Company Overview - Xingyuan Material (300568) is a national high-tech enterprise established in September 2003, specializing in lithium battery separators and listed on the Shenzhen Stock Exchange in December 2016 [2] - The company is a leading player in the global lithium battery separator industry, with multiple research centers planned worldwide, and its products are used in various applications including electric vehicles, energy storage stations, and medical devices [2] Industry Outlook - The demand for separators is expected to exceed 60 billion square meters globally by 2030, driven by the increasing popularity of electric vehicles and a surge in energy storage needs [2] - Technological advancements, such as fast-charging and high-safety separators, are addressing industry challenges, and separators will remain critical components even in semi-solid battery stages [2] Investment Insights - The ChiNext Composite Index includes over 1,300 companies, providing broad coverage and a balanced industry distribution, which mitigates the impact of fluctuations in any single sector [3] - The index is expected to benefit from supportive industrial policies and capital, with Xingyuan Material aligning with the "green and low-carbon" production direction, potentially improving profitability [3] - As of August 14, 2025, the price-to-earnings ratio (TTM) of the ChiNext Composite Index is at 55% of its ten-year average, indicating a relatively low valuation with potential for growth [3] ETF and Investment Tools - The recently launched Bosera ChiNext Composite ETF (159287) aims to help investors capture opportunities in the ChiNext market, with a focus on technology growth and innovation [6] - The index underwent key revisions to enhance its investability and responsibility investment orientation, reducing the number of sample stocks from 1,383 to 1,316 [6]

Core Viewpoint - The company Xingyuan Material (300568) has increased its stake in Ferrotec (6890.T) to over 5%, signaling its commitment to expanding into the semiconductor sector and establishing a second growth curve amid declining lithium battery separator prices [1][2]. Group 1: Company Strategy - Xingyuan Material is a leader in the lithium battery separator market, holding over 80% of the global market share, but faces pressure to diversify due to slowing growth in the new energy sector [2][3]. - The investment in Ferrotec, a company with strong vertical integration in semiconductor equipment and materials, aligns with Xingyuan's strategy to respond to national industrial security and ensure sustainable development [2][3]. Group 2: Market Position and Collaboration - Ferrotec holds approximately 60% market share in semiconductor equipment cleaning in China and has a significant presence in various segments globally, including a 35% share in thermoelectric semiconductor coolers [3][4]. - The partnership between Xingyuan Material and Ferrotec is expected to create synergies in technology and market access, enhancing both companies' capabilities in the semiconductor industry [5][7]. Group 3: Future Prospects - The semiconductor market presents vast opportunities, and Xingyuan Material's strategic investments, including a partnership with RSTechnologies, aim to strengthen its position in semiconductor materials [4][5]. - The establishment of a factory in Malaysia by Xingyuan Material, alongside Ferrotec's operations in the same region, provides a platform for collaborative growth in international markets [6][7].