Core Viewpoint - The report from Minsheng Securities highlights that Genesis achieved a net profit attributable to shareholders of 233 million yuan in the first half of the year, representing a year-on-year increase of 47.38% [1]. Financial Performance - The company's net profit for Q2 2025 reached 135 million yuan, showing a year-on-year growth of 36.36% [1]. - Both gross margin and net margin have increased, indicating improved profitability [1]. Research and Development - The company is increasing its investment in research and development, focusing on new processing equipment suitable for humanoid robots and low-altitude scenarios [1]. - There is a significant emphasis on self-research of core components to expand into new fields [1]. Business Expansion - The growth in contract liabilities reflects a sufficient backlog of orders, with accelerated overseas business development [1]. - The company is expected to benefit from the demand recovery in the 3C sector, driven by several factors including AI innovations in consumer electronics and the increasing penetration of titanium alloy phone frames [1]. Market Trends - The consumer electronics industry is currently experiencing a recovery cycle combined with an upward trend in innovation, leading to sustained demand for updated drilling and attacking machine equipment [1]. - The company is well-positioned to capitalize on the demand rebound in the 3C sector, maintaining a "recommended" rating [1].

Report Summary 1. Report Industry Investment Rating No industry investment rating was provided in the report. 2. Core View The fundamentals of the lithium carbonate market remain weak, but there is still uncertainty in supply - side fluctuations. It is expected that the short - term lithium carbonate price will fluctuate widely. It is recommended to short on rebounds [1]. 3. Summary by Relevant Content Market Data - **Futures Prices**: On August 4, 2025, the closing price of the near - month contract was 69,200 yuan/ton (+700), the closing price of the continuous - one contract was 68,920 yuan/ton (unchanged), the closing price of the continuous - two contract was 69,040 yuan/ton (-200), and the closing price of the continuous - three contract was 69,040 yuan/ton (-200) [1]. - **Trading Volume and Open Interest**: The trading volume of the active lithium carbonate futures contract was 247,898 lots (-92,772), and the open interest was 207,770 lots (-8,333) [1]. - **Inventory**: The registered warehouse receipt was 12,603 tons (+5,998), and the social inventory decreased. The inventories of smelters and other sectors decreased, while the downstream inventory was tight [1]. - **Price Spreads**: The spread between the near - month and continuous - one contracts was 280 yuan/ton (+700), the spread between the continuous - one and continuous - two contracts was - 120 yuan/ton (+200), and the spread between the continuous - two and continuous - three contracts was 0 yuan/ton (unchanged) [1]. - **Spot Prices**: The average price of SMM battery - grade lithium carbonate was 71,350 yuan/ton (unchanged), the average price of industrial - grade lithium carbonate was 69,250 yuan/ton (unchanged), and the spread between them was 2,100 yuan/ton (unchanged) [1]. Cost and Supply - **Cost**: The price of spodumene concentrate increased to 760 US dollars/ton (+5), while the price of mica remained flat [1]. - **Supply**: The production of lithium carbonate decreased last week [1]. Downstream Demand - **Last Week**: The production of lithium iron phosphate decreased, while the production of ternary materials increased. The production of power batteries decreased [1]. - **August**: The production of lithium carbonate decreased, while the production of lithium hydroxide increased. The production of energy - storage batteries increased [1]. Terminal Demand - **New Energy Vehicles**: In July, the production and sales of new energy vehicles continued to grow year - on - year but declined month - on - month. The wholesale sales of new energy passenger vehicles by manufacturers were 1.18 million, a year - on - year increase of 25% and a month - on - month decrease of 4% [1]. - **3C Products**: The shipment volume was average [1].

Group 1: Investor Relations Activities - The company held an earnings briefing on May 8, 2025, from 15:00 to 16:00 [3] - Participants included the chairman, vice chairman, CFO, board secretary, and sponsor representative [3] - Various channels for investor communication include earnings briefings, online roadshows, site visits, and responding to investor inquiries [4] Group 2: Market and Product Insights - Solid-state batteries are identified as a key future direction due to their high energy density and safety, with applications in electric vehicles, energy storage, and consumer electronics [5] - The company is one of the early participants in solid-state battery production equipment development and has received customer orders [5] - The company plans to expand its international presence, focusing on Europe, North America, and Southeast Asia to enhance its competitive edge [6] Group 3: Financial Performance and Strategy - The decline in Q1 2025 performance is attributed to reduced equipment acceptance, leading to lower revenue recognition [7] - The company is actively working to improve customer service and efficiency to recover from the downturn [7] - The company reported a positive trend in operating cash flow and a sufficient backlog of orders for Q1 2025 compared to Q1 2024 [8] Group 4: Future Plans and Developments - The company will participate in the CIBF2025 International Battery Exhibition from May 15-17, 2025, showcasing dry electrode and solid-state battery equipment [9][10] - The company is open to mergers and acquisitions to enhance its market position and achieve stable growth [13] - Future strategic goals include maintaining domestic market leadership in lithium battery production equipment while exploring new fields for growth [15]