Core Viewpoint - Nandu Power (300068) announced on October 30 that its civil lithium battery business focuses on battery swapping and vehicle distribution, collaborating with vehicle manufacturers and dealers for product promotion [1] Group 1: Business Focus - The company's civil lithium battery business is primarily concentrated on battery swapping and vehicle distribution [1] - The company has started to launch semi-solid civil lithium battery products since the end of September [1] Group 2: Industry Trends - With the implementation of new national standards, safety performance requirements for civil lithium batteries are expected to increase, leading to a competitive environment where only the best products will survive [1]

Core Viewpoint - Company is undergoing a strategic transformation, resulting in a significant decline in revenue but showing signs of operational improvement in specific segments, particularly in industrial energy storage and data center businesses. Financial Performance - For the first three quarters of 2025, the company's revenue was approximately 5.911 billion, a year-on-year decrease of 24.80%, primarily due to a strategic reduction in the recycled lead segment, which saw a revenue drop of 2 billion [2] - The net profit attributable to shareholders was approximately -220 million, compared to a profit of 247 million in the same period last year, indicating a significant loss primarily from the recycled lead segment [2] - The company reported a net cash flow from operating activities of approximately 860 million, an improvement of 1.58 billion compared to -720 million last year, reflecting a substantial operational performance improvement [2] Order Backlog - The company currently has an order backlog of approximately 8.9 billion, with large storage orders accounting for about 5.5 billion, including 4 billion from domestic and 1.5 billion from overseas [3] - Data center lithium battery orders are approximately 1.67 billion, all from overseas, while the company has also made significant progress in the consumer lithium battery market with an order backlog of about 380 million [3] Competitive Advantages - The company has secured multiple high-voltage lithium battery projects in the U.S. and other overseas markets, establishing itself as a key player in the data center sector [4] - The company has developed a third-generation high-voltage lithium battery product that addresses high energy density and safety concerns, enhancing its competitive edge in the market [4] Market Outlook - The company anticipates that the North American data center backup battery market demand will reach approximately 20 GWh next year, with global demand expected to be around 30 GWh, driven by explosive growth in computing power [5] Production Capacity - The company currently has a lithium battery cell production capacity of 10 GWh and a new energy storage integration capacity of 10 GWh, with ongoing expansions planned [7] Strategic Direction - The company aims to focus on customer needs and leverage technological innovation to build core competitiveness, with a dual-driven model of "technology research and market expansion" [13] - The company plans to continue prioritizing lithium batteries while advancing new energy storage solutions and maintaining a competitive edge in traditional businesses through differentiation [13]

Financial Performance - The company's revenue for the first three quarters is approximately 5.911 billion CNY, a year-on-year decrease of 24.80%, primarily due to a strategic reduction in the recycled lead segment, which saw a revenue drop of 2 billion CNY [1] - The net profit attributable to shareholders is approximately -220 million CNY, compared to 247 million CNY in the same period last year, with losses mainly from the recycling segment and a significant reduction in investment income this year [1] - Operating cash flow improved significantly to approximately 860 million CNY, an increase of 1.58 billion CNY compared to -720 million CNY last year [2] Order Status - The company has an unshipped order backlog of approximately 8.9 billion CNY, with large storage orders accounting for about 5.5 billion CNY (4 billion CNY domestic, 1.5 billion CNY overseas) [2] - Data center lithium battery orders are approximately 1.67 billion CNY, all from overseas, while the civil lithium battery market has orders of about 380 million CNY [2] Lithium Battery Production Capacity - Current lithium battery cell production capacity is 10 GWh, with an additional 10 GWh for new energy storage integration [6] - Plans to expand data center lithium battery capacity from 1.5 GWh to a total of 2.5 GWh next year [3] Market Outlook - The North American data center backup battery market demand is expected to be around 20 GWh next year, with global demand projected at 30 GWh [5] - The company is recognized as a qualified supplier for major North American data center clients, anticipating significant growth in product performance [5] Product Development - The company has made progress in semi-solid and all-solid-state battery technologies, with a 2.8 GWh order for independent storage projects [8] - Semi-solid batteries are priced about 15% higher than liquid batteries, but the profit margin remains similar [9] Strategic Direction - The company aims to focus on customer needs and leverage technological innovation to build core competitiveness, adopting a dual-driven model of "technology research + market expansion" [11] - Plans to continue prioritizing lithium batteries while advancing new energy storage, communication, and data center storage businesses [11]

Battery Industry - Funeng Technology has received project designation from a leading domestic new energy commercial vehicle client, with the project expected to use a lithium iron phosphate battery solution starting in 2026 [2] - Nandu Power announced plans to launch semi-solid lithium battery products for civilian use in the second half of the year, focusing on battery swapping and vehicle distribution [3] - TBL New Energy's solid-state battery project has been selected for the National Key R&D Program, aiming to develop high energy density and long cycle life batteries for low-altitude aircraft applications [5] - The implementation of the new mandatory product certification rules for lithium-ion batteries and power banks has begun, prohibiting the production, import, and sale of non-compliant products [5] Material Supply - The first batch of recycled black powder raw materials for lithium-ion batteries has successfully cleared customs in Ningbo, marking a significant step in the management of imported materials [7] Overseas Developments - Wildcat Resources confirmed the economic viability of the Tabba-Tabba lithium mine project in Western Australia, with an internal rate of return of 26.6% and a tax-free cash flow projection of AUD 4.57 billion [9] - UK battery developer Harmony Energy plans to raise £300 million (approximately USD 400 million) to expand into emerging European markets, driven by increasing storage demand due to rising wind and solar energy generation [12]

Core Viewpoint - Nandu Power (300068) announced on August 15 that its civil lithium battery business focuses on battery swapping and vehicle distribution, collaborating with vehicle manufacturers and dealers for product promotion as new national standards are implemented, leading to higher safety performance requirements in the civil lithium battery sector [1] Group 1 - The company is primarily engaged in battery swapping and vehicle distribution for its civil lithium battery business [1] - Collaboration with vehicle manufacturers and dealers is a key strategy for product promotion [1] - The implementation of new national standards will increase safety performance requirements, resulting in a competitive environment [1] Group 2 - The company plans to launch semi-solid civil lithium battery products in the second half of the year [1]