Core Viewpoint - The company, Longhong New Science (联泓新科), confirmed that its lithium carbonate solvent production facility is operating well, with full orders and sales, amidst rising market prices for EC solvents driven by increased downstream demand [2]. Group 1: Company Operations - The company's lithium carbonate solvent production capacity includes 100,000 tons/year of EC, 50,000 tons/year of EMC, and 900 tons/year of DEC, making it one of the main suppliers of electrolyte solvents [2]. - The production facility is currently running smoothly, with full production and sales [2]. Group 2: Market Conditions - Recent market conditions have led to a tightening supply of EC and other solvent products, resulting in a rapid increase in market prices [2]. - It was noted that the price increase for EC solvents has been nearly 40% [2].

Core Viewpoint - The lithium battery electrolyte sector is experiencing a rebound, with Tianji Co. hitting the daily limit up, alongside other companies like Duofluoride, Huasheng Lithium, Fengyuan Co., Anda Technology, and Haike Xinyuan also seeing gains [1] Group 1: Price Movements - Prices of lithium hexafluorophosphate and various electrolyte solvents have risen significantly, with the factory price of EC increasing by 8.33% in one day [1] - The factory price of DMC has also seen a daily increase of 6.93%, indicating a broader trend of price hikes across multiple products including EMC, FEC, and VC [1]

Summary of Haike Xinyuan Conference Call Company Overview - **Company**: Haike Xinyuan - **Industry**: Solvent and VC (Vinyl Carbonate) production Key Points Financial Performance and Revenue Composition - In 2024, solvent revenue is expected to account for 2/3 of total revenue, with propylene glycol making up the remaining 1/3. By 2025, solvent revenue is projected to increase to 3/4 due to enhanced production capacity at the Hubei plant [2][3] - Average sales prices for DMC, EMC, and EC products in Q3 were approximately 4,300-4,400 RMB/ton, with a decline in July and August but a recovery in September [2][4] - The container business reported a loss of about 500 RMB/ton in Q3, primarily due to falling product prices, but is expected to break even in Q4 [2][5] Market Trends and Price Projections - Solvent prices hit a low in July and August but rebounded by 100-150 RMB/ton in September, with further increases expected in October and December [2][7] - A price increase of 3%-5% is anticipated for scattered orders from October to November, with an overall price rise of over 200 RMB/ton expected in Q4 [2][7] - The global solvent effective capacity is around 2.2 million tons, with Haike Xinyuan, Shida Shenghua, and Hualu Hengsheng collectively holding about 80% market share [2][10][11] Production Capacity and Future Plans - Haike Xinyuan's current annual production capacity is 770,000 tons for solvents and 130,000 tons for alcohol products, totaling 900,000 tons [3] - The company expects to sell over 700,000 tons in 2025 and conservatively estimates sales of over 800,000 tons in 2026, with potential capacity expansion through technological upgrades or acquisitions [2][12] - The company plans to expand VC production capacity from 11,000 tons to 15,000 tons, with an expected additional annual revenue of 300 million RMB if prices remain high [3][16] VC Product Insights - VC product prices have surged from 44,500 RMB/ton to nearly 80,000 RMB/ton, with expectations of maintaining prices between 80,000 and 100,000 RMB/ton in 2026 [3][21][22] - The global demand for VC products is projected to reach 100,000-110,000 tons in 2026, with current effective capacity at about 80,000 tons, indicating a tight supply-demand balance [3][18] Competitive Advantages and Market Position - Haike Xinyuan has a competitive edge in cost control due to its self-sourced raw materials and has successfully passed audits from major clients like BYD [3][26] - The company is in discussions with strategic partners, including Guoxuan High-Tech, and aims to expand its customer base by increasing production capacity [3][26] Conclusion - Haike Xinyuan is positioned for growth in the solvent and VC markets, with a strong focus on capacity expansion and price recovery. The company is navigating market fluctuations effectively and is set to capitalize on increasing demand in the coming years [2][3][12][18]

Financial Performance - Q3 2025 revenue reached $143 million, reflecting an 8% increase compared to Q3 2024[7] - Adjusted Gross Margin was 38.9% in Q3 2025, a 66 bps increase from Q3 2024[7, 38] - Adjusted Diluted EPS was $0.60 in Q3 2025, a (2)% decrease compared to Q3 2024[7] Segment Performance - Diversified end markets (industrial, aerospace & defense, and medical) saw a 22% revenue increase year-over-year and accounted for 59% of total revenue[10, 38] - Transportation end market revenue decreased by (7)% year-over-year due to lower commercial vehicle sales[10, 38] - Total booked business in transportation was approximately $1 billion at the end of Q3 2025[25] End Market Highlights - Medical Q3 sales were $22 million, up 22% year-over-year, with bookings up 8%[17] - Aerospace & Defense Q3 sales were $25 million, up 23% year-over-year, with bookings up 29%[17] - Industrial Q3 sales were $37 million, up 21% year-over-year, with bookings up 29%[25] Cash Flow and Balance Sheet - Generated $29 million in operating cash flow in Q3 2025[10] - Free cash flow YTD 2025 was $60 million[40] - Cash returned to shareholders YTD 2025 totaled $44 million[40]

Core Viewpoint - The strategic procurement cooperation agreement between Haike New Source and Hefei Qianrui marks a significant step in enhancing Haike's position in the global electrolyte materials sector, with a supply commitment of 200,000 tons of lithium-ion battery electrolyte solvents and additives [1][2]. Group 1: Company Overview - Haike New Source has established a production network across Shandong, Jiangsu, and Hubei, optimizing resource allocation and accelerating the transition of new products from laboratory to mass production [2]. - The company emphasizes technological innovation, with automotive-grade products undergoing rigorous validation, creating a collaborative environment between its technology innovation center and global agile service platforms [2]. - Haike's products are utilized by leading global battery and automotive companies, including BYD, Tesla, CATL, LG Energy Solution, Panasonic, and Samsung, reinforcing its market position [2]. Group 2: Strategic Partnership - The procurement agreement with Hefei Qianrui, a subsidiary of Nanjing Guoxuan Holding Group, indicates a strong recognition of Haike's products and capabilities, as the 200,000 tons of raw materials align with Hefei Qianrui's production capacity [1]. - This partnership highlights Haike's competitive advantages in technology, production capacity, and customer relationships, further solidifying its role in the electrolyte supply chain [1].

Core Insights - The company, Yingboer (300681), announced that as of June 30, 2025, it has achieved significant technological research and development milestones, including 190 authorized patents [1] - Among the authorized patents, there are 49 invention patents, 135 utility model patents, and 6 design patents, along with 28 software copyrights [1] - The company has also applied for 32 invention patents and 21 utility model patents that are pending authorization [1] Patent Details - The core technology PEBB (Power Electronic Integration) has 5 PCT international invention patents filed [1] - The underlying technology for laminated busbars has received authorization in multiple countries, including the United States, Japan, Europe, Singapore, Indonesia, and Malaysia [1] - EMC patents have been authorized in the United States and Europe, while multiple patents for the "Integrated Chip" technology have been authorized in the United States, Japan, Europe, and Singapore [1]

Financial Data and Key Metrics Changes - The company reported sales of $135 million for Q2 2025, an increase of 4% from $130 million in Q2 2024 [4] - Adjusted EBITDA expanded by 250 basis points sequentially and 130 basis points year-over-year [2][19] - Adjusted diluted earnings were $0.57 per share, up approximately 30% from Q1 2025 and up 7% from the prior year [5][19] - The adjusted gross margin was 38.7%, an increase of 296 basis points compared to Q2 2024 [18] Business Line Data and Key Metrics Changes - Diversified end market sales increased by 13% year-over-year, accounting for 55% of overall company revenue [4][17] - Medical end market sales were up 8% compared to the same period in 2024, with therapeutic products demand increasing by approximately 60% year-over-year [6][7] - Aerospace and Defense sales rose by 34% year-over-year, with SideQuest revenues contributing $4.5 million [8][17] - Industrial market sales were up 5% sequentially and 6% year-over-year, with bookings up 22% from the prior year [9] Market Data and Key Metrics Changes - Transportation sales were €61 million in Q2 2025, down approximately 6% from the same period last year due to market dynamics in China [10] - The North American light vehicle market is expected to be in the 15 million unit range, while European production is forecasted at 16 million units [13][14] - China volumes are projected to be in the 30 million unit range, with electric vehicle penetration rates softening in some regions [14] Company Strategy and Development Direction - The company is focused on a diversification strategy to enhance growth in medical, industrial, aerospace, and defense markets [2][3] - The integration of the SideQuest business is progressing well, with expectations for stronger sales in the second half of 2025 [8][15] - The company aims to expand its customer base and range of applications in diversified end markets [12] Management's Comments on Operating Environment and Future Outlook - Management noted that the impact of tariffs was minimal in Q2 2025, but they continue to monitor the situation closely [26] - There is cautious optimism regarding the transportation market, with expectations of a bottoming out in China [28] - The company maintains guidance for sales in the range of $520 million to $550 million and adjusted diluted EPS between $2.20 and $2.35 [16] Other Important Information - The company generated $28 million in operating cash flow in Q2 2025, compared to $20 million in Q2 2024 [20] - A total of $26 million has been returned to shareholders through dividends and share buybacks in 2025 [20] Q&A Session Summary Question: Insights on the medical market dynamics - Management indicated that while therapeutics are performing well, there is some softness in diagnostics due to capital spending in Asia and potential tariff impacts [24][25] Question: Impact of tariffs on the company - The impact of tariffs was described as nominal, with ongoing monitoring of the situation [26][27] Question: Transportation market outlook - Management expressed cautious optimism about the transportation market, noting mixed conditions across regions and potential bottoming out in China [28][29] Question: Integration of SideQuest and cost-saving measures - The integration of SideQuest is progressing well, with a strong pipeline of opportunities, and no significant cost-saving measures are currently being implemented [30][32] Question: Acquisition market outlook - The company is focused on advancing diversified end markets and sees potential opportunities for acquisitions within the next twelve months [53][54]

Financial Performance - Revenue reached $135 million, a 4% increase compared to the same period last year[9] - Adjusted Gross Margin improved by 296 bps to 38.7%[9, 36] - Adjusted Diluted EPS increased by 7% to $0.57[9, 36] - Operating cash flow generated was $28 million[12] End Markets - Diversified end markets (industrial, aerospace & defense, and medical) saw revenue increase by 13% year-over-year and accounted for 55% of total revenue[12, 39] - Medical sales in Q2 were $19 million, up 8% year-over-year[19] - Aerospace & Defense sales in Q2 were $21 million, up 34% year-over-year[19] - Industrial sales in Q2 were $34 million, up 6% year-over-year[27] - Transportation end market revenue decreased by (6)% year-over-year due to lower commercial vehicle sales and softness in China[12, 39] Bookings and Outlook - The company's total booked business in the transportation sector is approximately $1 billion at the end of Q2 2025[27] - FY 2025 revenue is projected to be between $520 million and $550 million[29] - FY 2025 Adjusted Diluted EPS is projected to be between $220 and $235[29]