Core Viewpoint - The company is advancing its solid-state battery technology, with significant developments in both all-solid and semi-solid battery products, indicating a move towards commercial application in energy storage solutions [1] Group 1: Technology Development - The company has ongoing research and development in all-solid and semi-solid battery technologies [1] - The semi-solid battery product has won a bid for a 2.8 GWh new energy storage project, primarily located in Shenzhen and Shanwei [1] - This project aims to alleviate the power supply and demand imbalance in the Guangdong-Hong Kong-Macao Greater Bay Area, marking a significant step in the commercialization of the company's solid-state energy storage battery technology [1] Group 2: Financial Impact - The all-solid battery products are not expected to have a significant impact on the company's performance in the fiscal year 2025 [1]

Core Insights - Nandu Power reported a net profit of approximately -232 million yuan for the first half of 2025, marking a shift from profit to loss year-on-year [1] - The company's revenue for the first half of 2025 was approximately 3.923 billion yuan, a year-on-year decrease of 31.67% [1] - The decline in revenue is attributed to the company's strategic transformation and a proactive reduction in the lead recycling segment [1] Company Performance - Nandu Power's main focus is on the energy storage application sector, providing systematic products, solutions, and operational services centered around lithium-ion and lead batteries [1] - As of August 14, the company's stock price was 17.31 yuan per share, with a total market capitalization of 15.55 billion yuan [1]

Core Viewpoint - Nandu Power has signed an independent energy storage project order with a total capacity of 2.8GWh, marking the largest semi-solid battery energy storage project globally, which signifies a key leap in the commercialization of solid-state battery technology [1][8]. Group 1: Project Details - The order consists of three independent energy storage projects with a total capacity of 2.8GWh, including a 1.2GWh project in Shenzhen and two 800MWh projects in Shanwei [1]. - Upon completion, the projects are expected to consume over 1 billion kilowatt-hours of renewable energy annually, significantly enhancing the regional grid's capacity to accept renewable energy and alleviating power supply and demand conflicts in the Guangdong-Hong Kong-Macao Greater Bay Area [1]. Group 2: Technological Innovations - The core technology supporting this super energy storage project is Nandu Power's self-developed 314Ah semi-solid battery, which utilizes "oxide solid-liquid mixed technology" and "high melting point polymer separator" to achieve significant improvements in safety and performance [3][6]. - The 314Ah semi-solid battery effectively suppresses lithium dendrite growth and reduces thermal runaway risks while maintaining ionic conductivity, providing dual guarantees for battery longevity and safety [6] [10]. Group 3: Industry Impact - This project represents the first commercial application of solid-state battery technology in a gigawatt-hour level energy storage project globally, reflecting high industry recognition of Nandu's solid-state technology and engineering capabilities [8][10]. - The large-scale commercialization of solid-state batteries is expected to drive the maturity and cost reduction of the solid-state battery industry chain, injecting strong momentum into technological upgrades within the industry [10]. Group 4: Future Developments - Nandu Power has been conducting forward-looking research since 2017 and is one of the earliest companies in China to focus on solid-state battery development, adhering to a "develop one generation, reserve one generation" strategy [10]. - By the end of 2024, Nandu Power plans to complete a key research project in Zhejiang Province, successfully developing a 30Ah all-solid-state battery that addresses the "solid-solid interface" challenge, enhancing the cycle life and rate performance of all-solid-state batteries [12]. - In April 2025, Nandu Power will launch a 783Ah ultra-large capacity solid-state battery, achieving breakthroughs in energy density and safety performance through innovative technologies [14].

Report Information - Report Name: Nickel Daily Report [1] - Date: August 12, 2025 [2] - Research Team: Nonferrous Metals Research Team [3] - Researchers: Yu Feifei, Zhang Ping, Peng Jinglin [3] Industry Investment Rating - Not provided in the given content Core View - The long - term surplus pressure of primary nickel remains significant. Short - term price rebounds of industrial chain products are due to long - term low prices, and should be treated as short - term rebounds. After the macro - optimistic sentiment fades, prices are likely to continue to face pressure [7] Summary by Directory 1. Market Review and Operation Suggestions - On the 11th, Shanghai nickel strengthened again, with the main contract rising 0.8% to 122,130. The spot market had sufficient available supply, but the receiving sentiment was average. The average premium of Jinchuan No.1 nickel decreased by 50 to 2,200 yuan/ton, and the spot premium/discount quotation range of domestic mainstream brand electrowinning nickel was - 100 - 300 yuan/ton [7] - The precipitation in the main producing areas of the Philippines in the third quarter has limited impact, and shipments will remain at a high level. The approved quota of RKAB in Indonesia is as high as 310 million wet tons, with a strong expectation of increased nickel ore supply, and prices are under downward pressure, weakening the support at the ore end [7] - Due to the short - term high price of nickel ore, most Indonesian iron plants are still in a state of cost inversion. The NPI price continued to rise, with an average of 919 yuan/nickel point on the 11th. Large stainless steel enterprises are still waiting and have limited acceptance of high - priced raw materials [7] - Nickel salt prices rebounded due to the rigid replenishment of precursors and low inventories of nickel salt plants. On the 11th, it continued to rise by 10 to 27,450 yuan/ton [7] 2. Industry News - Indonesia's National Investment Management Agency Danantara is exploring investment opportunities in the nickel downstream industry and considering acquiring the PT Gunbuster Nickel Industry (GNI) smelter. It plans to prepare an investment plan of over $20 billion and provide about $60 million in medium - term financing through a syndicated loan [8][10] - Bulgaria officially launched the largest operating battery energy storage system in the EU, with a capacity of 124 MW/496.2 MWh [9] - A research team in Turkey developed a TOPCon solar cell using nickel contact with almost no silver, which can significantly reduce production costs while maintaining high performance [9] - Renewable energy storage company Apatura obtained planning permission for a 100 - MW battery energy storage system project in Scotland, increasing its approved total energy storage capacity to over 1.6 GW [9]

Financial Data and Key Metrics Changes - Net sales increased by 5% year over year to $893 million, driven by a 4% positive impact from the Brentronics acquisition and a 1% gain from positive price mix and FX tailwinds [17][18][29] - Adjusted operating earnings rose by 8% to $114 million, with an adjusted operating margin of 12.8% [17][29] - Adjusted EBITDA increased by 2% to $123 million, with an adjusted EBITDA margin of 13.8%, down 40 basis points year over year [17][29] - Adjusted diluted EPS for the first quarter was $2.08, a 5% increase over the prior year, while excluding 45X benefits, adjusted EPS was $1.11, down 6% due to FX impacts [30][41] Business Line Data and Key Metrics Changes - Energy Systems revenue increased by 8% to $391 million, with adjusted operating earnings up 44% to $27 million, reflecting increased volume and favorable price mix [31] - Motive Power revenue decreased by 5% to $349 million, with adjusted operating earnings down $9 million to $47 million, impacted by lower volumes and higher inflationary costs [32] - Specialty revenue increased by 18% to $149 million, driven by a 24% positive impact from the Brentronics acquisition [34] Market Data and Key Metrics Changes - Orders in book to bill were up year over year, indicating ongoing steady growth, with a quarterly backlog coverage of 1.1 [22] - The U.S. defense sector showed flat revenue in A&D, temporarily delayed by procurement changes, but is expected to grow moving forward [24] - Communications orders are picking up, with expectations for customer spending to continue growing at a measured pace [22] Company Strategy and Development Direction - The company launched "Energize," a strategic framework focusing on optimizing core operations, invigorating the operating model, and accelerating growth [7][11] - A strategic organizational realignment is underway, reducing 11% of the non-production workforce, expected to generate $80 million in annualized savings [8][42] - The company aims to leverage leading market positions to deliver new products addressing energy security and labor scarcity challenges [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to offset tariff impacts and expects improving clarity in public policy to support stable market dynamics [19][21] - The first quarter is viewed as the low point for earnings, with expectations for recovery in subsequent quarters [41][56] - The company anticipates maintaining net leverage below the low end of its target range, providing flexibility for future capital allocation [39][40] Other Important Information - The Board approved a $1 billion increase in share repurchase authorization to be executed over the next five years [19][40] - The company is committed to disciplined capital allocation and continues to evaluate accretive acquisition opportunities [40][81] Q&A Session Summary Question: Insights on Energy Systems recovery - Management noted good activity in telecom and broadband, with early-stage build-outs materializing and expectations for continued trends throughout the year [48][50] Question: Margin trajectory with cost optimization - Management indicated that the cost reduction program would lead to significant margin expansion, with expectations for Q2 and beyond to track back towards record levels [56][57] Question: Capital allocation philosophy regarding buybacks - Management clarified that the $1 billion buyback authorization reflects confidence in future opportunities and does not signal a shift away from pursuing acquisitions [78][81]

Core Viewpoint - CATL has signed a framework supply agreement with Vanda RE to provide a total of 2.2GWh battery energy storage systems for a solar-storage integrated project in Indonesia, marking a significant collaboration in the green energy sector between Indonesia and Singapore [1][2]. Group 1: Project Details - The project will include the construction of a 2GW photovoltaic power station and aims to address the intermittency of renewable energy through storage technology, enhancing the stability of the power system [1]. - The project is expected to be completed by 2027, aligning with CATL's local battery factory, which has an initial capacity of 6.9GWh and is set to start production by the end of 2026 [2]. Group 2: Market Position and Financials - CATL's energy storage orders have reached a total of 47.6GWh, with a market share of 36.5% in 2024, leading the global energy storage battery shipment rankings for four consecutive years [2]. - The revenue from energy storage battery systems in 2024 was approximately 57.29 billion yuan, accounting for 15.83% of total revenue, with a gross margin of 26.84%, surpassing that of power batteries [2]. Group 3: Strategic Expansion - CATL's strategy in Southeast Asia involves deep integration of the entire industry chain, collaborating with solar component suppliers like LONGi Green Energy and Trina Solar to enhance project efficiency [3]. - The establishment of local manufacturing not only helps CATL avoid international trade barriers but also reduces costs and increases market penetration in the region [4]. Group 4: Industry Trends - The global battery energy storage market is experiencing significant growth, with a forecasted increase in installed capacity to 266GWh in 2025, representing a year-on-year growth of 42.2% [4]. - Chinese battery companies, including CATL, are expanding their presence in overseas markets, driven by the accelerating global energy transition and increasing demand for clean energy solutions [4].

Core Insights - The report predicts that commercial battery storage projects will become profitable for the first time in 2024 due to declining battery costs and increased revenue from electricity market volatility [2][3] - Battery costs have decreased by approximately 80% over the past decade, from 7.9 million INR/MWh in 2015 to 1.7 million INR/MWh by 2025, while potential revenue has increased fivefold from 500,000 INR/MWh to 2.4 million INR/MWh in the same period [2] - The volatility in the electricity market, particularly in peak and off-peak pricing, is creating more value for commercial battery storage projects [3] Market Dynamics - The Day-Ahead Market (DAM) has seen peak prices reaching new highs while off-peak prices have declined, with data showing that from 2022 to 2024, there is an hour every six hours where prices approach the current cap of 10 INR/kWh [3] - The average summer midday price has dropped nearly 20%, with some days in summer 2025 expected to see prices near zero [3] - The transition in India's generation and consumption patterns is expected to continue increasing price volatility, particularly with rising solar penetration [3] Investment Opportunities - The report suggests that commercial battery storage projects could achieve an internal rate of return (IRR) of up to 17% by participating solely in the day-ahead market by 2025 [3] - The value of battery storage in the commercial market has been previously underestimated, with participation in ancillary services (grid balancing) expected to further enhance revenue [4] - In optimistic scenarios, combined participation in both markets could yield annual revenues of 3.3 million INR/MWh, raising the project IRR to 24% [4] Conclusion - As India's power system integrates more volatile renewable energy sources, the investment value of battery storage is expected to become more pronounced [6] - The high proportion of renewable energy integration is leading to extreme price volatility and shortages in grid ancillary services, presenting both risks and opportunities that battery storage can capitalize on [6]

Industry Overview - The Semiconductor Industry Association (SIA) announced that global semiconductor sales reached $179.7 billion in Q2 2025, marking a year-on-year growth of nearly 20% and a quarter-on-quarter increase of 7.8%. This growth is primarily driven by sales increases in the Asia-Pacific and Americas markets, with expectations for continued annual growth in the second half of the year [3] - The World Semiconductor Trade Statistics (WSTS) reported that the global logic semiconductor market grew by 37% in the first half of the year, while memory semiconductors increased by 20%, sensors by 16%, and analog and micro devices saw a modest growth of 4%. Overall, the demand for chips, particularly driven by AI, has led to rapid growth across the sector [3] - The announcement of potential tariffs on the pharmaceutical and semiconductor industries by former President Trump is expected to impact Taiwan and South Korea's foundries the most, likely leading to a trend of domestic production in the semiconductor industry, which could benefit domestic foundries [3] Company Performance - Zhongke Shuguang reported a total revenue of 5.854 billion yuan for the first half of 2025, reflecting a year-on-year growth of 2.49%. The net profit attributable to shareholders was 731 million yuan, up 29.89%, with a 59.66% increase in net profit after excluding non-recurring gains and losses [3] - Haiguang Information's half-year report showed a revenue of 5.464 billion yuan, a year-on-year increase of 45.21%, and a net profit of 1.201 billion yuan, up 40.78%. This performance indicates a sustained increase in domestic AI demand, particularly for high-performance computing CPUs [3] Automotive Sector - Huawei's luxury car model, the Zun Jie S800, achieved over 10,000 pre-orders within 67 days of its launch. This model is positioned as a D+ class flagship sedan with a wheelbase of 3,370 mm, showcasing strong appeal in the high-end automotive market and marking a significant breakthrough for Chinese brands in the luxury car segment [6] - The user demographic for the Zun Jie S800 primarily consists of male private business owners aged 40-50, with 50% of buyers being repeat customers who already own luxury brands like Rolls-Royce and Maybach. This reflects a growing recognition and support for high-end domestic brands among Chinese consumers [6] - The Zun Jie S800 emphasizes a shift in brand value, where technological luxury surpasses traditional luxury, supported by advanced smart driving experiences, intelligent cockpit features, and leading battery technology [6] Energy Storage Sector - Peak Energy launched the world's largest grid-scale sodium iron phosphate (NFPP) battery system, with a storage capacity exceeding 3 MWh, serving nine independent power suppliers and utility customers. The company claims that sodium-ion batteries outperform lithium iron phosphate batteries in high-temperature environments [7] - The introduction of this battery system is expected to enhance the market outlook for sodium-ion battery storage, diversifying technology routes and reducing risks associated with reliance on a single technology [7] - The system's performance in high-temperature conditions provides a clear pathway for the commercialization of sodium batteries, potentially boosting confidence in the industry's growth [7] Consumer Electronics - Hisense Home Appliances reported a revenue of 49.34 billion yuan for the first half of 2025, a year-on-year increase of 1.4%, with a net profit of 2.08 billion yuan, up 3.0%. However, Q2 revenue declined by 2.6% year-on-year to 24.5 billion yuan, with net profit down 8.3% [9] - The air conditioning segment generated 23.69 billion yuan in revenue for H1 2025, a 4.1% increase, although central air conditioning faced pressure due to a sluggish real estate market. Conversely, home air conditioning sales grew by 14.1% to 13.04 billion yuan, benefiting from national subsidy policies [9] - The washing machine segment saw a revenue increase of 37.6% due to technological upgrades and innovative applications, contributing to overall growth in the home appliance sector [9]

Report Information - Report Name: Nickel Daily Report [1] - Date: August 6, 2025 [2] - Research Team: Nonferrous Metals Research Team [3] - Researchers: Yu Feifei, Zhang Ping, Peng Jinglin [3] Investment Rating - No investment rating information is provided in the report. Core View - The macro - warm atmosphere supports the nickel price to be strong, and the prices in the industrial chain have rebounded. However, the oversupply pressure remains, and the price will still be under pressure after the macro - sentiment fades. It may continue to test the cost support [7]. Summary by Directory 1. Market Review and Operation Suggestions - On the 5th, Shanghai nickel fluctuated strongly. The main contract 2509 closed up 0.83% at 120,910. The total open interest of the index decreased by 5,588 to 191,375 lots. The average premium of Jinchuan No.1 nickel decreased by 100 to 2,250 yuan/ton compared with the previous day. The quoted range of spot premium and discount of domestic mainstream brands of electrowinning nickel was - 100 - 300 yuan/ton [7]. - The supply of nickel ore in the Philippines and Indonesia is expected to be loose in the future, and the price has further downward pressure, with the support from the ore end weakening. The price of NPI continued to rise, with an average of 916 yuan/nickel point on the 5th. But the nickel ore price is still high in the short - term, and most Indonesian iron plants are still in a state of cost inversion. Due to the low spot market of stainless steel despite the price recovery, the traditional off - season consumption and high inventory limit the acceptance of high raw material prices, so the upward trend of NPI may not last long [7]. - The price of nickel salt has recovered from the low level due to the rigid replenishment of precursors and the low inventory of nickel salt plants, but the recovery space may be limited. The macro - environment has not yet substantially boosted the demand. The nickel industry does not directly benefit from the anti - involution logic. Attention should be paid to whether there are production - cut policies in the stainless steel industry. The nickel market is difficult to have substantial improvement in the short term [7]. 2. Industry News - Indonesia's National Investment Management Agency Danantara is exploring investment opportunities in the downstream nickel industry. It is considering acquiring the PT Gunbuster Nickel Industry (GNI) smelter in Central Sulawesi. The acquisition plan is still in the evaluation stage, and the state - owned mining holding company Mind ID is likely to be the main partner. Danantara expects to prepare an investment plan of over $20 billion and provide about $60 million in medium - term financing through a syndicated loan to help GNI relieve liquidity pressure [8][10]. - Bulgaria officially launched the largest operating battery energy storage system in the EU, with a capacity of 124 MW/496.2 MWh. This is the first step towards the goal of deploying 10,000 MWh of battery energy storage capacity within a year [10]. - A research team in Turkey developed a TOPCon solar cell using nickel (Ni) contact with almost no silver (Ag). It significantly reduces the silver usage from 13 - 20 mg/W to below 0.5 mg/W while maintaining almost the same efficiency, which is expected to reduce production costs and improve sustainability and scalability [10]. - Renewable energy storage company Apatura obtained planning permission for a 100 - MW battery energy storage system (BESS) project in North Ayrshire, Scotland. This is the tenth approved project in the past 17 months, with the total approved storage capacity exceeding 1.6 GW [10].

Core Viewpoint - CATL has signed a framework supply agreement with Vanda RE to provide a total of 2.2GWh battery energy storage systems for a solar-storage integrated project in Indonesia, marking a significant step in the collaboration between Indonesia and Singapore in the green energy sector [1][2]. Group 1: Project Details - The 2.2GWh energy storage system will support the construction of a 2GW photovoltaic power station, making it one of the largest solar-storage integrated complexes in Southeast Asia [1]. - The project is expected to be completed by 2027, aligning with CATL's local battery factory, which has an initial capacity of 6.9GWh and is set to start production by the end of 2026 [1][2]. - CATL will ensure compliance with Indonesia's local production requirements through a localized supply chain, which will also promote local employment and technological upgrades [1]. Group 2: Market Position and Performance - As of 2025, CATL's publicly disclosed energy storage orders have reached 47.6GWh, with a market share of 36.5% in 2024, leading the global energy storage battery shipment rankings for four consecutive years [2]. - In 2024, CATL's energy storage battery gross margin reached 26.84%, surpassing the 23.94% gross margin of power batteries for the first time, indicating the high growth potential of the energy storage business [2]. Group 3: Strategic Expansion - CATL's strategy in Southeast Asia is not driven by a single project but involves deep integration of the entire industrial chain, collaborating with solar component suppliers like LONGi Green Energy and Trina Solar to enhance project efficiency [2]. - The company's establishment in Indonesia reflects a keen understanding of emerging market demands, leveraging the country's abundant solar resources to meet the growing energy needs [3]. Group 4: Global Market Trends - The global battery energy storage market is experiencing significant growth, with a forecasted increase of 266GWh in new installations in 2025, representing a year-on-year growth of 42.2% [4]. - Chinese battery companies, including CATL, are actively expanding into overseas markets, capitalizing on their technological and cost advantages to capture a larger share of the global energy storage market [4].