Core Viewpoint - EVE Energy has entered the supply chain of Xiaopeng's MONA series, providing battery solutions that utilize traditional square batteries, which reduce costs through better chassis adaptability, while the long-range version will use BYD batteries [3][9]. Group 1: EVE Energy's Role in Xiaopeng's Supply Chain - EVE Energy has become an important supplier for Xiaopeng, with its batteries now included in the MONA series, specifically the M03 model, which has sold over 150,000 units since its launch in August 2024 [3][10]. - The M03 model contributes approximately 40% to Xiaopeng's overall sales, helping the company return to profitability and growth [3][4]. - EVE Energy's entry into the supply chain diversifies Xiaopeng's battery suppliers, which previously relied solely on BYD for the M03's battery [9][10]. Group 2: Battery Supply and Market Position - Xiaopeng's main battery suppliers include CATL, EVE Energy, and BYD, with CATL being the largest supplier covering all models [8][9]. - EVE Energy has supplied batteries for multiple Xiaopeng models since 2020, with a cumulative cooperation volume exceeding 150,000 units by the end of 2024 [9][10]. - EVE Energy's square battery design offers flexibility in layout and strong chassis adaptability, which aligns with automotive manufacturers' needs for cost reduction and efficiency [9][10]. Group 3: Future Prospects and Growth - EVE Energy's battery shipment volume reached 21.48 GWh in the first half of 2025, marking a year-on-year increase of 58.58%, with a gross margin improvement to 17.60% [16][17]. - The company is expanding its collaboration with Xiaopeng into the low-altitude economy sector, providing battery systems for next-generation aircraft, indicating a recognition of EVE Energy's technological capabilities [13][14]. - EVE Energy's dual strategy of using both cylindrical and square lithium iron phosphate batteries is enhancing its competitive advantage in the market [17][18].