Core Insights - The Chinese power battery industry is experiencing significant growth, with a total installed capacity of 299.6 GWh in the first half of the year, representing a year-on-year increase of 47.3% [1] - Lithium iron phosphate (LFP) batteries have become the dominant force in the market, accounting for 81.4% of total installed capacity, with a year-on-year growth of 73.0% [1][4] - The overall market for power batteries is stabilizing, with leading companies like CATL and BYD maintaining a strong market share [3] Production and Sales Growth - The cumulative production of power batteries in China reached 697.3 GWh in the first half of the year, marking a year-on-year increase of 60.4% [2] - Cumulative sales of power batteries were 485.5 GWh, reflecting a year-on-year growth of 51.6% [2] - CATL led the market with an installed capacity of 128.6 GWh, representing 43.05% of the total, while BYD followed with 70.37 GWh, or 23.55% [2] Market Dynamics and Innovations - The market concentration remains high, with CATL and BYD together holding a combined market share of 66.4% [3] - CATL has introduced several new technologies, including dual-core batteries and sodium-ion batteries, which aim to enhance performance and safety [3] - The trend towards energy transition is prompting leading battery companies to innovate not just in products but also in business models, such as establishing battery swapping networks [3] Stability of Lithium Iron Phosphate Batteries - LFP batteries continue to dominate the market due to their performance improvements and cost-effectiveness, with a total installed capacity of 244.0 GWh in the first half of the year [4] - In June, LFP battery installations reached 47.4 GWh, accounting for 81.5% of total installations, with a year-on-year increase of 49.7% [4] - The demand for LFP batteries is expected to grow in both the electric vehicle and energy storage sectors, ensuring their continued market leadership [4]

Core Viewpoint - Contemporary Amperex Technology Co., Ltd. (CATL) has applied for the registration of the trademarks "Dual-Core Battery" and "CATL Dual-Core Battery," indicating a focus on innovative battery technology [1] Group 1: Trademark Registration - CATL has submitted applications for the trademarks "Dual-Core Battery" and "CATL Dual-Core Battery," both classified under scientific instruments [1] - The current status of these trademarks is pending substantive examination [1] Group 2: Product Launch - On April 21 of this year, CATL officially launched the Xiaoyao Dual-Core Battery during the Super Technology Day event [1] - The Xiaoyao Dual-Core Battery represents a deep integration of CATL's dual-core architecture and self-generating negative electrode technology [1]

Summary of Conference Call Records Company: CATL (宁德时代) Key Points 1. **Upcoming H-Share Listing** CATL announced its upcoming H-share listing on the Hong Kong Stock Exchange, which is expected to enhance its global influence and potentially lead to a valuation recovery in the A-share market. The company is currently valued at around 15X, primarily due to liquidity issues in the A-share market. [1] 2. **Significant Fund Holdings** As of Q1 2025, CATL's fund holdings reached 146.8 billion yuan, making it the largest holding in A-share public funds for four consecutive quarters. This indicates that A-share market liquidity significantly impacts the company's stock price. [1] 3. **H-Share Issuance Details** The H-share issuance is projected to be around 5 billion USD, corresponding to approximately 3% of the share capital. The expected market capitalization for circulation is around 10 billion yuan. The current liquidity in the Hong Kong market is robust, with strong demand for quality leading companies, which may result in a liquidity premium. [2] 4. **Comparative Valuation** Compared to LGES, a comparable lithium battery company, CATL's market capitalization is significantly undervalued. LGES has a market cap of 391.2 billion yuan, which is only 37% of CATL's A-share market cap, despite LGES's shipments being only 25% of CATL's. This highlights CATL's competitive edge and profitability. [2] 5. **Catalysts for Valuation Improvement** The potential catalysts for CATL's valuation improvement include the recognition of its long-term value by cornerstone investors and the relatively low discount for placements compared to A-shares, which may boost market confidence. [2] 6. **Short-term Market Concerns** Short-term market concerns include exposure to the U.S. market and industry beta risks. However, CATL has reduced its U.S. exposure to a negligible level and is expected to manage this through inventory and overseas capacity in the coming years. [3] 7. **Long-term Business Value** CATL's new business ventures are not yet reflected in its current market value. Key areas of growth include: - **Battery Swapping**: Successful implementation could significantly increase CATL's market share in passenger vehicles. - **Data Centers & Zero-Carbon Grid Storage**: High barriers to entry may lead to unexpected market share and profitability. - **Low-altitude & Robotics Batteries**: Innovations in chemical systems could yield additional market share. - **Sodium Batteries & Dual-Core Batteries**: Innovations in chemical systems may further enhance market share. [3] Additional Important Insights - The H-share listing is seen as a critical opportunity for CATL to leverage its global market presence and improve its valuation metrics in the A-share market. [1][2] - The company's strategic focus on emerging markets and new technologies positions it favorably for future growth, despite current market volatility. [3]