Summary of the Conference Call for Yinglian Co., Ltd. Industry and Company Overview - **Company**: Yinglian Co., Ltd. operates in two main sectors: fast-moving consumer goods (FMCG) metal packaging and composite current collectors for solid-state batteries. The company has been in the FMCG metal packaging sector since its establishment in 2006 and is the only A-share listed easy-open lid supplier in China. In 2022, it entered the composite current collector industry, planning a project in Gaoyou, Jiangsu Province with an investment of 3.089 billion RMB, targeting a production capacity of 100 million square meters of composite aluminum foil and 500 million square meters of composite copper foil [doc id='5'][doc id='20']. Key Points and Arguments - **Strategic Procurement Agreement**: Yinglian has signed a strategic procurement agreement with a domestic new energy technology company for 50 million square meters of composite aluminum foil, with deliveries scheduled for 2026 (20 million square meters) and 2027 (30 million square meters). The total order value is estimated between 3.3 billion to 3.4 billion RMB, with the first batch expected to be delivered in December this year, generating revenue in Q1 of next year [doc id='2'][doc id='4'][doc id='7']. - **Financial Impact**: The large-scale order is expected to significantly enhance Yinglian's future financial performance, with an estimated gross margin of about 40% for the composite aluminum foil segment. The contract's annual execution will contribute to stable revenue growth over the next two years [doc id='8']. - **Research and Development**: Yinglian is developing lithium metal anode materials and specialized composite copper foil for sulfide solid-state batteries. The company is conducting tests on various thickness structures to enhance technical capabilities and broaden market applications [doc id='9'][doc id='10']. - **Client Base**: The client for the recent order is a leading company in the quasi-solid and semi-solid battery field, indicating a strong purchasing capability that will positively impact Yinglian's future business growth [doc id='11']. - **Production Capacity**: Yinglian has established production capacity for composite aluminum foil and has modified equipment to meet usage requirements, with approximately 3 to 5 GWh of equipment available for production. The company has also ordered additional production lines, aiming for a total capacity of 100 million square meters [doc id='12'][doc id='20']. Additional Important Information - **Testing and Validation**: Yinglian is currently validating composite copper foil with domestic and international clients, with some clients entering application testing phases, indicating potential positive developments soon [doc id='3'][doc id='22']. - **Market Outlook**: The company is optimistic about the market for solid-state and quasi-solid batteries, driven by national policies and government funding support, which is expected to accelerate industry development [doc id='17][doc id='18']. - **Cost Structure and Future Projections**: The current cost of Yinglian's pumps is 3.8 RMB, with potential for cost reduction as production volume increases and through optimization of second-generation equipment and processes [doc id='19']. - **Application of Composite Foils**: Composite aluminum foil is primarily used in high-value-added scenarios, with ongoing development in energy storage applications. The company is focusing on mature battery enterprises rather than startups [doc id='14']. - **Technical Advantages**: Yinglian's composite current collectors are designed to withstand the expansion of high-capacity anode materials, enhancing cycle life and performance in solid-state battery applications [doc id='22']. - **Future Production Plans**: The lithium metal anode production line is expected to begin installation in December, with batch deliveries anticipated in Q1 2026, gradually scaling up to industrial levels by mid-2027 [doc id='28']. This summary encapsulates the key insights from the conference call, highlighting Yinglian's strategic initiatives, financial outlook, and advancements in technology and production capabilities.

Group 1 - The China Securities New Energy Vehicle Industry Index (930997) has risen by 2.97%, with significant gains in constituent stocks such as Fulin Precision (300432) up 19.98%, Hunan Youneng (301358) up 12.83%, and Huayou Cobalt (603799) up 10.01% [1] - The New Energy Vehicle ETF (515700) increased by 2.72%, with the latest price reported at 2.53 yuan [1] - The 2025 Hefei International New Energy Vehicle Conference opened on September 29, featuring a theme of "Hui Moves Globally Forward" and including a main conference, an exhibition, and multiple automotive-themed activities [1] Group 2 - Huajin Securities highlights that lithium metal anodes, with a theoretical specific capacity of 3860mAh/g, significantly surpass graphite anodes and are crucial for solid-state battery systems [2] - The industry is addressing technical challenges such as lithium dendrites and volume expansion through various methods, with the potential for optimized deposition methods to become mainstream [2] - By 2030, global solid-state battery shipments are expected to reach 614.1GWh, with a market space of nearly 10 billion yuan if lithium metal anode penetration reaches 20% [2] Group 3 - The New Energy Vehicle ETF closely tracks the China Securities New Energy Vehicle Industry Index, which includes 50 listed companies involved in various aspects of the new energy vehicle industry [2] - As of August 29, 2025, the top ten weighted stocks in the index include CATL (300750), Huichuan Technology (300124), BYD (002594), and others, accounting for a total of 54.55% of the index [2]

Core Viewpoint - Hailiang Co., Ltd. demonstrated strong strategic resilience and operational strength in the face of international political and economic challenges, achieving solid financial performance and significant growth in emerging sectors during the first half of 2025 [1][2]. Financial Performance - The company reported a revenue of 44.476 billion yuan, a year-on-year increase of 1.17%, with copper processing business revenue reaching 34.070 billion yuan, up 13.59% [2]. - Profitability improved significantly, with total profit reaching 0.815 billion yuan, a 24.53% increase year-on-year; net profit attributable to shareholders was 0.711 billion yuan, up 15.03% [2]. - Operating cash flow saw a substantial increase of 72.13% year-on-year, indicating improved financial health [2]. Sales and Product Development - Hailiang sold 526,200 tons of copper and copper alloy products, a 3.79% increase year-on-year, with high-value products like copper foil and copper bars seeing significant sales growth of 72.33% and 33.44%, respectively [2]. - The company is shifting its growth focus from quantity to quality and structural optimization [2]. Global Expansion - The company’s strategic global capacity layout began to yield results, particularly in the U.S. market, where revenue from copper processing reached 2.469 billion yuan, a 50.77% increase year-on-year [3]. - Hailiang's Texas facility is expected to reach an annual capacity of 90,000 tons by the end of 2025, contributing to a projected 30% growth in U.S. market sales [3]. - The company is expanding its global footprint with operations in Vietnam, Thailand, and Indonesia, and is making progress in Morocco [3]. Emerging Markets and Technology - Hailiang is focusing on the new energy sector and high-end thermal management materials, achieving significant sales growth in copper foil products [5]. - The company has established partnerships with major global battery and electronics manufacturers, ensuring long-term supply agreements [5]. - Hailiang is innovating in advanced materials for solid-state batteries and has developed over 14 new products, enhancing its technological barriers [6]. Market Trends - The demand for copper-based materials in cooling solutions is increasing, driven by the growth of AI and data centers, with the liquid cooling server market in China projected to reach $3.39 billion in 2025 [7]. - Hailiang's copper materials are critical components in these cooling systems, with a significant increase in orders for thermal copper materials [8]. Management and Innovation - The company has initiated 88 cost-reduction and efficiency-enhancing projects and has filed numerous patents, indicating a strong commitment to innovation [9]. - A new management team has been established, characterized by youth, international experience, and a focus on technology, positioning the company for sustainable growth [9]. Future Outlook - Hailiang plans to continue expanding its global presence and enhancing its production capabilities in the U.S., Indonesia, and Morocco while advancing its digital transformation efforts [10].

Core Insights - Company demonstrates strong strategic resilience and operational strength amid international economic challenges, achieving solid financial performance in the first half of 2025 [1] Financial Performance - In H1 2025, the company reported revenue of 44.476 billion yuan, a year-on-year increase of 1.17%, with copper processing business revenue reaching 34.070 billion yuan, up 13.59% [2] - Profitability improved significantly, with total profit of 0.815 billion yuan, a 24.53% increase year-on-year, and net profit attributable to shareholders of 0.711 billion yuan, up 15.03% [2] - Sales volume of copper and copper alloy products reached 526,200 tons, a 3.79% increase year-on-year, with high-value products like copper foil and copper bars seeing substantial growth [2] Global Expansion - The company’s proactive global capacity layout has begun to yield results, particularly in the U.S. market, where revenue from copper processing reached 2.469 billion yuan, a 50.77% increase year-on-year [3] - The U.S. market is expected to see sales growth of no less than 30% in 2025, with production capacity in Texas projected to reach 90,000 tons by year-end [3] - The company is expanding its global footprint with operations in Vietnam, Thailand, and Indonesia, and is progressing with a new materials technology industrial park in Morocco [3] Emerging Markets and Technologies - The company is focusing on emerging sectors such as new energy and high-end thermal management, with significant growth in copper foil business driven by dual-base collaboration [5] - The company has developed over 14 new products targeting advanced applications in solid-state batteries and cooling solutions for data centers, with a notable increase in orders from leading global cooling enterprises [5] Future Outlook - The company is well-positioned to navigate uncertainties in geopolitical, currency, and trade policies through a clear strategic layout and diversified product structure [6] - Plans include accelerating the construction and capacity release of facilities in the U.S., Indonesia, and Morocco, while enhancing R&D in new energy copper foil and high-end thermal materials [7]

Core Insights - The lithium battery sector has shown significant activity since July 2025, outperforming the CSI 300 and SSE 50 indices, with the lithium mining segment leading with an 11% increase [1][2] - Lithium carbonate and lithium hydroxide prices have decreased by 8% and 7% respectively in July, indicating a downward trend in raw material costs [2] - The sales of new energy vehicles in China reached 1.11 million units in June, reflecting a year-on-year increase of 27% and a cumulative increase of 39% for the first half of the year [2][4] Lithium Battery Sector - The lithium battery sector has experienced a recovery in monthly transaction volumes, driven by active trading in solid-state battery segments [1][2] - The three-year historical valuation of over half of the lithium battery-related segments is at a high level, indicating increased market attention [2] New Technologies - Lithium metal anodes are identified as a long-term direction for battery technology, with the potential to achieve energy densities exceeding 500Wh/kg [3] - The first global test of a lithium metal anode solid-state battery was conducted by Mercedes, with predictions of a market size nearing 10 billion yuan by 2030 [3] Energy Storage - In June, domestic energy storage installations fell to 6.9 GWh, a year-on-year decrease of 41%, while cumulative installations for the first half of the year reached 49.0 GWh, a 162% increase [5] - The U.S. energy storage market remained relatively stable, with 3.7 GWh installed in June, reflecting a year-on-year increase of 32% for the first half of the year [5] Investment Recommendations - The lithium battery sector is expected to transition from broad market-driven growth to structural opportunities led by technological breakthroughs and new application areas in 2025 [7] - Key companies recommended for investment include CATL, EVE Energy, and Keda Technology, as well as Xiamen Tungsten [7]