Core Viewpoint - The company, Fengshan Group, clarifies that its main business remains focused on the production, research, and sales of raw medicines and formulations, despite media reports linking it to the "solid-state battery" concept [1] Business Operations - The company primarily sells lithium-ion electrolytes, with sodium-ion electrolytes making up a very small portion of sales, accounting for only 0.01% of the consolidated revenue by mid-2025 [1] - The collaboration with Tsinghua University, led by Professor Zhang Qiang, is at an early research and development stage, with a small contract amount and a long project timeline extending to December 31, 2028 [1] Research and Development - The research project commissioned by the company is not the same as the significant research results recently published by Professor Zhang's team [1] - There is considerable uncertainty regarding the future research outcomes and their commercialization [1]

Core Viewpoint - Fengshan Group (603810.SH) clarifies that its main business remains focused on the production, research, and sales of raw medicines and formulations, despite media reports linking the company to the "solid-state battery" concept [1] Business Operations - The company emphasizes that its main operations have not changed, and its subsidiary Fengshan Quannuo primarily sells lithium-ion electrolytes, with sodium-ion electrolytes accounting for a relatively small proportion of sales [1] - As of the first half of 2025, sodium-ion electrolyte sales are projected to represent only 0.01% of the company's consolidated revenue [1] Research and Development - The recent important research results published by Professor Zhang Qiang's team from Tsinghua University are not related to the research and development project commissioned by the company [1] - The collaboration with Tsinghua University is still in the preliminary research and development phase, with a small contract amount, and the technical development project is expected to last until December 31, 2028, indicating significant uncertainty regarding future research outcomes and commercialization [1]

Core Viewpoint - Fengshan Group (603810.SH) clarifies that its main business remains focused on the production, research, and sales of raw medicines and formulations, despite media reports linking the company to the "solid-state battery" concept [1] Business Operations - The company’s main business has not changed, and its subsidiary Fengshan Quannuo primarily sells lithium-ion electrolytes, with sodium-ion electrolytes accounting for a relatively small proportion of sales [1] - As of the first half of 2025, sodium-ion electrolyte sales are expected to represent only 0.01% of the company’s consolidated revenue [1] Research and Development - The important research results published by Professor Zhang Qiang's team from Tsinghua University are not related to the research and development project commissioned by the company [1] - The collaboration with Tsinghua University is still in the preliminary research and development phase, with a small contract amount, and the technical development project is scheduled to last until December 31, 2028, indicating significant uncertainty regarding future research outcomes and commercialization [1]

Core Viewpoint - The company, Fengshan Group (603810.SH), clarifies that its main business remains focused on the production, research, and sales of raw medicines and formulations, despite recent media reports linking it to the "solid-state battery" concept [1] Business Operations - The company’s main business has not changed, and its subsidiary, Fengshan Quannuo, primarily sells lithium-ion electrolytes, with sodium-ion electrolytes making up a relatively small portion of sales [1] - As of the first half of 2025, sodium-ion electrolyte sales are expected to account for only 0.01% of the company's consolidated revenue [1] Research and Development - The important research results published by Professor Zhang Qiang's team from Tsinghua University are not related to the research and development project commissioned by the company [1] - The collaboration with Tsinghua University is still in the preliminary research and development phase, with a small contract amount, and the technical development project is scheduled to last until December 31, 2028 [1] - There is significant uncertainty regarding the subsequent research outcomes and their commercialization [1]

Core Viewpoint - The company clarifies that its main business remains focused on the production, research, and sales of raw medicines and formulations, despite media reports linking it to the "solid-state battery" concept [1] Business Operations - The company's main business has not changed, and its subsidiary, Fengshan Quannuo, primarily sells lithium-ion electrolytes, with sodium-ion electrolytes making up a relatively small portion of sales [1] - As of the first half of 2025, sodium-ion electrolyte sales are expected to account for only 0.01% of the company's consolidated revenue [1] Research and Development - The important research results published by Professor Zhang Qiang's team from Tsinghua University are not related to the company's commissioned research and development project [1] - The collaboration with Tsinghua University is currently in the preliminary research and development phase, with a small contract amount, and the technology development project is scheduled to last until December 31, 2028 [1] - There is significant uncertainty regarding the subsequent research outcomes and their commercialization [1]

Core Viewpoint - The company, Fengshan Group, clarifies that its main business remains focused on the production, research, and sales of raw medicines and formulations, despite recent media speculation linking it to the "solid-state battery" concept [1] Business Operations - The company’s main business has not changed, and its subsidiary, Fengshan Quannuo, primarily sells lithium-ion electrolytes, with sodium-ion electrolytes accounting for a relatively small proportion of sales [1] - As of the first half of 2025, the sales revenue from sodium-ion electrolytes is expected to represent only 0.01% of the company's consolidated operating income [1] Research and Development - The recent important research results published by Professor Zhang Qiang's team from Tsinghua University are not related to the research and development project commissioned by the company [1] - The collaboration with Tsinghua University is still in the preliminary research and development phase, with a small contract amount, and the technical development project is scheduled to last until December 31, 2028 [1] - There is significant uncertainty regarding the subsequent research outcomes and their commercialization [1]

Core Viewpoint - Fengshan Group (603810) clarifies that its main business remains focused on the production, research, and sales of raw medicines and formulations, despite media reports linking the company to the "solid-state battery" concept [1] Business Operations - The company’s main business has not changed, and its subsidiary Fengshan Quannuo primarily sells lithium-ion electrolytes, with sodium-ion electrolytes accounting for a relatively small proportion of sales [1] - As of the first half of 2025, sodium-ion electrolyte sales are expected to represent only 0.01% of the company’s consolidated revenue [1] Research and Development - The recent important research results published by Professor Zhang Qiang's team from Tsinghua University are not related to the research and development project commissioned by the company [1] - The collaboration with Tsinghua University is still in the preliminary research and development phase, with a small contract amount, and the technical development project is scheduled to last until December 31, 2028, indicating significant uncertainty regarding future research outcomes and commercialization [1]

Core Viewpoint - Jiangsu Fengshan Group Co., Ltd. maintains an AA- credit rating with a stable outlook, reflecting its strong product structure and customer quality, despite facing challenges in profitability and industry conditions [4][9]. Company Overview - The company primarily engages in the research, production, and sales of pesticide active ingredients, formulations, and fine chemical intermediates [11]. - The fine chemical segment has entered trial production, enhancing the company's product chain and competitiveness [6][11]. Financial Performance - Total assets as of March 2025 are 27.81 billion, with equity attributable to shareholders at 15.91 billion [4]. - Revenue for 2023 is reported at 3.22 billion, a decline from 10.44 billion in 2022, with a net profit of 0.15 billion, recovering from a loss of 0.42 billion in 2022 [4][5]. - The company’s operating cash flow has been negative, indicating challenges in cash generation [4]. Industry Environment - The pesticide industry is currently at a cyclical low, with a projected slight decline in revenue for 2024, while the net profit is expected to remain a loss of 0.39 billion [6][9]. - The global pesticide market is expected to grow from 790.6 billion in 2024 to 1,185.1 billion by 2031, driven by increasing food demand and pest control needs [14]. Risks and Challenges - The company faces risks related to the commercialization of sodium-ion electrolyte products, which are not progressing as expected, leading to underutilization of production capacity [7][8]. - Environmental and safety production risks are heightened due to stricter regulations in the chemical industry [8][9]. Market Position - The company has a competitive edge in its core pesticide products, with significant market share in active ingredients like Fluorochloromethane and Quinclorac [15][16]. - The sales concentration remains low, with a diverse customer base, reducing dependency on a few clients [19]. Future Outlook - The credit rating agency maintains a stable outlook for the company, anticipating gradual recovery in market demand and pricing for its main products [9][12]. - The company is actively managing inventory and production to align with market conditions, indicating a strategic approach to navigating current challenges [19].

Core Viewpoint - The global sodium-ion battery industry is expected to experience explosive growth in 2024, with the demand for electrolytes reaching 2,400 tons, a year-on-year increase of 90.5%, driven by the large-scale application of sodium-ion batteries in energy storage and low-speed electric vehicles [1][3]. Downstream Demand Drivers - The energy storage market is booming, with sodium-ion batteries becoming popular due to their low cost, high safety, and resource availability, supported by global renewable energy storage policies [3]. - The low-speed electric vehicle market is expanding, with leading domestic companies like Yadea and Aima achieving over 20% penetration of sodium-ion models, and partnerships established between companies like CATL and vehicle manufacturers [3]. - Policy and capital are driving growth, with subsidies for sodium-ion batteries introduced in China, the EU, and India, leading to a 120% year-on-year increase in financing for leading companies [4]. Market Competition Landscape - Sodium-ion electrolyte production lines can generally be used interchangeably with lithium-ion electrolyte production lines, resulting in sufficient capacity for sodium-ion electrolytes as long as there is downstream demand [5]. - The market competition landscape has shifted significantly, with Zhuhai Saiwei leading in sodium-ion electrolyte shipments, followed by Jiangsu Langu and BYD, which primarily produces for its own use [6][7]. Market Outlook for 2025-2030 - The demand for sodium-ion electrolytes is expected to exceed 9,000 tons in 2025, representing a year-on-year growth of 275%, driven by the large-scale implementation of energy storage projects and the introduction of sodium-ion hybrid vehicles by companies like BYD and NIO [8][9]. - 2025 is anticipated to be a critical year for the commercialization potential of the sodium-ion industry, with technological advancements and capacity expansion occurring simultaneously [9].