CITC(SZ:002190)2022-12-05 01:54Group 1: Company Overview and Production Capacity - The company has two major production bases for lithium batteries: Luoyang and Jiangsu. The Luoyang base has a total capacity of 0.9 GWh from the first two phases, with a third phase under construction designed for 1.5 GWh. The Jiangsu base's first phase is designed for 2.5 GWh, producing both ternary and lithium iron phosphate batteries [2][3]. Group 2: Financial and Investment Aspects - The registered capital of the Jiangsu company is 4 billion, with significant contributions from the government and policy loans, ensuring sufficient funding for the first phase of construction [3]. - The company has secured substantial policy loans from institutions like the National Development Bank for the Jiangsu project [3]. Group 3: Market and Product Insights - The main product is lithium iron phosphate batteries, primarily used in commercial vehicles, with major clients including Zhongtong, Yutong, and Dongfeng [3]. - The gross margin for lithium iron phosphate batteries is expected to decline this year due to reduced subsidies and a relatively narrow product range, leading to a significant year-on-year decrease in overall business performance [3]. Group 4: Pricing and Market Trends - The price of lithium iron phosphate batteries has decreased by over 20%, with expectations for relative stability in the second half of the year. Material costs are also trending downwards, although some materials remain scarce and prices rigid [3][4]. - The future market for ternary batteries in passenger vehicles is anticipated to be large, while the market for lithium iron phosphate batteries is expected to be smaller, though there are applications in energy storage and military sectors [3].