Report Industry Investment Rating - Not provided in the content Core Viewpoints of the Report - Short - term: In November, downstream production scheduling increases slightly month - on - month, lithium carbonate production decreases slightly, and imports rebound slightly. Supply growth is lower than demand, and inventory depletion is expected to accelerate. The inventory - to - sales ratio in November is expected to further decline. The price will remain high next week. Some funds flow in to layout long - term long positions, and the 2605 contract is more popular [6]. - Medium - term: In December, demand enters the off - season and is difficult to grow significantly. Overseas mine shipments increase, which may ease the tight supply - demand situation. After the production scheduling in mid - to - late November is more certain, the market may start to trade the marginal loosening of supply - demand. The resumption of production at Jianxiaowo does not support the price to reach new highs [6]. - Futures strategy: If funds speculate on the improvement of supply - demand driven by energy storage next year and push the price close to the previous high, short - hedging can be considered. Pay attention to the spot trading situation next week. For unilateral trading, there is still short - term rebound momentum, and consider laying out short positions when entering the previous high pressure range; for arbitrage, wait and see; for options, sell out - of - the - money call options to cooperate with the profit - taking of futures long positions [6]. Summary According to Relevant Catalogs Demand Analysis New Energy Vehicles - China: In September, new energy vehicle sales were 1.604 million, a year - on - year increase of 24.6%, and the penetration rate reached 49.7%. From January to September, sales were 11.228 million, a year - on - year increase of 34.9%. In October, the retail sales of new energy vehicles in the passenger car market were 1.4 million, a year - on - year increase of 17% and a month - on - month increase of 8%. The cumulative retail sales this year were 10.27 million, a year - on - year increase of 23%. The power battery cell production from January to October increased by 44.5% year - on - year to 985.5 GWh, and increased by 0.2% month - on - month in November [12]. - Global: From January to September 2025, global new energy vehicle sales increased by 23.5% year - on - year to 14.479 million. European sales increased by 28.5% year - on - year to 2.746 million, while US sales increased by 11.4% year - on - year to 1.232 million. China's new energy vehicle exports from January to September 2025 were 1.727 million, an 86% year - on - year increase [17]. Energy Storage Market - Domestic energy storage orders are strong due to "export rush" demand and中标 projects in the Middle East, South America, and Australia. From January to October, China's energy storage battery cell production was 409.4 GWh, a 55% year - on - year increase. The inventory of energy storage battery cells is at a three - year low, and the delivery cycle is extended. Production in November and December is expected to maintain positive month - on - month growth, supporting lithium carbonate consumption [21]. November Battery and Cathode Production Scheduling - In October, battery production increased by 8% month - on - month, with ternary batteries increasing by 2.3% and lithium iron phosphate batteries increasing by 10%. In November, battery production is expected to increase by 1.1% month - on - month, with ternary batteries increasing by 0.6% and lithium iron phosphate batteries increasing by 1.1%. The production scheduling in December is expected to be flat, showing the characteristic of an off - season not being off - peak [26]. Supply Analysis Weekly Lithium Carbonate Production Resumes Growth - From January to October, domestic lithium carbonate production was 776,000 tons, a 43% year - on - year increase. The production scheduling in November is 92,000 tons. Compared with May, the operating rate of integrated production capacity increased by 10%, and the operating rate of contract - manufacturing capacity increased by 30% (mainly lithium pyroxene production). The resumption of production at Jianxiaowo is in progress [31]. Monthly Lithium Carbonate Production by Raw Material in China - Data shows the production trends of lithium carbonate from different raw materials such as salt lakes, lithium pyroxene, lithium mica, and recycling [33]. Limited Supply Increment of Lithium Carbonate in November - From January to September 2025, China's lithium carbonate imports were 173,000 tons, a 5% year - on - year increase. In October, Chile's lithium carbonate exports to China were 16,200 tons. Lithium salt imports in November are expected to have limited month - on - month growth. Australian shipments from September to October are higher than the average from January to October, and African Mali will have arrivals in November and December [41]. Supply - Demand Balance and Inventory Lithium Carbonate Supply - Demand Balance Estimation - Not elaborated in detail in the provided content, only a graph of China's lithium carbonate supply - demand balance is shown [43]. Continuous Inventory Depletion of Lithium Carbonate, Reaching the Peak in November - This week, the social inventory decreased by 3,405 tons, with smelter inventory decreasing by 1,336 tons, downstream inventory decreasing by 1,280 tons, and other inventory decreasing by 790 tons. The Guangzhou Futures Exchange warehouse receipts decreased by 289 tons this week, and the decline significantly narrowed. The spot basis returned to par, but the spread between 2601 - 2605 widened, reflecting the market's optimistic expectation for the far - month [49].

Market Performance - The three major indices opened lower but closed higher, with the Shanghai Composite Index rising by 0.23%, the Shenzhen Component Index by 0.37%, the ChiNext Index by 1.03%, and the STAR Market 50 Index by 0.23% [2] - Over 3,100 stocks in the two markets rose, with a total trading volume of approximately 1.87 trillion yuan [2] Hainan Sector - The Hainan sector saw significant gains, with companies like Hainan Development, Haima Automobile, and Hainan Strait Holdings experiencing substantial increases [3] - A new duty-free shopping policy in Hainan, effective from November 1, expands the range of duty-free goods and increases the annual duty-free allowance for travelers to 100,000 yuan, enhancing shopping options for tourists [3] - The Hainan Free Trade Port is set to officially start operations on December 18, further boosting the sector [3] Electric Equipment Sector - The electric equipment sector performed strongly, with companies like Zhongneng Electric and Jinpan Technology seeing gains of nearly 20% [3] - Microsoft CEO Satya Nadella highlighted a power shortage as a key issue for the AI industry, indicating a potential increase in demand for electric equipment to support GPU operations [3] Energy Storage and Lithium Battery Sector - Dongwu Securities revised its forecast for U.S. energy storage installations in 2026 to 76 GWh, a year-on-year increase of nearly 44%, with significant contributions from data centers [4] - The lithium battery supply chain is experiencing active orders, with a year-on-year production increase of 35% reported for major battery manufacturers [4] - Prices for key lithium battery materials have seen a rebound, with lithium carbonate rising to 80,600 yuan per ton and lithium hexafluorophosphate increasing by 46.4% [4] Coal and Steel Sector - The coal and steel sectors showed strong performance, with companies like Antai Group and Vanadium Titanium Holdings rising by 10% [5] - CITIC Securities anticipates a quarter-on-quarter increase of over 15% in the average price of thermal coal at ports, with potential price peaks exceeding 850 yuan per ton [5] - The sector is expected to maintain a rebound due to improvements in policy, coal prices, and earnings expectations [5] Weak Sectors - The innovative drug and semiconductor sectors faced declines, with companies like 3SBio and Hua Hong Semiconductor experiencing significant drops [5] - The liquor and gaming sectors also weakened, with Perfect World and Kweichow Moutai seeing notable declines [5]

Core Viewpoint - The lithium carbonate futures market is experiencing significant price increases due to supply disruptions, particularly following the suspension of operations at the Jiangxia Mine by CATL, which has shifted the supply-demand balance from surplus to potential shortage [1][2][8]. Supply and Demand Dynamics - The suspension of lithium mining operations at CATL's Jiangxia Mine is expected to lead to a monthly supply reduction of 0.9 million tons, altering the monthly supply-demand dynamics [3]. - The current market sentiment is focused on the potential for further price increases, with futures prices reaching 81,000 yuan/ton, marking an 8% increase [1][2]. - Analysts predict that the lithium battery demand growth rate could reach 16%-21% by 2026, indicating a recovery phase for profitability in the lithium battery and related sectors [2]. Price Trends - The spot prices for battery-grade lithium carbonate have risen to between 73,000 and 76,000 yuan/ton, while industrial-grade prices range from 71,600 to 73,000 yuan/ton, reflecting the upward trend in futures prices [3]. - The market is currently in a peak stocking phase, with strong demand from overseas energy storage projects contributing to the price increases [4]. Inventory and Production Insights - As of July 2025, the monthly inventory of lithium carbonate at Chinese smelters has decreased by 13% to 34,730 tons, indicating a tightening supply situation [4]. - Recent data shows that lithium production has increased, with a weekly output of 19,556 tons, but concerns remain about the stability of production from various mining operations [6]. Import and Export Trends - Despite rising domestic prices, lithium ore imports have declined, with June figures showing a 4.81% decrease to 57.59 million tons [7]. - The import dynamics reveal a mixed performance, with Australian imports decreasing by 31.21%, while imports from Brazil have surged by 165.93% [7]. Market Sentiment and Future Outlook - The market sentiment is bullish, with expectations of further price increases due to the supply constraints and heightened investor interest [8]. - Analysts caution that while the current market conditions favor price increases, there is a need for caution regarding potential corrections following speculative trading [9].

Investment Rating - The industry investment rating is "Overweight" [2][51]. Core Viewpoints - The lithium battery industry is experiencing a structural shift with opportunities in solid-state battery segments. The demand for power batteries is expected to recover as the traditional peak season approaches, while energy storage demand remains high. The report suggests focusing on leading companies in the battery and materials sectors that have technological and production advantages in solid-state electrolytes and new materials [3][45]. Summary by Sections Market Review - As of August 7, 2025, the lithium battery index has decreased by 6.59% over the past two weeks, underperforming the CSI 300 index by 5.77 percentage points. Year-to-date, the lithium battery index has increased by 4.55%, also underperforming the CSI 300 index by 0.01 percentage points [4][13]. Price Changes in the Lithium Battery Supply Chain - As of August 7, 2025, the average price of battery-grade lithium carbonate is 71,200 CNY/ton, up 0.92% in the last two weeks. The price of lithium hydroxide (LiOH 56.5%) is 69,300 CNY/ton, up 2.36% [25][27]. - Electrolytic cobalt is priced at 267,000 CNY/ton, up 8.10%, while electrolytic nickel is at 122,400 CNY/ton, down 2.08% [26]. - Phosphate iron lithium prices remain stable at 32,700 CNY/ton, while NCM523, NCM622, and NCM811 have seen increases of 1.78%, 1.68%, and 0.69%, respectively [27][30]. - The price of lithium hexafluorophosphate is 50,300 CNY/ton, up 1.62%, with other electrolyte prices remaining stable [31]. Industry News - In July, the retail sales of new energy vehicles reached 1,003,000 units, a year-on-year increase of 14%, while wholesale sales were 1,179,000 units, up 25% year-on-year. The report indicates a traditional seasonal decline in sales but a strong year-on-year growth [42][45]. - Major automotive companies are advancing solid-state battery technology, with significant investments and developments reported by companies like Volkswagen and Gotion High-Tech [42][44]. Company Announcements - Notable companies such as CATL reported a revenue of 178.886 billion CNY in the first half of 2025, a year-on-year increase of 7.27%, with a net profit of 30.485 billion CNY, up 33.33% [44][47]. - Other companies like Keda and Enjie are also showing strong performance and growth in their respective sectors, particularly in solid-state battery materials and components [47].

Market Overview - The new energy vehicle (NEV) index experienced a decline of 1.61% from June 16 to June 20, underperforming the CSI 300 index by 1.16% [1] - The best-performing sector within the automotive-related categories was the electric motor index, which fell by 2.25% [1] - The lithium battery index, part of the NEV battery sector, showed a positive performance with a gain of 2.85% [1] Company Performance - In the week of June 16 to June 20, various sectors related to new energy vehicles were analyzed, including new energy vehicles, electric motor control, automotive parts, and battery technologies [3] Industry Data - As of June 20, the average price of battery-grade lithium hydroxide was 64,300 CNY/ton, down 1,200 CNY/ton from June 13 [4] - The average price of battery-grade cobalt sulfate was 47,000 CNY/ton, decreasing by 750 CNY/ton [5] - The average price of battery-grade nickel sulfate remained stable at 28,500 CNY/ton [6] - The market price for lithium iron phosphate was stable at 30,300 CNY/ton [7] - The prices for various ternary precursor materials remained unchanged, with 811 type at 87,750 CNY/ton and 622 type at 79,500 CNY/ton [8] - The average price for ternary materials also held steady, with 811 type at 145,500 CNY/ton and NCA type at 147,500 CNY/ton [9] - Prices for separator materials remained unchanged, with dry film at 0.42 CNY/m² and wet film at 0.69 CNY/m² [10] - The price of lithium hexafluorophosphate was 51,700 CNY/ton, down 450 CNY/ton [11] - The price of square power cells remained stable at 0.34 CNY/Wh for lithium iron phosphate and 0.44 CNY/Wh for ternary cells [12] - The price of aluminum-plastic film remained unchanged at 14 CNY/m² [13] Production and Sales Data - In May, the production of new energy vehicles reached 1,270,000 units, a year-on-year increase of 35%, with cumulative production at 5,699,000 units, up 45.2% [14] - The wholesale sales of new energy vehicles in May were 1,216,000 units, reflecting a year-on-year increase of 33% [14] - The installed capacity of power batteries in May was 57,100 MWh, up 43.1% year-on-year [14] - BYD's new energy vehicle sales in May were 382,476 units, a year-on-year increase of 15.27% [14]

Report Industry Investment Rating - Not provided in the given content Core Viewpoints - From May 19th to May 23rd, there were minor supply disruptions, and lithium carbonate prices rose slightly before falling back. As of May 23rd, the closing price of the main contract was 60,960 yuan/ton, and the spot price was 63,050 yuan/ton. Besides the lower cost, there were no more pessimistic changes in the fundamentals. The further decline in the price of spodumene ore has lowered the cost support for lithium prices. The spot price has hit a new low since the futures were listed, and market sentiment remains pessimistic, but it is expected to stop falling as the raw material prices stabilize. Domestic social inventory has decreased slightly, and weekly production has declined. The continuous decline in prices increases the possibility of upstream enterprises reducing or suspending production, which needs continuous attention in the near future [2][10]. - The previous reciprocal tariffs have further restricted the future demand for lithium carbonate products. When facing the weakening peak - season effect of new - energy vehicles, the slowdown in the growth rate of lithium iron phosphate orders, and the decline in the production of ternary materials in China, the impact of reciprocal tariffs on lithium carbonate products is not obvious. The demand for lithium carbonate from the product end is more reflected in the growth of energy - storage demand and the demand brought about by breakthroughs in all - solid - state technology. Short - term factors affecting lithium carbonate prices still focus on the supply - and - demand changes in its own fundamentals. The possibility of further decline at the current price level is narrowing, and it should be treated with an oscillatory mindset [2][10]. Summary by Directory I. Market Review - Supply had sporadic disruptions, and lithium carbonate prices rose slightly before falling back. From May 19th to May 23rd, the upstream had minor disturbances with a small volume involved. As of May 23rd, the main contract closed at 60,960 yuan/ton, and the spot price was 63,050 yuan/ton. Domestic social inventory decreased slightly, and weekly production declined [2][8][10]. II. Hot - Spot Interpretation - **April Import and Export Data (Spodumene, Lithium Iron Phosphate)**: In April, domestic spodumene imports totaled 623,000 physical tons, a 16.5% increase from the previous month, equivalent to 54,000 tons of lithium carbonate equivalent (LCE). Australia, Nigeria, and Zimbabwe were the main import sources. The import volume from Australia was 298,000 tons, a 3% decrease from the previous month; from Zimbabwe was 106,000 tons, an 82% increase; from Nigeria was 89,000 tons, a 4% increase; and from South Africa was 40,400 tons, a significant 22% decrease. In April, the amount of spodumene concentrate was 520,000 tons, accounting for 83% of the total ore, mostly from Australia, Zimbabwe, etc. In April 2025, China's lithium iron phosphate export volume was 1,151.7 tons, a 16% decrease from March and a 1724% increase compared to the previous year. In terms of price, the average export price of lithium iron phosphate in March 2025 was 6,206.9 US dollars/ton, a 5.4% increase from the average price in March. The top - exporting province of lithium iron phosphate in April 2025 was Guangxi Zhuang Autonomous Region with 968.5 tons, all exported to Vietnam; Hubei Province ranked second with 59.454 tons, and Anhui Province ranked third with 30 tons. The top - importing country of Chinese lithium iron phosphate in April 2025 was Vietnam, accounting for 84% of the export volume; South Korea ranked second with 7%, and Chinese Taipei ranked third with 5.5%. In April, China's lithium iron phosphate import volume was 8.6 tons, a 58% decrease from the previous month, mainly imported from Indonesia at an average import price of 5,345.6 US dollars/ton [17][18]. - **SMM May 22nd News**: This week, the price of ternary materials continued to decline. In terms of raw material costs, the prices of nickel sulfate and manganese sulfate fluctuated little, the price of cobalt sulfate decreased slightly, and the price of lithium salt continued to decline significantly. In terms of demand, the large - power market has recovered to some extent, with some vehicle models having good sales performance, and some models stocking up in advance due to upcoming launches, which provided some support for the demand for ternary materials, but the overall quantity was limited. The consumer and small - power markets have received more orders recently, especially the overseas market, but the overall increase was not obvious due to the small market volume. On the supply side, the current market supply mainly depends on previously signed long - term contracts. Some enterprises have raised relevant discount coefficients and adopted a settlement method of negotiating discounts for raw materials such as nickel sulfate, cobalt sulfate, and lithium carbonate separately. Recently, the market trading sentiment has been weak, mainly for just - in - time inventory. However, the end - of - month inventory peak is coming next week, and it is expected that market activity will increase recently. In terms of price trends, it is expected that the price of nickel sulfate will remain firm, but there is still room for the price of lithium salt to decline. Affected by raw - material price fluctuations, the price of ternary materials may decline further [20]. - **SMM May 22nd News**: This week, the price of lithium ore continued to decline compared to last week. On the supply side, although overseas mines have a certain willingness to support prices, due to their shipping pressure, the quotes have been lowered. On the demand side, since the current lithium - salt price is at a low level, the buyers' psychological price is constantly decreasing, and they are not willing to accept lithium - ore prices above 650 US dollars CIF. When the current lithium carbonate futures and spot prices are falling, the demand continues to push down the price for negotiation, and the trading willingness is average. According to the latest lithium - ore import customs data, in April, domestic spodumene imports exceeded 600,000 tons, a significant increase from the previous month, equivalent to more than 50,000 tons of lithium carbonate equivalent. Coupled with the high port inventory in recent months, traders and mines face certain shipping pressure, and the buyers' bargaining power has increased. When the lithium carbonate price remains low, the lithium - ore price is expected to weaken [22]. - **SMM May 22nd News**: This week, the power - cell market continued to operate in a stable and adjusted manner. In terms of price, the quoted price range of mainstream lithium - iron - phosphate power cells fluctuated narrowly, and market transactions were mostly concentrated in the long - term contracts of leading cell manufacturers. The price competition among terminal vehicle enterprises continued in mid - May, especially for pure - electric platforms of Class A and below, with a deep exploration around the vehicle selling price, which put forward higher requirements for the upstream BOM cost. In this context, power - cell manufacturers are gradually optimizing their product strategies. While maintaining the stable supply of basic large - capacity lithium - iron products, they are accelerating the launch of differentiated solutions for niche markets, such as low - cost and high - integration modules and a new generation of lithium - iron cells compatible with the CTP structure. Some ternary - cell manufacturers are also improving product cost - effectiveness through high - voltage iron doping and fast - charging system technology and promoting the matching of customized cells represented by the 9 - series in the core - customer testing stage [25]. - **SMM May 22nd News**: This week, the downward trend of lithium iron phosphate prices has slowed down, with an overall decrease of about 365 yuan/ton, mainly because the lithium carbonate price has continued to decline this week, with a total decrease of about 1,450 yuan/ton. In the market, material manufacturers have been more active in production this week, and the production of leading material manufacturers has begun to recover, but the production of some second - tier material manufacturers has declined, mainly due to the adjustment of the downstream cell supply - chain structure and a slight decline in downstream power orders. On the demand side, energy - storage demand continues to improve. On the one hand, the US has lowered tariffs on China, and downstream cell manufacturers are eager to rush for exports, resulting in a slight increase in orders. In terms of price settlement, the average price of lithium iron phosphate showed a slight upward trend in April as a whole. Some lithium - iron - phosphate manufacturers hoped to increase the processing fee in the second quarter, but there was no substantial result after negotiations with downstream cell manufacturers. However, at present, the price of lithium - iron raw materials has started to decline, so the price of lithium iron in May is also expected to decline to some extent. In addition, some cell manufacturers will restart bidding in June, and the probability of a price increase before then is low. Considering these two points, SMM expects that the second - quarter processing fee will be difficult to increase [27]. III. In - depth Analysis of Industrial - Chain Data - **Lithium - Ore Price**: The report provides the price trends of spodumene concentrate (CIF China) and lithium - mica concentrate (Li₂O: 1.5% - 2%) through charts, including data such as price changes, increases and decreases, and average prices [32]. - **Lithium - Carbonate Price**: The report shows the price trends of battery - grade and industrial - grade lithium carbonate through charts, including data such as price changes, increases and decreases, and average prices [35]. - **Processing Cost and Cash Production Cost**: The report presents the processing costs of lithium carbonate from lithium - mica concentrate and spodumene concentrate and the cash production costs of lithium carbonate from purchased spodumene concentrate (Li₂O: 6%) and purchased lithium - mica concentrate (Li₂O: 2.5%) through charts [38]. - **Lithium - Carbonate Profit**: The report shows the production profit of lithium carbonate from purchased spodumene concentrate (Li₂O: 6%) and purchased lithium - mica concentrate (Li₂O: 2.5%), as well as the theoretical arbitrage profit of lithium carbonate, including theoretical delivery profit, import profit, export profit of lithium hydroxide, and theoretical delivery profit of lithium - carbonate production from lithium - mica ore and spodumene ore through charts [41]. - **Lithium - Carbonate Weekly Operation and Production**: The report provides the weekly operation rates of lithium - carbonate production from spodumene, lithium - mica, and salt lakes, as well as the weekly production of lithium carbonate from different smelting methods and the total weekly production of lithium carbonate in China through charts [44]. - **Cell Shipment and Battery Inventory**: The report shows the monthly shipment volume of power cells (including lithium - iron - phosphate, ternary, and total) and the inventory of lithium batteries (including energy - storage batteries and power batteries) through charts [47]. - **Automobile Production and Sales**: The report presents the production volume of new - energy vehicles (including pure - electric vehicles, plug - in hybrid vehicles, and total) and the sales volume and proportion of new - energy vehicles through charts [50]. - **Lithium - Carbonate Inventory**: The report shows the monthly and weekly inventory of lithium carbonate (including total, downstream, smelter, and other inventories) through charts [53].

Summary of Zhuhai Guanyu Conference Call Company Overview - **Company**: Zhuhai Guanyu - **Industry**: Battery manufacturing, focusing on consumer and power battery segments Key Points Financial Performance - In Q1 2025, Zhuhai Guanyu reported revenue of 2.498 billion yuan, a slight decline year-on-year. The net profit attributable to shareholders was a loss of 24 million yuan, compared to a profit of 9 million yuan in the same period last year [4][5][42] - The overall performance was impacted by a seasonal downturn in consumer electronics and a decrease in prices due to falling upstream material costs [5][42] Business Segments - **Consumer Battery Segment**: - Q1 2025 consumer battery shipments were approximately 80 million units, flat year-on-year, with a self-supply rate of about 40% [5] - The company expects Q2 shipments to grow by 40%-50% quarter-on-quarter, with an annual target of 120 million units [6] - **Power Battery Segment**: - Revenue in Q1 2025 was around 400 million yuan, more than doubling year-on-year, driven primarily by the Zhikang and drone businesses [5][6] - The power segment is expected to generate 600 million yuan in Q2, with annual revenue projected to be double that of the first half [6][29] Growth Drivers - The start-stop battery business is anticipated to continue its rapid growth, with significant orders from domestic and international clients [7] - The drone business, primarily serving DJI, is expected to exceed 1 billion yuan in total revenue this year, also doubling year-on-year [7][33] Technological Advancements - The company is making progress in smart wearable devices and robotics, leveraging its soft-pack technology and small battery solutions for advantages in energy density and weight [8] - The company aims to capture 30% of the smartphone battery market, up from the current 8%-10%, through technological iterations [3][35] Margin and Cost Management - Q1 gross margin declined due to seasonal factors, increased contribution from lower-margin businesses, and lagging cost pass-through from export tax adjustments [11][12] - The company expects improvement in margins in Q2 as production ramps up and costs stabilize [11] International Expansion - The construction of a factory in Malaysia is progressing well, expected to be operational within 1 to 1.5 years, which will help mitigate export costs to the U.S. due to lower tariffs [9][13][14] - The company is also exploring opportunities in Mexico and India, although these facilities are smaller in scale [13] Market Trends and Customer Demand - The company is well-positioned to meet domestic demand despite trade tensions, with a focus on local suppliers [10][9] - The demand for high-capacity batteries is increasing, with a trend towards larger batteries (6,000 to 7,000 mAh) in the market [36] Future Outlook - The company maintains a positive outlook for Q2 and the full year, expecting significant growth driven by domestic demand and new product launches [6][43] - The focus will remain on enhancing market share in both consumer and power battery segments while managing costs effectively [46] Challenges and Risks - The company faces challenges from fluctuating material prices and the impact of export tax policies, which it is addressing through strategic cost management and communication with clients [24][25] Conclusion - Zhuhai Guanyu is navigating a challenging market environment with a focus on growth in both consumer and power battery segments, leveraging technological advancements and international expansion to enhance its competitive position. The outlook for the upcoming quarters remains optimistic, supported by strong demand and strategic initiatives.

1. Report Industry Investment Rating - No information provided in the document. 2. Core Viewpoints of the Report - In May, the supply - demand pattern of lithium carbonate may continue to be weak on both sides. If there is no large - scale production halt or reduction, the price outlook remains pessimistic. The supply may decline month - on - month in May due to previous price drops leading to upstream production cuts, but new projects are coming on - stream, and the cost of mines/integrated projects has decreased significantly in the past two quarters. On the demand side, factors such as tariff concerns, high downstream inventory, and the fact that the increase in battery - end demand mainly digests positive electrode inventory rather than drives new production all limit demand growth [4]. 3. Summary According to the Directory 3.1 Price - The price of the lithium carbonate main contract dropped by 2.8%. Lithium ore and lithium salt prices declined, while cathode material prices showed a mixed trend. For example, the closing price of the lithium carbonate main contract decreased from 70,180 yuan/ton to 68,180 yuan/ton, and the price of lithium spodumene concentrate (6%, CIF China) dropped from 808 dollars/ton to 793 dollars/ton [6][7]. 3.2 Inventory - The weekly lithium carbonate inventory increased by 259 tons to 131,864 tons. Upstream inventory increased by 270 tons to 52,400 tons, inventory in other links decreased by 1,100 tons to 36,641 tons, and downstream inventory increased by 1,089 tons to 42,823 tons [6][14]. 3.3 Theoretical Delivery Profit and Import - Export Profit - The document presents charts of lithium carbonate import profit, theoretical delivery profit, and other related profits, but no specific numerical summaries are provided [20][21]. 3.4 Production 3.4.1 Lithium Resources - The import volume charts of lithium concentrate from different countries (Brazil, Canada, Australia, etc.) are presented, and the production data of Chinese sample mica + spodumene (LCE) are also shown. For example, in March 2025, the total production of sample lithium mica mines (with a market share of about 65%) was 13,420 tons (in lithium carbonate equivalent), and the production of Chinese sample spodumene mines was 3,420 tons (in lithium carbonate equivalent) [22][24][26]. 3.4.2 Lithium Carbonate - The weekly production of lithium carbonate decreased by 488 tons to 16,900 tons. Among them, lithium extraction from spodumene decreased by 390 tons to 8,743 tons, lithium extraction from lithium mica decreased by 100 tons to 3,527 tons, lithium extraction from salt lakes increased by 20 tons to 2,923 tons, and lithium extraction from recycling decreased by 18 tons to 1,707 tons [4][6][29]. 3.4.3 Lithium Hydroxide - Charts of lithium hydroxide production by process, capacity, and import - export are presented, but no specific numerical summaries are provided [43][44]. 3.4.4 Lithium Hexafluorophosphate - Charts of lithium hexafluorophosphate production, export, and monthly operating rate are presented, but no specific numerical summaries are provided [45][46][47]. 3.4.5 Waste Recycling - Charts of waste lithium - battery recycling volume are presented, showing the recycling volume of ternary waste, lithium iron phosphate waste, and lithium cobalt oxide waste [51][52]. 3.5 Ternary Precursor and Ternary Material - The weekly inventory of ternary materials decreased by 263 tons to 14,195 tons. Charts of production profit, capacity, production, operating rate, and import - export of ternary precursors and ternary materials are presented [6][56][57]. 3.6 Lithium Iron Phosphate - The weekly inventory of lithium iron phosphate decreased by 3,000 tons to 94,110 tons. Charts of lithium iron phosphate operating rate, capacity, production, and cost are presented [6][59]. 3.7 Other Materials - Charts of the capacity, production, and operating rate of lithium manganate and lithium cobalt oxide are presented [60][61]. 3.8 Power Cells - The weekly production of power cells increased by 7.9% to 24.98 GWh. Among them, lithium iron - based cells increased by 10.7% to 17.37 GWh, and ternary cells increased by 1.9% to 7.61 GWh [6][63]. 3.9 Lithium Batteries - Charts of lithium battery production, installation volume, and inventory by type (iron - lithium, ternary, etc.) are presented [66][67][69][71]. 3.10 Terminal - New Energy Vehicles - From April 1 - 20, the retail volume of the national new - energy passenger vehicle market was 478,000 units, a year - on - year increase of 20% and a month - on - month decrease of 11%, with a retail penetration rate of 53.3%. The cumulative retail volume this year was 2.898 million units, a year - on - year increase of 33%. The wholesale volume of new - energy passenger vehicles from manufacturers was 530,000 units, a year - on - year increase of 23% and a month - on - month decrease of 7%, with a wholesale penetration rate of 53.3%. The cumulative wholesale volume this year was 3.378 million units, a year - on - year increase of 39% [4][6][72]. 3.11 Supply - Demand Balance - Charts of the monthly supply - demand balance of lithium carbonate, lithium ore, lithium iron phosphate, and ternary precursors are presented [75][80][82]. 3.12 Options - Charts of historical volatility, historical volatility cone, and put - call ratios of option positions and trading volumes of lithium carbonate are presented [85][88][89].