Core Viewpoint - The company is expected to achieve significant revenue and profit growth in the first half of 2025, driven by improved operational efficiency and deepened partnerships with major clients [1][2]. Financial Performance Summary - For H1 2025, the company anticipates revenue between 2.68-2.8 billion, representing a year-on-year increase of 15.72% to 20.90%, with a median estimate of 2.74 billion, reflecting an 18.31% increase [1]. - The projected net profit attributable to shareholders is expected to be between 90-102 million, showing a year-on-year growth of 228.03% to 271.77%, with a median of 96 million, indicating a 249.90% increase [1]. - The expected net profit excluding non-recurring items is forecasted to be between 70-82 million, with a year-on-year increase of 308.80% to 378.88%, and a median of 76 million, reflecting a 343.84% increase [1]. - In Q2 2025, the company expects revenue of 1.455-1.575 billion, a year-on-year increase of 10.04% to 19.12%, and a quarter-on-quarter increase of 18.81% to 28.61%, with a median of 1.515 billion [1]. - The projected net profit for Q2 2025 is between 58-70 million, showing a year-on-year increase of 139.77% to 189.22%, and a quarter-on-quarter increase of 82.90% to 120.62%, with a median of 64 million [1]. - The expected net profit excluding non-recurring items for Q2 2025 is forecasted to be between 45-57 million, with a year-on-year increase of 135.33% to 198.23%, and a quarter-on-quarter increase of 78.83% to 126.62%, with a median of 51 million [1]. Operational Improvements - The company is enhancing profitability through deeper collaboration with strategic major clients, leading to increased market share and steady growth in core business shipments [2]. - The completion of capacity consolidation is resulting in shared resources and cost reductions, thereby improving operational efficiency [2]. - The optimization of the business structure, along with strong overseas demand for energy storage, has significantly increased the gross margin of energy storage cells [2]. Strategic Initiatives - The company is committed to an "ALL in AI" strategy, focusing on three major application scenarios [2]. - The launch of next-generation AI glasses in collaboration with leading international wearable brands is expected to support the introduction of millions of orders in 2025 [2]. - The company’s high-silicon anode fast-charging batteries have been integrated into flagship AI PC models for certain clients [2]. - The company plans to deliver AI companion robots and various robotic projects in the second half of the year, opening new markets in the robotics sector [2]. Investment Outlook - The company is projected to achieve net profits of 250 million, 384 million, and 492 million for the years 2025 to 2027, representing year-on-year growth of 174.1%, 53.6%, and 28.0% respectively [2]. - Corresponding EPS estimates are 3.10, 4.77, and 6.10 for the years 2025 to 2027 [2].

Group 1: Business Performance and Strategy - The company reported solid and stable operations in the first half of 2025, with core business growth meeting expectations and promising developments in AI+ edge-side new businesses, which are expected to drive future growth [3] - The company is focusing on four core R&D directions: high voltage positive materials, silicon-based negative materials, innovative stacked steel shell technology, and solid/semisolid battery technology, aiming to enhance battery energy density, cycle life, and safety [3][4] - The company has successfully integrated and upgraded its Tonghu Lake production base, enhancing its efficient production capabilities to meet the explosive demand from international top brand clients [3] Group 2: Market Opportunities and Product Development - The company anticipates a surge in demand for AI+ edge-side batteries in the second half of 2025, with significant opportunities in three application scenarios: AI glasses, AI PCs, and AI companion robots [5] - The AI penetration rate in PC products is leading, with other AI+ edge-side products set to begin trial and mass production in the second half of 2025 [5] - The company has established a differentiated competitive advantage in the consumer battery sector, leveraging its deep experience and forward-looking layout in the AI+ edge-side trend [4] Group 3: Financial Outlook and Profitability - The increase in AI+ edge-side product share is expected to reshape the company's profitability model, with new application scenarios and technological upgrades driving price increases [7] - The company’s previous R&D investments are entering a harvest phase, with new materials and processes supporting product performance and creating scale efficiencies [7] - The company aims to optimize its overall profitability structure through a positive cycle of technological breakthroughs, premium capabilities, and capacity collaboration [7] Group 4: Product Structure and Innovation - The product structure is evolving along the path of solidifying the core business, strategic upgrades, and nurturing new forces, with notebook batteries remaining a key area due to strong demand [8] - The smart wearable business is expected to grow significantly, driven by the mass production of AI glasses, AI hearing aids, and AI headphones [8] - Emerging directions such as gaming consoles, AI toys, and companion robots, while currently having a smaller revenue base, show strong growth potential [8] Group 5: Employee Incentives and Market Resilience - The employee stock ownership plan targets key personnel in R&D, manufacturing, sales, and management, with performance assessments linked to company growth and strategic project execution [10] - The company has a diversified customer base across Europe, North America, and Asia, reducing reliance on any single market and enhancing risk resilience [12] - The establishment of overseas production bases aims to improve supply chain resilience and meet global brand clients' shipping needs [12]