Investment Rating - The report maintains an "Outperform" rating for the electric equipment and new energy industry [1]. Core Insights - The photovoltaic module shortage has led to price increases, while the energy storage sector is initiating a "reverse involution" [1]. - In the new energy vehicle sector, the China Association of Automobile Manufacturers reported sales of 1.262 million units in July, a year-on-year increase of 27.4%, accounting for 48.7% of total new car sales for the month [1][25]. - The price of lithium carbonate has recently risen significantly, which is expected to restore profitability in related sectors, with a focus on battery and cathode material segments [1]. - Solid-state batteries have made progress in both new energy vehicles and energy storage applications, with a clear trend towards industrialization [1]. - The central economic work conference has emphasized the need to regulate "involutionary" competition and promote product quality in the photovoltaic sector [1]. - The hydrogen energy sector is being driven by continuous policy support, with pilot projects being launched in the energy sector [1]. Industry Dynamics - The electric equipment and new energy sector saw a weekly increase of 5.84%, outperforming the Shanghai Composite Index [10]. - The lithium battery index rose by 6.56%, while the wind power sector increased by 6.32% [13]. - The report highlights that the price of photovoltaic components has reached 0.7 yuan/W, with shortages primarily in the 710W large-format components [25]. - The energy storage market is witnessing significant project orders, such as a 2.8GWh independent energy storage project signed by Nandu Power [25]. - The report notes that the price of silicon materials remains stable, with mainstream prices for dense materials around 42-47 yuan/kg [15]. Company Dynamics - Ganfeng Lithium is collaborating with LAR to develop a lithium salt lake project with an annual production capacity of 150,000 tons of LCE lithium products [26]. - Keda Li reported a net profit of 769 million yuan for the first half of 2025, a year-on-year increase of 18.72% [26]. - Nandu Power reported a net loss of 232 million yuan for the first half of 2025, a year-on-year decline of 225.48% [26]. - Jinlang Technology reported a net profit of 602 million yuan for the first half of 2025, a year-on-year increase of 70.96% [26].

Investment Rating - The industry investment rating is "Outperform the Market" [1][36]. Core Insights - The report highlights a significant increase in lithium carbonate prices, which is expected to enhance profitability in related sectors, particularly in battery and cathode materials [1][24]. - The report anticipates a gradual recovery in domestic new energy vehicle sales starting from August, driven by the release of subsidy funds, with a forecast of high growth in 2025 [1][24]. - The photovoltaic sector is undergoing a "de-involution" process, with government policies aimed at regulating low-price competition and promoting product quality [1][24]. - The hydrogen energy sector is being supported by continuous policy initiatives, with a focus on companies that have cost and technological advantages in electrolyzer production and hydrogen infrastructure [1][24]. Summary by Sections Market Overview - The electric equipment and new energy sector saw a 1.94% increase this week, with wind power leading at 4.05% and photovoltaic at 1.26% [10][13]. - The lithium battery index rose by 2.72%, reflecting ongoing price adjustments in the lithium market [10][13]. New Energy Vehicles - In July 2025, new energy vehicle retail sales reached 987,000 units, a year-on-year increase of 22.3% but a month-on-month decrease of 3.3% [24]. - The penetration rate of new energy vehicles in the overall passenger car market reached 54.0%, up 2.7 percentage points from the previous year [24]. Lithium Market - The price of battery-grade lithium carbonate reached 71,961 yuan per ton on August 8, marking a month-on-month increase of 1,012 yuan per ton [24]. - The report notes that the price of lithium carbonate has been influenced by potential production halts in Jiangxi lithium mines [24]. Photovoltaic Sector - The report indicates that the price of silicon materials remains stable, with mainstream prices for dense materials around 49-55 yuan per kilogram [15]. - The photovoltaic sector is expected to see an increase in production in August, particularly in polysilicon and other segments [24]. Hydrogen Energy - The National Energy Administration has announced pilot projects for green liquid fuel technology, including green methanol and ammonia [24]. - The report suggests focusing on companies with cost and technological advantages in the hydrogen energy sector [1][24]. Company Updates - Aisheng Co. reported a net loss of 238 million yuan for the first half of 2025, while Huaming Equipment achieved a net profit of 368 million yuan, a year-on-year increase of 17.17% [26]. - Hewa Electric reported a net profit of 242 million yuan, up 56.79% year-on-year [26].

Group 1: Solar Industry - The solar industry is experiencing a price increase across the supply chain due to domestic demand surge and supply discipline, with a notable rise in photovoltaic glass prices by 2 CNY/square meter [11][29]. - In Q1, domestic solar installations reached 39.5 GW, a year-on-year increase of 7.5%, driven by the "Thousand Households in the Sun" initiative and market reforms [17][20]. - The global solar installation growth rate is expected to be around 15% in 2025, with non-European and non-American markets projected to grow over 40% [20][21]. Group 2: Energy Storage - The energy storage sector is witnessing robust demand growth, with domestic large-scale storage projects showing a cumulative bidding capacity of 75.6 GWh in the first two months of 2025, a 400% year-on-year increase [43]. - The cancellation of mandatory storage requirements in China and the adjustment of tariffs in the U.S. are expected to maintain a positive growth trajectory for both domestic and overseas energy storage markets [56]. - The global energy storage market is projected to grow by 45-50% year-on-year in 2025, with significant contributions from both developed and emerging markets [48][49]. Group 3: Lithium Battery - The lithium battery sector is poised for a spring rally, driven by demand and profitability resonance, as the market anticipates a recovery in pricing and demand dynamics [57]. - The first quarter of 2025 is expected to see a seasonal decline in shipments, but profitability is stabilizing due to price adjustments in the supply chain [40][41].