Summary of Matsui Co., Ltd. Conference Call Company Overview - Matsui Co., Ltd. reported a revenue of approximately 200 million yuan in Q2, representing a 27% quarter-over-quarter increase. The automotive business showed exceptional performance, with revenue nearing 100 million yuan in the first half of the year, a year-over-year increase of 109.6%, accounting for 28.15% of total revenue. Q2 automotive revenue grew by 136% year-over-year [2][3] Key Points Industry Focus - Matsui Co., Ltd. is primarily engaged in the production of functional coating materials, including paints, inks, and adhesives, with applications in 3C, automotive, and emerging sectors [3][4] Solid-State Battery Developments - The company provides comprehensive solutions in the solid-state battery sector, including printing equipment and UV insulating adhesives, and has entered the pilot testing phase with leading downstream manufacturers. The solid-state battery production process requires isostatic pressing technology for insulation and support [2][5] - The solid-state battery coating process is a standard step to address insulation issues after electrode contact, and Matsui's solution integrates process, equipment, and materials, creating a system with significant technical barriers [2][8] Financial Performance - In the first half of 2025, Matsui's R&D expenses were approximately 50 million yuan, a year-over-year increase of 6.73%, accounting for about 14% of revenue. The management expense ratio, excluding depreciation and amortization, decreased by 0.9 percentage points year-over-year [2][7] Production Capacity and Equipment - The current production line is planned for a monthly output of 20 MWh, with a doubling of line speed. The new equipment's value has significantly increased, starting from several million yuan [4][18] - Customers are focused on line speed and precision, with ongoing efforts to meet acceptance criteria as they transition from experimental to mass production phases [12][27] Market Trends and Future Outlook - Full solid-state battery production is expected to commence in 2027, with small batch pilot production lines being established in 2026. There is anticipation of sample vehicles being used soon [4][23] - The company is strategically focused on the new energy sector and is extending its digital printing technology into high-end fields, including automotive glass printing in collaboration with Fuyao [4][26] Challenges and Competitive Landscape - The solid-state battery coating process has high equipment compatibility requirements, and while other companies are exploring UV adhesives, achieving full compatibility remains challenging due to various parameters affecting production costs and quality [11][10] - The industry is exploring alternatives to laser etching technology, but significant challenges remain, and current solutions are still reliant on laser etching processes [19] Material Costs and Pricing - Material prices are expected to decrease significantly once production processes stabilize and variability in material acquisition is reduced, although this may take time [28][29] Additional Insights - There is potential for large-scale bidding demands from downstream customers before the Spring Festival, with ongoing projects for sample lines and experimental lines [27] - The company is actively researching and developing in the PCB sector, with main solder inks entering small batch verification stages [26]