Report Summary 1. Report Industry Investment Rating No investment rating information is provided in the report. 2. Core Viewpoints - The supply of primary lead is increasing, while the production of recycled lead is rising rapidly due to expanding profits. Although primary lead smelting is undergoing maintenance, the overall supply is on the rise. Consumption has temporarily stabilized, with battery factory operating rates rebounding and raw material purchases increasing. The price of lead is expected to fluctuate, with a recommended range - bound trading strategy. Long - short arbitrage between domestic and foreign markets should be continued due to the increase in domestic lead inventories [3][5]. - The price range of lead is estimated to be between 17,200 - 17,700 yuan/ton, and the five - location total lead inventory has increased, though the absolute inventory remains at a historically low level compared to the same period [3]. 3. Summary by Relevant Catalogs 3.1 Transaction Aspect - **Price and Spread** - The closing price of the main SHFE lead contract last week was 17,495 yuan/ton, with a weekly increase of 0.43%. The closing price of the night session yesterday was 17,440 yuan/ton, with a night - session decline of 0.31%. The LME lead (0 - 3) spot premium decreased from - 10.74 to - 23.09 dollars/ton. The premium for lead in the bonded area remained unchanged at 95 dollars/ton, and the spot premium for Shanghai 1 lead remained at 0 yuan/ton. The spread between recycled lead and primary lead decreased from - 50 to - 100 yuan/ton, and the spread between the near - month and the first - continuous contract increased from - 60 to - 50 yuan/ton [6]. - **Inventory** - SHFE lead warehouse receipts inventory increased by 9,124 tons to 31,027 tons, and the total SHFE lead inventory increased by 4,208 tons to 42,790 tons. Social inventory increased by 3,100 tons to 34,900 tons, and LME lead inventory increased by 18,775 tons to 222,475 tons, with the proportion of cancelled warrants decreasing by 7.78 percentage points to 42.17% [6]. - **Trading Volume and Open Interest** - The trading volume of the main SHFE lead contract last week was 37,346 lots, an increase of 10,140 lots compared to the previous week, and the open interest was 38,417 lots, a decrease of 21,401 lots. The trading volume of LME 3 - month lead was 17,127 lots, an increase of 6,820 lots, and the open interest was 142,000 lots, an increase of 6,194 lots [6]. 3.2 Supply Aspect - **Lead Concentrate** - The import processing fee for 60% grade lead concentrate has remained at a low level. The actual consumption of lead concentrate has shown an upward trend. The profit from imported lead concentrate has increased, while the profit from domestic lead concentrate has remained stable. The operating rate of lead concentrate has shown fluctuations over the years [23][24]. - **Primary and Recycled Lead** - Primary lead production has increased, but some primary smelters in Anhui and other regions will enter the maintenance cycle. The profit of recycled lead has continued to expand, with stable prices and sufficient supply of waste batteries. Recycled lead enterprises in Anhui and Henan have continued to increase production [5]. 3.3 Demand Aspect - **Lead - Acid Batteries** - The operating rate of lead - acid battery enterprises has rebounded, and the monthly finished - product inventory days of battery enterprises and dealers have shown certain fluctuations. The export volume of batteries has also changed over the years [42]. - **Terminal Consumption** - The actual consumption of lead has shown an upward trend. The production of automobiles and motorcycles has also shown certain changes over the years, which has an impact on the demand for lead [44].

Core Insights - The energy storage industry is undergoing a significant material revolution, transitioning from a lithium-dominated landscape to a diversified technological approach, particularly in long-duration energy storage, which is becoming essential for new power systems [1][2] - The industry is moving away from price wars and single technology reliance, entering a critical transformation phase characterized by technological diversification, improved market mechanisms, and multi-energy collaboration [2][4] Energy Storage Challenges - The primary challenge facing the energy storage sector is the insufficient duration of storage, which is crucial as renewable energy generation increases [2][3] - As renewable energy capacity exceeds 20%, a minimum of 4 hours of storage becomes necessary, and over 50% requires at least 10 hours of long-duration storage to address issues like renewable energy consumption and grid peak regulation [2] Material Innovations - Breakthroughs in materials are essential for enhancing energy storage performance and reducing costs, with innovations in positive and negative electrode materials being highlighted [3] - New methods such as the GCL-PHY process for preparing positive materials and the transition from traditional materials to silicon-carbon composites for negative materials are being developed [3] Industry Dynamics - The energy storage sector is shifting from price competition to value competition, driven by the integration of source, grid, load, and storage [4] - The current market dynamics are characterized by homogenization and prolonged investment recovery periods, necessitating stronger policy guidance and international cooperation to foster high-quality development [4] Multi-Energy Integration - The core value of energy storage lies in supporting renewable energy by addressing intermittency issues, thus enhancing its capacity and auxiliary service capabilities [5] - The industry is expected to see nearly a tenfold increase in installed storage capacity by 2030, with hydrogen energy also entering a phase of explosive growth [6] Future Outlook - The period of the 14th Five-Year Plan is anticipated to be a critical window for the development of energy storage and hydrogen energy, with a fundamental shift in the driving logic of these industries [6] - The future of energy storage will focus on building a multi-energy integrated ecosystem, accommodating diverse technological routes to meet complex demands [6]

Core Insights - The energy storage industry is undergoing a significant material revolution, transitioning from a lithium-dominated landscape to a diversified technological approach, particularly in long-duration energy storage, which is becoming essential for new power system construction [1][2] Group 1: Challenges and Transformations - The energy storage sector is moving away from price wars and technological uniformity, entering a critical transformation phase due to the increasing share of renewable energy and the accelerated construction of new power systems [2] - The core challenge facing the industry is the insufficient duration of energy storage, with a call for long-duration storage as renewable energy generation exceeds 20% of total installed capacity [2][3] - Achieving 6-hour energy storage could effectively alleviate current issues related to renewable energy consumption and grid peak regulation [2] Group 2: Material Innovations - Breakthroughs in long-duration energy storage hinge on material innovations, balancing technical, economic, and safety aspects to enhance storage performance and reduce costs [3] - New methods for producing cathode materials, such as the GCL-PHY method, are emerging, which significantly lower costs and energy consumption while reducing dependency on chemical parks [3] Group 3: Industry Dynamics and Market Mechanisms - The industry consensus acknowledges that low-price competition has led to thin profit margins, hindering technological innovation [4] - The establishment of capacity pricing mechanisms and auxiliary service markets is expected to shift the focus from price competition to value competition, fostering new productive forces [4] - The current wave of homogenized competition in the energy storage sector is exacerbated by project planning, pricing policies, and technical limitations, which prolong investment recovery periods [4] Group 4: Multi-Energy Integration - The core value of energy storage lies in supplementing renewable energy, addressing intermittency issues of wind and solar power, and enhancing capacity support and auxiliary service capabilities [6] - Predictions indicate that by 2030, the installed capacity of energy storage could see nearly a tenfold increase, with the hydrogen industry also entering a phase of explosive growth [6] - The future of the energy storage industry is seen as a multi-trillion-dollar opportunity, emphasizing the need for a collaborative ecosystem that integrates various technologies to meet diverse demands [6]

Core Insights - The energy storage industry is undergoing a significant material revolution, transitioning from a lithium-dominated landscape to a diversified technological approach, particularly in long-duration energy storage, which is becoming essential for new power systems [1][2] - The industry is moving away from price wars and single technology reliance, entering a critical transformation phase driven by technological diversification, improved market mechanisms, and multi-energy collaboration [1][2] Long-Duration Energy Storage Challenges - The primary challenge facing the energy storage sector is insufficient storage duration, with a need for over 4 hours of storage when renewable energy generation exceeds 20% of total capacity, and over 10 hours when it surpasses 50% [2] - Breakthroughs in long-duration storage hinge on material innovations, balancing technical, economic, and safety aspects to enhance performance and reduce costs [2] Industry Internal Competition - Low-price competition has led to thin profit margins and stifled technological innovation, prompting a shift from price competition to value competition as market mechanisms mature [3] - Recommendations include strengthening policy guidance, market leadership, and technical support, alongside fostering international cooperation to escape the cycle of internal competition [3] Multi-Energy Integration - The core value of energy storage lies in supporting renewable energy by addressing intermittency issues, transitioning from merely providing energy to offering capacity support and ancillary services [3] - The integration of energy storage with hydrogen energy is accelerating, driven by the dual carbon goals and the need for a new power system [3][4] Future Growth Projections - The installed capacity of energy storage is expected to grow nearly tenfold by 2030, with the hydrogen industry also entering a phase of explosive growth [4] - The development of energy storage and hydrogen industries is entering a critical window, with a shift from isolated technology views to a collaborative, multi-energy ecosystem approach [4][5] Application and Infrastructure - Energy storage systems are becoming foundational to computational infrastructure, with predictions that by 2030, 95% of computational power will be inference-based, necessitating enhanced real-time balancing capabilities in the grid [5] - Companies are exploring integrated platforms for wind, solar, and storage solutions, particularly in regions like the Middle East, to capitalize on investment opportunities in the energy storage sector [5]

Group 1: Industry Insights - The overall attention on the computer, media, and non-ferrous metal industries has increased on a week-on-week basis [3][12][17] - In the last week, the total number of research engagements across all A-shares was 833, which is lower than the 1,412 engagements in the same period of 2024 [13] - The monthly total for August was 1,828 engagements, still below the 2,050 engagements recorded in August 2024 [19][22] Group 2: Individual Company Insights - Companies such as Jingsheng Electromechanical and Nandu Energy have received significant market attention, with both being researched twice in the last week [28][4] - Jingsheng Electromechanical has made progress in semiconductor substrate materials and has secured orders from international clients, indicating a strong market position [28] - Nandu Energy focuses on new energy storage applications and data centers, with a significant portion of its products aimed at the North American market, highlighting its international reach [4][28] Group 3: Research Engagement Trends - The computer, media, and non-ferrous metal sectors saw a week-on-week increase in research attention, with specific numbers indicating a rise in engagements [3][17] - In the last month, companies like Yunnan Copper and Ice Wheel Environment were among those with high research engagement, reflecting their growing market interest [30][25] - The report emphasizes the importance of institutional research as a timely and multidimensional source of information for investors, supplementing traditional financial data [10][11]

Company Overview - South Power is a company with 30 years of experience in energy storage, initially starting in the telecommunications storage sector and now focusing on lithium-ion and lead-acid batteries for various applications [1][2]. - The company has established a global presence, with subsidiaries across four continents and service centers in Europe, the USA, and Australia, covering over 160 countries [2]. Technological Innovation - The company emphasizes technological innovation, having been a pioneer in domestic battery production since its establishment in 1994 and entering the lithium battery market in 2001 [2]. - It has developed a comprehensive R&D platform, including a national laboratory and a postdoctoral research station, covering key areas such as lithium batteries and energy storage systems [2]. Business Transformation - Since 2020, the company has undergone a strategic transformation, completing adjustments in business and capacity structures by the end of 2024, leading to improved operational quality [3]. - The company has secured significant contracts in the North American data center market, with approximately $300 million in revenue from backup batteries for data centers, achieving a gross margin of about 35% [3][4]. Market Demand and Capacity - The current production capacity for data center lithium batteries is 1.5 GWh, with plans to expand to 2.5 GWh by next year [4]. - The company anticipates a doubling of revenue from data center lithium batteries in North America next year, driven by strong demand [5][7]. Order Volume and Distribution - The company has approximately 7.8 GWh of unfulfilled orders, with 5 GWh from domestic markets and 2.8 GWh from overseas, primarily from Australia, Europe, and the UK [6]. - All batteries are produced in-house, with a projected delivery of 1.2 GWh this year and 1.6 GWh next year for independent energy storage projects [6]. Future Outlook - The North American market for data center backup batteries is expected to reach 20 GWh next year, with global demand projected at 30 GWh, indicating significant growth potential [7]. - The company plans to maintain a dual-driven model of "technology R&D + market expansion" to enhance its core competitiveness and optimize operational efficiency [8].

Group 1 - The core viewpoint of the news is that Zhejiang Nandu Power Supply Co., Ltd. is actively engaging in the energy storage market, showcasing its advancements in lithium-ion and lead-acid battery technologies, and emphasizing its commitment to innovation and global expansion [1][2] - Nandu Power has over 30 years of experience in energy storage, starting from communication storage and now focusing on various applications, including new energy storage, communication and data center storage, and residential storage [1] - The company ranks third in global market shipments of energy storage systems (DC side) in 2024 and second among Chinese companies in shipments of batteries for base stations and data centers [1] Group 2 - In the data center business, Nandu Power generated approximately 850 million yuan from lead-acid products and about 500 million yuan from lithium products in the first half of the year [2] - The company has established long-term partnerships with major domestic internet companies, operators, and financial institutions, and has collaborated with large integrators to promote high-power lithium battery systems for data centers [2] - Nandu Power achieved profitability in the second quarter, driven by high-margin orders in key global energy storage markets and rapid growth in the data center market with a diversified customer base [2] Group 3 - Nandu Power has made progress in solid-state battery technology, achieving commercial application in a global gigawatt-level energy storage project, with energy density reaching 350 Wh/kg [2] - The company's development strategy focuses on a dual-driven model of "technology research and development + market expansion," aiming for differentiated competition and continuous advancement in lithium battery-related businesses [2]

Company Overview - South Power has 30 years of experience in energy storage, initially starting in the communication storage sector and now focusing on lithium-ion and lead-acid batteries for various applications [1] - The company has established a presence in over 160 countries and regions, with subsidiaries on four continents and service centers in Europe, the USA, and Australia [2] - In 2024, South Power ranked third in global market shipments for new electric storage systems and second in battery shipments for data centers and communication [2] Financial Performance - In the first half of the year, revenue from lead-acid products for data centers was approximately CNY 850 million, while lithium battery products generated around CNY 500 million [3] - North American data center backup battery sales accounted for about CNY 300 million, with a gross margin of approximately 35% [4] - The company turned a profit in Q2, driven by high-margin orders from major energy developers and the expansion of its data center business [4] Product Development - South Power has a current production capacity of 1.5 GWh for lithium batteries and 3.5 GWh for lead batteries, with the ability to quickly scale up production to meet increasing demand [4] - The company has made significant advancements in solid-state battery technology, including a 2.8 GWh order for independent storage projects, marking a milestone in commercial application [6] - The energy density of the new solid-state batteries can reach 350 Wh/kg, with a cycle life of over 500 charge-discharge cycles and a capacity retention rate of over 92% [6] Strategic Direction - The company aims to enhance its core competitiveness through technology innovation and market expansion, focusing on a dual-driven model of "technology research + market development" [6] - Future strategies include optimizing core business operations, improving supply chain management, and ensuring maximum profitability [6]

Group 1 - The core viewpoint of the news is that Zhaoshi Investment has conducted research on Nandu Power, a company specializing in energy storage, which has shown a significant decline in revenue but has managed to turn a profit in the second quarter due to high-margin orders and growth in the data center market [1] - Nandu Power was established in 1994 and focuses on providing lithium-ion and lead batteries, serving over 160 countries and regions globally [1] - The company's revenue for the first half of 2025 is approximately 3.923 billion yuan, a year-on-year decrease of 1.8 billion yuan, with a net profit of approximately -230 million yuan [1] Group 2 - In the second quarter, Nandu Power achieved a profit of approximately 34 million yuan, with a net cash flow from operating activities of 590 million yuan [1] - The company has a current lithium battery cell production capacity of 10 GWh and is advancing projects in Huatuo Phase II and Yangzhou, while reducing production in the recycled lead sector [1] - Nandu Power has developed large-capacity iron-lithium storage cells and completed the development of a 5 MWh liquid-cooled storage system [1] Group 3 - The company has an order backlog of 7.8 GWh, with 2.3 GWh from overseas markets, primarily in Australia, Europe, the UK, and the Middle East [1] - Nandu Power has won multiple high-voltage lithium battery data center projects, with an order backlog of approximately 0.8 GWh, and is developing third-generation high-voltage lithium battery products [1] - The company is focusing on customer demand and technological innovation to build core competitiveness, adopting a dual-driven model of "technology research and development + market expansion" [1]

Core Viewpoint - The report highlights the recent research conducted by Congrong Investment on Nandu Power, emphasizing its focus on the energy storage sector and the company's financial performance and growth strategies in the global market [1]. Company Overview - Nandu Power was established in 1994 and specializes in energy storage, providing lithium-ion and lead-acid batteries as core products and services, covering over 160 countries and regions globally [1]. - The company reported an operating revenue of approximately 3.923 billion yuan for the first half of 2025, a year-on-year decrease of 1.8 billion yuan, and a net profit attributable to shareholders of approximately -230 million yuan [1]. - In Q2, the company achieved a profit of approximately 34 million yuan, with a net cash flow from operating activities of 590 million yuan [1]. Market Performance - The company turned a profit in Q2 due to its deep engagement in the global energy storage market, securing high-margin orders, and experiencing rapid growth in the data center market [1]. - Nandu Power has a current lithium battery cell production capacity of 10 GWh and a new power storage integration capacity of 10 GWh, with ongoing projects in Huatuo Phase II and Yangzhou [1]. - The company is reducing production in its recycled lead segment and increasing research and development in phosphorous iron resource utilization [1]. Product Development - Nandu Power has developed large-capacity iron-lithium storage battery cells (783Ah and 587Ah) and completed the development of a 5MWh liquid-cooled storage system using a 314Ah semi-solid battery cell [1]. - The company has released a 20-foot 6.25MWh storage system and is expanding its overseas large storage market, with unfulfilled orders totaling 7.8 GWh, including 2.3 GWh from overseas markets such as Australia, Europe, the UK, and the Middle East [1]. Strategic Focus - Nandu Power has continuously won bids for multiple high-voltage lithium battery data center projects, with unfulfilled orders of approximately 0.8 GWh, and is developing third-generation high-voltage lithium battery products to provide "energy storage + backup power" solutions [1]. - The company's civilian lithium battery business is primarily focused on battery swapping and vehicle distribution, collaborating with vehicle manufacturers and distributors for product promotion [1]. - The 2.8 GWh semi-solid project consists of three independent storage projects located in Shenzhen and Shanwei, effectively alleviating the power supply and demand conflict in the Guangdong-Hong Kong-Macao Greater Bay Area [1]. - Nandu Power aims to continue its customer-oriented approach, relying on technological innovation to build core competitiveness and establish a dual-driven model of "technology research and development + market expansion" [1].