesla fell over 1% and Apple slightly declined [1] - The US Bureau of Labor Statistics reported that wholesale prices in July rose significantly more than expected, indicating that inflation remains a threat to the US economy. San Francisco Fed President Mary Daly expressed opposition to a large 50 basis point rate cut in the upcoming September meeting, suggesting a gradual adjustment towards a more neutral policy stance over the next year [1] Industry Insights - The State Council of China held a press conference on the high-quality completion of the 14th Five-Year Plan, announcing the development of public data resources and the establishment of data circulation nodes in 25 cities, with plans to expand to around 50 by the end of the year. This initiative aims to enhance the value of data elements and promote a unified national data market [2] - The China Chemical and Physical Power Industry Association released a draft initiative to maintain fair competition in the energy storage industry, with 152 companies participating. This initiative is expected to foster industry consensus and self-regulation, potentially improving profitability for leading companies amid increasing competition [3] - A research team from Tianjin University has developed a high-energy lithium battery electrolyte with a new design concept, achieving energy densities exceeding 600 Wh/kg for soft-pack cells and 480 Wh/kg for module batteries, significantly outperforming existing lithium-ion batteries [4]

Core Viewpoint - The global drone battery market is expected to reach a size of 253.8 million USD by 2030, with a compound annual growth rate (CAGR) of 9.9% in the coming years [1]. Market Overview - The global drone battery market is primarily dominated by lithium polymer batteries, which hold approximately 67% market share [9]. - The consumer drone segment is the largest downstream market, accounting for about 41% of the demand [12]. Key Players - Major manufacturers in the global drone battery market include CATL, Sunwoda, Shenzhen Grepow, Penghui Energy, and EaglePicher, with the top five companies holding around 38% of the market share [5]. Market Drivers - The widespread application of drones in various industries such as photography, agriculture, and delivery services is driving the demand for lithium-ion batteries [15]. - The need for longer flight times to efficiently complete tasks is increasing the demand for high-capacity and high-efficiency lithium-ion batteries [15][17]. Industry Challenges - The limited energy density of lithium-ion batteries restricts the maximum flight time of drones, especially for applications requiring longer endurance [18]. - Safety risks associated with lithium-ion batteries, such as thermal runaway and fire hazards, necessitate stringent safety measures [18]. Industry Opportunities - The civil drone market is rapidly developing, with potential applications across various sectors, including emergency rescue and power monitoring [19]. - Continuous advancements in battery technology, such as innovations in silicon anodes and solid-state batteries, could significantly enhance drone battery performance [19]. - The shift towards higher voltage battery systems (from traditional 3S to 4S and 6S configurations) is expected to improve power output and efficiency [19]. Future Trends - The drone battery market is anticipated to witness further innovations, including the exploration of lithium metal batteries [21]. - Manufacturers are focusing on lightweight and compact battery solutions to optimize flight performance and payload capacity [20].