On June 10, XPENG Chairman He Xiaopeng announced via his Weibo account that global deliveries of the XPENG X9 have surpassed 30,000 units, underscoring the market success of the company's flagship all...

On June 11, XPENG officially unveiled its latest midsize SUV—the XPENG G7—and opened presales with a starting price of 235,800 yuan.

[He Xiaopeng: Large Computing Power and Large Models Will Jointly Define the Upper Limit of AI Cars] Recently, He Xiaopeng, Chairman and CEO of XPeng Motors, pointed out that large computing power and large models will jointly define the upper limit of AI cars. He Xiaopeng believes that computing power determines the size of the model that can be used, while the model determines the amount of high-quality data that can be utilized. "Computing power is the first criterion for making good AI cars in the next era," he said. "To evaluate how well intelligent driving performs, we must first look at how much computing power it has, and then the size of the model it runs." "We are already pre-training, including reinforcing a huge model with 72 billion parameters," he revealed.

SMM News on May 29: In the morning of May 29, the automobile and auto parts sectors surged rapidly at the opening bell. The automobile sector index briefly rose by over 2.6% during the session, while the auto parts sector gained more than 2.3%. Among individual stocks, Dongfeng Motor's share price hit the daily limit, with multiple stocks such as King Long United Automotive Industry and Dongfeng Motor New Energy Technology following suit. The auto parts sector witnessed a wave of stocks hitting the daily limit, with over nine stocks, including Chaojie Technology, Yunnan Inner Power, Tongda Electrical, Zhengyu Industry, Hexing Co., Ltd., and Xingmin Intelligent Transportation, sealing the daily limit during the session. On the news front, the Ministry of Industry and Information Technology (MIIT) released its 2025 regulatory development work plan this morning. Projects to be submitted to the ministerial meeting for review this year include the Interim Measures for the Comprehensive Utilisation Management of Scrap Power Batteries from New Energy Vehicles and the Interim Measures for the Total Volume Control and Management of Rare Earth Mining and Smelting and Separation. Projects to be urgently researched and drafted include the Management Measures for the Recycling and Comprehensive Utilisation of Lithium-ion Batteries from E-bikes and the Implementation Rules for the Approval of Domestic Units Leasing Overseas Satellite Resources. Notably, the price war in the new energy vehicle sector has reignited recently. Last Friday, BYD launched a limited-time "fixed-price" sales promotion, mainly targeting users replacing their old vehicles, and increased the replacement subsidy while reducing prices. It is understood that this promotion involves a total of 22 intelligent driving models from the Wangchao and Ocean networks, with a maximum subsidy of up to 53,000 yuan. The promotion period runs from May 23 to June 30. The Ocean network's intelligent driving models start at 55,800 yuan, and the Haishi 07EV 550 Intelligent Navigation Edition's official guidance price of 189,800 yuan has been directly reduced to 149,800 yuan under the "fixed-price" scheme. Following BYD's move to initiate price cuts, multiple automotive brands, including Geely Galaxy, Leap Motor, and Shanghai GM Buick, have also gradually followed suit with price reductions, offering maximum replacement subsidies ranging from 20,000 to 25,000 yuan. Cui Dongshu, Secretary General of the China Passenger Car Association, stated that BYD's recent price cuts on 22 models would have a certain impact on current car market prices. He also mentioned that compared to 41 models in April last year and 19 models in April 2023, the number of models with price reductions in April this year has significantly decreased, reflecting a notable cooling of the "price-cutting trend." However, as automakers strive to achieve their annual sales targets, competition in the car market will intensify further in the second half of the year. He Xiaopeng, Chairman of XPeng Motors, mentioned on the evening of May 28 that the current "price war" is not yet the most intense, and it may become even fiercer in one of the next five years. Regarding XPeng Motors' future, He Xiaopeng stated that XPeng Motors should first not "compete on price" but rather "compete on technology"; second, it should expand globally beyond China; and third, it should transform new quality productive forces towards embodied intelligence. In addition, recently, trade-in policies across various regions in China have been continuously strengthened. Over the past few trading days, several provinces and cities, including Shanghai, Henan, Fujian, and Harbin, have successively issued car purchase incentive policies. In Shanghai, on May 21, the General Office of the Shanghai Municipal People's Government issued the "Shanghai Special Action Plan to Boost Consumption." It mentioned intensifying and expanding the implementation of trade-in for consumer goods. To promote auto consumption, the plan aims to implement the national vehicle scrappage and renewal subsidy policy and Shanghai's vehicle replacement and renewal subsidy policy. It also seeks to implement the national home appliance trade-in subsidy policy, introduce new subsidies for digital products such as mobile phones, tablets, and smartwatches (or smart bands), and further support green home appliances, home furnishings, and home decoration consumption. The General Office of the Henan Provincial Government also recently issued the "Henan Province Special Action Plan to Boost Consumption," which proposed intensifying efforts to promote trade-in. It supports vehicle scrappage and replacement, offering a maximum subsidy of 20,000 yuan for scrapping eligible old passenger cars and purchasing passenger NEVs, and a maximum subsidy of 15,000 yuan for purchasing fuel-powered passenger cars. For transferring old cars and purchasing passenger NEVs, the maximum subsidy is 15,000 yuan, and for fuel-powered passenger cars, it is 13,000 yuan. By 2025, the province aims to complete the scrappage and replacement of approximately 500,000 vehicles and the trade-in of over 8 million home appliances. In Harbin, according to the Harbin Bureau of Commerce, starting from May 28, Harbin will launch the "2025 Harbin Summer Charm Ice City Car Purchase Promotion" campaign. During the event, 48 million yuan in car purchase subsidies will be distributed on a first-come, first-served basis until the funds are exhausted. The subsidies are targeted at individual consumers, with no regional restrictions. Anyone purchasing a new household passenger car (including NEVs) with "China VI" standards and seven seats or fewer from participating merchants can enjoy government subsidy policies in three tiers. For vehicles priced at 150,000 yuan or below (inclusive), a subsidy of 3,000 yuan per car will be provided; for vehicles priced above 150,000 yuan up to 300,000 yuan (inclusive), a subsidy of 4,000 yuan per car will be provided; and for vehicles priced above 300,000 yuan, a subsidy of 5,000 yuan per car will be provided. On May 28, the General Office of the Fujian Provincial Government issued the "Fujian Province Special Action Plan to Boost Consumption," which proposed supporting auto consumption. It aims to promote activities such as car modification, rental, racing, exhibitions, RV camping, and traditional classic car consumption in the automotive aftermarket. It encourages local governments to cultivate and expand used car business entities, promote "reverse invoicing" for used car sales, and accelerate the transition from brokerage to dealership models in the used car market. It also supports local governments in conducting auto consumption promotion activities, stacking car purchase incentive policies for additional support. By the end of 2025, China aims to have built over 80,000 public charging piles in total, achieving full coverage of public charging facilities in every township. The vehicle trade-in subsidy policy has also significantly boosted the automotive market. The China Passenger Car Association (CPCA) has stated that the effects of the "program of large-scale equipment upgrades and consumer goods trade-ins" have continued to emerge this year. From January to April this year, various regions and relevant departments have fully utilized the ultra-long-term special treasury bond funds to promote the continued effectiveness of the policy to expand and strengthen the "program of large-scale equipment upgrades and consumer goods trade-ins". The policy to expand and strengthen the trade-in of consumer goods has yielded remarkable results, with diverse consumption scenarios continuously innovating, driving improved performance in the industries and supply chains of related products. Driven by the vehicle trade-in and replacement subsidy policy, 10.12 million vehicles were produced from January to April 2025, up 11% YoY.

[Fujian: Supporting Local Auto Consumption Promotion Activities with Overlapping Car Purchase Incentives] The General Office of Fujian Provincial People's Government issued the "Implementation Plan for Fujian Province's Consumption Stimulation Special Action," which proposes measures to support auto consumption. It encourages localities to develop aftermarket consumption such as auto modification, leasing, competitions, exhibitions, RV camping, and classic cars. Local governments are urged to cultivate and expand used car dealerships, promote "reverse invoicing" for used car sales, and accelerate the transition from brokerage to dealership models. Support will be provided for local auto consumption promotion activities with overlapping car purchase incentives. By the end of 2025, the province aims to have cumulatively built over 80,000 public charging piles, achieving "full township coverage" of public charging infrastructure. (Cailian Press) [XPeng Motors' He Xiaopeng: "Price Wars" Will Intensify in One Year During the Next Five Years] He Xiaopeng, Chairman of XPeng Motors, stated that the current "price war" is not yet at its most intense, predicting it may escalate further in one year during the next five years. "XPeng's priorities are: first, not to 'compete on price' but to 'compete on technology'; second, to expand globally beyond China; third, to transform new quality productive forces toward embodied intelligence." (Cailian Press) [MIIT Releases 2025 Regulatory Formulation Work Plan] The Ministry of Industry and Information Technology (MIIT) released its 2025 regulatory formulation work plan. Key items include submitting the "Interim Measures for the Comprehensive Utilization of Retired Power Batteries from NEVs" and the "Interim Measures for Total Control of Rare Earth Mining and Smelting/Separation" for ministerial review within the year. Drafting projects under urgent development include the "Management Measures for Recycling and Comprehensive Utilization of Lithium-ion Batteries for E-bikes" and the "Implementation Rules for Domestic Entities Leasing Foreign Satellite Resources." (Cailian Press) [Geely Group's Battery Subsidiary Jiyao Tongxing Passes New National Standard Testing for All Brick Battery Cell Products] Cailian Press reporters learned that all brick battery cell products from Jiyao Tongxing, a battery subsidiary of Geely Group, have obtained certification under GB38031-2025 "Safety Requirements for Power Batteries Used in Electric Vehicles" (hereinafter referred to as the "New National Standard"). Beyond meeting this standard, the brick cells also passed a more stringent military-grade safety protocol established by Jiyao Tongxing—remaining smoke-free, flame-free, and explosion-free after being simultaneously pierced by eight 0.005mm steel needles and left static for one hour. Industry note: The power battery "New National Standard" was promulgated by MIIT on March 28, 2025, and will take effect on July 1, 2026. It is regarded as the most stringent power battery safety standard to date, aiming to establish a comprehensive safety framework centered on "no fire, no explosion." [Canmax: Solid-State Battery Project Progresses Smoothly, Some Customers Have Achieved Sales After Evaluation] Canmax stated on an interactive platform that the company has developed new cathode materials, including high-voltage lithium cobalt oxide (LCO), high-nickel ternary cathode, lithium-rich manganese-based, and spinel nickel-manganese materials, centered around the core requirements of "high specific energy, high safety, high C-rate, long cycle life, and low cost" for battery cell material systems. These products are suitable for applications in solid-state and semi-solid-state lithium batteries. The lithium-rich manganese-based and other cathode materials developed by the company have completed R&D trials and been sent to multiple solid-state battery customers for evaluation, demonstrating high specific capacity and good stability within customer systems. Among them, some customers have achieved sales after evaluation. (Cailian Press) [New-Type Fuel Cell Prototype Device Validated with Triple Energy Density] Institutions including the Massachusetts Institute of Technology (MIT) in the US proposed a potentially breakthrough new technology solution and experimentally validated a new battery prototype device, which can achieve an energy density per unit weight more than three times that of the lithium-ion batteries currently used in electric vehicles (EVs). This achievement is expected to advance the electrification of transportation. Relevant research findings were published in the *Joule* journal on the 27th. (Cailian Press) Related Readings: [SMM Analysis] Domestic Lithium Carbonate Imports in April 2025 Released Battery Material Import and Export Data for April Released: Both Spodumene and Lithium Carbonate Imports Increased, with the Latter's Exports Surging! [SMM Special Report] Cobalt Product Quotations Collectively Decline: Refined Cobalt Falls by 6,200 Yuan, Smelters' Willingness to Sell Cobalt Intermediate Products Increases [Weekly Observation] Spot Price of Refined Cobalt Falls [SMM Weekly Review of Refined Cobalt Market] [SMM Weekly Review] Lithium Carbonate Prices Continue to Decline, Short-Term Market Remains Under Pressure [SMM Analysis] Can Titanium-Doped Iron Phosphate Be the Perfect Upgrade for the High-End Market? [SMM Analysis] China's Lithium Hydroxide Exports Reached 4,222 mt in April, Basically Flat MoM [SMM Analysis] China's Cobalt Intermediate Product Imports Increased Slightly in April [SMM Analysis] China's Unwrought Cobalt Exports and Imports Both Rose Sharply in April 2025 [SMM Analysis] Domestic Spodumene Imports Totaled 623,000 mt in April, Up 16.5% MoM [SMM Analysis] Both Imports and Exports of Artificial Graphite Increased MoM in April [SMM Data] Lithium Hexafluorophosphate (LiPF6) Import and Export Data for April 2025 [SMM Analysis] Analysis of Ternary Cathode Precursor Exports in April [SMM Analysis] Import and Export Data for Ternary Cathode in April Released: Imports Up 37% MoM, Exports Up 13% MoM [SMM Announcement] Adjustments to Weekly Data Points for Lithium Carbonate Before and After the Labour Day Holiday Driven by Multiple Positive Factors!The auto parts sector has seen a wave of "limit-up" rallies, with over 12 stocks hitting their daily price limits! [Hot Stocks] Refined cobalt quotes have slightly recovered, while Co3O4 prices continue to decline. The market awaits the follow-up to the June DRC ban. [Weekly Observations] [SMM Industry Insights] Global cobalt industry chain changes and Chinese market outlook following the DRC's cobalt export ban - Key points from the special speech by Wang Cong, General Manager of SMM Industry Research. The temporary suspension of tariffs has stimulated lithium carbonate futures to rise by over 3%. Can the expectation of a rush in exports help lithium carbonate "stand up"? [SMM Flash News] Retail sales growth of passenger vehicles in April reached a new decade-high, with auto production and sales in the first four months exceeding 10 million for the first time! [SMM Special Report]

[5.29 Lithium Battery News] ►Fujian: Supports local governments in launching initiatives to boost car consumption, with additional preferential policies for car purchases ►He Xiaopeng of XPeng Motors: The "price war" will intensify in one of the next five years ►The Ministry of Industry and Information Technology (MIIT) releases its 2025 regulatory development work plan ►All battery cells of the Jiyao Tongxing, a battery company under Geely Group, have passed the new national standard battery cell detection ►Canmax: The solid-state battery project is progressing smoothly, with some customers having achieved sales after passing evaluations ►A new-type fuel cell prototype device with three times the energy density has been validated

In April, the automotive consumer market gradually became more active, stimulated by the Shanghai Auto Show. New car models made their debuts in quick succession, consumer policies continued to be strengthened, and automakers rolled out various sales promotion strategies. Riding the wave of the consumer market, the sales of major new energy vehicle (NEV) automakers also surged, showing a generally positive growth trend. Data source: CPCA & automakers' official sources The "Leap, XPeng, Li Auto" pattern was further consolidated, with NIO continuing to recover. Since December last year, the top three positions in NEV sales have been alternately occupied by Leap Motor, XPeng Motors, and Li Auto. Among them, Leap Motor has held the top spot in sales for three consecutive months since March this year, with its "full-stack in-house R&D + cost control" strategy increasingly validated by sales data. In April, Leap Motor sold a total of 41,000 vehicles, up 173% YoY and 10.6% MoM, making it the only NEV brand to exceed 40,000 units in sales. In terms of sales, the more comprehensive C-series car models remained Leap Motor's sales mainstay, with the T03 and the newly launched B10 also showing relatively objective performance, contributing 9,000 and 6,648 units in sales, respectively. It is worth mentioning that the B10 achieved mass production and exceeded 10,000 units within 16 days of its launch. The Leap C10, leveraging a "low price with high specs" strategy, entered the 150,000-yuan-class SUV market, becoming a benchmark in this segment. Since its launch in March last year, it has surpassed the 100,000-unit sales milestone within a year. XPeng Motors' sales have been relatively stable over the past six months, being the only NEV automaker with a consistent delivery volume exceeding 30,000 units for six consecutive months. In April, it delivered a total of 35,000 new vehicles, up 273.1% YoY and 5.5% MoM. Among them, the mainstay car model, the XPeng MONA M03, sold 14,200 units, while the XPeng P7+ sold 7,391 units. It is worth noting that since its launch in August last year, the XPeng MONA M03 has accumulated over 100,000 deliveries, and the XPeng P7+ has also achieved 50,000 units in production within five months of its launch. NIO's sales in April reached 23,900 units, up 53.01% YoY and 58.9% MoM. Among them, NIO sold 19,300 units, and Lido (a sub-brand of NIO) sold 4,400 units. The mainstay car models remained the NIO ES6 and ET5T, accounting for 35.6% and 31.2% of NIO's total April sales, respectively. In contrast to the top three, Li Auto's sales growth has slowed down. In April, Li Auto delivered 34,000 new vehicles, up 31.61% YoY but down 7.5% MoM. Among them, the Li Auto L6 accounted for nearly half of the total sales, followed by the Li Auto L7, which sold 8,102 units. It is evident that Li Auto's main issues lie in the sluggish growth of its extended-range electric vehicle (EREV) models and the lagging layout of its battery electric vehicle (BEV) models. On one hand, as the market and technology evolve, the overall EREV market is facing pressure from BEVs. On the other hand, more cost-effective "half-price Li Auto" models are hot on Li Auto's heels. For Li Auto, accelerating the layout of the BEV market is of utmost urgency. After overcoming the silent period for BEVs brought about by the MEGA, Li Auto has already picked up the pace in the BEV market. It is expected to launch the medium-to-large-sized BEV SUV, the Li Auto i8, in July, and the Li Auto i6 around October. On May 21, 2025, multiple sources reported that Li Auto's annual sales target had been adjusted from 700,000 units set at the beginning of the year to 640,000 units. Among this, the target for the EREV L-series is 520,000 units, and the target for BEV products is 120,000 units. Currently, Li Auto's cumulative sales from January to April stand at 128,600 units, achieving 19.8% of the sales target. For the remainder of 2025, although the EREV market will continue to face further pressure from the BEV market, it will still be Li Auto's main sales driver in the short term. In terms of BEVs, Li Auto currently only has the MEGA model available for sale. To achieve the annual sales target of 120,000 BEVs, the upcoming i8 and i6 models have a significant burden to carry. Currently, Leap Motor's product lineup spans from the T03 compact car to the C-series models. Additionally, with the upcoming launch of the B-series models targeting younger consumers this year, Leap Motor has further strengthened its market share. Furthermore, Leap Motor's overseas sales performance is also noteworthy. According to relevant data from the China Passenger Car Association (CPCA), Leap Motor's cumulative export sales from January to April 2025 exceeded 13,600 units, ranking it No.1 among China's new energy vehicle brands. At the same time, Leap Motor and Stellantis are about to launch a local assembly project in Malaysia and plan to commence localized production of the C10 by the end of this year. With a deepened global layout, Leap Motor's future production and sales volumes are expected to enter the next phase. Leap Motor's sales target for this year is 500,000-600,000 units. So far, its cumulative sales for the year stand at 128,600 units. If calculated based on an annual sales target of 500,000 units, Leap Motor has already achieved 25.7% of its annual sales target. This year, the B-series lineup will include three models. In addition to the B10, there will also be the compact sedan B01 and the two-box hatchback B05, which will be unveiled in July and November, respectively. The C-series models will also undergo a comprehensive refresh. Additionally, the full-size flagship D-series model is expected to be unveiled by the end of the year. With a sufficient lineup of new models and an expanded overseas presence, achieving the sales target of 500,000-600,000 units will not be difficult for Leap Motor. Li Bin previously projected that NIO's sales would double in 2025, setting an annual sales target of 444,000 units. However, NIO's cumulative sales so far this year have only reached 66,000 units, leaving a significant gap from the target. In Li Bin's plan, the LEAPTO brand was supposed to boost sales, but its average monthly sales of 5,000 units since its launch have fallen far short of expectations. The third brand, firefly, was launched on April 19, and its subsequent sales performance remains to be seen. Similarly positioned as a second-brand model, the XPeng MONA M03 has made a substantial contribution to XPeng Motors' sales. From January to April this year, XPeng Motors delivered a cumulative 129,000 units, with the MONA M03 accounting for 47.5% of the total. At the end of last year, XPeng disclosed a sales target of 350,000 units for 2025. However, given the sales performance in the first quarter of this year, He Xiaopeng stated during the earnings call in March, "This year's sales will more than double compared to 2024." Based on the latest target of 380,000 units, XPeng Motors has already achieved 33.9% of its sales target from January to April. Xiaomi remains resilient, while AITO M8's firm orders exceed 80,000 Compared to automakers like "Lixiang, XPeng, and NIO" that have experienced relatively calm periods, April was a "stormy" month for Xiaomi EV. Since the SU7 accident on the Anhui Expressway in late March, Xiaomi EV has been embroiled in a public relations crisis and a period of promotional silence lasting over a month. Additionally, following the SU7 incident, there were controversies such as "horsepower locking" and false advertising claims about the carbon fiber hood. Despite the recent negative publicity affecting Xiaomi's sales to some extent, Xiaomi's sales in April remained strong, with the SU7 alone achieving 28,000 units in sales, down slightly by 3.4% MoM. The Xiaomi SU7 also became the top-selling pure EV in April. For Avatr, April, while not as gloomy as for Xiaomi, was marked by a controversy over wind resistance, making it a trending topic and a subject of public discussion. However, for consumers, such discussions did not affect their choice of Avatr. In April, Avatr sold 11,700 units, up 122.6% YoY. The main models were the Avatr 06 and Avatr 07. In particular, the Avatr 06, which was launched on April 19, received 12,500 firm orders within 48 hours of its launch, accounting for 47.04% of the total sales in April. Compared to Xiaomi and Avatr, Neta Auto is facing even greater challenges. On May 13, the National Enterprise Bankruptcy Reorganization Case Information Network disclosed that Hozon New Energy, the parent company of Neta Auto, New Energy had been petitioned for bankruptcy review by an advertising company. Since October last year, Neta Auto has officially ceased updating its monthly sales data. According to data from the China Passenger Car Association (CPCA), Neta's sales from January to February this year were 1,200 units. Previously, Neta had been repeatedly reported to be insolvent, with its market share shrinking to less than 2%. The industry generally believes that if Neta Auto fails to secure new financing, bankruptcy or integration is inevitable sooner or later. AITO, which is also in the midst of public scrutiny, had its sales data announced by Harmony Intelligent Mobility Alliance (HIMA) in February this year, with 12,500 M9 units and 8,443 M7 units delivered. However, there was a discrepancy with the 18,000 NEV sales reported by Seres in its January production and sales bulletin. NEV Seres responded to this discrepancy, stating, "The difference in sales data is mainly due to the different statistical methods used by Seres and HIMA," and indicated that it would "not respond" to the sales data released by HIMA. In March and April, HIMA did not disclose any further sales data for AITO. According to CPCA data, AITO's sales in April reached 27,000 units, up 7.34% YoY. Among them, AITO M9 sales were 13,100 units, accounting for 48.6% of the total sales. There is no definitive information regarding AITO's 2025 sales target, but HIMA's overall annual sales target for its "four brands" is to reach one million units. From January to April this year, AITO's cumulative sales were 72,300 units. From another perspective, AITO has certain sales potential. Since its launch on April 16, the AITO M8 has consistently set new highs in firm orders. As of May 20, the AITO M8's firm orders have exceeded 80,000 units. However, it is currently facing capacity and delivery issues. From May 5 to May 11, 2025, 1,200 AITO M8 units were delivered, and from May 12 to May 18, 2025, 1,400 units were delivered. If the capacity issues are resolved, AITO's sales prospects remain promising. Whether HIMA can achieve its goal of one million units in sales depends not only on AITO but also on the cooperation of the other "three brands." This year, Xiaomi Auto has set an annual sales target of 300,000 units, averaging 25,000 units per month. Currently, Xiaomi Auto's cumulative sales from January to April are 104,500 units, achieving an average monthly sales volume of 10,000 units. Moreover, compared to other new energy vehicle manufacturers with relatively complete product lineups, Xiaomi currently only has one car model, the SU7, on the market. Xiaomi's second car, the Xiaomi YU7, is positioned as a mid-to-large-sized SUV, directly competing with the Model Y. It is expected to be launched in June or July this year, with pricing continuing to follow Xiaomi's strategy of "high specs at low prices" to gain a price advantage. If the Xiaomi YU7 is launched as scheduled, Xiaomi has a high possibility of exceeding its 2025 sales target. This is also attributed to Xiaomi's channel expansion capabilities. In April this year, Xiaomi Motors added 34 new stores, expanding its nationwide presence to 269 stores across 74 cities, and also opened 5 new service outlets. Since May last year, the number of Xiaomi stores has been growing at a visible pace. Similar to Xiaomi, Avatr has achieved a relatively impressive target completion rate. Avatr set a sales target of 220,000 units for 2025. As of now, Avatr has delivered a total of 29,500 units, accounting for 13.39% of the annual sales target. In addition to the Avatr 06, which became the most-traded contract upon its launch, the Avatr 11 and Avatr 12 were also refreshed and launched in April and May, respectively. In the coming months, Avatr's sales are expected to see significant growth. However, to achieve the annual sales target, Avatr still needs to make efforts. New Forces in Independent Brands , with mixed fortunes After the integration of Zeekr and Lynk & Co, Zeekr Technology Group achieved total sales of 41,300 units. However, Zeekr's sales in April were only 13,700 units, down 14.7% YoY, indicating relatively weak performance. Currently, Zeekr lacks a car model with stable monthly sales exceeding 10,000 units. The former most-traded contract, the Zeekr 001, has seen sluggish sales since the beginning of this year, failing to regain its past glory. The Zeekr 007GT was launched on April 15 and achieved 10,000 units off the production line by May 15. Its subsequent sales performance is worth anticipating. VOYAH Motors achieved sales of 10,020 units in April, up 150% YoY. The main selling model is the VOYAH Dreamer, followed by the VOYAH FREE. On February 19, VOYAH Motors officially launched two new versions of the VOYAH Dreamer: the All-Wheel Drive Excellence Qiankun Edition and the All-Wheel Drive Premium Qiankun Edition. The launch of these new models has increased the monthly sales of the VOYAH Dreamer by more than 50%. In addition, at this year's Shanghai Auto Show, the VOYAH FREE + also underwent a refresh and upgrade, featuring the intelligent combination of " Huawei Qiankun Intelligent Driving ADS 4.0 + HarmonyOS Cockpit 5" and will start pre-sales in June. As an upgraded version of the VOYAH FREE, the second best-selling model of the VOYAH brand, the subsequent sales performance of the VOYAH FREE + is worth anticipating. Since the beginning of 2025, VOYAH's cumulative sales have reached 36,100 units, completing 18% of the annual sales target of 200,000 units. Based on the current sales performance of the new VOYAH Dreamer and the product strength of the FREE +, the realization of the annual sales target is relatively optimistic. Deepal achieved a total delivery volume of 20,100 units across its entire lineup in April, up 58% YoY but down 17.4% MoM. The former most-traded contract, the SL03, continued to perform poorly, with sales in April failing to reach 1,000 units, a sharp drop of 79% YoY. In addition, the sales performance of the S07 this year has also fallen short of expectations. From January to April this year, Deepal's cumulative sales reached 87,800 units. The automaker has set an annual sales target of 500,000 units for 2025, and has currently achieved 17.6% of this target. However, the new 2025 car models such as the Deepal SL03, L07, and S07 have not significantly boosted overall sales. Whether Deepal can achieve the annual sales target of 500,000 units in 2025 remains uncertain. Additionally, Deepal is still operating at a loss, with cumulative losses of 4.57 billion yuan over the past two years. It has long relied on technological support from Changan. If sales cannot continue to grow and surpass the profitability threshold, the loss-making situation will be difficult to reverse. An analyst warned, "If Deepal fails to reduce losses in 2025, it may face strategic contraction." Zeekr has set a sales target of 320,000 units for 2025, with cumulative sales currently at 55,100 units, achieving 18.4% of the target. The integration of Zeekr and Lynk & Co aims to eliminate internal friction. Zeekr focuses on the luxury market, while Lynk & Co covers the mid-to-high-end market, forming technological synergies. Currently, the integration of Zeekr and Lynk & Co is still in its early stages, with some integration issues. Additionally, Geely has announced a proposal to privatize Zeekr, acquiring all issued and outstanding shares of Zeekr and American Depositary Shares. If the privatization proposal is implemented and completed, Zeekr will become a wholly-owned subsidiary of Geely Auto, achieving privatization and delisting from the New York Stock Exchange. Li Shufu, Chairman of Geely Holding Group, stated, "Facing fierce market competition and an increasingly complex economic environment, we will assess the situation and, in line with the spirit of the Taizhou Declaration, continue to promote the integration of our automotive business, returning to a unified Geely. We will integrate technological advantages, enhance innovation and profitability, continuously create long-term value, and build a globally leading smart EV group." In the long run, Geely Group's technological synergies and resource sharing are expected to enhance Zeekr's competitiveness. After the integration dividends are released, Zeekr is expected to leverage its luxury market positioning and technological assets to achieve sales growth. For automakers, sales are like a mirror, reflecting their past actions, current status, and even future development trends. In the first month of Q2, most new energy vehicle (NEV) automakers have achieved impressive sales results, laying the groundwork for sales growth in the coming months. We look forward to a thriving automotive market in Q2.

Macro News 1. On the afternoon of May 22, Chinese President Xi Jinping had a phone conversation with French President Emmanuel Macron at the latter's request. President Xi pointed out that during his visit to France in May last year, both sides agreed to carry forward the spirit of China-France diplomatic relations, which is characterized by independence, mutual understanding, foresight, and mutual benefit and win-win results, and to endow it with new connotations of the times. Since then, China-France cooperation has achieved many new developments. Both sides should strengthen strategic communication and build consensus. They should seize opportunities to deepen cooperation in traditional areas such as investment, aerospace, and nuclear energy, and expand cooperation in emerging areas such as digital, green, biomedical, and silver economy. They should also enhance people-to-people exchanges and promote friendship between the two peoples. 2. He Lifeng, Member of the Political Bureau of the CPC Central Committee and Vice Premier of the State Council, met with Jamie Dimon, Chairman and CEO of JPMorgan Chase & Co., on the evening of the 22nd. He Lifeng expressed welcome to US enterprises, including JPMorgan Chase & Co., to continue deepening mutually beneficial cooperation with China and to contribute to the healthy, stable, and sustained development of China-US economic and trade relations. Jamie Dimon positively evaluated the outcomes of the US-China economic and trade talks and expressed his willingness to continue to deepen involvement in China's capital market, better serve multinational corporations expanding their businesses in China, and support Chinese companies in their overseas development. 3. Yesterday, the State Council Information Office held a press conference. Guo Wuping, spokesperson of the National Financial Regulatory Administration and Director General of the Policy Research Department, stated that the third batch of pilot reforms for long-term investment of insurance funds would be approved soon, with a scale of 60 billion yuan. Yan Bojin, Director General of the Issuance Supervision Department of the China Securities Regulatory Commission, stated that the fifth set of listing criteria for the Science and Technology Innovation Board would be implemented prudently to promote the implementation of new typical cases; the domestic listing environment for technology companies would be continuously optimized to support the return of high-quality red-chip technology companies for domestic listing; and a more flexible and precise counter-cyclical adjustment mechanism for new share issuance would be implemented. 4. He Yongqian, spokesperson of the Ministry of Commerce, presided over a regular press conference yesterday. A reporter asked about the US export controls on AI chips. He Yongqian stated that China firmly opposes this and will closely monitor subsequent developments by the US side, taking resolute measures to safeguard its legitimate rights and interests. 5. The People's Bank of China announced that to maintain ample liquidity in the banking system, it would conduct a 500 billion yuan Medium-term Lending Facility (MLF) operation today through fixed-quantity, interest-rate tendering, and multiple-price bidding, with a term of one year. 6. The Ministry of Commerce reported on China's outbound investment and cooperation in the first four months of this year. From January to April 2025, China's outbound direct investment across all industries amounted to 57.54 billion US dollars, up 7.5% YoY. Among this, outbound non-financial direct investment was 51.04 billion US dollars, up 5.6% YoY. Non-financial direct investment in countries participating in the Belt and Road Initiative was 12.78 billion US dollars, up 16.4% YoY. Industry News 1. The China Society of Automotive Engineers officially released the group standard "Determination Method for All-Solid-State Batteries," clearly defining all-solid-state batteries for the first time. The new standard stipulates that "all-solid-state batteries" must achieve ion transfer exclusively through solid electrolytes, establishing a strict technical demarcation from hybrid solid-liquid electrolyte batteries. 2. Last night, Xiaomi unveiled its first 3-nanometer flagship processor, the "Xuanjie O1," independently developed and designed by the company. The processor is integrated into Xiaomi's latest flagship smartphone and tablet products. Additionally, the Xiaomi YU 7 was officially launched at yesterday's event. The YU 7 is equipped with Xiaomi's Super Motor V6s Plus, delivering a maximum horsepower of 690PS. It accelerates from 0 to 100 km/h in 3.23 seconds, reaches a top speed of 253 km/h, and has a shortest braking distance from 100 to 0 km/h of 33.9 meters. 3. He Yongqian, spokesperson for the Ministry of Commerce, introduced that according to statistics from relevant departments, from September 2024 to April 2025, retail sales of home appliances maintained double-digit growth for eight consecutive months. In April, retail sales of home appliances and audio-visual equipment by enterprises above designated size increased by 38.8% year-on-year, ranking first among the 16 major categories of consumer goods in terms of growth rate. 4. In response to reports of HiPhi Auto's alleged "resurrection," Lanjing Auto called HiPhi's official customer service hotline. Staff members stated that there was no news at present, that the company had not yet announced information on resuming work and production, nor had it opened order bookings. Currently, the company is still undergoing restructuring. 5. Miao Bo, Deputy Director of the Science and Technology Department of the National Radio and Television Administration, stated at the 5th China (Beijing) Radio and Television Media Integration Development Conference on the 22nd that it is necessary to plan and promote the healthy and sustainable development of artificial intelligence in the radio, television, and audiovisual sectors with a higher stance, deeper understanding, broader perspective, and wider vision. 6. BYD's EV sales in Europe surpassed Tesla's for the first time, overtaking the US brand, which has long dominated the European EV market. According to data from market research firm Jato Dynamics, BYD registered 7,231 new EV sales in April, representing a 169% increase compared to the same period last year, placing BYD among the top 10 EV brands in terms of sales. 7. According to a report by CRIC Real Estate Research, as of the end of 2024, the total land reserves of the TOP 100 real estate enterprises amounted to 25.23 trillion yuan, a 13% decrease from the end of last year. Based on the TOP 100 real estate enterprises' total land reserve value rankings, the weighted average de-stocking period for the land reserves of the top 100 enterprises as of the end of 2024 was 6.93 years, a record high. 8. It is reported that the cryptocurrency exchange Kraken plans to allow non-US customers to trade popular stocks such as Apple, Tesla, and Nvidia in tokenized form through digital ledgers. The company stated that such "tokenized stocks" will make it easier for non-US investors to invest in US stocks. Company News 1. Xinhua Insurance announced that it would invest 10 billion yuan to subscribe for shares in private equity funds. 2. Daqian Ecology announced that Xinhua Publishing Group and Wang Zheng'an plan to jointly reduce their holdings by no more than 3.3% of the company's shares. 3. Nanjing Port announced that its holding subsidiary does not directly participate in import and export trade. 4. Zangge Mining announced that it had received a cash dividend of 1.539 billion yuan from its participating company, Julong Copper. 5. Laysen & Thorne announced that it had not signed any major contracts recently, and its production costs, sales, and other conditions were normal. 6. Tiantie Technology announced that it had signed a strategic cooperation framework agreement with Xinjie Energy, planning to cooperate in solid-state battery lithium metal anode materials and related fields. 7. Sany Heavy Industry announced that it had submitted an application for the listing and issuance of H shares to the Hong Kong Stock Exchange and published the application materials. 8. Changan Automobile stated in its investor relations activity record that it would launch 35 new digital and intelligent vehicles in the next three years and achieve solid-state battery vehicle installation verification by 2026. 9. Cao Peng, Chairman of the Technical Committee of JD Group and President of JD Cloud Business Unit, revealed that 14,000 intelligent agents had been put into "competition," with digital humans achieving sales performance exceeding 80% of human anchors. 10. 3S Bio announced that it had reached a cooperation agreement with Pfizer on Project 707, with uncertainty regarding the actual sales milestone payments and royalties received by the licensor. 11. Hongchuang Holding announced that it planned to purchase 100% of the equity in Hongtuo Industrial for 63.518 billion yuan. 12. Demashi announced that the company's actual controller would change from He Jianping to Pan Yi, and its shares would resume trading. Global Markets 1. The three major US stock indices closed with mixed changes. The Dow closed flat, the Nasdaq rose 0.28%, and the S&P 500 fell 0.04%. Most popular Chinese ADRs closed lower, with the Nasdaq Golden Dragon China Index falling 1.18%. 2. WTI crude oil futures closed down 0.6% at $61.20 per barrel; Brent crude oil futures closed down 0.72% at $64.44 per barrel. 3. COMEX gold futures closed down 0.56% at $3,295.1 per ounce, and COMEX silver futures closed down 1.39% at $33.18 per ounce. Investment Opportunities Reference 1. XPeng Motors plans to launch humanoid robots for industrial and commercial scenarios in 2026 According to media reports, at XPeng Motors' Q1 2025 earnings call, XPeng Motors Chairman He Xiaopeng stated that XPeng's physical world foundation large model would be fully applied in the AI automotive field in 2025, while a larger-scale cloud foundation large model and edge-side model were also under development. Next, XPeng Motors will advance from the R&D of L2+ assisted driving to higher-level autonomous driving technologies, specifically L3 and L4. The company aims to launch humanoid robots for industrial and commercial applications by 2026, leveraging data-driven evolution through mass production scenarios. Minsheng Securities believes that the inflection point for the industrialisation of humanoid robots has been established, with three key drivers opening up a trillion-yuan market. The humanoid robot sector is transitioning from thematic investment to growth investment, with 2025 expected to be the first year of global mass production. On the technology front, large models have broken through the versatility bottleneck, and DeepSeek's low-cost training paradigm is accelerating the deployment of AGI. On the industrial front, tech giants such as Tesla, NVIDIA, and Huawei are intensively deploying in this area. On the policy front, the government work report clearly states the need to cultivate future industries such as embodied intelligence and vigorously develop intelligent robots. 2. One of the emerging tracks in AI hardware, with overall demand radiating across all age groups It is reported that, as one of the emerging tracks in AI hardware, the AI toy market is growing rapidly. According to data from consulting firm IMARC Group, the market size reached $18.1 billion in 2024 alone, accounting for nearly 20% of the $108 billion global toy market in the same year. Northeast Securities believes that AI toys have endowed toys with the ability to "move," namely, triple capabilities of interaction, companionship, and education (Q&A). Overall demand is radiating across all age groups. AI is expected to become the core catalyst for the toy market after trendy IPs, with potential far exceeding that of the Z-generation during the boom of trendy toys. From a neutral perspective, the penetration rate of AI toys is expected to at least match that of trendy toys. It is projected that the domestic penetration rate will reach 29%, 41%, and 47% by 2026, 2028, and 2030, respectively, with the domestic market potentially approaching 85 billion yuan by 2030. 3. The increasingly diversified needs of companies going global, with policy guidance expected to open up new growth spaces for the industry According to media reports, as the financial service needs of companies going global become increasingly diversified, more and more domestic cross-border payment institutions are actively seeking higher-value overseas payment licenses as the foundation for upgrading their cross-border fund collection, payment, and exchange services. Guotai Haitong Securities pointed out that the plan proposed by the People's Bank of China and three other departments aims to enhance the functionality and global network coverage of the Cross-border Interbank Payment System (CIPS) and promote more banks to join CIPS. In addition, the State Council has deployed and implemented a strategy to upgrade pilot free trade zones and advance high-level opening up. Policy guidance is expected to support the cross-border payment industry in opening up new growth spaces. 4. The National Press and Publication Administration announces approval information for online games in May According to media reports, the National Press and Publication Administration announced the approval information for domestic online games in May, with a total of 130 games approved in May. So far this year, a total of 610 domestic games have been approved. In addition, the National Press and Publication Administration also released the approval information for imported online games in 2025, with a total of 14 imported games approved in May. Since the beginning of this year, a total of 44 imported games have been approved. In May, the issuance of game licenses proceeded at a steady pace, with the total number of domestic game approvals remaining above 100. Overall, the supply side continued to release, the trend of normalized license issuance remained firm, and the pace of industry recovery continued to advance. Wanlian Securities stated that, from the perspective of fund overweight allocations and valuation levels in the SW Media industry in Q1 2025, valuation levels have significantly recovered. The industry as a whole is still in an underweight allocation range, with significant room for improvement. Leading companies in the gaming and advertising & marketing sectors are the core focus of institutional attention. It is recommended to pay attention to gaming companies with abundant game license reserves and AI application layouts, as well as leading companies in the digital marketing and elevator media sectors.

XPeng Motors: The Turing chip-equipped car models will see a broader scale-up in production in Q3, with the next step being deployment in the fifth-generation robot. At XPeng Motors' Q1 2025 earnings call, XPeng Motors Chairman He Xiaopeng stated that XPeng's Turing chip achieved first-pass silicon success in 2024, with computing power 3-7 times that of current mainstream in-vehicle AI chips, and is progressing smoothly. Some vehicles will enter the production phase in Q2, and the Turing chip-equipped car models will see a broader scale-up in production in Q3. The next step will be to deploy the Turing chip in the fifth-generation robot, significantly enhancing the robot's on-device computing power.

[Ganfeng Lithium: The company has established a full-chain layout in the solid-state battery sector] Ganfeng Lithium (002460.SZ) stated at an earnings briefing that it has established a full-chain layout in the solid-state battery sector, possessing R&D and production capabilities in key areas of solid-state batteries, including sulphide electrolytes and raw materials, oxide electrolytes, silicon carbon anodes, lithium metal anodes, battery cells, and battery systems, and is accelerating the commercialization of solid-state batteries. The high specific energy battery developed by the company in the solid-state battery sector has achieved an energy density of 420Wh/kg, and samples with an energy density of 500Wh/kg have been developed, which can pass stringent safety tests such as the 200°C hot box and nail penetration tests. The company is actively pursuing application innovations in the solid-state battery sector. In the NEV sector, it has signed a joint development agreement with a leading international automaker, and the development and on-vehicle verification of high specific energy lithium anode batteries are underway. (Financial Associated Press) [Shanghai's Special Action Plan to Boost Consumption: Expanding and Intensifying the Implementation of Trade-in Policies for Consumer Goods] The General Office of the Shanghai Municipal People's Government issued the "Special Action Plan to Boost Consumption in Shanghai". It mentions expanding and intensifying the implementation of trade-in policies for consumer goods. To promote automobile consumption, it will implement the national automobile scrappage and renewal subsidies and the city's automobile replacement subsidy policies. It will also implement the national home appliance trade-in subsidy policy, introduce new subsidies for the purchase of digital products such as mobile phones, tablets, and smartwatches (bands), and intensify support for green home appliance, furniture, and home improvement consumption. [Japan's Exports to the US Fall for the First Time in 4 Months, with Automobile Exports Down 4.8%] On May 21, the Japanese Ministry of Finance announced the preliminary trade statistics for April, showing that exports to the US fell 1.8% YoY to 1.7708 trillion yen, marking the first decline in four months. In terms of specific items, automobile exports fell 4.8%, and exports of manufacturing equipment such as construction and mining machinery and semiconductors also declined YoY. (Financial Associated Press) [Jinlongyu, with 2 Consecutive Daily Limit-ups: Solid-State Battery-Related Business Has Not Yet Generated Long-Term Stable Revenue] Jinlongyu (002882.SZ) announced that its stock price rose by more than 20% cumulatively in terms of the deviation from the daily closing price over two consecutive trading days on May 20 and May 21, 2025, constituting abnormal fluctuations in stock trading. The company has made certain progress in the R&D of solid-state battery and its key material-related technologies, and some materials have been sent to customers for evaluation. Recently, its subsidiary, Jinlongyu New Energy (Shenzhen) Co., Ltd., signed a procurement order for high-energy-density solid-state battery cells for drones with a customer. The order amount is relatively small and is not expected to have a significant impact on the company's profits for the current and future years. The company's research and development of solid-state battery and related key material technologies constitute cross-border investment. Although orders have been received, the relevant business has not yet generated long-term stable revenue and does not currently have a significant impact on the company's overall performance. (Cailian Press) [FAW Jiefang: Has Prioritized the Layout of Solid-State Batteries] FAW Jiefang stated on an interactive platform that the high specific energy, fast charging capability, and high safety characteristics of solid-state batteries offer broad application prospects in trunk line scenarios. The company has prioritized the layout of solid-state batteries. Focusing on pain points in the commercial vehicle industry, such as short lifespan and high costs, FAW Jiefang has initiated research on new solid-state battery material systems and key preparation process technologies. It plans to integrate these technologies into the next-generation new energy long-haul trunk line platform technology of Jiefang to build a competitive advantage in total vehicle ownership (TVO) throughout the life cycle, achieve technological leadership in the industry, and maintain product leadership. (Cailian Press) [He Xiaopeng: Sales to Double in 2025, Profitability Expected in Q4] He Xiaopeng, Chairman of XPeng Motors, stated at the 2025 Q1 earnings conference that the company is confident of achieving a YoY sales growth of more than double in 2025 and expects to achieve profitability in the fourth quarter, with full-year free cash flow turning positive on a large scale. (Science and Technology Innovation Board Daily) Related Readings: [SMM Analysis: Can Titanium-Doped Iron Phosphate Be the Perfect Upgrade for High-End Development?] [SMM Analysis: China's Lithium Hydroxide Exports Reached 4,222 mt in April, Basically Flat MoM] [SMM Analysis: Slight Increase in Cobalt Intermediate Product Imports in April] [SMM Analysis: Both China's Unwrought Cobalt Exports and Imports Saw Significant Growth in April 2025] [SMM Analysis: China's Domestic Spodumene Imports Totaled 623,000 mt in April, Up 16.5% MoM] [SMM Analysis: Both Artificial Graphite Imports and Exports Increased MoM in April] [SMM Data: LiPF6 Import and Export Data for April 2025] [SMM Analysis: Analysis of Ternary Cathode Precursor Exports in April] [SMM Analysis: Ternary Cathode Import and Export Data for April Released, with Imports Up 37% MoM and Exports Up 13% MoM] [SMM Announcement: Adjustments to Weekly Lithium Carbonate Data Points Before and After the Labour Day Holiday] Driven by Multiple Positive Factors! The Auto Parts Sector Experiences a "Surge in Limit-Up" with Over 12 Stocks Hitting Their Daily Limits! [Hot Stocks] Refined Cobalt Quotes Slightly Recover, While Co3O4 Prices Continue to Decline; the Market Awaits the Aftermath of the June DRC Ban [Weekly Observation] [SMM Industry Insights: Global Cobalt Industry Chain Changes and Chinese Market Outlook After the DRC Cobalt Export Ban - Key Points from the Special Speech by Wang Cong, General Manager of SMM Industry Research] Tariff Suspension Stimulates Lithium Carbonate Futures to Rise Over 3%; Can the Rush to Export Expectations Help Lithium Carbonate "Stand Up"? [[SMM Flash News] Passenger vehicle retail sales growth in April hit a new decade-high, with auto production and sales exceeding 10 million units in the first four months! [SMM Special Report] [SMM Analysis] Impact of US tariff adjustments on China after the "Geneva Talks" on new energy end-users [SMM Analysis] 2025 Shanghai Auto Show: Intelligence, Luxury, Electrification [SMM Analysis] Sibanye Stillwater's lithium mine project in Finland sees a 17% surge in costs, but the 2026 commissioning plan remains unchanged Lithium carbonate prices fell by over 25% YoY in Q1, with miners' performances diverging sharply. When will lithium prices rise? [SMM Special Report]