Core Viewpoint - Ribo Fashion Group recently provided a detailed response regarding the acquisition of Sichuan Yindile Material Technology Group, addressing key issues such as capacity utilization, inventory levels, sales prices, customer concentration, and gross margins [1] Group 1: Capacity Utilization - Yindile's capacity utilization rates for 2023, 2024, and January-May 2025 were reported as 68.35%, 115.87%, and 165.33%, respectively, raising regulatory concerns about capacity rationality [2] - The company clarified that there are two measurement standards for capacity: one based on environmental assessment approval and the other on actual equipment capacity, with the latter showing utilization rates of 84.53%, 74.62%, and 80.07%, all below 100% [2] Group 2: Inventory Levels - As of May 31, 2025, Yindile's inventory reached 6,345.63 tons, a 71.05% increase from the end of 2024, with a corresponding decline in the production-sales ratio by 8.73 percentage points [3] - This inventory buildup is attributed to seasonal stocking demands in the electric vehicle industry, with sales in June-July 2025 reaching 15,226.19 tons, which is 239.95% of the May-end inventory [3] Group 3: Sales Prices - The prices of Yindile's main products have decreased by over 30% over three years, with specific reductions of 34.38% for negative and separator binder and 37.02% for positive edge binder and additives [4] - The price decline is primarily driven by significant drops in raw material costs, including lithium salts and solvents, alongside a pricing strategy that increased the market penetration of PAA binders [4] Group 4: Customer Concentration - The top five customers contributed 62% of Yindile's revenue, with a notable growth rate of 309.63% for the customer Zhongchuang Xinhang in the first five months of 2025 [5] - Major clients include industry leaders such as CATL and BYD, with BYD accounting for over 80% of the revenue from positive edge binders [5] Group 5: Gross Margin - Yindile's gross margins from 2023 to January-May 2025 were 52.43%, 51.72%, and 55.70%, significantly higher than the industry average of 23%-26% [6] - The high gross margin is attributed to the performance advantages of PAA binders, customer loyalty, and economies of scale [6] Group 6: Sustainability of Revenue - The accounting firm confirmed the sustainability of Yindile's revenue, with a revenue confirmation ratio of 76%-87% and stable customer relationships [7] - Yindile's asset quality has been reinforced, supporting the ongoing major asset restructuring by Ribo Fashion, with a strong pipeline of new products and capacity expected to drive future revenue growth [7]

Investment Rating - The report suggests focusing on investment opportunities in the silicon anode sector, particularly in the context of the increasing adoption of silicon anodes and the new processes that bring additional investment opportunities in the supply chain [2][6]. Core Viewpoints - The emergence of CVD silicon-carbon technology significantly accelerates the industrialization of silicon anodes, with expectations for increased penetration in mobile devices by 2025 and potential breakthroughs in power applications [2]. - The CVD method is becoming the mainstream process, replacing traditional ball milling methods, and reshaping the competitive landscape in the silicon anode market [2][24]. - The report highlights the cost reduction potential in the silicon anode production process, with expectations for prices to converge towards those of graphite anodes in the medium term [3][34]. Summary by Sections 1. Silicon Anodes: Current Applications and Future Potential - CVD silicon-carbon technology is accelerating the industrialization of silicon anodes, with significant improvements in performance metrics such as capacity and cycle life [2][24]. - The transition from ball milling to CVD allows for precise control of silicon particle size and uniform coating, enhancing the overall performance of silicon anodes [24][26]. - The report anticipates a market demand for silicon anodes to reach 45,000 tons globally by 2028, with significant contributions from mobile devices, electric vehicles, and solid-state batteries [4][38]. 2. Industry Chain: Development and Expansion - The report identifies a dual-path development for porous carbon materials, with both resin and biomass routes expected to play significant roles in the market [5]. - The silicon gas market is projected to expand significantly, with demand expected to reach 19,000 tons by 2028, driven by the growth of silicon-based anodes [5]. - New applications for binders and conductive agents, such as PAA and CNT, are opening up additional market opportunities [5]. 3. Investment Recommendations - The report recommends focusing on companies leading in the silicon anode space, including those involved in upstream materials like porous carbon and silicon gas [6]. - Key players highlighted include Purtai, Better Ray, Yuanli Co., and Shengquan Group, each with distinct advantages in their respective segments [6][30].