Core Insights - Microvast Holdings, Inc. (MVST) and Richtech Robotics Inc. (RR) are both small-cap tech stocks in high-growth sectors, with MVST focusing on battery technologies for electric vehicles (EVs) and energy storage, while RR specializes in robotic solutions for automation in the U.S. service industry [1] Richtech Robotics - RR's Q3 fiscal 2025 revenues were $1.2 million, down 18.4% year-over-year, due to a shift to a Robotics-as-a-Service (RaaS) model aimed at long-term recurring revenues [2] - The company achieved a gross margin of 74.4%, an increase of 420 basis points from the previous year, indicating effective cost management [2] - Richtech's product offerings, such as ADAM and Titan 440, position it to capture a larger share of the RaaS market, projected to grow at a CAGR of 17.1% through 2034 [3] - The company has a cash reserve of $86 million with no current debt, allowing for investment in product development [3] - Despite the positive aspects, RR's net loss widened to $4.1 million from $1.3 million year-over-year, primarily due to a 254.7% increase in general and administrative expenses [4] - Competition from larger firms like Deere & Company and Rockwell Automation poses risks to RR's market penetration [4] Microvast Holdings - MVST reported record Q3 2025 revenues of $123.3 million, a 21.6% increase year-over-year, driven by higher sales in Asia and Europe [5] - The company experienced a gross margin expansion of 440 basis points year-over-year, attributed to operational execution and cost controls [5] - MVST maintained an adjusted EBITDA of $21.9 million, with a year-to-date figure of $76.3 million, indicating scalable operations [6] - The Huzhou Phase 3.2 expansion is expected to add nearly 2 GWh of annual production capacity, addressing customer demand [6] - Despite revenue growth, MVST reported a net loss of $1.5 million in Q3 2025, largely due to changes in warrant/loan valuation [7] - The competitive landscape in the EV battery market includes major players like General Motors and Toyota, which impacts MVST's pricing power [8] Financial Estimates and Valuation - The Zacks Consensus Estimate for RR's fiscal 2025 sales is $5 million, suggesting an 18.2% year-over-year increase, with a projected loss per share of 15 cents [11] - For MVST, the fiscal 2025 sales estimate is $462.3 million, indicating a 21.7% year-over-year increase, with an expected EPS of 17 cents [12] - MVST trades at a forward price-to-sales multiple of 2.05, below its 12-month median of 2.4, while RR's multiple is 37.58, lower than its median of 44.42 [13] Investment Verdict - Despite RR's higher valuation, it is justified by its scalability and potential for higher margins through the RaaS model [15] - MVST faces challenges in maintaining profitability in a competitive EV battery market [15] - Richtech Robotics is considered a better investment opportunity due to its recurring revenue model, strong gross margin, and high solvency profile [16]

Core Insights - Barter trade activities between Chery Automobile and Iran have increased due to U.S. sanctions, allowing Chery to supply vehicles in exchange for Iranian metal ores [1][2][4] Group 1: Barter Trade Dynamics - Chery, the largest vehicle exporter in China, has engaged in barter trade with Iran, supplying semi-knocked-down vehicles in exchange for access to Iranian metal ores, which constituted over half of Chery's exports by 2016 [3] - The trade is facilitated through a separate company that routes the vehicles to Chery's local partner in Iran, MVM, for assembly [3] - Chery's approach of not trading in U.S. dollars allows it to operate without violating the sanctions imposed on Iran [4] Group 2: Impact of Sanctions - The U.S. sanctions, intensified after the abandonment of the Iran Nuclear Deal in 2018, have restricted Iran's access to the global financial system, prompting the barter trade [2] - Iran supplies metal ores such as Copper and Zinc to Tongling Nonferrous Metals Group Holdings, which then distributes them to other companies in China [4] Group 3: Chery's Financial Activities - Chery's recent IPO on the Hong Kong stock exchange raised $1.2 billion, with its share price increasing by 11% to HK$34.16 from an initial price of HK$30.75 [7] - Other companies, such as Contemporary Amperex Technology Co. Ltd. (CATL), also saw significant financial success, raising over $4.6 billion and experiencing a 12.5% surge in share price [7]

Summary of Key Points from the ASSB Expert Call Industry Overview - The focus of the call was on the development of all-solid-state batteries (ASSBs) in China, particularly in the context of the electric vehicle (EV) battery market [1] Core Insights and Arguments 1. **Material Development**: - The mainstream roadmap for ASSB electrolyte material is shifting from oxide/polymer to sulfide-based materials due to better performance and higher ionic conductivity [2] - The supply of lithium sulfide (Li2S) is identified as a key bottleneck for sulfide-based electrolyte material [2] - Production methods for lithium sulfide include solid-phase synthesis and chemical vapor deposition (CVD) for better purity but at higher costs, while carbothermic and liquid-phase methods are cheaper but yield lower purity [2] - The estimated unit cell cost for ASSB is over CNY4 per Wh, with cost breakdowns: 18% for cathode (high-nickel NCM), 22-25% for anode (lithium metal), and 40% for electrolyte (sulfide-based) [2] 2. **Manufacturing Challenges**: - The electrode preparation process is transitioning from wet to dry processes to minimize hydrolysis of sulfide-based electrolytes [3] - The stacking procedure will replace the winding procedure due to the low flexibility of electrolyte materials [3] - Isostatic pressing is being introduced to improve solid-to-solid contact, which is currently challenging to achieve uniformly under ~300MPa pressure [3] - The pouch cell form factor is preferred for ASSBs due to higher energy density and reduced volume expansion [3] - Estimated unit equipment spending for ASSB production is at least CNY350-400 million per GWh [3] 3. **Competition Landscape**: - The material supply and manufacturing processes for ASSBs are still immature, with most players in pilot production stages [4] - Current sample products show low cell capacity (20-30Ah) and competitive energy density (~350Wh/kg) compared to traditional lithium-ion batteries [4] - ASSBs face challenges such as slower charging rates and lower cycle life, impacting their application in certain downstream markets [4] - Domestic equipment vendors have production capabilities for core equipment, but the performance of domestic isostatic laminators remains less favorable [4] Additional Important Insights - The expert emphasized that it will take time for ASSB technology to reach mass production, with most players at similar stages of development [4] - The transition to ASSBs is seen as a long-term evolution in the EV battery market, with significant challenges still to be addressed before widespread adoption can occur [4]

Investment Rating - The report assigns a "Buy" rating to BYD (1211 HK), Desay SV (002920 CH), and Contemporary Amperex Technology (300750 CH) [54][60][65]. Core Insights - The China auto market has shown another double-digit year-on-year growth, with wholesale unit deliveries reaching 2.5 million units in June, marking a 14.5% increase year-on-year and a 7.8% increase month-on-month [1][7]. - The electric vehicle (EV) market is experiencing suboptimal growth, with EV penetration at 52.7% in June, which is below expectations and historical highs [1][7]. - Concerns are raised regarding the slowing growth of EV penetration, potentially due to aggressive pricing strategies from internal combustion engine (ICE) car manufacturers and the upcoming 50% cut to EV purchase tax exemptions starting next year [2][7]. Summary by Sections China Auto Market Performance - In 1H25, the China auto market reported a total of 13.5 million wholesale shipments, reflecting a 12.9% year-on-year growth, while retail sales (excluding minivans) reached 10.9 million units, up 10.8% year-on-year [8]. - The overall growth momentum in 1H25 was slightly above expectations, supported by government subsidies for scrapping and trade-in programs [8]. Electric Vehicle Market - Monthly retail sales of PV EVs reached 1.1 million units in June, representing a 30.2% year-on-year increase [1][9]. - The report highlights that BEVs outperformed PHEVs/EREVs in terms of growth, with BEVs showing 45% year-on-year growth in wholesale shipments during 1H25 [9]. OEM Strategies and Market Dynamics - OEMs are currently preparing their strategies for 2H25, with expectations of model launches and adjustments in response to government policies against over-competition [3]. - BYD remains a top pick due to its strategies aimed at regaining market share, including reducing SKUs and improving model features without price increases [4]. Battery Market Insights - EV battery installations grew by 35.9% year-on-year to 58.2 GWh in June, with total installations for 1H25 reaching 300 GWh, a 47.3% increase year-on-year [5]. - CATL and BYD maintained their market leadership in the battery sector, holding 43.7% and 21.5% market shares, respectively [5]. Lithium Market Trends - The price of lithium carbonate in China rebounded from a low of CNY 60,000 per tonne in late June to CNY 63,000 per tonne in early July [5][48]. - The report anticipates potential downside risks to lithium production in July due to weakened demand and government interventions [5][48].