Market Overview - The three major A-share indices experienced slight declines, with the Shanghai Composite Index down 0.25% to 3997 points, the Shenzhen Component Index down 0.36%, and the ChiNext Index down 0.51% [1] - The total market turnover was 2.02 trillion yuan, a decrease of 55.7 billion yuan compared to the previous trading day, with over 3100 stocks declining [1] Sector Performance - The polysilicon sector saw a rise as leading companies planned to form a consortium, leading to a surge in the organic silicon sector, with Dongyue Silicon Material and Hesheng Silicon Material hitting the daily limit [1] - Lithium hexafluorophosphate prices soared, causing a breakout in the fluorochemical sector, with stocks like Yongtai Technology and Mofang gaining the daily limit [1] - The phosphate chemical and fertilizer sectors remained active, with Tianji shares and others hitting the daily limit [1] - The lithium mining sector strengthened, with Shengxin Lithium Energy also hitting the daily limit [1] - Other sectors that performed well included titanium dioxide, battery, and chemical raw materials [1] - Conversely, the robotics actuator and reducer sectors declined, with Top Group leading the losses [1] - The financial and tax digitalization sector weakened, with Shenzhou Information dropping over 8% [1] - Sectors such as ChatGPT, Xinchuang, digital currency, and auto parts saw significant declines [1] Performance Rankings - The fine chemicals sector led with a gain of 3.20%, followed by chemical raw materials at 2.96%, and fertilizers and pesticides at 2.37% [2] - The shipping and forestry sectors also showed positive net capital inflows, with respective increases of 2.00% and 1.949% [2]

Core Viewpoint - Lithium sector stocks continue to rise, with leading lithium miners reporting a turnaround in net profits for the first three quarters, supported by strong bottom prices for lithium carbonate [1] Company Summaries - Ganfeng Lithium achieved revenue of 14.625 billion yuan, a year-on-year increase of 5.02%, and turned a profit with a net profit of 25.52 million yuan [1] - Tianqi Lithium reported a revenue decline of 26.50% year-on-year, totaling 7.397 billion yuan, but managed to turn a profit with a net profit of 180 million yuan, attributed to optimized pricing mechanisms and strong performance from joint venture SQM [1] Industry Insights - Recent reports indicate a slight increase in lithium carbonate prices due to better-than-expected demand from the electric vehicle and energy storage markets [1] - The production rate in the lithium salt sector remains high, with October lithium carbonate production showing a month-on-month increase of 6% and a year-on-year increase of 55% [1] - Despite uncertainties in mining policies in Jiangxi, strong demand ensures robust support for lithium carbonate prices, with expectations for continued price increases in November [1]

Report Summary 1. Report Industry Investment Rating No industry investment rating is provided in the report. 2. Core View of the Report The recent inventory has been continuously decreasing, providing some support to the market. However, when the price reaches 80,000 yuan/ton, the upstream has a strong willingness to hedge. The resumption of production at the mine end is in progress. Attention should be paid to the inflection points of consumption and inventory. If consumption weakens and the mine resumes production, the inventory may shift from destocking to stockpiling, and the market may decline at that time [3]. 3. Summary by Relevant Catalogs Market Analysis - On November 6, 2025, the opening price of the lithium carbonate main contract 2601 was 79,480 yuan/ton, and the closing price was 80,500 yuan/ton, a 1.95% change from the previous trading day's settlement price. The trading volume was 582,033 lots, and the open interest was 471,983 lots, compared with 453,260 lots in the previous trading day. The current basis was 1,300 yuan/ton. The number of lithium carbonate warehouse receipts was 26,420 lots, a decrease of 410 lots from the previous trading day [1]. - According to SMM data, the price of battery - grade lithium carbonate was 78,500 - 82,300 yuan/ton, a decrease of 100 yuan/ton from the previous trading day; the price of industrial - grade lithium carbonate was 77,800 - 78,600 yuan/ton, also a decrease of 100 yuan/ton. The price of 6% lithium concentrate was 925 US dollars/ton, unchanged from the previous day. The market transactions were slightly dull, and downstream material enterprises maintained the rhythm of on - demand procurement [1]. - The overall operating rate of lithium salt plants remained high, with the operating rates of both the spodumene and salt lake ends above 60%. It is expected that the domestic lithium carbonate production in November can maintain the same level as in October [1]. - In terms of demand, the new energy vehicle market in the power sector (both commercial and passenger vehicles) is growing rapidly, and the energy storage market has strong supply and demand, with supply remaining tight [1]. - This week, the demand for power batteries continued to operate at a high level, and the cell prices were relatively stable. In the passenger vehicle sector, domestic terminal sales remained high, and some mainstream car companies increased promotion and production scheduling, driving a steady increase in power battery installation demand. In the commercial vehicle sector, affected by the expected vehicle purchase tax halving policy next year, some demand was advanced to the fourth quarter of this year, driving a significant increase in power battery orders [2]. - According to the latest weekly statistics, the weekly production increased by 454 tons to 21,534 tons, and the weekly inventory decreased by 3,405 tons to 123,753 tons. The inventories of smelters, downstream, and intermediate links all decreased, indicating strong support from the consumer end recently [2]. Strategy - Unilateral: In the short term, it is advisable to wait and see. Pay attention to the inflection points of inventory and consumption and the resumption of production at the mine end, and choose the opportunity to sell and hedge at high prices [3]. - Inter - period: No strategy is provided. - Cross - variety: No strategy is provided. - Spot - futures: No strategy is provided. - Options: No strategy is provided.

Group 1 - The core viewpoint of the news is that Shengxin Lithium Energy has seen a significant increase in its stock price, rising by 5.4% to 26.16 yuan per share, with a trading volume of 1.085 billion yuan and a turnover rate of 4.88%, leading to a total market capitalization of 23.944 billion yuan [1] - Shengxin Lithium Energy Group Co., Ltd. is based in Shenzhen, Guangdong, and was established on December 29, 2001. The company was listed on May 23, 2008, and its main business involves the production and sale of medium-density fiberboard, timber, rare earth products, lithium chloride, battery-grade monohydrate lithium hydroxide, and battery-grade lithium carbonate, all within the new energy and new materials sectors. The revenue composition is entirely from new energy [1] Group 2 - From the perspective of major fund holdings, data shows that Chang'an Fund has a significant position in Shengxin Lithium Energy. The Chang'an Xinxin Mixed A Fund (005477) reduced its holdings by 690,000 shares in the third quarter, now holding 662,900 shares, which accounts for 4.81% of the fund's net value, making it the third-largest holding. The estimated floating profit today is approximately 888,300 yuan [2] - The Chang'an Xinxin Mixed A Fund (005477) was established on February 7, 2018, with a latest scale of 64.3917 million yuan. Year-to-date returns are 20.63%, ranking 4463 out of 8148 in its category; the one-year return is 12.06%, ranking 5224 out of 8053; and since inception, it has incurred a loss of 55.97% [2]

Financial Data and Key Metrics Changes - The company reported net sales of $1.3 billion for Q3 2025, with adjusted EBITDA reaching $226 million, a 7% increase year-over-year, driven by cost and efficiency improvements despite lower lithium pricing [5][8] - Cash generated from operations was $356 million, marking a 57% year-over-year increase [5] - The adjusted EBITDA margin improved by approximately 150 basis points compared to the previous year [8] Business Line Data and Key Metrics Changes - Energy storage sales volume growth is expected to be up 10% or more year-over-year, supported by record integrated production and higher spodumene sales [10] - The specialties segment delivered a 35% increase in adjusted EBITDA, largely due to cost improvements across raw materials, manufacturing, and freight [9] - Ketjen's business is expected to see stronger Q4 performance due to higher CFT and FCC volumes [12] Market Data and Key Metrics Changes - Global EV sales increased by 30% year-to-date, with significant growth in China and the EU [6][15] - Grid storage demand grew by 105% year-to-date, with North America being the fastest-growing region, up almost 150% [15][16] - The company anticipates lithium demand for stationary storage applications to increase more than two and a half times by 2030 [16] Company Strategy and Development Direction - The company is focusing on long-term value creation and financial flexibility through recent portfolio actions, including selling a controlling stake in Ketjen's refining catalyst business [6][7] - The strategy includes enhancing shareholder value, improving financial flexibility, and maintaining a strong competitive position in energy storage and specialties [7][20] - The company aims to achieve full-year cost and productivity improvements of around $450 million, surpassing initial targets [6][18] Management's Comments on Operating Environment and Future Outlook - Management noted that global lithium supply-demand balance is tightening, with consumption growth up over 30% year-to-date [15] - The company expects to maintain a strong cash conversion performance, projecting positive free cash flow of $300-$400 million for 2025 [13][19] - Management expressed optimism about the energy storage market, highlighting strong demand driven by grid stability and renewable energy [16][87] Other Important Information - The company closed the quarter with $1.9 billion in cash and plans to repay Eurobond debt maturing soon [14] - Capital expenditures for the year are projected to be approximately $600 million, reflecting a 65% reduction year-over-year [17] - The company is committed to continuous improvement and cost discipline, with sales, administrative, and R&D expenses down $166 million, or 22% since last year [18][19] Q&A Session Summary Question: Dynamics at Talison and spodumene pricing - Management indicated that they do not predict lithium prices but are optimistic about the market tightening, which could affect margins [22][23] Question: Current lithium pricing in China - Management noted that current pricing is closer to $10 per kilogram, with a full-year average expected around $9 to $9.50 [27][28] Question: Full-year adjusted EBITDA margin potential - The company expects an overall adjusted EBITDA margin potential of 30% or greater at $15 per kilogram lithium pricing [31] Question: EV demand versus energy storage - Management believes energy storage currently represents about a quarter of the market and is growing at a faster rate than EVs [35][36] Question: Impact of curtailments in Chinese lepidolite production - Management observed that about a third of lepidolite production was impacted, but it represents a minor blip in the overall market [39][40] Question: Lithium demand forecast for 2030 - Management stated that while the demand outlook has not changed significantly, it has moved slightly upward within the existing range [41][43] Question: Energy storage market growth - Management confirmed strong demand in the energy storage market, particularly in China, with full utilization of battery cell lines [92][94]

Core Viewpoint - Ganfeng Lithium (01772.HK) announced the issuance of HKD 1.37 billion 1.50% convertible bonds maturing in 2026 under a general authorization [1] Group 1: Convertible Bonds - As of the announcement date, the total principal amount of unredeemed convertible bonds has decreased to HKD 1.238 billion, representing 90.36% of the original issued amount [1] - According to the terms and conditions of the convertible bonds, the issuer can redeem all remaining convertible bonds at 100% of the principal amount if the closing price of H-shares is not less than 130% of the effective conversion price for any 20 out of 30 consecutive trading days [1] - The company has issued a redemption notice for the convertible bonds on November 6, 2025, with the redemption date set for December 18, 2025, including any accrued but unpaid interest [1]

Core Viewpoint - Ganfeng Lithium (01772.HK) announced the issuance of HKD 1.37 billion 1.50% convertible bonds maturing in 2026 under a general authorization [1] Group 1: Convertible Bonds - As of the announcement date, the total principal amount of unredeemed convertible bonds has decreased to HKD 1.238 billion, representing 90.36% of the original issued amount [1] - According to the terms and conditions of the convertible bonds, the issuer can redeem all remaining convertible bonds at 100% of the principal amount if the closing price of H-shares is not less than 130% of the effective conversion price for any 20 trading days within a consecutive 30-day period [1] - The company has issued a redemption notice for the convertible bonds on November 6, 2025, with the redemption date set for December 18, 2025, including any accrued but unpaid interest [1]

Group 1: Report General Information - Report Name: Carbonate Lithium Futures Daily Report [1] - Date: November 6, 2025 [2] - Researcher: Zhang Ping, Yu Feifei, Peng Jinglin [3][4] Group 2: Investment Rating - No investment rating information provided Group 3: Core View - Carbonate lithium futures stopped falling and rebounded, with a total position increase of 849 lots, but funds have not returned. Spot prices are more resistant to decline than futures. The overall decline in the industrial chain price is small, and the electrolyte continues to rise against the trend, indicating tight supply - demand in this field. In the short term, futures prices will move closer to spot prices. The speculation on the mining end is unlikely to materialize in the short term. Due to the supply inflection point and continuous inventory reduction, the spot is firm, and it is difficult for futures prices to break through the lower limit. Futures prices are expected to rebound [9] Group 4: Summary by Directory 1. Market Review and Operation Suggestions - Carbonate lithium futures stopped falling and rebounded, with a total position increase of 849 lots. The spot price dropped by 400 to 80,500, showing resistance to decline compared to futures. Australian ore dropped by 20, mica ore dropped by 30, ternary materials remained flat, lithium iron phosphate dropped by 90 - 100, and the electrolyte rose by 600 - 1250. The overall decline in the industrial chain price is small, and the electrolyte continues to rise against the trend, indicating tight supply - demand. Futures prices are expected to rebound due to the weak follow - up decline of the spot and the firm spot under the influence of supply and inventory factors [9] 2. Industry News - Salt Lake Co., Ltd. plans to produce 43,000 tons of carbonate lithium in 2025, and a 40,000 - ton lithium salt project was officially put into operation at the end of September, laying a foundation for further capacity expansion [12] - Hainan Mining revealed that the CIF cost of 5.5% grade lithium concentrate from its Buguni lithium mine transported to Hainan is about $750/ton. Its lithium hydroxide products are undergoing certification and sample testing with domestic and foreign customers, and relevant government approvals are in progress. The company also announced a technical renovation plan to add carbonization and potassium removal facilities at the back - end of the existing 20,000 - ton lithium hydroxide production line. After the renovation, which takes about half a year, it can flexibly convert part of the capacity to produce battery - grade carbonate lithium, achieving a product combination of "20,000 tons of lithium hydroxide" or "10,000 tons of lithium hydroxide + 8,000 tons of carbonate lithium" to respond to market changes and improve profitability [12]

Core Points - Ganfeng Lithium announced the redemption of HKD 1.37 billion convertible bonds issued on September 2, 2025, with HKD 1.238 billion remaining, accounting for 90.36% of the total principal amount [1] - The company will redeem the bonds at 100% of the principal amount due to the closing price of H-shares meeting the conditions, and will pay accrued unpaid interest until December 18 [1] - Holders wishing to exercise their conversion rights must submit a notice by 3 PM on December 8, with a conversion price set at HKD 33.67 [1] - If all bonds are converted, it would result in the issuance of approximately 36.7686 million H-shares, representing about 8.22% of the total issued H-shares and approximately 1.78% of the total issued shares [1]

Core Viewpoint - Ganfeng Lithium (1772.HK) experienced a nearly 6% increase in stock price, reaching 50.7 HKD, following the announcement of its inclusion in the MSCI China Index, effective after the market close on November 24, 2025 [1] Group 1 - Ganfeng Lithium's stock price rose significantly due to MSCI's announcement [1] - The inclusion in the MSCI China Index is a notable event for Ganfeng Lithium, indicating increased visibility and potential investment inflows [1] - The effective date for the index inclusion is set for November 24, 2025, which may influence investor sentiment leading up to that date [1]