Summary of the Conference Call on Solid-State Battery Equipment Industry Industry Overview - **Industry**: Solid-State Battery Equipment - **Key Analysts**: Wang Shuai, Li Feng, Wu Shenghao, Sun Zhaoxu [1] Key Points Lithium Battery Market - By 2025, demand for lithium batteries in new energy vehicles and energy storage is expected to grow steadily. However, the industry faces an oversupply situation due to previous rapid capacity expansion, leading to sustained pressure on profitability for two years [3][3]. - Current signs indicate a price bottoming out and a slowdown in capacity expansion, which are positive for the market. The industry is showing signs of stabilization and potential upward elasticity in profitability as companies implement cost reduction and efficiency measures [3][3]. - New technologies like solid-state batteries are accelerating, potentially reshaping the competitive landscape. Companies with advantages in new technology may see a rebound first [3][3]. Solid-State Battery Development - The commercialization of solid-state batteries is expected to accelerate by 2025, driven by their high energy density, excellent safety, and adaptability to wide temperature ranges. They are likely to replace existing liquid lithium batteries in various applications and open new markets such as drones, robotics, and data centers [3][3]. - The solid-state battery supply chain is expected to see collaborative breakthroughs across various segments, including mature preparation processes for solid electrolytes and new electrode materials, leading to significant cost reductions [3][3]. - The initial phase of solid-state battery production will focus on dry electrode equipment and static pressure equipment, with increasing importance on post-processing stages as the industry matures [3][3]. Investment Recommendations - Focus on leading battery equipment manufacturers and companies with comprehensive R&D and production capabilities in solid-state batteries, such as XianDao Intelligent, Yinghe Technology, and HaiMuXing [3][3]. - Attention should also be given to companies innovating in dry coating and mixing processes, such as NaKonoer and HongGong Technology, as dry processes are expected to dominate future developments [3][3]. - As the solid-state battery trend becomes clearer, suppliers of post-processing equipment are likely to benefit, with companies like HangKe Technology and HuaZi Technology being noteworthy [3][3]. Risks - Potential risks include policy effects falling short of expectations, lower-than-expected downstream demand, unexpected fluctuations in raw material prices, macroeconomic volatility, and slower-than-expected technological advancements [3][3]. Additional Insights - The new national standard for power batteries mandates that they must not catch fire or explode, which will enhance the focus on battery safety and likely accelerate the adoption of solid-state batteries [6][9]. - Solid-state batteries significantly outperform liquid batteries in terms of thermal runaway temperatures, with solid electrolytes showing much higher thresholds for thermal stability [9][9]. - The production process for solid-state batteries involves significant changes in equipment and technology, particularly in the front-end processes of mixing, coating, and rolling, which are critical for achieving high energy density and cycle life [39][58]. Conclusion The solid-state battery equipment industry is poised for growth, driven by technological advancements and increasing safety standards. Investment opportunities exist in leading equipment manufacturers and those innovating in production processes. However, potential risks must be carefully monitored as the industry evolves.

Group 1 - The core point of the news is that Hangke Technology's stock price dropped by 5.43% to 36.08 CNY per share, with a trading volume of 554 million CNY and a turnover rate of 2.43%, resulting in a total market capitalization of 21.78 billion CNY [1] - Hangke Technology, established on November 21, 2011, and listed on July 22, 2019, specializes in the design, research and development, production, and sales of various rechargeable batteries, particularly lithium-ion battery production line post-processing systems [1] - The company's main business revenue composition includes 70.17% from charging and discharging equipment, 28.54% from other equipment, 0.83% from accessories, and 0.47% from other sources [1] Group 2 - From the perspective of fund holdings, one fund under China Europe Fund has a significant position in Hangke Technology, with the China Europe Small Cap Growth Mixed A Fund holding 149,900 shares, accounting for 0.57% of the fund's net value, ranking as the sixth-largest holding [2] - The China Europe Small Cap Growth Mixed A Fund has a current scale of 199 million CNY and has achieved a year-to-date return of 53.64%, ranking 992 out of 8171 in its category, and a one-year return of 106.93%, ranking 418 out of 8004 [2] - The fund manager, Qian Yating, has a tenure of 3 years and 329 days, with the fund's total asset scale at 2.377 billion CNY, achieving a best return of 58.45% during the tenure [3]

Industry News - The China Nonferrous Metals Industry Association opposes "involution" competition in the copper smelting industry, emphasizing that it harms national and industry interests and deviates from high-quality development goals [1] - The Ministry of Commerce of China has added three US companies to the unreliable entity list and three others to the export control list, prohibiting them from engaging in import and export activities related to China [2] - The Ministry of Commerce calls for countries to jointly oppose unilateralism and protectionism, stressing that third-party interests should not be sacrificed due to coercion from others [2] - The total scale of public funds in China has surpassed 36 trillion yuan, marking the fifth historical high this year, with significant growth in stock and mixed funds [3] Company News - The stock of Upwind New Materials will be suspended for verification after rising over 1800% this year, marking its second suspension since a change in control was disclosed [4] - Ganfeng Lithium plans to introduce investors for a capital increase of up to 2.5 billion yuan for its subsidiary, Ganfeng Lithium Battery [4] - Jingfeng Mingyuan has entered mass production of its second-generation DrMos chips, which have been adopted by multiple clients, driving business growth [5] - Pingmei Shenma Group is undergoing a strategic restructuring, which will not significantly impact Pingmei Co.'s operations [5] - Lvtian Machinery clarifies that it has no relationship or business cooperation with Zhuhai Lvtian Machinery Co., Ltd. [6] - Xiamen International Trade holds a 0.67% stake in Mohr Thread through its investment fund [7] - Yuexiu Capital confirms that Mohr Thread is one of its investment projects, with no significant impact on current operating performance [8] - Dazhihui announces a share swap with Xiangcai Co., with a swap price of 9.53 yuan per share for Dazhihui [9] - Putailai has delivered dry and solid-state battery equipment to major domestic and international clients [10] - Hailunzhe's investment in Suzhou Yisheng Robotics is expected to positively impact future performance due to increased demand from Apple [11] - Hanyu Pharmaceutical plans to raise up to 968 million yuan for the development of semaglutide and other projects [12] - Tianen Kang's subsidiary has received approval for clinical trials of a new drug for rosacea, a first in the domestic market [12] - Baili Tianheng's innovative drug has been included in the list of breakthrough therapies by the National Medical Products Administration [13]

Group 1: Industry Overview - The report from Industrial Securities suggests focusing on leading battery equipment companies and solid-state battery equipment suppliers as the industry evolves [1] - By 2025, the demand for new energy vehicles and energy storage is expected to grow steadily, although the industry faces an oversupply situation due to previous rapid capacity expansion [1] - The lithium battery sector is experiencing a price bottoming and production expansion slowdown, which are positive developments for the market [1] Group 2: Solid-State Battery Development - The commercialization of solid-state batteries is anticipated to accelerate by 2025, offering advantages such as high energy density and superior safety [2] - Solid-state batteries are expected to gradually replace existing liquid lithium batteries in various applications, including new energy vehicles and energy storage, while also opening new markets like low-altitude, robotics, and data centers [2] - The supply chain for solid-state batteries is expected to see collaborative breakthroughs across various segments, with advancements in materials and production processes leading to significant cost reductions [2] Group 3: Equipment and Technology - The transition to solid-state batteries will require significant changes in equipment, particularly in the dry electrode processes and solid electrolyte pressing equipment [2] - The demand for high-pressure formation equipment is expected to increase due to the higher pressure requirements in the formation stage of solid-state batteries compared to liquid batteries [2]

Group 1 - The article emphasizes the importance of timely and professional information interpretation in investment decisions, focusing on extracting investment value from significant events and analyzing industry chain companies [1] - A company has successfully established a complete production process for solid-state batteries and received orders for production equipment worth several hundred million yuan, indicating a deep investment in lithium metal and sulfide technology routes [1] - Another company is leveraging eSIM digital identity security technology to expand its presence in the Internet of Vehicles and consumer electronics, with significant supply increases in consumer-grade, industrial-grade, and automotive-grade products [1]

Core Viewpoint - The company, HaiMuxing (688559.SH), emphasizes its strong capabilities in the solid-state battery equipment sector, highlighting its independent control over technology and significant research and development resources [1] Group 1 - The company possesses intellectual property rights in the solid-state battery equipment field [1] - A large research and development technical team supports the development, testing, mass production, and after-sales service of solid-state related technologies [1]

Group 1 - The core point of the news is that Hangke Technology's stock has increased by 5.14%, reaching a price of 41.10 CNY per share, with a trading volume of 1.201 billion CNY and a turnover rate of 5.02%, resulting in a total market capitalization of 24.811 billion CNY [1] - Hangke Technology, established on November 21, 2011, specializes in the design, research and development, production, and sales of various rechargeable batteries, particularly lithium-ion battery production line post-processing systems [1] - The company's main business revenue composition includes 70.17% from charging and discharging equipment, 28.54% from other equipment, 0.83% from accessories, and 0.47% from other sources [1] Group 2 - From the perspective of major fund holdings, Green Fund has one fund heavily invested in Hangke Technology, specifically the Green Carbon Neutral Theme Mixed A fund, which reduced its holdings by 5,957 shares in the second quarter, now holding 24,000 shares, accounting for 8.03% of the fund's net value [2] - The Green Carbon Neutral Theme Mixed A fund, established on January 18, 2023, has a current scale of 3.4078 million CNY and has achieved a year-to-date return of 65.46%, ranking 243 out of 8,177 in its category [2] - The fund has a one-year return of 129.34%, ranking 103 out of 7,982 in its category, and a cumulative return since inception of 65.81% [2]

Group 1 - The core viewpoint of the news is that the solid-state battery concept stocks in the A-share market have collectively strengthened, with significant price increases observed in various companies [1][2] - Companies such as Lijia Technology saw a rise of 22.73%, while Zhongwei Co. increased by 11.89%, indicating strong market interest and investor confidence in solid-state battery technology [2] - The total market capitalization of Lijia Technology is 2.617 billion, and Zhongwei Co. has a market cap of 40.7 billion, reflecting their substantial presence in the market [2] Group 2 - Recent reports indicate a surge in orders for solid-state battery production equipment, with total new and existing orders exceeding 30 billion, representing a year-on-year increase of 70% to 80% [2][3] - Financial analysis suggests that since 2025, breakthroughs in solid-state battery technology have accelerated, with multiple automotive companies planning to adopt all-solid-state batteries around 2027, indicating a faster industrialization process [3] - The ongoing establishment of pilot production lines and the restart of lithium battery expansion cycles are expected to improve the fundamentals of equipment companies, suggesting a positive outlook for the industry [3]

Group 1: Active Equity Funds - The issuance of active equity fund products has increased significantly, with some products raising over 5 billion yuan in a single day [1] - The招商均衡优选混合基金 reached its fundraising cap of 5 billion yuan on its first day of sale, indicating strong investor interest [1] - The overall trend shows a steady rise in both the number and scale of new active equity fund products due to the recovery of the A-share market [1] Group 2: Life Insurance Industry - A total of 73 life insurance companies reported a combined net profit of 185.8 billion yuan in the first half of the year, reflecting a year-on-year growth of approximately 25% [1] - Among these companies, 52 reported profits totaling 190.1 billion yuan, while 21 companies incurred losses amounting to 4.3 billion yuan [1] - The recovery in net profit is attributed to optimized business structures, cost reduction measures, and improved investment returns [1] Group 3: R&D Investment in A-shares - A-shares listed companies invested over 810 billion yuan in R&D in the first half of the year, marking a year-on-year increase of 3.27% [2] - The overall R&D intensity across the market was 2.33%, showing a slight increase compared to the previous year [2] - Notably, companies in strategic emerging industries and high-tech manufacturing exhibited higher R&D intensities, surpassing the overall average by 3.29 and 4.44 percentage points, respectively [2] Group 4: Solid-State Battery Equipment Orders - Orders for solid-state battery production equipment surged, with major companies reporting new and existing orders exceeding 30 billion yuan, reflecting a year-on-year increase of 70% to 80% [3] - The growth in orders is driven by advancements in solid-state battery technology and plans from several automakers to adopt this technology by 2027 [3] - The industry is expected to continue improving as pilot production lines are established and lithium battery production cycles are restarted [3] Group 5: Paper Industry Price Increases - Major paper manufacturers have announced price increases for certain products due to rising raw material costs, indicating a new wave of price adjustments in the domestic paper industry [4][5] - The price hikes are part of a broader trend, with multiple rounds of increases occurring since August [4][5] - The industry is entering a traditional peak season, and the combination of price increases and production halts is expected to sustain upward price momentum [4][5] Group 6: E-commerce and Discount Supermarkets - Several e-commerce giants are expanding their presence in the offline discount supermarket sector, viewing it as a new growth opportunity [4][5] - Companies like JD Group and Meituan are actively opening discount stores, while Alibaba's Hema is rebranding its discount line to focus on cost-effectiveness [4][5] Group 7: Global Smartwatch Market - Global smartwatch shipments grew by 8% year-on-year in Q2 2025, marking the first recovery after five consecutive quarters of decline [5] - Huawei surpassed Apple in smartwatch shipments for the first time, becoming the global leader in this segment [5] - The growth is largely attributed to rising consumer demand, particularly in the Chinese market, driven by brands like Huawei, Xiaomi, and Little Genius [5] Group 8: Steel Market Outlook - Current steel prices remain at mid-low levels for the year, but there are expectations for a trend of price increases in the spot market as the construction season begins [5] - Factors such as macroeconomic support, recovering demand, and tightening supply are contributing to a positive outlook for steel prices [5] Group 9: Data Element Market Development - The establishment of data groups is accelerating in China, with nearly 500 digital technology companies formed by central enterprises [6] - The market is transitioning from scale expansion to high-quality development, focusing on leveraging data for industrial transformation and new productivity [6] Group 10: Corporate Actions - ConocoPhillips plans to lay off 20% to 25% of its workforce as part of a resource optimization strategy [6] - XGIMI is considering an H-share listing primarily for overseas branding purposes, with discussions still in the early stages [6] - Dongyangguang announced the pledge of 10 million shares, representing 1.62% of its holdings, with a total of 542 million shares pledged [6][9] - Zhongcheng Co. intends to issue shares to acquire 100% of Jiangsu Clean Energy for 151 million yuan, which will enhance its financial metrics post-transaction [10] - Fangda Carbon plans to pay 51.93 million yuan in back taxes, which is expected to reduce its net profit for 2025 by the same amount [11] - Changqing Technology is planning to issue convertible bonds worth up to 800 million yuan for a new materials production project [12]

Investment Rating - The report assigns a "Buy" rating to the company, indicating a positive outlook for its stock performance in the near term [6]. Core Insights - The company's financial indicators have shown continuous improvement, with a revenue of 6.61 billion yuan in the first half of 2025, representing a year-on-year growth of 14.92%. The net profit attributable to shareholders reached 740 million yuan, an increase of 61.19% compared to the same period last year [1]. - The solid-state battery production line has significant growth potential, as the company has developed a complete line of solid-state battery production solutions and has established deep partnerships with leading battery manufacturers globally [3]. Financial Performance Summary - In 2023, the total impairment amount reached 1.162 billion yuan, a year-on-year increase of 97%. However, the impairment amount decreased to 1.103 billion yuan in 2024, down 5% year-on-year. The company has seen a turnaround in credit impairment, with recoveries of 101 million yuan in Q1 2025 and 133 million yuan in Q2 2025 [2]. - The company's operating cash flow has improved significantly, with a net inflow of 2.353 billion yuan in the first half of 2025, following a positive cash flow in Q4 2024 [2]. - Revenue projections for 2025-2027 are estimated at 15.073 billion yuan, 21.788 billion yuan, and 22.132 billion yuan, respectively, with net profits expected to be 1.573 billion yuan, 2.213 billion yuan, and 2.481 billion yuan [3]. Financial Metrics - The company reported a net profit margin of 2.4% in 2024, projected to increase to 10.4% in 2025 and 10.2% in 2026 [13]. - The earnings per share (EPS) is expected to rise from 0.18 yuan in 2024 to 1.58 yuan in 2027, reflecting strong growth potential [13]. - The price-to-earnings (P/E) ratio is projected to decrease from 108.80 in 2024 to 18.68 in 2027, indicating an improving valuation as earnings grow [13].