Summary of the Conference Call for Xiongtao Co., Ltd. Company Overview - **Company**: Xiongtao Co., Ltd. - **Industry**: Battery manufacturing, focusing on lead-acid batteries, lithium-ion batteries, and fuel cells Key Points Financial Performance - In the first half of the year, the data center UPS power business contributed 50% of total revenue and 75% of profits [2][3] - Revenue from lead-acid batteries is expected to grow by 10%, with a gross margin of 15% and a net margin of 4-6% [2][5] - Lithium-ion battery revenue is projected to reach approximately 400 million yuan by 2025, with an expected growth rate exceeding 40% this year [2][6] Market Position and Growth - The company holds a 50-60% market share in the Southeast Asian lithium-ion battery market, with a global growth rate close to 40% [2][6] - North America is expected to be a significant growth driver, with the potential for 3-4 times growth if market penetration reaches Southeast Asian levels [4][19] - The company is experiencing high demand for lithium batteries, with a utilization rate exceeding 40% and plans to expand capacity to meet orders [14][15] Product Development and Strategy - The company focuses 80% of its R&D investment on the data center UPS power sector [2][3] - The lead-acid battery business is transitioning to maintenance-free, high-power products to provide stable backup power for data centers [5] - The fuel cell business is developing slowly due to reduced government support for hydrogen energy, contributing minimal profits and still incurring losses [2][7] Order and Sales Dynamics - Data center lithium battery orders are increasing in size, with expectations for single orders to grow to 300-500 million yuan [4][28] - The company is facing challenges with insufficient sales personnel, which limits order fulfillment rather than production capacity [4][28] Future Outlook - The company aims to achieve a total lithium battery capacity of 7.5 GWh by the end of 2025, with approximately 1 GWh allocated for data centers [2][15][26] - The long-term revenue target for lithium-ion UPS is set at 1.6 billion yuan, with annual growth targets of 40% [24][39] - The company is actively engaging with major domestic clients like Alibaba and ByteDance to replace lead-acid batteries with lithium-ion solutions [10][11][12] Competitive Landscape - The company acknowledges competition from leading firms like CATL in the energy storage sector, focusing on niche markets where it can leverage its strengths [33] - The overall market for lead-acid and lithium batteries is expected to grow steadily, with lithium batteries likely to see price increases due to rising raw material costs [35] Challenges and Risks - The company has faced revenue and profit declines in Q3 2025 due to project delays and currency fluctuations, but these issues are expected to be resolved in Q4 [36] - The fuel cell sector remains a risk due to its slow development and reliance on future policy support [38] Conclusion Xiongtao Co., Ltd. is strategically positioned in the battery manufacturing industry, with a strong focus on lithium-ion technology for data centers. The company is poised for significant growth, particularly in North America, while navigating challenges in sales capacity and market competition.

Group 1: Company Strategy - The company will continue to focus on a "data center + new energy" dual-driven core strategy, emphasizing the upgrade of UPS products towards medium and high power and liquid cooling [2] - The company aims to enhance its global market share by expanding ODM orders in North America and Southeast Asia, leveraging its Vietnam factory as a key overseas hub [2] Group 2: Data Center Product and Market Layout - The company has over 30 years of experience in the power electronics industry, offering a comprehensive product range including UPS, HVDC, temperature control equipment, and energy storage solutions [3] - Key products for AI computing applications include the PowerFort integrated power module and LiquiX AI cooling solutions, with strong partnerships with major domestic internet companies [3] Group 3: Energy Storage Market Layout - The energy storage business is positioned as a core growth engine, with a complete layout of technology, products, and global channels, expected to achieve rapid growth by 2025 [4] - The company’s energy storage products cater to various applications, including residential, commercial, and grid-level, with a focus on overseas markets and partnerships with leading battery cell manufacturers [4] Group 4: Investor Communication - The company ensured compliance with information disclosure regulations during investor communications, maintaining the accuracy and completeness of disclosed information [5]

Financial Performance - In Q3 2025, the company achieved a revenue of 1.446 billion CNY, a year-on-year increase of 41.71% [2] - The net profit attributable to shareholders in Q3 was 190 million CNY, up 38.36% year-on-year [2] - Cumulatively, for the first three quarters, the company reported a revenue of 3.609 billion CNY, a growth of 23.93% [2] - The net profit attributable to shareholders for the first three quarters was 446 million CNY, reflecting a year-on-year increase of 24.93% [2] Business Growth Areas - The company's data center and renewable energy sectors are both experiencing growth [2] - The data center business is driven by increased demand from the internet and communication sectors, with collaborations established with major clients like ByteDance, Alibaba, and JD [3] - The company is actively preparing for advancements in AIDC product development and global market expansion [3] AIDC Product Development - The company offers a comprehensive range of data center products, including UPS power supplies, HVDC, temperature control equipment, and batteries [3] - There is a focus on enhancing power capacity and optimizing single-machine power density in power products [3] - The company is developing new AIDC-related products, including new HVDC and SST models, while maintaining close communication with clients regarding product needs [3] Renewable Energy Storage - The renewable energy storage business is identified as a key growth area, with significant demand recovery in the European market since 2025 [4] - The company has seen a surge in orders from major clients in the household storage segment and is experiencing rapid growth in emerging markets [4] - The renewable energy storage sector is expected to remain a primary focus for the company in the coming years [4]