Group 1: Financial Performance - In Q1 2025, the company achieved revenue of 1.908 billion CNY, a year-on-year increase of 25.80% [3] - The net profit attributable to shareholders was 1.11 billion CNY, reflecting a slight year-on-year growth of 0.22% [3] - The company reported a stable recovery in performance, with continuous growth in both revenue and net profit [3] Group 2: Product Development and Market Position - The company has made significant breakthroughs in high-nickel and ultra-high-nickel products, which are now being supplied to global high-end battery customers [3] - The company has established long-term supply agreements with major global battery manufacturers like LG and SK, which are expected to positively impact future performance [3] - The company’s lithium iron phosphate (LFP) products have been upgraded to cover various applications, achieving profitability in Q1 2025 after a turnaround from losses [4] Group 3: International Market Engagement - The company has a broad and stable customer base, supplying high-quality lithium battery materials to regions including China, Japan, Korea, and Europe [5] - The company’s high-nickel materials are recognized by major international battery manufacturers, enhancing its reputation in the global market [6] Group 4: R&D and Future Directions - The company is actively developing sodium battery materials, achieving industry-leading performance levels [9] - The company has successfully developed high-capacity and long-cycle lithium manganese oxide materials, which have received positive evaluations from customers [10] - The company is exploring solid-state battery materials, with successful applications in UAVs and eVTOL markets [8]

Investment Rating - The report maintains a rating of "Buy" for the company [1][5] Core Views - The company's performance is under pressure due to market competition and the bankruptcy of Northvolt, but the acceleration of new lithium battery materials' marketization is expected to improve future performance [3][8] - The company reported a net profit of 472 million RMB for 2024, a decrease of 75.48% year-on-year, with total revenue of 7.593 billion RMB, down 49.80% year-on-year [8][9] Financial Summary - The company’s revenue is projected to recover from 7.593 billion RMB in 2024 to 10.159 billion RMB in 2025, reflecting a growth rate of 33.8% [7] - The adjusted earnings per share (EPS) forecasts for 2025, 2026, and 2027 are 1.35 RMB, 1.68 RMB, and 2.06 RMB respectively, with corresponding price-to-earnings ratios of 27.0, 21.6, and 17.6 [5][10] - The company’s EBITDA is expected to increase from 571 million RMB in 2024 to 993 million RMB in 2025 [7][10] Market Performance - The company's stock has underperformed, with a year-to-date absolute return of -6.4% and a 12-month return of -30.5% [2] - The total market capitalization of the company is approximately 18.45 billion RMB [2]