Core Viewpoint - The report from CITIC Construction Investment emphasizes a strong recommendation for the energy storage sector, highlighting the favorable fundamentals of the lithium battery industry and multiple catalysts at the current moment [1] Summary by Relevant Categories Energy Storage Sector - The economic viability of energy storage in China is reaching a turning point, driven by the comprehensive entry of renewable energy into the market, which is widening the price gap between peak and valley electricity [1] - The introduction of capacity pricing policies is enhancing the Internal Rate of Return (IRR) for energy storage [1] - From January to September, domestic bidding in the energy storage sector has increased by 88% year-on-year [1] Lithium Battery Industry - The current environment presents multiple catalysts for the lithium battery industry, with a peak production season leading to a supply-demand imbalance for materials and energy storage batteries, resulting in continuous price increases [1] - Demand for lithium batteries is expected to become increasingly clear by 2026, with significant growth observed in Q3 both sequentially and year-on-year [1] - The report expresses optimism regarding materials, particularly 6F, iron-lithium, and battery segments [1] International Market Dynamics - The activation of the MACSE mechanism in Italy and the significant power shortage in data centers in the United States are contributing to the continued relevance of solar plus storage as a rapidly scalable energy solution [1] - It is anticipated that overseas production capacity will be able to circumvent some tariffs [1]

Core Viewpoint - The company, Hengdian East Magnetic, is expected to achieve significant growth in net profit for the first three quarters of the year, driven by strong performance across its business segments, particularly in magnetic materials, photovoltaic, and lithium battery industries [1][2]. Business Segment Analysis Magnetic Materials - The company maintains a leading position in the magnetic materials industry, with increasing market share in the home appliance and automotive sectors. New products in electric vehicle charging systems and AI server power supplies are experiencing rapid growth in shipments [1]. - The overall shipment of magnetic materials reached approximately 107,000 tons in the first half of the year, with a notable improvement in product structure and average selling price [2]. Photovoltaic Industry - Hengdian East Magnetic has adopted a differentiated strategy in the photovoltaic sector, enhancing product capabilities through R&D and process optimization. The company has established strategic inventory to mitigate the impact of rising silicon prices [2]. - The company anticipates continued support for component profitability in the second half of the year, despite uncertainties in domestic installation pace and pricing adjustments [3]. Lithium Battery Sector - The company focuses on high operational efficiency and market share growth in the lithium battery sector, with a stable increase in the market share of its main products. The demand for high-power batteries in applications like BBU is expected to grow significantly in the coming years [3].

Investment Rating - The report maintains an "Overweight" rating for the industry [3] Core Views - Solid-state battery technology continues to make breakthroughs, with significant developments in the lithium battery industry expected by 2025, indicating a potential supply-demand inflection point and a 2-3 year upward cycle for the industry [5][11] - The report highlights the strong demand in the energy storage sector, with September's energy storage procurement reaching 42.6 GWh and a 31% increase in the average price of 2-hour systems [5][19] - The report recommends key companies in the lithium battery sector, including CATL and EVE Energy, and suggests focusing on solid-state battery-related companies [5] Summary by Sections Lithium Battery Sector - The report notes that China will implement export controls on certain high-end lithium batteries and related materials starting November 8, 2025, which may impact the market [10] - The battery industry index fell by 5.76%, underperforming the broader market, primarily due to the export control announcement [8][10] Energy Storage Sector - In September, the energy storage procurement reached 42.6 GWh, with the average price of 2-hour systems increasing by 31% [5][19] - The demand from Xinjiang and Inner Mongolia contributed nearly half of the total procurement volume [17] - The report indicates a stable EPC pricing environment despite fluctuations in system prices [19] Electric Power Equipment Sector - The report discusses the issuance of the "Energy Planning Management Measures," which will guide energy planning across various levels [23][24] - It highlights the support for green electricity direct connection projects in Shandong, aimed at promoting renewable energy integration [25][26] Photovoltaic Sector - The report mentions stable prices for polysilicon, with no significant changes observed in the market [27][28] - It notes a decrease in demand for photovoltaic components, leading to a downward price trend [5] Wind Power Sector - The report outlines ongoing developments in offshore wind projects in various countries, indicating a robust construction pace in the domestic market [5]

Core Viewpoint - The article highlights the complex situation of Guoxuan High-Tech, which has shown strong growth in shipment volume, revenue, and net profit, but remains heavily reliant on government subsidies for profitability, raising concerns about its long-term sustainability [2][3]. Revenue Growth vs. Profitability Challenges - Guoxuan High-Tech's main products include power battery systems, energy storage battery systems, and power distribution equipment, with power battery systems contributing over 70% of revenue [3]. - In the first half of the year, the company shipped approximately 40 GWh, a year-on-year increase of over 48%, achieving a revenue of 19.394 billion yuan, a 15.48% increase, and a net profit of 367 million yuan, up 35.22% [3][4]. - The net profit heavily relies on government subsidies, with approximately 400 million yuan in subsidies surpassing the net profit level [4][5]. - The company has faced continuous losses in net profit excluding non-recurring items from 2019 to 2022, totaling over 1.4 billion yuan [4]. Margin Pressure and Competitive Landscape - The gross margin for power batteries was 14.24%, a year-on-year increase of 2.16 percentage points, while energy storage batteries saw a decrease in gross margin to 19.35% [5]. - The gross margin for power batteries has dropped significantly from 48.7% at the time of listing in 2015 to about 14.24% now, reflecting intense price competition in the lithium battery industry [5][6]. - Guoxuan High-Tech's inventory has surged to 9.756 billion yuan, an increase of 81.71% year-on-year, indicating rising pressure on operations due to excess inventory [10]. Expansion Plans and Financial Risks - The company plans to invest 8 billion yuan to build new battery production capacities in Nanjing and Wuhu, aiming for a total capacity of 40 GWh [2][7]. - As of the first half of the year, Guoxuan High-Tech's asset-liability ratio reached 72.22%, with short-term debt exceeding 10 billion yuan, raising concerns about financial stability [7][8]. - Financial expenses have increased by 67.9% year-on-year, reaching a historical high, primarily due to rising interest expenses [8][9]. - The aggressive expansion occurs in a context of oversupply in the lithium battery market, with production capacity projected to increase significantly while demand remains limited [9][10].

Core Viewpoint - The company, Hengdian East Magnetic, anticipates a significant increase in net profit for the first three quarters of 2025, projecting a year-on-year growth of 50.1% to 65.2% [1] Group 1: Financial Performance - The expected net profit for the first three quarters is approximately between 1.39 billion to 1.53 billion yuan [1] - This represents a substantial year-on-year increase, indicating strong financial health and growth potential [1] Group 2: Industry Performance - In the magnetic materials sector, the company has seen a continuous increase in market share within the home appliance and automotive industries [1] - The company has successfully launched multiple new magnetic products in high-growth areas such as electric vehicle onboard chargers, charging modules, thermal management systems, AI server power supplies, secondary module power supplies, and chip inductors [1] Group 3: Operational Efficiency - The company has improved operational efficiency and profitability through organizational restructuring and digital transformation initiatives [1] Group 4: Solar Industry Strategy - The company has adopted a differentiated strategy in the photovoltaic sector, focusing on continuous R&D investment, technological upgrades, and process optimization [1] - The introduction of ultra-high power products has enhanced product competitiveness, leading to improved shipment volumes in both domestic and international markets [1] - Proactive supply chain management has effectively mitigated cost fluctuations [1] Group 5: Lithium Battery Sector - The company has maintained stable product quality in the lithium battery sector [1] - It focuses on small power applications across multiple fields, achieving good market expansion under high operational efficiency [1]

光伏产业：强化差异化战略，通过持续的研发投入、技改投资和工艺优化，适时推出超高功率产品，进 一步提升了产品力;因地制宜布局产能和营销网络，使得海内外优质市场的出货量同比有较好提升;同 时，通过前瞻性的供应链布局，有效管理了成本的波动。 锂电产业：通过标准化和精细化管理，持续保障了产品的品质稳定;聚焦小动力多领域应用市场，在高 稼动率下，保持了较好的市场拓展。 智通财经APP讯，横店东磁(002056.SZ)发布公告，公司预计2025年前三季度归属于上市公司股东的净利 润为13.9亿元至15.3亿元，同比增长50.1%至65.2%。 磁材产业：龙头地位稳固，在家电和汽车领域市占率持续提升。同时，公司横向拓展和纵向延伸布局的 多个磁材新品，在新能源汽车的车载充电机OBC、充电桩充电模块、热管理系统，AI服务器用PSU电 源、二次模块电源、芯片电感等领域出货高速增长;并通过组织变革和数智化推进，进一步提升了运营 效率和盈利能力。 ...

Core Viewpoint - Hengdian East Magnetic (002056.SZ) expects a significant increase in net profit for the first three quarters of 2025, projecting a range of 1.39 billion to 1.53 billion yuan, representing a year-on-year growth of 50.1% to 65.2% [2] Group 1: Business Performance - The company maintains its leading position in the magnetic materials industry, with rapid growth in new product shipments in emerging fields such as new energy vehicles and AI servers [2] - The photovoltaic industry is enhancing its differentiated strategy, with high-power products driving growth in both domestic and international markets, supported by effective cost control [2] - In the lithium battery sector, the company focuses on the small power market, ensuring stable quality and high operating rates [2]

Core Viewpoint - The company expects a significant increase in net profit for the first three quarters of 2025, projecting between 1.39 billion to 1.53 billion yuan, representing a growth of 50.1% to 65.2% compared to the same period last year [1] Magnetic Material Industry - The company maintains a leading position in the magnetic material industry, with a continuous increase in market share in the home appliance and automotive sectors [1] - New magnetic products in various fields, including onboard chargers for electric vehicles, charging modules for charging stations, thermal management systems, AI server power supply units, secondary module power supplies, and chip inductors, have seen rapid growth in shipments [1] - Organizational restructuring and digital transformation initiatives have further enhanced operational efficiency and profitability [1] Photovoltaic Industry - The company has strengthened its differentiated strategy through ongoing R&D investments, technological upgrades, and process optimizations, leading to the timely launch of ultra-high power products [1] - The company has effectively increased shipment volumes in both domestic and international quality markets by strategically laying out production capacity and marketing networks [1] - Proactive supply chain management has helped the company effectively manage cost fluctuations [1] Lithium Battery Industry - The company ensures stable product quality through standardized and refined management practices [1] - Focus on small power applications across multiple fields has allowed the company to maintain good market expansion while achieving high operational efficiency [1] - Overall, the company's operating performance for January to September 2025 is expected to show substantial growth compared to the same period last year [1]

往 期 回 顾 01 02 03 | CINE2025固态电池展暨固态电池行业年会定档11月6-8日，广州举办！ 2025第十一届起点锂电行业年会、起点用户侧储能电池技术论坛12月17-19日深圳 04 举办！ 扫描右方二维码 加入起点锂电行业交流群 (备注:公司+姓名+职位) 新型电池技术第一展 国态电池展 CIN E 起点固态电池 办办单位 2025起点固态电池行业年会暨固态电池金鼎奖颁奖典礼 le E 2025起点钠电行业年会暨钠电金鼎奖颁奖典礼 | 倒计时25天 | | --- | | CINE2025固态电池展暨固态电池行业年会 | | 主办单位： 起点固态电池、起点锂电、SSBA固态电池联盟 | | 协办单位及固态年会总冠名： 茹天科技 | | 活动时间： 2025年11月6-8日 | | 活动地点： 广州南沙国际会展中心（2楼船厅及广州厅） | | 活动规模： 展商规模200+、参会企业2000+、专业观众20000+ | | 2025起点固态电池金鼎奖颁奖典礼、SSBA固态电池产业联盟理事会 同期活动： | | 第一批展商及赞助商： 金钠科技/茹天科技/海四达钠星/融捷能源/易事特钠电/泰和科 ...

Core Viewpoint - The recent export control measures on lithium battery technology and equipment by the Chinese government aim to protect core technologies and prevent disorderly overseas expansion by small enterprises, while still allowing for regulated exports through licensing [3][4][10]. Summary by Sections Export Control Measures - The announcement from the Ministry of Commerce and the General Administration of Customs includes lithium batteries, high-end anode and cathode materials, and core manufacturing equipment in the export control list for the first time [2]. - The export control does not equate to a ban; companies can still export by applying for permits, focusing on high-end technology and core equipment regulation [3][5]. Impact on the Industry - The controlled range primarily affects lithium batteries with an energy density of ≥ 300Wh/kg, which are used in high-end applications like new energy vehicles and military equipment, while conventional consumer electronics batteries are not impacted [5][6]. - Most companies currently capable of mass production at this energy density are few, meaning the short-term impact on the majority of enterprises is limited [6]. Long-term Industry Dynamics - The policy is expected to elevate compliance costs in the short term but will drive the industry towards healthier, more localized operations with greater strategic control in the long run [9][23]. - Leading companies with global operational experience may gain more stable overseas market shares and better profitability under the new regulatory framework [4][15]. Market Trends and Opportunities - China's lithium-ion battery exports reached 3 billion units with a 18.66% year-on-year increase, and export value reached $48.296 billion, up 25.79% year-on-year from January to August 2025 [11]. - The demand for energy storage in data centers is projected to grow significantly, with a forecasted market size increase of 12 times from 2024 to 2030, indicating a robust future for the battery industry [13]. Strategic Importance of Lithium Technology - Lithium technology has transitioned from an industrial advantage to a strategic national resource, reflecting its growing significance in global competition [22]. - The recent policy signals a commitment to maintaining technological advantages and extending China's lead in the lithium battery sector [12][24]. Compliance and Localization - The new regulations raise compliance thresholds, emphasizing the value of localized operations, as companies like CATL and others have established production capacities in Europe and North America [15][17]. - Companies with overseas production capabilities are better positioned to navigate the new regulatory landscape, as seen with Li Yuanheng's successful global operations [19][20]. Conclusion - The export control measures indicate a shift in the perception of lithium technology as a strategic resource, with implications for compliance costs and market dynamics [22][23]. - Companies that invest in high-end technology breakthroughs and localized operations are likely to benefit the most in the evolving landscape [25].