Summary of Hailiang Co., Ltd. Conference Call Company Overview - **Company**: Hailiang Co., Ltd. - **Date**: September 17, 2025 Key Industry Insights - **Impact of U.S. Tariff Policy**: The U.S. tariff policy implemented on July 31 positively affected Hailiang's revenue, leading to significant growth in overseas orders, particularly from the Houston plant, which turned profitable with earnings exceeding 10 million RMB in July 2025. The overall performance for the year is expected to surpass last year's results, although August's performance was slightly lower than July's, indicating a generally positive trend [2][12][13]. Core Points and Arguments - **Market Growth**: Hailiang's overseas market growth is primarily driven by the U.S. market, while the domestic market remains stable. The company is introducing new products such as corrosion-resistant copper tubes, AI-related products, and aluminum products to reduce copper usage and increase processing fees, seeking new profit growth points [2][7][8]. - **Emerging Fields**: Hailiang is actively expanding into emerging fields, including micro-alloyed copper tubes, solid-state batteries, and liquid cooling technology. The solid-state battery copper foil is currently in the third generation sampling phase, while the liquid cooling technology has high processing fees of 50,000 RMB, with hopes to increase profits through expanded production [2][10][11]. - **Production Capacity Plans**: The company plans to increase the production capacity of anchor pipes at the Houston plant from 50,000 tons to 90,000 tons by the end of the year, although local construction faces certain restrictions that need time to resolve [2][13][17]. Financial Performance - **Revenue and Gross Margin**: In the first half of 2025, Hailiang's overseas market performance was strong, with significant contributions from Southeast Asia and the U.S. The cancellation of export tax rebates at the end of 2024 relieved some pressure on overseas operations. The increase in order volume has improved yield and marginal benefits, with overseas prices historically being higher than domestic prices, contributing to revenue and gross margin improvements [3][4][7]. - **Cost Structure**: The processing fee for Hailiang in the first half of 2025 was approximately 14,000 RMB, compared to last year's manufacturing cost of 9,000 to 9,200 RMB per ton. The proportion of differentiated products increased from 1% last year to 52% by June 2025, indicating a significant change in product structure [4][30][31]. Additional Important Insights - **Export Dynamics**: The growth in overseas orders is partly related to export competition, with the U.S. market being a significant focus. Vietnam and Thailand also contribute to revenue, although profit data may be obscured by internal transactions [5][6]. - **Future Projections**: Hailiang expects a conservative production forecast of 20,000 tons in the U.S. for 2025 due to personnel configuration and production yield issues. The company anticipates that the Tongbo project will break even in 2026, potentially generating 300 to 400 million RMB in revenue [4][23][22]. - **Product Development**: Recent product launches include corrosion-resistant copper tubes and aluminum products, with plans to develop high-value-added small-batch deep-processing products. The company is also focusing on solid-state battery and silicon-carbon negative electrode projects, which are still in the early stages of development [8][10][11]. Conclusion Hailiang Co., Ltd. is positioned for growth in the overseas market, particularly in the U.S., driven by favorable tariff policies and strategic product innovations. The company is actively expanding its production capacity and exploring new technologies, while maintaining a focus on improving its product mix and profitability.

Core Viewpoint - 嘉元科技 (688388) reported strong financial performance for the first half of 2025, with significant increases in revenue and net profit compared to the previous year [1]. Financial Performance - Total revenue reached 3.963 billion yuan, a year-on-year increase of 63.55% [1]. - Net profit attributable to shareholders was 36.7541 million yuan, up 134.94% year-on-year [1]. - In Q2 2025, total revenue was 1.982 billion yuan, reflecting a 32.75% increase year-on-year, while net profit for the quarter was 12.2977 million yuan, up 121.42% [1]. - Gross margin improved to 5.08%, a year-on-year increase of 198.53%, and net margin reached 0.85%, up 119.16% [1]. Cost and Expenses - Total selling, administrative, and financial expenses amounted to 143 million yuan, accounting for 3.6% of revenue, a decrease of 19.42% year-on-year [1]. - Operating expenses decreased due to reduced business entertainment and employee compensation costs [5]. Cash Flow and Assets - Operating cash flow per share was 0.13 yuan, a significant increase of 106.46% year-on-year [1]. - Cash and cash equivalents increased by 21.96% to 2.367 billion yuan [1]. - Accounts receivable decreased by 12.37% to 1.01 billion yuan, indicating improved collection efficiency [1]. Debt and Liabilities - Interest-bearing liabilities rose by 30.43% to 5.137 billion yuan [1]. - The company has a healthy cash position, but attention is needed on debt levels and financial expenses [9]. Business Model and Future Outlook - The company is focusing on solid-state battery technology, having developed products that meet various technical requirements [10]. - Future production and sales will align with market demand for solid-state battery copper foil [10].

Investment Rating - The report maintains an "Accumulate" rating for the company [5] Core Views - The company has seen a turnaround in its main business, with solid-state batteries and high-end PCB copper foil opening up valuation space [1] - The company achieved a net profit of 0.24 million yuan in Q1 2025, reversing losses due to increased orders, higher capacity utilization, and lower production costs, leading to improved gross margins [1] - The company plans to increase copper foil production capacity to approximately 250,000 tons, with expectations to exceed 130,000 tons in total capacity by 2025, and production and sales are anticipated to break through 90,000 tons [1] - The processing fees for copper foil have reached a bottom in 2024, with some product fees already rebounding, and the industry is encouraged to avoid vicious competition, which is expected to stabilize demand growth for lithium batteries [1] - The company has developed a rich product matrix for solid-state batteries, including high specific surface area copper foil and double-sided nickel-plated copper foil, with expected shipments of solid-state battery copper foil to reach around 100 tons in 2025 [2] - The company has made positive progress in high-end PCB copper foil, with ultra-thin copper foil for PCB applications already in mass production and achieving certification from leading enterprises [2] Financial Forecasts and Valuation - The report predicts net profits of 1.05 million yuan for 2025, 2.74 million yuan for 2026, and 5.24 million yuan for 2027, with corresponding P/E ratios of 97, 37, and 20 times respectively [2] - Revenue is projected to grow significantly, with estimates of 9.997 billion yuan in 2025, 15.540 billion yuan in 2026, and 22.410 billion yuan in 2027, reflecting growth rates of 53.28%, 55.44%, and 44.21% respectively [4][8] - The company’s gross margin is expected to improve, with a forecasted gross margin of 5.0% in 2025 and 4.9% in 2026 [10]

Investment Rating - Investment rating for the power equipment industry is "Positive" (maintained) [2] Core Insights - The industry is experiencing accelerated industrialization across all segments, with timelines for vehicle testing set for 2027 and large-scale applications expected by 2030 [12][26] - Solid-state batteries are transitioning from laboratory stages to mass production validation, with small-scale vehicle testing anticipated by the end of 2025 and widespread testing expected in 2026-2027 [28] - Emerging applications in low-altitude, robotics, and AI are expected to open up market opportunities for solid-state batteries, accelerating industrialization [28] Summary by Sections Industry Overview - The solid-state battery index increased by 0.7% from July 7 to July 11, 2025, with a cumulative increase of 19.0% for the year [12][13] - The average performance of solid-state battery-related stocks was -0.8% during the same period [12][30] Industry Dynamics - Significant advancements in solid-state battery technology have been reported, including the development of a new silicon-based anode material that enhances stability and performance [34] - A major tender for a hybrid storage system combining semi-solid lithium batteries and sodium batteries was announced, indicating ongoing investment in energy storage solutions [35] Company Developments - Sanxiang New Materials has begun small-scale supply of zirconium-based halide materials to downstream battery companies [36] - Jiayuan Technology expects to achieve a total production capacity of over 130,000 tons by 2025, with solid-state battery copper foil shipments projected at around 100 tons [37] - Haopeng Technology has completed validation of a high-safety semi-solid battery and has received bulk orders from clients [38] - Junpu Intelligent has entered a strategic partnership with Enli Power to accelerate the industrialization of solid-state batteries [39]

Core Viewpoint - The company, Jia Yuan Technology, has announced its plans for solid-state battery copper foil production, projecting an output of approximately 100 tons by 2025, which will represent about 0.1% of its total output [1] Group 1: Product Development - The company has developed high specific surface area copper foil and double-sided nickel-plated copper foil for semi/full solid-state batteries [1] - Some of these products have already achieved mass and small batch supply [1] - The company has sent samples of its copper foil products for solid-state batteries to multiple enterprises for testing and has obtained preliminary results [1] Group 2: Strategic Partnerships - In addition to mass supply and sample testing, the company has established strategic agreements with several clients to jointly develop next-generation copper foil products for solid-state batteries [1]

Group 1 - The core viewpoint of the article highlights that Jia Yuan Technology has shown significant growth in revenue and profitability, with a projected revenue of 1.981 billion yuan in Q1 2025, representing a 113% increase year-on-year, and a net profit of 24.4564 million yuan, marking a turnaround from losses [1] - Jia Yuan Technology anticipates continued growth in profitability in the second half of this year, driven by an increase in high-value-added products, the introduction of overseas clients, and sales expansion [1] - The company’s copper foil products include lithium battery copper foil and electronic circuit copper foil, focusing on high-tech products such as ultra-high strength and special alloy copper foil, and is advancing domestic alternatives for high-end electronic circuit copper foil [1] Group 2 - Jia Yuan Technology has made breakthroughs in the research and development of copper foil for solid-state batteries, including high specific surface area copper foil and composite copper foil, and has begun supplying solid-state battery copper foil to five companies [1] - The company has developed relationships with top overseas battery enterprises, with product gross margins exceeding those in the domestic market, and is actively entering emerging overseas markets [1] - Jia Yuan Technology believes that its current stock price does not accurately reflect its long-term intrinsic value and will continue to strengthen its operational management to solidify its foundation for conversion [1]