Investment Rating - The industry investment rating is "Recommended" (maintained) [1] Core Views - The report highlights significant growth in the photovoltaic sector, with a 150% year-on-year increase in new installations, reaching 197.85 GW from January to May 2025 [4] - Wind power installations also saw substantial growth, with a 801% year-on-year increase in May, totaling 26.32 GW, supported by policy incentives [4] - The report emphasizes the ongoing advancements in the lithium battery supply chain, particularly in solid-state battery development, indicating a strong future outlook for the sector [7] Summary by Sections Photovoltaic Sector - New installations in the photovoltaic sector reached 197.85 GW from January to May 2025, marking a 150% increase year-on-year [4] - In May alone, 92.92 GW of new capacity was added, reflecting a 105.48% month-on-month increase and a 388.03% year-on-year increase [4] - The report suggests focusing on companies involved in material innovation and high-efficiency battery technologies [4] Wind Power Sector - The report notes that wind power installations reached 46.28 GW in the first five months of 2025, a 134% year-on-year increase [4] - The significant growth in installations is expected to support the performance of companies in the supply chain during Q2 [4] - The report recommends monitoring companies involved in offshore wind projects, as government policies are expected to catalyze further growth [4] Lithium Battery Sector - Companies in the lithium battery supply chain are advancing solid-state battery technologies, with several firms achieving significant milestones in energy density and production [7] - The report highlights that Ganfeng Lithium has established a comprehensive solid-state battery layout, achieving breakthroughs in energy density and cycle life [7] - The report suggests focusing on companies that are well-positioned in the solid-state battery ecosystem and those providing innovative solutions in the supply chain [7] Energy Storage Sector - The report indicates that energy storage markets in Europe are experiencing a surge in policy support, creating structural investment opportunities [7] - Various European countries are implementing significant subsidies and regulatory changes to enhance energy storage capabilities [7] - The report recommends focusing on companies that are positioned to benefit from these developments in the energy storage market [7] Overall Industry Outlook - The report concludes that the electric power equipment industry is experiencing positive fundamental changes and potential catalysts, maintaining an overall "Recommended" rating for the sector [4]

Group 1: Core Insights - Goldman Sachs indicates that the pre-sale of the YU7 has significantly exceeded market expectations, solidifying Xiaomi's leadership position in the high-end automotive market [1][4] - The AI glasses launched by Xiaomi are expected to open new avenues in the ecosystem, potentially replicating the explosive growth trajectory of TWS headphones [1][6] Group 2: YU7 Performance - The YU7 electric SUV, launched on June 26, achieved a record order volume of 289,000 units within the first hour, far surpassing the initial target of 150,000 orders within 24 hours [8][9] - The pricing of the YU7 models is competitive, with the standard, Pro, and Max versions priced at 253,500 RMB, 279,900 RMB, and 329,900 RMB respectively, aligning closely with market expectations [9][10] - The YU7 features a 96.3 kWh battery with a CLTC range of 835 km, making it the longest-range model among pure electric SUVs with battery packs under 100 kWh [9][10] - Goldman Sachs has adjusted the projected delivery volumes for Xiaomi's electric vehicles for 2025-2027 upwards by 1-6%, anticipating deliveries of 411,000, 800,000, and 1,174,000 units respectively [10] Group 3: AI Glasses Market Potential - Xiaomi's AI glasses are expected to capture 10% of the Chinese smart glasses market, projected to reach 2.9 million units by 2025 [6][12] - The AI glasses are positioned as next-generation portable AI terminals, with a competitive price starting at 1,999 RMB and features including a 12MP camera and real-time translation capabilities [12][13] - The Chinese AI/AR glasses market is forecasted to grow at a compound annual growth rate (CAGR) of 56%, from 479,000 units in 2024 to 6.962 million units by 2030 [13] Group 4: Benefits to CATL - The success of the YU7 is expected to directly benefit CATL, as it becomes a major supplier of high-end batteries for Xiaomi [6][14] - CATL's penetration rate for its high-margin Kirin battery is anticipated to rebound in the second half of 2025, following the launch of models like the YU7 [15][16] - CATL's unit profit is projected to increase from 152 RMB/kWh in 2025 to 169 RMB/kWh by 2030, driven by improved product structure [17]

Group 1 - The core incident involves a serious traffic accident of a Xiaomi SU7 vehicle on March 29, 2025, resulting in the death of the driver and two passengers [2] - CATL confirmed that the batteries used in the Xiaomi SU7 are not supplied by them, despite earlier assumptions [1] - The Xiaomi SU7 standard version is equipped with a 73.6 kWh lithium iron phosphate battery, supplied by both CATL and BYD Fudi [3] Group 2 - The accident occurred on a section of the highway that was under construction, with roadblocks diverting traffic to the opposite lane [3] - The vehicle was operating in NOA (Navigation on Autopilot) mode and detected obstacles, triggering alerts and deceleration before the accident [3] - Xiaomi's chairman Lei Jun stated that the company is cooperating with the police investigation and will address concerns from the families and the public [3] Group 3 - Lei Jun highlighted the safety features of the Xiaomi SU7's battery pack, which includes a 14-layer physical protection structure designed to enhance safety during thermal runaway [3] - The battery technology includes "cell inversion" to improve space utilization and ensure thermal separation, contributing to safety [3]