Jiayuan Technology: Copper foil for semi-solid-state batteries has been shipped in bulk, and copper foil for all-solid-state batteries has been sampled in small batches.

On June 23, the share price of Jiayuan Technology rose. As of 9:56 a.m. on the 23rd, Jiayuan Technology was up 2.59%, trading at 17.42 yuan per share.

In terms of news: In response to the question, "What are the company's main advantages in the development of new-type anode current collectors for solid-state batteries? What is the current progress in the mass supply of this product?", Jiayuan Technology replied on the investor interaction platform on June 20: Based on the pain points of solid-state batteries, such as small solid-solid interface contact area (compared to liquid-state batteries), high interfacial impedance (compared to liquid-state batteries), slow ion migration rate (compared to liquid-state batteries), inability to withstand high temperatures, inability to withstand corrosion, and lightweight requirements, the company has developed a full technical matrix of new-type anode current collector products, including high-temperature-resistant, corrosion-resistant, high-specific-surface-area copper foil, microporous copper foil, and alloy copper foil, to meet different technical routes of solid-state batteries. Meanwhile, the company's high capacity supports the industrialisation of these products. Some products have achieved mass shipments within the year and are being tested in eVTOL electric aircraft released by leading manufacturers and prototype NEVs of mainstream automakers. The company closely monitors the development trends of all-solid-state batteries and collaborates with downstream enterprises to conduct relevant research and sample submissions for new-type anode current collector products required for different technical routes of all-solid-state batteries.

When asked, "What specific products or key layouts does the company have in the low-altitude economy?", Jiayuan Technology replied on the investor interaction platform on June 20: Batteries for low-altitude vehicles such as eVTOL aircraft and drones must simultaneously meet high energy density and high safety performance requirements, necessitating that copper foil be thin, lightweight, and highly ductile. The company has developed a full technical matrix of new-type anode current collectors, including high-temperature-resistant, corrosion-resistant, high-specific-surface-area copper foil, microporous copper foil, and alloy copper foil, to adapt to different technical routes of solid-state batteries. Some products have achieved mass shipments within the year and are being tested in eVTOL electric aircraft released by leading manufacturers and prototype NEVs of mainstream automakers.The company has already laid out battery copper foil projects for the low-altitude economy, such as ultra-thin copper foil with a thickness of less than 4.5 μm, composite copper foil, microporous copper foil, and other copper foil products.

In response to the question, "Dear Board Secretary, a year ago, the company stated that the copper foil used in the production of all-solid-state and semi-solid-state batteries had been supplied in small batches. Has the supply volume increased to a certain extent or reached a mass level now?", Jiayuan Technology replied on the investor interaction platform on June 20:Copper foil for semi-solid/condensed-state batteries has been supplied in batches, while samples of copper foil for all-solid-state batteries have been supplied in small batches. The company closely monitors the development trends of all-solid-state batteries and collaborates with downstream enterprises to conduct relevant research and sample submissions for new-type anode current collector products required for different technical routes of all-solid-state batteries.

When previously asked, "Is the company currently operating at full capacity?", Jiayuan Technology responded on the investor interaction platform on June 17th: Currently, the company's production and operation are normal, with a relatively high capacity utilization rate. For specific operational information, please refer to the company's subsequent periodic reports.

Jiayuan Technology disclosed its Q1 2025 report on April 29th, showing that in the first quarter of this year, the company achieved a total operating revenue of 1.981 billion yuan, up 113.00% YoY; net profit attributable to shareholders was 24.4564 million yuan, turning from a loss in the same period last year.

Regarding the reasons for the increase in operating revenue in the first quarter, Jiayuan Technology's Q1 report indicated that it was mainly due to increased revenue from copper foil product sales, Jiayuan Longyuan's high-precision copper alloy business, and Jiayuan New Energy's PV EPC business. Jiayuan Technology stated that the increase in net profit in the first quarter was mainly due to the rise in gross profit margin during the reporting period, leading to an increase in net profit.

Jiayuan Technology's 2024 annual report showed that in 2024, the company achieved a copper foil production of approximately 67,000 mt, up 15.57% YoY; copper foil sales of 67,700 mt, up 17.52% YoY; the company achieved a total operating revenue of 6.522 billion yuan, up 31.27% YoY; and a net loss attributable to shareholders of 239 million yuan, compared to a profit of 19.0305 million yuan in the same period last year.

Jiayuan Technology's annual report indicated that the main reasons for the company's performance changes in 2024 were as follows:First, affected by fierce competition in the lithium battery copper foil industry, copper foil processing fees dropped significantly, and the gross profit margin of products decreased YoY, affecting the company's profits.Second, credit impairment losses were accrued for receivables in accordance with accounting standards, with a relatively significant increase, mainly due to increased sales volume during the reporting period and a moderate relaxation of credit policies for major customers; third, impairment provisions were made for assets showing signs of impairment; fourth, the company's loan amounts from financial institutions increased, leading to a YoY increase in interest expenses for the current period.

Jiayuan Technology also introduced its main products and their applications in its 2024 annual report: The company's main products are electronic circuit copper foil, lithium battery copper foil, and high-performance precision copper wire. The main product specifications include various high-performance lithium battery copper foils ranging from 3.0-20μm and various electronic circuit copper foil products ranging from 9-140μm. Copper foil products are mainly applied in the lithium-ion battery, copper clad laminate (CCL), and printed circuit board industries; high-performance precision copper wire products are mainly bare copper stranded wires and tinned stranded wires ranging from 0.08-0.254mm, mainly applied in the power, telecommunications, automotive, and new energy sectors.

Regarding its business plan, Jiayuan Technology introduced in its 2024 annual report that as a high-tech enterprise focusing on the R&D, production, and sales of copper foil,in 2025, the company will take "focusing on the copper foil main business, diversifying business development, and strengthening management for efficiency improvement" as its core strategy, adhering to the development philosophy of innovation-driven and quality-first, deeply cultivating the copper foil main business, while actively exploring diversified growth paths, strengthening internal management, and striving to achieve cost reduction and efficiency improvement. The main objective for 2025 is to achieve a total copper foil capacity exceeding 120,000 mt, with both production and sales surpassing 100,000 mt. The company will focus on the following key tasks:

1. Focusing on Copper Foil, Deepening Core Business

1. Prioritizing Capacity Building to Strengthen the Foundation for Development. Against the backdrop of the rapid development of the copper foil industry, the company will ensure its leading position in the industry by optimizing the layout of production sites and expanding capacity. Firstly, optimizing the layout of production sites: The company will accelerate the infrastructure construction and equipment upgrades at production sites such as Jiangxi Jiayuan, Ningde Jiayuan, Shandong Jiayuan, and Jiayuan Times. By introducing intelligent production lines and automated management systems, the company will enhance production efficiency and reduce operating costs. Secondly, accelerating the introduction of automated equipment: By introducing advanced automated production lines, the company will further improve production efficiency, reduce labour costs, and ensure stable product quality. This will not only enhance market competitiveness but also provide customers with more reliable products. 2. Strictly Controlling Quality to Build Brand Advantages. In the fiercely competitive market, product quality is the lifeline of an enterprise. The company will build brand advantages by continuously strengthening quality management: Firstly, enhancing quality awareness among all employees: Through regular training and assessment mechanisms, the company will integrate the concept of "quality first" into every production link, raising employees' emphasis on product quality. The company will also organize "Quality Month" activities and involve all employees in quality improvement projects. Secondly, improving the quality management system: The company will strictly implement the ISO quality management system, conducting full-process monitoring from raw material procurement to outflows from warehouses to ensure consistent product quality. The company will also introduce third-party detection institutions in a timely manner to regularly evaluate product quality. Thirdly, establishing a reward and punishment mechanism: The company will incentivize employees to actively participate in quality management based on the principle of "more rewards, fewer penalties," fostering a positive atmosphere of full participation. The company will establish the "Quality Star" award to recognize teams and individuals who excel in quality control. 3. Breaking into the Market and Capturing High-End Shares. The company will continue to deepen cooperation with major customers while actively exploring overseas markets to gradually break away from homogeneous competition: Firstly, deepening customer cooperation: The company will strengthen cooperation with major customers in fields such as lithium batteries, NEVs, and ESS, striving to secure more high-value-added orders. The company will also proactively invite industry leaders to visit and negotiate, aiming to sign long-term cooperation agreements with the world's leading lithium battery manufacturers. Secondly, exploring overseas markets: The company will accelerate the introduction of strategic customers from Taiwan, China, Japan, South Korea, and Southeast Asia, adjusting the product structure to meet overseas market demands and enhancing bulk delivery capabilities. The company will also establish offices or service centers in these regions in a timely manner to provide localized support. 4. Conduct meticulous R&D to enhance core competitiveness. R&D investment is the driving force behind a company's sustainable development. The company will leverage its research platforms and align with market demands to drive the development of new products: 1) Increase R&D investment: The company will establish a special fund to support research projects by young scientists. Develop new-type copper cathode foil materials to enhance the performance of copper foil. 2) Foster an innovation ecosystem: Strengthen cooperation with universities and research institutions to cultivate a high-quality R&D team and accelerate the commercialization of research outcomes. 3) Promote intelligent integration: Combine AI large model technology with copper cathode foil manufacturing to achieve intelligent upgrades in the production process, further liberating productive forces. Utilize big data analytics to optimize production parameters and improve the yield rate.

II. Diversify and Enrich Business Formats

While deepening its focus on the copper foil business, the company will actively explore diversified growth paths, extend and complement its industrial chain, and pursue synergistic development. 1) Extend and complement the industrial chain for synergistic development. 1.1) Open up new sources of profit growth through M&A integration and new business expansion: Actively respond to national policies and seek new quality productive forces with synergistic effects on the main business. Extend and complement the industrial chain through M&A or cooperation to address the company's shortcomings in the new materials sector. 1.2) Expand new businesses: Jiayuan Longyuan will further expand its high-performance precision copper wire businesses, including bare copper wire and bare copper stranded wire, continuously optimizing its customer base and product mix, improving machine utilization rates, enhancing production process levels, and increasing the technological content of its products. In addition, Jiayuan Longyuan will actively stockpile new technologies such as high-purity copper and bonding copper wire, achieving market expansion and profitability improvement through a diversified product mix. Jiayuan Longyuan aims to achieve shipments of 14,000 mt by 2025. 2) Expand new energy businesses. The new energy sector is one of the key directions for future development. 2.1) Vigorously develop centralized ground-mounted PV and wind power: Led by Jiayuan New Energy and Jiayuan New Energy Technology, actively explore centralized ground-mounted PV and wind power projects, as well as new models such as virtual power plants. Develop and utilize wind and solar resources through cooperation with local governments and construct ESS power stations. 2.2) Accelerate the construction of distributed PV: Continuously promote the construction of PV projects at various production sites, reduce energy costs, and support green and sustainable development. Explore the installation of solar power generation systems at existing production sites to reduce carbon emissions. 3) Consolidate traditional businesses. While expanding into new businesses, the company will continue to consolidate its traditional businesses and maintain steady growth in wire drawing and anode plate coating production. Continuously optimize production processes: Improve production efficiency and reduce unit costs by introducing advanced equipment and technologies. Enhance the corrosion resistance of anode plates by adopting new coating technologies.

III. Focus on Management to Reduce Costs and Increase Efficiency. 1. Strengthen enterprise management. 2. Enhance personnel quality.

In the future, the company will continue to uphold its mission of "creating value for customers and contributing to society," constantly striving for excellence, and creating greater value for shareholders, customers, and society.

The above statements are forward-looking statements regarding the company's 2024 business plan and do not constitute any commitment by the company to investors, nor do they represent the company's profit forecast for 2024. The achievement of these goals depends on various factors such as changes in market conditions, and there are uncertainties involved. Investors should maintain sufficient awareness of these risks and understand the difference between the business plan and performance commitments.