Summary of Calix Limited (CXL) Update / Briefing July 30, 2025 Company Overview - **Company**: Calix Limited (CXL) - **Core Technology**: Development of a zero emissions steel technology known as Zesty, applicable in multiple industries including cement, lime, iron, steel, lithium, and alumina [5][12][28] Key Points and Arguments Zesty Technology - **Technology Description**: Zesty utilizes a unique heating method via a large steel tube, allowing for energy flexibility by using various energy sources such as fossil fuels, biomass, waste, and renewable electrons [6][14] - **Environmental Impact**: The cement and lime industry contributes approximately 8% of global CO2 emissions, with Zesty technology aiming to capture CO2 emissions during the heating process [9][12] - **Iron Production**: Zesty can reduce iron ore using hydrogen, potentially addressing 16% of global CO2 emissions from the iron and steel industry [12][28] Recent Developments - **Demonstration Project**: A new plant is being developed with a capacity of 30,000 tonnes per year, supported by a grant of AUD 44.9 million from Arena for a total project cost of AUD 90 million [15][17] - **Government Support**: Strong backing from the Australian government, including discussions on green iron opportunities with China, which produces about 50% of the world's steel [18][19] Economic Viability - **Cost Projections**: The goal is to produce green iron at around USD 400 per ton, contingent on achieving low electricity costs (AUD 20-30 per megawatt hour) [19][20] - **Market Potential**: The transition to low emissions technologies in iron production is expected to grow significantly, with projections indicating that by 2050, 50% of global iron ore production will utilize alternative low emissions technologies [28][29] Competitive Landscape - **Global Context**: The Zesty technology is positioned favorably against traditional methods, with a focus on reducing emissions and capital costs through flexible operations [35][36] - **Market Drivers**: The need for new technologies is urgent due to increasing CO2 emissions from ironmaking, with government policies supporting the transition to green iron [37][54] Additional Important Content - **Hydrogen Supply**: The technology can utilize various hydrogen sources, addressing concerns about the supply of renewable hydrogen in Australia [89][90] - **Business Model**: Calix aims to be capital light, focusing on licensing agreements and engineering design services rather than building and operating facilities themselves [67][81] - **Future Outlook**: The demonstration plant is expected to be operational by 2028, with plans for commercial facilities to follow, potentially generating revenue through toll processing and engineering studies [94][95] Conclusion - **Strategic Positioning**: Calix's Zesty technology represents a significant opportunity in the green iron market, supported by government initiatives and a growing demand for low-emission steel production. The company is well-positioned to capitalize on the transition towards sustainable industrial practices, with a clear roadmap for development and commercialization [80][81][96]

Group 1 - Scage International Limited successfully went public on NASDAQ under the ticker SCAG after merging with SPAC Finnovate Acquisition Corp on June 30, 2025 [3] - Scage is a leading provider of zero-emission technology in China, focusing on heavy-duty new energy commercial vehicles and innovative clean fuel systems to accelerate the decarbonization of global commercial transportation [3] - The company has strategic partnerships with top automotive manufacturers and a rigorous quality management system, offering intelligent and high-performance new energy vehicles for logistics, mining, and port transportation [3] Group 2 - Scage has extensive experience in the design, production, and testing of the next generation of heavy-duty new energy commercial vehicles, with key products including the Longwang II plug-in hybrid dump truck and the Galaxy II plug-in hybrid truck [3] - As of the first trading day, Scage's stock closed at $9 per share, with a market capitalization of approximately $6.475 billion [3] - Scage is actively leading the heavy-duty commercial vehicle industry towards sustainable development through its forward-thinking approach to clean energy and future mobility [3]

Core Insights - The 2025 Wuhan Investment Promotion Conference was held, resulting in the signing of 148 key projects with a total investment of 984.9 billion yuan, covering various industries such as artificial intelligence, new generation information technology, automotive manufacturing, new energy, new materials, biomedicine, high-end equipment manufacturing, and cultural tourism [1][6]. Group 1: Project Signings - A total of 77 industrial projects were signed with an investment of 542.9 billion yuan, while 70 service projects accounted for 440.7 billion yuan, and 1 agricultural project was signed for 1.3 billion yuan [6]. - Among the signed projects, 30 projects exceeded 1 billion yuan, totaling 581.6 billion yuan [6]. Group 2: Key Participants and Statements - The conference attracted around 200 representatives from global investors, including executives from Fortune 500 companies and large multinational corporations such as Garrett, Mitsubishi UFJ, Qualcomm, and AMD [3]. - Garrett's CFO highlighted Wuhan as a core part of their strategic layout in China, noting a 30% average annual capacity increase over the past decade at their Wuhan factory [3][4]. Group 3: Industry Focus and Future Plans - Companies like Zhongke Huituo and CloudWalk Technology are making significant investments in Wuhan, focusing on AI and cybersecurity, with plans to establish headquarters and R&D centers in the region [4][5]. - The biopharmaceutical company Fukan Pharmaceutical plans to invest over 2 billion yuan in Wuhan to establish production lines for innovative cancer drugs, collaborating with local hospitals and universities [5]. Group 4: Economic Outlook - Wuhan aims to achieve a GDP of 2.1 trillion yuan in 2024, reflecting a year-on-year growth of 5.2%, indicating a trend towards high-quality development [6]. - The city is committed to creating a first-class business environment to attract global enterprises, ensuring they can invest, develop, and live comfortably in Wuhan [6].

Core Viewpoint - The inauguration of Garrett's Wuhan Innovation Center marks a significant step in the company's electrification journey, enhancing its technological capabilities in zero-emission solutions and strengthening its presence in the Chinese market [3][9]. Group 1: Innovation Center Overview - The Wuhan Innovation Center is Garrett's second innovation hub in China, complementing the Shanghai R&D center to create a robust "dual-engine" innovation framework [1]. - The center aims to drive advancements in zero-emission technologies and support the decarbonization processes in transportation and industry [3][10]. Group 2: Strategic Importance - The establishment of the Wuhan Innovation Center is seen as a vital achievement for Wuhan's high-level opening-up and quality industrial development, contributing to the city's goal of becoming a nationally influential technology innovation hub [5]. - Garrett's CEO emphasized that the center will enhance the company's global technological layout and solidify its differentiated technological advantages in the decarbonization process [3]. Group 3: Technological Advancements - Over the past 70 years, Garrett has introduced numerous pioneering technologies in the mobility sector, including variable nozzle turbochargers and hydrogen fuel cell electric compressors [7]. - The company has been active in the Chinese market for 20 years, developing solutions tailored for local manufacturers, such as gasoline variable nozzle turbochargers and exhaust bypass turbochargers for hybrid and range-extended electric vehicles [7]. Group 4: Future Developments - The Wuhan Innovation Center will focus on the research and development of zero-emission systems, with an inverter testing platform already operational and plans to expand testing capabilities for hydrogen fuel cell electric compressors and electric cooling systems [12]. - Garrett aims to accelerate the commercialization process of zero-emission technologies through the integration of R&D and manufacturing capabilities in China, fostering collaboration with universities and research institutions [14].