Lyric responds to the cumulative stock price increase of over 30%: The solid-state battery whole-line project is expected to be delivered before Q3, and the company is optimistic about its development potential

Recently, the concept of solid-state batteries has been a hot topic.

In terms of specific publicly listed firms, Lyric's share price rose by over 30% for three consecutive trading days previously, but closed down today (June 26). After the market closed today (June 26), Lyric's share price was 41.29 yuan per share, with a cumulative increase of 88.54% since the beginning of the year. The company's total market value was 6.967 billion yuan.

On June 26, a person from Lyric's securities department stated, that currently, the company has been awarded the first sulphide solid-state battery whole-line project from a domestic top-tier enterprise, and delivery is expected to be completed in Q3 this year. However, the value of the entire set of equipment is relatively small, with a sales scale of just tens of millions of yuan, contributing limitedly to the company's overall performance. "The company is more optimistic about the future development potential of solid-state batteries."

Lyric's solid-state battery whole-line project is expected to be delivered before Q3

On the evening of June 25, Lyric issued an announcement on abnormal fluctuations in stock trading. The company's shares experienced cumulative closing price deviations of over 30% for three consecutive trading days from June 23 to June 25, 2025, which constituted abnormal fluctuations.

In the announcement, Lyric stated, "After self-inspection, the company's production and operation activities are normal, and no major information that should be disclosed but has not been disclosed has been found. Moreover, recent public media have not reported any major information that may affect the share price."

Regarding the abnormal fluctuations in the share price, a person from the company's board secretary's office stated that Lyric's share price fluctuations may be mainly influenced by the hot topic of solid-state batteries.

A reporter from the Science and Technology Innovation Board Daily noticed that as early as November 2024, Lyric announced through its official WeChat account that it had been awarded the first sulphide solid-state battery whole-line project from a domestic top-tier enterprise. This project covers front-end, mid-end, and back-end equipment for solid-state battery production, marking a new breakthrough in the field of solid-state battery manufacturing.

Regarding the delivery progress of this solid-state battery whole-line project, a person from Lyric's board secretary's office stated that the sulphide solid-state battery whole-line equipment project has entered the production debugging and parameter optimization stage. According to the plan, delivery is expected to be completed before Q3 this year, and revenue recognition will depend on the final acceptance report.

"Based on the traditional equipment acceptance cycle of 3-6 months, revenue may be recognized this year if it goes quickly, or it may have to wait until the customer's acceptance report is issued, until Q1 next year. After all, it's a new model, and various issues may arise after the production line starts operating. There are uncontrollable factors in the acceptance cycle and initial investment of the first set of equipment, which is a normal phenomenon," the aforementioned person from the company's board secretary's office stated.In the field of solid-state battery equipment, in addition to the awarded projects that have been disclosed, the company is also engaging in technological exchanges on all-solid-state battery production line equipment processes with multiple top-tier clients in the industry, and the progress is good.

When discussing the inflection point in the performance of the company's solid-state battery equipment, the person from the board secretary's office cited the view of Ouyang Minggao, an academician of the Chinese Academy of Sciences, stating that all-solid-state batteries are expected to start being installed in vehicles in 2027, but it may take five to ten years for them to truly achieve scale production, with mass production expected by 2030.

Today, Zhang Xiang, a visiting professor at Huanghe Science & Technology College, said in an interview with reporters from the *Science and Technology Innovation Board Daily* that the main reasons for the inability of solid-state batteries to be installed in vehicles in bulk include multiple obstacles such as technical challenges. For example, poor interface contact between electrodes and electrolytes in solid-state batteries can lead to increased internal resistance, affecting the overall performance of the battery. In addition, the continuous decline in the cost of traditional lithium batteries and the continuous improvement in process levels such as "chassis integration" have had a significant impact on solid-state batteries.

"Currently, the demand for solid-state batteries has not yet exploded. Most domestic enterprises are still in the pilot production line stage. There is significant uncertainty as to whether solid-state battery technology will achieve technological breakthroughs in 2026 or 2027," Zhang Xiang further added.

Short-term pressure on traditional lithium battery equipment business

Lyric is mainly engaged in the R&D, production, and sales of high-end intelligent manufacturing equipment and is one of the leading enterprises in the global lithium battery manufacturing equipment industry.

According to Lyric's 2024 annual report, the company achieved a full-year operating revenue of 2.482 billion yuan, a year-on-year decrease of 50.30%; the net profit attributable to shareholders was -1.044 billion yuan, compared to -188 million yuan in the same period last year; the net profit excluding non-recurring gains and losses was -1.042 billion yuan, compared to -195 million yuan in the same period last year, indicating an expansion in the scale of losses.

Regarding the reasons for the performance losses, Lyric explained that in addition to the slowdown in domestic new energy market demand downstream, a decrease in order volume, and an extension of delivery and acceptance cycles, the company relied on its long-term accumulated lithium battery customer resources and orders on hand to enter the smart factory sector. However, the initial order signing volume was relatively small, leading to a decrease in revenue.

As of the first quarter of 2025, Lyric's performance showed signs of improvement.

The financial report indicates that in the first quarter of this year, Lyric achieved an operating revenue of 715 million yuan, a year-on-year decrease of 6%; the net profit attributable to shareholders turned from a loss of 188 million yuan in the first quarter of 2024 to a profit of 12.8197 million yuan.

Today, a person from Lyric's board secretary's office told reporters from the *Science and Technology Innovation Board Daily* that as of May 31, the company had nearly 5 billion yuan in orders on hand, with a stable order structure and performance. "For the company, the first quarter of this year is a new starting point. We aim to amplify the results of the first quarter in the second quarter. Currently, it is a critical stage for the company's order delivery work. In addition, from the company's recently released equity incentive guidelines, it is planned to achieve an operating revenue scale of 3 billion yuan this year, striving to turn losses into profits," the person said.

Industry insiders believe that there is a certain degree of uncertainty regarding the company's profits. After all, from Q2 to the end of the year, there are multiple quarters in between, and whether it will be profitable largely depends on the tender and bid plans of downstream customers.

In addition, while Lyric's performance is under pressure, its accounts receivable are also high, which is worth noting.

In December 2024, the book balance of Lyric's accounts receivable was 1.602 billion yuan, showing a significant increase compared to previous years. Among this, the accounts receivable balance of the top five debtors was 1.146 billion yuan, accounting for a high proportion of 71.53% of the accounts receivable balance at the end of the period. The accounts receivable balance with an aging period of 1-2 years was 880 million yuan, accounting for 54.93% of the accounts receivable balance.

Zhang Xiang analyzed and stated to a reporter from the Science and Technology Innovation Board Daily,"Last year, the downstream demand in the domestic new energy market slowed down, with some customers adjusting their capacity planning and extending delivery and acceptance cycles, making it more difficult to collect existing accounts receivable.Furthermore, as the domestic lithium battery equipment market is highly competitive, some companies have adopted strategic low-price bidding strategies to secure orders, with customers further extending delivery and acceptance cycles, leading to a decline in the quality of accounts receivable and an increase in bad debt risks.

Facing the increasingly severe issue of accounts receivable, Lyric has also taken corresponding measures.

Lyric stated that the company has established a regular high-level communication mechanism with customers, arranged dedicated personnel to follow up on the payment process of accepted projects point-to-point, and achieved certain positive results. As of May 31 this year, the top five debtor customers of the company have repaid 325 million yuan, with a repayment ratio reaching 48.41%.

Multiple companies disclose new progress in solid-state battery business

It is worth noting that the concept stocks of solid-state batteries have been active repeatedly recently. On the news front, QuantumScape, a solid-state battery company listed on the US stock market, rose by 30.95%. The company announced that it has made breakthrough progress in its next-generation solid-state lithium metal battery technology and has successfully integrated its advanced Cobra separator process into basic battery cell production.

Recently, several publicly listed firms in China, including Minmetals New Energy and Farasis Energy, have responded to the layout and shipment progress of their solid-state battery-related businesses.

After today's market close (June 26), Minmetals New Energy stated on an interactive platform that in the field of all-solid-state battery materials, the company focuses on the R&D of high-nickel cathode materials for solid-state batteries with high interfacial flux and lithium-rich manganese-based cathode materials for solid-state batteries. Currently, some products have achieved cumulative shipments at the hundred-kilogram level.

On June 24, Farasis Energy stated on an interactive platform that the R&D progress of all-solid-state batteries with an energy density as high as 400-500Wh/kg is going smoothly, and the 60Ah sulphide all-solid-state battery is planned to be delivered in small batches to strategic partners by the end of 2025.

On June 16, CosMX Battery announced externally that it had achieved a significant breakthrough in infrastructure for its solid-state battery technology layout, with the official completion of an all-solid-state lithium battery experimental line equipped with a fully inert gas-protected environment.

Meanwhile, on the same day, Xinyuren stated that it had won the bid for the CATL-Changan Times Base project. The company has reserves in dry electrode equipment and halide solid-state electrolytes, and this bid win is expected to open up verification channels for solid-state battery equipment.

In addition, recent policy developments have been continuously driving the industrialisation process of solid-state batteries.

On March 28, the Ministry of Industry and Information Technology officially released the mandatory national standard "Safety Requirements for Power Batteries for Electric Vehicles," which will come into effect on July 1, 2026. On May 22, the China Society of Automotive Engineers officially launched the group standard "Determination Method for All-Solid-State Batteries," which, for the first time, clarifies the definition of all-solid-state batteries, addresses issues such as vague industry definitions and the lack of testing methods, and lays the foundation for technological upgrades and industrial applications.

According to a research report by Huajin Securities, the implementation of the new national standard will undoubtedly accelerate the transition of solid-state batteries from the laboratory to actual mass production. Especially given the current high emphasis on safety by automakers, it will drive the commercialization process of all-solid-state batteries.