On June 4, Song Hailiang, Secretary of the Party Committee and Chairman of China Energy Engineering Group (CEEC), held talks in Shanghai with Li Zheng, member of the Standing Committee of the Shanghai Municipal Party Committee and Secretary of the Pudong New Area District Party Committee, and Wu Jincheng, Deputy Secretary General of the Shanghai Municipal Government, Deputy Secretary of the Pudong New Area District Party Committee, and District Governor. The two sides engaged in in-depth exchanges on deepening cooperation in areas such as energy and power, urban construction, digital-energy integration, transportation-energy integration, and international cooperation, aiming to support Pudong in accelerating its development as a leading area for socialist modernization. They also witnessed the signing of a framework agreement on deepening comprehensive strategic cooperation. Lv Xuecheng, Deputy District Governor of Pudong New Area, and Tang Zhijun, Secretary of the Party Committee and Chairman of CEEC East China Construction & Investment Co., Ltd., represented the two sides in signing the framework agreement on deepening comprehensive strategic cooperation. According to the agreement, the two sides will strengthen cooperation in areas such as urban construction and development, energy and power, digital-energy integration, and transportation-energy integration, to promote high-quality development in Pudong's leading area.

Longfor's self-held housing units in a project in Hefei have been successfully "acquired and stored." According to information released by Hefei Anju Group, it has recently completed the property rights transfer and fund payment for the Shushan Xichen Original project. This is the first case in Hefei City where existing commercial housing units have been acquired for use as affordable rental housing since Anju Group issued the "Notice on Soliciting Acquisition of Completed Existing Commercial Housing Units for Use as Affordable Housing" in September 2024. The Shushan Xichen Original project, developed by Longfor Properties, was delivered in 2021. Located at the northwest corner of the intersection of Baoyue Road and Duxianqiao Road in Shushan District, Hefei City, and adjacent to the Hefei High-Tech Industrial Development Zone, it will primarily serve talents in technology R&D, e-commerce, foreign trade logistics, and other fields within the zone. The project covers a total land area of approximately 61,000 m², encompassing various property types such as small high-rise buildings and low-density multi-story buildings. The 1# and 6# buildings acquired this time are self-held rental housing units of the developer, totaling 138 units, mainly consisting of small and medium-sized apartments. According to the public announcement on the official website of Shushan District Government, Hefei City, in January this year, the project was developed by Hefei Xiayi Real Estate Co., Ltd., with a total of two rental housing buildings. Information from Tianyancha shows that Hefei Longhu Jinwan Real Estate Development Co., Ltd. and Anhui Lifeng Group Co., Ltd. hold 70% and 30% equity in Xiayi Real Estate Co., Ltd., respectively. It is understood that the successful implementation of this business is the first affordable housing reloan project within the system of the Hefei Branch of Shanghai Pudong Development Bank. Hefei Anju Group stated that the company will accelerate the renovation and decoration work and plans to put the project into operation in the second half of 2025 (H2). In contrast to Hefei Anju Group's "acquisition and storage" of the Shushan Xichen Original project through affordable housing reloans, Zhejiang Province will acquire existing commercial housing units through special bonds. According to the "Information Disclosure Document for the 2025 Zhejiang Provincial Government Special Bonds (Issues 13-20)" issued by the Zhejiang Provincial Department of Finance, the issuance scale of these special bonds is 55.267 billion yuan, of which approximately 1.653 billion yuan is planned to be used for the acquisition of existing commercial housing units. According to E-House China R&D Institute, a total of eight residential projects in Zhejiang Province have been included in the scope of special bond-funded commercial housing acquisitions, belonging to three different bonds: "25 Zhejiang Bond 23," "25 Zhejiang Bond 25," and "25 Zhejiang Bond 26." In terms of the project locations, among these eight projects, four are in Huzhou, three are in Wenzhou, and one is in Jiaxing. "Zhejiang Province's promotion of special bond-funded acquisition of existing commercial housing units this time has not been carried out in the provincial capital city of Hangzhou but has been implemented in the three cities of Huzhou, Wenzhou, and Jiaxing, which is largely related to the destocking needs of these cities. "Some third- and fourth-tier cities are facing significant inventory pressure, making destocking relatively difficult. Zhejiang has provided a referenceable path for addressing the destocking issue in third- and fourth-tier cities by acquiring existing homes through special bonds," said Yan Yuejin, Deputy Dean of the E-House China Research and Development Institute. From a national perspective, analysts from the China Index Academy introduced that since 2024, over 80 cities (districts) nationwide have issued announcements on acquiring existing commercial housing for use as affordable housing. After entering 2025, funds for acquiring existing commercial projects have successively landed in multiple places, including Hefei, Shenyang, and Dalian. Most of the acquired existing homes are used as affordable rental housing. However, the frequency of announcements for acquiring existing commercial housing has decreased YoY. A researcher from a real estate agency told reporters that the relatively slow progress in local governments' acquisition of existing homes for affordable housing is partly due to factors related to the funding of "acquisition and storage," and partly because local governments also need to consider how to achieve project revenue-expense balance in this process. "When local governments acquire existing homes for affordable housing, they need to consider not only the social impact it can generate but also assess whether the acquired targets are of sufficient 'quality.' For local governments, they need to ensure the safety of the invested funds, check whether the projects meet corresponding return requirements, and may also evaluate the operational efficiency and returns of the projects invested in over a certain period," said the above-mentioned researcher. In response, industry insiders pointed out that acquiring existing homes for affordable housing helps address the destocking issue and is also beneficial for promoting people's livelihood security. However, at the same time, it is necessary for local governments to explore diversified approaches and broaden their thinking. In this regard, Fujian Province and Hunan Province, based on their respective actual situations, have made new attempts in the practice of "acquisition and storage" targeting different groups and markets, which are considered to have provided inspiring and beneficial ideas. On May 28, the Fujian Provincial Government issued a notice on the "Implementation Plan for Special Actions to Boost Consumption in Fujian Province." Regarding the promotion of housing consumption, Fujian encourages various regions to explore multi-subject acquisition models according to local conditions and supports the acquisition of existing commercial housing for use as college dormitories, community elderly care service facilities, staff dormitories, migrant worker affordable housing, talent housing, and youth apartments. On May 30, the Hunan Provincial Department of Housing and Urban-Rural Development issued several measures to promote the steady and healthy development of the real estate market. Addressing the housing needs of talents, the "Ten Measures of Hunan" proposed three policy measures. One of them mentioned supporting various regions in acquiring existing commercial housing for use as talent housing, which can be provided free of charge to entrepreneurial college students and young talents for residence within a certain period, or used free of charge as entrepreneurial venues for entrepreneurial college students and young talents. "Under the policy system that grants urban governments greater autonomy in terms of acquisition entities, prices, and purposes, we believe that local governments can appropriately expand the scope of the target population and their needs to achieve a win-win situation in terms of both economic benefits and social benefits," said Yan Yuejin.

[Seven Joint-Stock Banks Follow Suit to Cut RMB Deposit Rates] After several banks, including Bank of China, Industrial and Commercial Bank of China, China Construction Bank, and China Merchants Bank, announced a cut in RMB deposit rates on May 20, on May 21, seven banks—Ping An Bank, China CITIC Bank, Industrial Bank, Shanghai Pudong Development Bank, China Minsheng Bank, China Guangfa Bank, and Huaxia Bank—followed suit to cut their deposit rates, reducing the one-year and two-year fixed deposit rates by 15 basis points each.

[Shanghai Pudong Development Bank Cuts Deposit Rates] According to information on Shanghai Pudong Development Bank's official website, the bank implemented the latest RMB deposit rates on May 21. Among them, the demand deposit rate was cut by 5 basis points to 0.05%. For fixed deposits, the rates for lump-sum deposit and withdrawal for three-month, six-month, one-year, and two-year terms were all reduced by 15 basis points to 0.70%, 0.95%, 1.15%, and 1.20%, respectively. The rates for three-year and five-year terms were cut by 25 basis points to 1.3% and 1.35%. For small savings for lump-sum withdrawal and lump-sum deposit for small withdrawal for one-year, three-year, and five-year terms, the rates were each reduced by 15 basis points to 0.75%, 0.85%, and 0.95%. The rate for call deposit (individual savings) with a one-day maturity remained unchanged at 0.1%, while the rate for a seven-day maturity was cut by 15 basis points to 0.3%.

Recently, the Shanghai Composite Index has continued to strengthen. As of today's (May 14) close, it reached 3,403.95 points, marking its return above the 3,400-point threshold after 35 trading days, based on the closing price. Meanwhile, the current closing level of the Shanghai Composite Index is only 1 percentage point away from the year's high of 3,439.05 points recorded on March 19. Note: The Shanghai Composite Index regained the 3,400-point threshold today (as of May 14 close) Indexes collectively recovered over a month, with 20% of sectors regaining lost ground Similar to the Shanghai Composite Index, other major market indexes have also seen varying degrees of recovery recently. Among them, the Beijing Stock Exchange and weighted indexes have outperformed the ChiNext and small-to-mid-cap indexes. Specifically, based on the Shanghai Composite Index's "3,400-point to 3,400-point" period (from March 20 to May 14), the rebound strength of the Beijing 50, Dividend Index, and SSE 50 Index significantly surpassed the Shanghai Composite Index's performance during the same period. In contrast, the CSI 1000, CN 2000, ChiNext Index, and CSI 2000 still have some ground to cover, with all showing a decline of over 5%. Note: Recent gains of major market indexes (as of May 14 close) From an industry sector perspective, during the Shanghai Composite Index's "3,400-point to 3,400-point" period, only six sectors outperformed the Shanghai Composite Index, accounting for nearly 20% of the 31 Shenwan first-tier sectors. Among them, the Beauty Care and Banking sector indexes both rose over 5% from March 20 to today's close. Meanwhile, the Agriculture, Forestry, Animal Husbandry, and Fisheries, and Public Utilities sector indexes also saw gains of over 3%. In contrast, sectors such as Computers, Electronics, Electrical Equipment, Machinery Equipment, and Social Services have underperformed the Shanghai Composite Index in the recent period. Note: Recent gains of industry sector indexes (as of May 14 close) Based on the average share price of A-shares, as of today's (May 14) close, the average closing price of individual stocks in the market was 21.7 yuan, higher than the daily average of 20.88 yuan since the beginning of the year, and basically recovered to the level around March 20 (22.48 yuan). In addition, the current average share price of A-shares is still 1.15 yuan below the year's high closing price of 22.85 yuan (recorded on March 18), representing a decline of nearly 5%. Meanwhile, it has increased by 3.08 yuan from the recent low closing price of 18.62 yuan (on April 7), with a recovery amplitude of nearly 16.5%. Note: Recent changes in the average share price of A-shares (as of May 14 close) 30% of individual stocks recovered during the same period, a list of active weighted stocks From an individual stock perspective, calculating based on today's closing price compared to the closing price on March 20, excluding new listings, a cumulative total of 1,667 stocks showed gains or remained flat, accounting for nearly 30.8% of the entire A-share market. From the perspective of industry sectors, among the aforementioned stocks, there are relatively more stocks in the basic chemicals, pharmaceuticals and biotechnology, and machinery equipment sectors. In terms of the proportion within their respective sectors, the banking sector had the highest proportion of stocks that closed higher or flat, at 95%. Other sectors with high proportions included transportation, agriculture, forestry, animal husbandry, and fishery, public utilities, beauty care, and basic chemicals. Note: Industry distribution of stocks that closed higher or flat today compared to the closing price on March 20 (as of the close on May 14) When categorized by securities sector, among the aforementioned stocks, there were significantly more on the main boards of the Shanghai Stock Exchange (SSE) and Shenzhen Stock Exchange (SZSE), followed by the ChiNext Market and the Science and Technology Innovation Board (STAR Market). In terms of the proportion within their respective sectors, the Beijing Stock Exchange (BSE) sector had a notably higher proportion of stocks that closed higher or flat today compared to the closing price on March 20, reaching 58.33%. The proportions for the Risk Warning Board, SSE Main Board, SZSE Main Board, and STAR Market were 39.42%, 35.48%, 29.76%, and 26.84%, respectively, while the ChiNext Market had the lowest proportion at 21.91%. Note: Sector distribution of stocks that closed higher or flat today compared to the closing price on March 20 (as of the close on May 14) Looking at specific stocks, during the "3400-point to 3400-point" period of the Shanghai Composite Index, many large-cap stocks performed actively. Among stocks with a market capitalization exceeding 200 billion yuan, six stocks—AVIC Chengfei, PICC, Shanghai Pudong Development Bank, Hengrui Medicine, COSCO Shipping Holdings, and China Construction Bank—all saw their closing prices today increase by more than 10% compared to March 20. Among them, AVIC Chengfei recorded the highest increase of 45.3% during this period. In addition, large-cap stocks such as Gree Electric Appliances, Agricultural Bank of China, Bank of Communications, China Pacific Insurance, and China Yangtze Power also performed actively recently. Note: Large-cap stocks with a total market capitalization exceeding 200 billion yuan and the highest increases in closing price today compared to March 20 (as of the close on May 14)

Macro News 1. On the morning of May 10 local time, President Xi Jinping successfully concluded his state visit to Russia and attended the celebrations marking the 80th anniversary of the victory in the Great Patriotic War of the Soviet Union before returning to Beijing. 2. On May 9, Premier Li Qiang of the State Council presided over an executive meeting of the State Council, during which a report was heard on the work to promote the high-quality and efficient development of pilot free trade zones (FTZs). The meeting emphasized the need to support pilot FTZs in aligning with high-standard international economic and trade rules, further intensifying institutional innovation, and taking the lead in pilot initiatives in areas such as the development of service trade and the facilitation of cross-border data flows, while conducting differentiated explorations. It was also highlighted that reform task authorizations should be expanded in a manner suited to local conditions, and that the regional layout should be optimized and adjusted according to the actual needs of industrial development, steadily promoting the upgrading of mature pilot FTZs. 3. The high-level economic and trade talks between China and the United States were held in Geneva, Switzerland, from May 10 to 11. He Lifeng, the Chinese head of the economic and trade delegation and Vice Premier of the State Council, stated at a press conference held by the Chinese delegation on the evening of May 11 local time that the high-level economic and trade talks between China and the United States were frank, in-depth, and constructive, with important consensus reached and substantive progress made. Both sides agreed to establish a China-U.S. economic and trade consultation mechanism. China and the United States will finalize the relevant details as soon as possible and release a joint statement on the outcomes of the talks on May 12. 4. On May 10, Wang Yi had a phone conversation with Pakistan's Deputy Prime Minister and Foreign Minister Bilawal Bhutto Zardari. Wang Yi expressed that China expects and supports both Pakistan and India to achieve a ceasefire as soon as possible. Once a ceasefire is achieved, it must be jointly adhered to in order to avoid the resurgence of conflicts. This is in the interests of both Pakistan and India, conducive to regional peace and stability, and also a widespread expectation of the international community. China is willing to continue to play a positive role in this regard. On the same day, Wang Yi also had a phone conversation with India's National Security Advisor Ajit Doval, during which he stated that China supports and expects India and Pakistan to achieve a comprehensive and lasting ceasefire through consultations. This is in the fundamental interests of both India and Pakistan and is also the common aspiration of the international community. 5. An article titled "Equal Dialogue is the Right Path to Resolving Issues Between Major Powers" by Zhong Sheng in the People's Daily pointed out that if the United States wants to resolve issues through negotiations, it must face up to the serious negative impacts that unilateral tariff measures have brought upon itself and the world, respect international economic and trade rules, fairness, justice, and the rational voices of all sectors, demonstrate sincerity in negotiations, and correct its erroneous practices, rather than saying one thing and doing another, or being inconsistent and unpredictable. 6. According to data from the National Bureau of Statistics (NBS), in April 2025, the national consumer price index (CPI) decreased by 0.1% YoY. In April 2025, the national ex-factory prices of industrial producers decreased by 2.7% YoY and 0.4% MoM; the purchase prices of industrial producers decreased by 2.7% YoY and 0.6% MoM. Industry News 1. The 17th Shenzhen International Battery Technology Exchange/Exhibition (CIBF2025) will be held in Shenzhen from May 15 to 17. The list of exhibitors includes several well-known companies such as CATL, BYD, and 3M China. The concurrent Battery Frontier Technology Symposium will feature multiple presentations related to solid-state batteries. Gotion High-tech will host a Global Technology Conference, where its chief scientist previously revealed that a new high-safety solid-state battery will be launched. Brokerages pointed out that sectors such as low-altitude aircraft and humanoid robots will significantly stimulate the accelerated development of solid-state batteries. 2. Data from the Passenger Car Association shows that retail sales of passenger NEVs in April reached 905,000 units, up 33.9% YoY but down 8.7% MoM. Cumulative retail sales from January to April this year totaled 3.324 million units, an increase of 35.7%. The association stated that China's car exports to the US are minimal, especially since independent brands are not sold in the US at all, so domestically produced independent brand cars will not be affected by US tariff increases. 3. Multiple reports suggest that Apple's iPhone release strategy will change starting in 2026: the basic model will be launched in H1, while the Pro, ultra-thin, and foldable models will be updated in H2. A reporter recently learned from a supply chain company that Apple has provided suppliers with shipment target guidance for the first foldable iPhone, a "large foldable iPhone," to be launched in H2 2026. This supply chain company is a supplier of multiple parts for Apple phones. 4. Since the beginning of this year, more than 20 commercial banks have lowered their listed interest rates for time deposits, making "high-interest deposits" with rates above 3% increasingly rare in the market. Bank deposit rates have now fully entered the "1% era." Amid the banks' intensive interest rate cuts, medium and long-term deposit rates at several banks have shown a significant "inversion." 5. On May 11, humanoid robot startup Songyan Power unveiled a new generation of bionic robots, featuring a new female character named Xiao Nuo. According to reports, it boasts multi-modal embodied interaction, ultra-high degrees of freedom (32DOF), near-realistic facial expressions, open character customization, and underlying interfaces, supporting personalized makeup. A reporter from the Science and Technology Innovation Board Daily learned on-site that Songyan Power's N2 robot has already secured over 1,000 pre-orders. 6. The country's first commercial hydrogen-powered locomotive began trial operations on the 10th in Liuzhi Special District, Liupanshui City, Guizhou, filling the gap in hydrogen-powered rail freight transportation in south-west China. 7. The China Academy of Chinese Medical Sciences released an evaluation standard for traditional Chinese medicine (TCM) large models. This standard is the first to establish a quantitative assessment system for large models in the TCM field.According to this standard, the evaluation of large models in traditional Chinese medicine focuses on two aspects: technology and application capabilities. The standard primarily covers three capability domains—scenario richness, capability support, and application maturity—with 13 capability subdomains and over 30 capability items. 8. A research report by China Securities pointed out that, based on the 2024 annual reports and the Q1 2025 reports, the profitability of the PV industry has significantly pulled back. However, the current report suggests that the bottom of the PV industry's financial statements has been reached. The substantial impairment of fixed assets in Q4 and the impact of the Southeast Asian anti-dumping and countervailing duties in Q1 have already been reflected in the financial statements, and it is expected that the probability of further deterioration in profitability is relatively small. The report believes that the industry should subsequently focus on upstream destocking and the progress of capacity exiting the market. Corporate News 1. During his speech at the 6th Shanghai Youth 50 Forum for Innovation and Entrepreneurship, Wang Xingxing revealed that the development of humanoid robot companies, including Unitree, is currently in good shape. "Many companies have seen a surge in orders," Wang said. He mentioned that Unitree Technology is currently in urgent need of personnel across all positions, including administrative, procurement, sales, technical, R&D, and marketing roles, and welcomes young talents to join. 2. Wanxiang Qianchao, which has had two consecutive trading days of limit-up, announced that the transaction plan for a major asset restructuring is undergoing further negotiations. 3. Chengfei Integration, which has had three consecutive trading days of limit-up, announced that there have been no significant changes in the company's operating conditions or internal and external operating environments recently. 4. Hongqiang Corporation, which has had eight limit-up trading days in 14 days, announced that there are no material matters that should have been disclosed but have not been. 5. *ST Youshu announced that the delisting risk warnings and other risk warnings for the company's stock trading have been revoked. 6. Qujiang Cultural Tourism announced that 4.7% of the company's shares held by its controlling shareholder are scheduled to be auctioned. 7. Li Auto announced that the cumulative delivery volume of the Li L7 has exceeded 300,000 units. 8. Mabwell Therapeutics announced that its Chairman and General Manager, Liu Datao, is under investigation for suspected short-swing trading. 9. China First Heavy Industries announced that its Chairman, Lu Wenjun, is under investigation, with the company's performance declining over the past three years under his leadership. Global Markets 1. On the 10th, Pakistani Deputy Prime Minister and Foreign Minister Bilawal Bhutto Zardari stated on social media that Pakistan and India have agreed to an immediate ceasefire. On the same day, Indian Foreign Secretary Vinay Mohan Kwatra announced that India had reached a ceasefire agreement with Pakistan. However, shortly after both sides announced the ceasefire, explosions were once again heard in the Indian-administered Kashmir region. 2. Ukrainian Foreign Minister Dmytro Kuleba stated on the 10th that German Chancellor Friedrich Merz, French President Emmanuel Macron, Polish Prime Minister Donald Tusk, and UK Prime Minister Keir Starmer had a phone conversation with US President Donald Trump after concluding their meeting with Ukrainian President Volodymyr Zelenskyy in Kyiv.Sebihga stated that Ukraine and all its allies are ready to achieve a complete and unconditional ceasefire on land, in the air, and at sea for at least 30 days starting from the 12th. 3. The three major U.S. stock indices closed mixed last Friday. The Dow Jones Industrial Average fell 0.29%, with a weekly decline of 0.16%; the S&P 500 index dropped 0.07%, with a weekly decline of 0.47%; the Nasdaq index closed flat, with a weekly decline of 0.27%. Among large-cap tech stocks, there were mixed performances. Tesla surged over 4%, and Intel rose 2%. Lyft jumped over 28%, marking its best single-day performance since February 2024. Insulet Corp. (PODD) rose nearly 21%, its best single-day performance since November 2022. Most popular Chinese ADRs declined, with the Nasdaq Golden Dragon China Index closing down 0.45%. Investment Opportunities Reference 1. World UAV Congress to be held; institutions say future industry market size may exceed 300 billion yuan It is reported that the 9th World UAV Congress 2025, themed "Entering a New Era of the Low-Altitude Economy," will be grandly held in Shenzhen in late May. Zhongtai Securities analysis points out that UAVs have demonstrated outstanding cost-saving and efficiency-enhancing performance in industrial applications, with an average annual growth rate exceeding 50%. In comparison, the market size of China's industrial UAV industry has grown from 4.3 billion yuan in 2016 to 38.18 billion yuan in 2021, with a compound annual growth rate (CAGR) of 54.7%. It is expected to reach a market size of 301.85 billion yuan by 2026. From the supply side, in industrial application scenarios, UAV enterprises continue to improve various models, such as equipping the airframe with customized payloads to enable capabilities like infrared detection, radar scanning, pesticide spraying, loudspeaking, and monitoring, thereby expanding the industrial application landscape of UAVs. From the demand side, in industrial scenarios, UAVs can partially replace manual labor in executing tasks, bringing cost-saving and efficiency-enhancing advantages. UAVs can perform tasks in complex terrain environments, with inspection efficiency reaching 3-5 times that of manual inspection. 2. Baidu Apollo and CAR Inc. will jointly launch the world's first self-driving car rental service According to media reports, on May 8, 2025, CAR Inc. and Apollo reached a strategic cooperation agreement, announcing that the two sides will carry out in-depth cooperation in the intelligent mobility sector to jointly create the world's first self-driving car rental service. They will explore innovative applications of self-driving technology in the car rental industry, deeply integrate scenario demands, and build a new "intelligent mobility" service ecosystem centered around users. From a market perspective, the multi-dimensional collaborative cooperation between the two sides will accelerate the deployment of self-driving technology in various scenarios such as urban cultural tourism, unlocking consumer potential and tapping into a billion-level intelligent mobility blue ocean market.Great Wall Securities' research report states that the intelligent driving market has broad prospects, and it is recommended to pay attention to links such as modules and LiDAR. According to IDC forecasts, the global scale of connected vehicles will reach 78.3 million units in 2025, with a 5-year compound annual growth rate (CAGR) of 11.5%. In addition, the global scale of autonomous vehicles is expected to reach 89.3 million units in 2026, with a 5-year CAGR of 14.8%. As leading producers at home and abroad continue to invest in the intelligent driving industry, it will enter a period of rapid development. 3. New Breakthrough: Overseas Companies Develop New Technologies, Potentially Tripling the Lifespan of Such Products Industry media reported that South Korean battery manufacturer SK On is accelerating the R&D of polymer, oxide, and sulphide solid-state power batteries. The company has discovered a new protective layer in its research, which is expected to significantly enhance the cycle life of lithium metal batteries. Batteries currently used in EVs typically begin to experience performance degradation after undergoing 1,000 to 100,000 charge-discharge cycles. However, SK On's R&D team claims to have tripled this lifespan indicator. Solid-state batteries represent a revolutionary battery technology, with their core innovation being the use of solid electrolytes to replace the liquid electrolytes found in traditional lithium-ion batteries, offering significant advantages in terms of safety and energy density. Shenwan Hongyuan Securities stated that the industrialisation of solid-state batteries is expected to accelerate. In February this year, at the 2nd China All-Solid-State Battery Innovation and Development Summit Forum, numerous experts, scholars, research institutions, and enterprise representatives gathered to focus on material science, new processes and equipment, and cutting-edge industrial developments, discussing innovative breakthroughs and challenges in all-solid-state batteries. Many experts believe that solid-state batteries are expected to enter mass production and be installed in vehicles by 2027. 4. High R&D Costs + Capital Barriers: The Industry Holds Significant Strategic Importance According to media reports, recently, the Indonesia TransNusa Airlines flight 8B101 (Manado, Indonesia - Shanghai Pudong), operated by the domestically produced regional aircraft C909, made its first landing at Pudong Airport, passing through the "water arch," a symbol of the highest honor in civil aviation. The international route between Shanghai and Manado, Indonesia, was officially opened, marking the longest commercial operation of the C909 aircraft to date, with a flight range exceeding 3,300 kilometers. China's civil aviation market has broad demand. According to Boeing's 2024 CMO Forecast, from 2023 to 2043, China is expected to add 8,830 new civil aviation aircraft deliveries, accounting for 20.08% of the world's total deliveries. Founder Securities pointed out that the development of the large aircraft industry holds significant strategic importance, with a wide radiation scope and strong linkage benefits. The civil aircraft manufacturing industry is of profound strategic significance to the country, directly linked to national economic growth, employment opportunities, and technological progress. This industry not only significantly boosts economic growth but also drives substantial employment and plays a huge role in promoting technological development, particularly in the fields of new materials, new energy, and advanced electronic technologies.