Core Viewpoint - The solid-state battery concept stocks have seen significant gains, with Tianji Co., Ltd. experiencing a surge of over 160% since September, closing at 28.04 yuan per share and a market capitalization of 14.1 billion yuan [1] Group 1: Company Developments - Tianji Co., Ltd. announced the industrialization of its lithium sulfide material preparation patent, although the technology is still in the early development stage, requiring extensive optimization and verification before commercial production [1] - The company confirmed that there are no undisclosed matters affecting its operations, and the current business environment remains stable [1] - Tianji's subsidiary, Jiangsu Tairui Lanteng Material Technology Co., Ltd., has received a patent for lithium sulfide materials, which are essential for producing solid-state battery electrolytes [1] Group 2: Research and Development Progress - The project has passed small-scale tests and will proceed to larger-scale trials to analyze costs and industrial feasibility, followed by a pilot phase to validate production stability and equipment compatibility [2] - Tianji plans to conduct kilogram-scale tests of lithium sulfide by the end of the year, with a pilot line for tens of tons expected to be operational in the first half of next year [2] - The company has sent samples to CATL, weighing approximately 100 grams, and is also developing lithium-sulfur-phosphorus-chlorine materials and lithium supplementing agents [2] Group 3: Market Conditions - The market for lithium hexafluorophosphate, Tianji's main product, has seen a price increase of nearly 60% in just over two weeks, with current spot prices reaching 110,000 yuan per ton [3] - The company anticipates that price increases will continue into November and December, with a tight supply expected next year due to product qualification issues [3] - Tianji's long-term contracts account for about 70% of sales, primarily with CATL, with November prices around 70,000 yuan per ton, while spot prices fluctuate with the market [3]

Group 1: Sales and Production - Q3 sales volume of lithium hexafluorophosphate (LiPF6) reached 12,000 tons, with October sales at 4,200 tons and plans for 4,000 tons in November and December [2] - Current production capacity is 3,600-3,800 tons per month, with an expected total shipment of 39,000 tons for the year [5] - Anticipated market growth of 25% next year, projecting shipments to exceed 50,000 tons [5] Group 2: Pricing Trends - Current average price for LiPF6 is around 50,000 RMB per ton, with expectations for prices to rise to approximately 80,000 RMB for long-term contracts [9] - Short-term prices are expected to increase in November and December, with scattered orders currently priced between 80,000 and 90,000 RMB [7] - Long-term contracts are concentrated with major clients, with November prices set at 70,000 RMB [4] Group 3: Inventory and Supply Chain - Inventory levels are critically low, with only a few hundred tons remaining, indicating a tight supply situation [2] - The company is operating at full capacity, and small factories are contributing limited additional supply [7] - The supply-demand balance remains tight, with existing capacity at 350,000-360,000 tons and projected demand exceeding 300,000 tons [3] Group 4: Financial Performance - Q3 losses were primarily attributed to low sales prices of LiPF6, with a reported loss of approximately 60 million RMB for the first nine months of the year [11] - The company expects to recover losses in Q4 due to rising prices and improved sales [11] - The average price for Q3 was around 50,000 RMB, with expectations for profitability in Q4 [11] Group 5: Expansion Plans - New capacity of 15,000 tons is expected to be operational by September next year, following a 10-month installation period [5] - Expansion projects face regulatory hurdles, with new capacity requiring 2.5-3 years for approval and construction [12] - The company is cautious about rapid expansion due to market uncertainties and investment costs [12] Group 6: Raw Material Costs - The cost of lithium fluoride is expected to rise, influenced by the price trends of lithium carbonate [14] - The company has its own lithium fluoride production capacity, which mitigates some cost pressures [15] - Overall, costs are stable, with improvements expected from new production lines [16]