Core Viewpoint - Guangdong Huahui Intelligent Equipment Co., Ltd. (Huahui Intelligent) is currently undergoing a second round of review by the Beijing Stock Exchange, focusing on the impact of industry cyclicality and customer stability on the company's performance [1] Industry Overview - The lithium battery industry is experiencing structural and phase capacity oversupply from 2023 to 2024, yet Huahui Intelligent maintains a high growth rate due to its experience with top-tier customers and continuous improvement in grinding equipment performance [1] - The shift towards fourth-generation products in downstream industries is expected to accelerate the elimination of low-end capacity, creating significant opportunities for Huahui Intelligent in the lithium battery cathode materials market [1][4] - The phosphoric iron lithium industry has faced challenges due to capacity surges and price fluctuations, but significant changes are anticipated in 2024 as leading companies enhance technology and introduce high-end products [1][4] Company Performance - Huahui Intelligent's revenue and net profit from 2022 to 2024 are projected to be CNY 191 million, CNY 300 million, and CNY 427 million, and CNY 26.57 million, CNY 46.43 million, and CNY 62.62 million respectively, with a revenue growth of 42.07% and net profit growth of 34.87% in 2024 [3] - The company has been a qualified supplier for leading battery material producers like Hunan Youneng and Wanrun New Energy, benefiting from their steady expansion and technological upgrades [3] Technological Advancements - Hunan Youneng's "two-burn process" produces high-density phosphoric iron lithium products, with a shipment ratio of high-performance products reaching approximately 37% in Q1 2024, expected to increase to 40-60% by 2025 [2] - Wanrun New Energy has secured a significant order from CATL for 132.31 thousand tons over five years, indicating strong demand for high-density products [2][3] Market Trends - The lithium battery materials industry is driven by the transition from first-generation to fourth-generation phosphoric iron lithium products, increasing the demand for grinding processes [4] - The market for lithium grinding machine systems in China is projected to exceed CNY 8 billion by 2030, reflecting the growing acceptance and upward trend in industry prosperity [4]

Company Overview - Xinnuo Advanced Thermal Technology (Suzhou) Co., Ltd. specializes in providing customized industrial material heat treatment solutions and advanced thermal equipment since its establishment in 2021 [3] - The company is led by a team of returnee PhDs with extensive experience in the design, development, and manufacturing of industrial kilns, showcasing strong original technology development capabilities [3] Technology and Innovation - The company has developed a unique high-temperature calcination technology and equipment called the "roller-free electric side thermal car kiln" after four years of research [3][7] - This new kiln technology significantly improves production efficiency, doubling the single-line capacity compared to traditional roller kilns, while reducing energy consumption by over 30% [10] Application and Benefits - The roller-free electric side thermal car kiln is versatile, applicable to various lithium and sodium battery materials, including L(M)FP, ternary, and layered oxide positive materials, as well as artificial graphite coating and silicon-carbon negative materials [12] - The technology helps battery material production companies reduce fixed asset investments and processing costs, thereby enhancing market competitiveness [10][12] Advantages of New Kiln Technology - The new kiln design eliminates the need for traditional ceramic rollers, leading to increased production capacity, reduced energy consumption, and lower labor costs [12][13] - It improves kiln structure stability, enhances gas tightness, and minimizes maintenance needs, thus reducing operational risks and costs associated with roller replacement [13]