DMEGC(SZ:002056)2022-12-06 11:01Group 1: Company Overview and Strategic Focus - The company is focusing on soft magnetic materials, particularly in automotive electronics and wireless charging markets, with ongoing development for global clients [3] - The company has two production lines for power batteries, with one progressing smoothly while the other requires further adjustments [4] Group 2: Battery Production and Market Dynamics - The company currently only produces battery cells but may consider entering module production in the future, aiming for a comprehensive solution to enhance pricing power [5] - The rapid expansion of battery cell capacity may lead to oversupply by the end of next year, with potential market reshuffling due to subsidy reductions [5][6] - The competitive landscape for battery cells in China is unclear, with technology, consistency, and safety being key competitive advantages rather than just production scale [6] Group 3: Solar Energy Production and Market Strategy - The company is expanding its production of 500MW monocrystalline solar cells and modules, leveraging its cost and technology advantages, with conversion rates of 20.2% for standard and 21.2% for high-efficiency cells [6][7] - The company is strategically avoiding clients in regions with declining electricity subsidies to mitigate market impacts, focusing instead on emerging markets like Europe, Japan, India, and Africa [7][8] - The company has prepared for market fluctuations by establishing a reserve of solar power stations, allowing for flexibility in production based on market conditions [8] Group 4: Competitive Advantages and Future Plans - The company aims for a battery capacity of 2600AH and a cycle life of over 1000 times, with a focus on maintaining over 80% nominal capacity [9] - The company is investing heavily in technology and research for battery materials and structures, exploring various material compositions and new technologies like fuel cells [9][10] - The company adopts a cautious approach to expansion, prioritizing long-term stability over immediate growth, distinguishing itself from faster-growing competitors [10][11]