Investment Rating - The report assigns an "Accumulate" rating for the company, indicating a positive outlook for investment [5][8]. Core Views - The company is a leader in battery materials solutions, focusing on lithium battery anode, cathode, and new material research and production. It aims to build an industrial ecosystem through mergers and acquisitions, overseas base construction, and global layout [5][10]. - The company has launched a series of solid-state battery materials, including semi-solid and all-solid high-nickel cathodes, silicon-based anodes, and solid electrolytes, to fully develop solid-state battery solutions [5][10]. Summary by Sections 1. Industry Overview - The lithium-ion battery anode and cathode materials industry is experiencing rapid growth, with China's lithium battery shipments expected to increase by 33% year-on-year in 2024, driven by the fast development of new energy vehicles and energy storage markets [15][20]. - The global anode material capacity is projected to grow from 81,100 tons per year in 2020 to 354,600 tons per year in 2024, a total increase of 337%, with major production concentrated in China [25][26]. 2. Company Focus and Financials - The company specializes in lithium-ion battery anode and cathode materials, with a revenue of 14.24 billion yuan and a net profit of 930 million yuan expected in 2024. The gross margins for anode and cathode materials are projected to be 27.76% and 7.88%, respectively [6][40][63]. - The company has established a comprehensive product matrix covering natural graphite anodes, artificial graphite anodes, silicon-based anodes, and high-nickel ternary cathodes, serving major clients like Panasonic, Samsung SDI, and CATL [40][65]. 3. Market Competition and Future Prospects - The company holds over 20% market share in the anode materials sector, ranking first in China from 2018 to 2024. It has also obtained 442 invention patents, indicating strong innovation capabilities [7][10]. - The company is focusing on breakthroughs in solid-state batteries, sodium-ion batteries, and dry electrode technologies, with solid-state battery penetration expected to reach 10% by 2030 [10][31].

Core Viewpoint - The rise of emerging industries in China is leading the next decade of polymer development, with opportunities in sectors such as new energy vehicles, aerospace, drones, robotics, and AI materials [2]. Financial Performance - In the first half of 2025, Sinopec reported a revenue of RMB 1.41 trillion, a decrease of 10.6% compared to RMB 1.58 trillion in the same period of 2024 [3]. - The total profit for the period was RMB 28.77 billion, down 43.4% from RMB 50.87 billion year-on-year [3]. - Net profit attributable to shareholders was RMB 21.48 billion, a decline of 39.8% from RMB 35.70 billion [3]. - Operating cash flow increased by 44.4% to RMB 61.02 billion compared to RMB 42.27 billion in the previous year [3]. Product Sales and Pricing - Sales of major chemical products in the first half of 2025 amounted to RMB 231.1 billion, a decrease of 3.2% year-on-year, accounting for 95.5% of the chemical division's revenue [3]. - Specific product sales volumes showed varied performance, with basic organic chemicals increasing by 6.1% to 25,657 thousand tons, while average prices fell by 14.6% [4]. - Synthetic resin sales rose by 9.2% to 8,821 thousand tons, but average prices decreased by 2.4% [4]. Strategic Initiatives - Sinopec aims to strengthen its market share in refined oil sales and expand its new energy business, focusing on hydrogen, solar, wind, and geothermal energy [4]. - The company is actively developing new materials for emerging industries, including electric vehicle batteries and synthetic biology applications [5]. - Sinopec has established an AI computing center and is developing a unified data governance system to enhance its AI capabilities [5]. New Material Developments - Sinopec has made significant advancements in battery materials, including high-nickel ternary cathode materials and silicon-carbon anodes, with production volumes expected to grow by 40% year-on-year [5]. - The company has successfully produced high-end graphite electrodes and is expanding its capabilities in graphene-based coatings and EVA materials [6][8]. Collaborations and Partnerships - Sinopec has signed strategic agreements with companies like CATL to enhance its battery swap station network and support the development of hydrogen energy infrastructure [7][8]. - The company is also investing in various hydrogen energy enterprises to establish a comprehensive hydrogen energy supply chain [8].

Fundraising Overview - The company has raised a total of RMB 7,302,945,207.46 through a non-public offering of 384,163,346 shares at a price of RMB 19.01 per share, after deducting issuance costs of RMB 72,090,121.84 [1] - The net proceeds from the fundraising are managed in a dedicated account, ensuring compliance with relevant regulations and guidelines [1] Fund Management and Oversight - The company has established a fundraising management system that outlines the storage, approval, usage, and supervision of the raised funds, adhering to principles of standardization, safety, efficiency, and transparency [1] - A tripartite supervision agreement has been signed with the underwriting institution and banks to clarify the rights and obligations of all parties involved [2] Project Implementation and Changes - The company has changed the use of raised funds from the "16GWh high-energy power lithium battery industrialization project" to the "20GWh Volkswagen standard cell project," with the implementation entity changing to a wholly-owned subsidiary [4] - As of June 30, 2025, the company has made adjustments to the fundraising projects, including the completion of the "30,000 tons high-nickel ternary cathode material project" and the transfer of surplus funds to general operating accounts [6][7] Fund Account Closure - The company has completed the closure of specific fundraising accounts and notified the underwriting institution and representatives accordingly [7][8] - The termination of related tripartite or quadripartite supervision agreements follows the closure of the fundraising accounts [8]

Industry Overview - Solid-state batteries are becoming the core direction of next-generation battery technology due to their high energy density, safety, and longevity [1] - The industry is experiencing a revolution driven by policy support and technological iteration, with global automakers and battery companies competing for positioning [1] Policy Support and Industry Events - In April 2025, the Ministry of Industry and Information Technology issued a plan to establish a "Standard System for All-Solid-State Batteries," with a prior investment of 6 billion in dedicated R&D funds [3] - A mid-term review of the project is expected by the end of 2025, focusing on manufacturing challenges, with a critical period for pilot production anticipated in 2025-2026 [3] - The 5th China International Solid-State Battery Technology Conference was held on June 19-20, 2025 [3] Technological Developments - The first "Lithium Sulfide and Sulfide Solid-State Battery Forum" will be held on June 25, focusing on material innovation and process optimization [4] - Solid-state batteries are accelerating from laboratory development to mass production, becoming core power sources in electric vehicles, energy storage systems, and humanoid robots [5] Investment Opportunities - The solid-state battery sector is poised for significant growth, with potential for stocks to increase by 10 to 20 times [6] - Five companies identified as key players in the solid-state battery market include: - Rongbai Technology: Focused on high-nickel ternary cathode materials, collaborating with leading battery companies [8] - Dingsheng Technology: Specializes in lithium-ion battery cathode materials, serving major clients like Samsung SDI and LG Chem [8] - Xiamen Tungsten: Engaged in lithium-ion battery cathode materials and actively developing solid-state battery materials [8] - Zhongke Electric: Focused on anode materials, particularly silicon-based anodes, with over 60% market share [8] - A company identified as Huawei's first solid-state battery partner, specializing in sulfide solid-state battery technology, expected to achieve mass production by 2025 [9]

Core Viewpoint - The article highlights significant advancements in solid-state battery technology by leading companies in the industry, including CATL, XianDiao Intelligent, and BTR, indicating a strong push towards commercialization and production capabilities in the coming years [1][2]. Group 1: CATL - CATL expects to achieve small-scale production of solid-state batteries by 2027, with a focus on high energy density of up to 500Wh/kg for its condensed state batteries [1]. - The collaboration with COMAC on civil electric passenger aircraft projects is a key initiative, emphasizing adherence to aviation standards for safety and quality [1]. - The company's upcoming Hong Kong listing is anticipated to enhance its global strategic positioning and capitalize on the energy transition opportunities [1]. Group 2: XianDiao Intelligent - XianDiao Intelligent has successfully established a complete production process for solid-state batteries, covering all key equipment and solutions [1]. - The company has formed partnerships with several leading industry players and has delivered production equipment to clients in Europe, America, Japan, and South Korea, receiving positive feedback and repeat orders [1][2]. Group 3: BTR - BTR has announced that its solid-state battery materials are ready for mass production, including both semi-solid and all-solid battery materials [2]. - The company’s materials are applicable in digital and power sectors, with mass production contingent on validation from downstream cell manufacturers and automotive companies [2]. - BTR specializes in the research, production, and sales of lithium-ion battery anode and cathode materials, with a focus on various advanced materials [2].