Jiayuan Technology: The company's shipments of solid-state battery copper foil are expected to reach around 100 mt in 2025

On July 10, the stock price of Jiayuan Technology experienced a decline. By the close of trading on the 10th, Jiayuan Technology's shares fell by 2.97%, closing at 21.26 yuan per share.

According to the investor relations activity record sheet announced by Jiayuan Technology on July 8:

1. We have noticed that the company is one of the few in the industry to have achieved commercial progress in the field of solid-state batteries. Could the company provide a more detailed introduction to the current status and future expectations of its solid-state battery copper foil business?

Jiayuan Technology replied: The technologies currently in reserve by the company have basically met the needs of all technical routes for solid-state batteries. The company has developed products such as high specific surface area boundary-expanding copper foil and double-sided nickel-plated copper foil to address the issues of interface contact and corrosion resistance of the negative current collector in solid-state batteries, thereby enhancing battery performance and basically meeting the needs of all technical routes for solid-state batteries. In response to the future development trends of solid-state battery technology, the company is collaborating with downstream enterprises to conduct research and sample delivery on new-type negative current collector products required for different technical routes of the next-generation batteries. In the future, the company will produce and sell relevant products based on the market demand and customer requirements for copper foil used in solid-state batteries.

2. What breakthroughs has the company achieved in the R&D of copper foil for solid-state batteries?

Jiayuan Technology replied: The company is closely monitoring the development trends of all-solid-state batteries and collaborating with downstream enterprises to conduct research and sample delivery on new-type negative current collector products required for different technical routes of all-solid-state batteries.

In 2024, the company launched high specific surface area boundary-expanding copper foil, which specifically addressed the issues of insufficient solid-solid interface contact area and interface impedance of the negative current collector in solid-state batteries. In the same year, the company introduced special alloy copper foil using a multi-metal composite technology, overcoming the challenges of structural instability and interface failure of the current collector in solid-state batteries under high energy density, high temperature, and high voltage conditions. In 2025, the company launched double-sided nickel-plated copper foil, which specifically addressed the issues of high temperature and corrosion resistance of the negative current collector in solid-state batteries. This product is currently compatible with semi-solid/solid-state battery technologies.

Meanwhile, the company has developed porous copper foil since 2017, progressing from the first generation of mechanical punching, the second generation of laser drilling, to the current third generation. Through a three-dimensional porous framework structure, it addresses the issues of uneven lithium metal deposition and dendrite penetration risks in the negative electrode of solid-state batteries. In 2023, the company introduced composite copper foil, which adopts a polymer substrate-metal coating composite structure, capable of addressing the synergistic challenges of lightweight and inherent safety in solid-state batteries, providing core material support for the industrialisation of high-safety, long-life solid-state battery metal negative electrode systems.

Currently, the company is one of the few to have achieved commercial progress in the field of solid-state batteries, and its copper foil products have covered the copper foil needs of both semi-solid and all-solid-state batteries. Currently, the company has supplied products in bulk and small quantities to five enterprises, and has also sent samples for testing to multiple enterprises, achieving phased results. The company's copper foil products for solid-state batteries are used not only in new energy vehicles but also in the low-altitude economy. Among them, the high-temperature-resistant copper foil is used in solid-state batteries and integrated into the eVTOL (electric vertical takeoff and landing aircraft) released by top-tier producers.

3. What is the shipment situation of copper foil in solid-state batteries?

Jiayuan Technology replied: For semi/all-solid-state batteries, the company has developed products such as high-specific-surface-area copper foil with expanded boundaries and double-sided nickel-plated copper foil, with some products already supplied in bulk and small quantities. Meanwhile, the company's relevant copper foil products for solid-state batteries have also been sent for testing to multiple enterprises, achieving phased results.In 2025, the company's copper foil shipments for solid-state batteries are expected to be around 100 mt, accounting for approximately 1‰ of the company's overall shipments.In addition, besides supplying products in bulk and sending samples for testing, the company has also reached strategic agreements with multiple customers to jointly develop copper foil products for the next generation of solid-state batteries.

4. What is the current product structure and new product development situation of the company?

Jiayuan Technology replied: In terms of lithium battery copper foil, the company's production lines for lithium battery copper foil operate efficiently, with a capacity utilisation rate of 95%, fully leveraging its capacity advantages.The high-end lithium battery copper foil products have strong market competitiveness, with a market share of 50%.The company ranks among the top in the industry. The company's product matrix for lithium battery copper foil is rich, covering a full range of products including extremely thin, medium-high strength, ultra-high strength, and super-high strength copper foils. In the field of extremely thin copper foil, 4.5-micron and 4-micron products have achieved stable mass supply, 3.5-micron products have entered the small-batch supply stage, and 3-micron products have taken the lead in possessing mass production capabilities. Medium-high strength copper foil accounts for over 50% of shipments and has become the main product; ultra-high strength copper foil has achieved large-scale supply, and super-high strength copper foil has also passed customer testing and begun mass supply.

In terms of electronic circuit copper foil, the company has promoted the domestic substitution process of high-end electronic circuit copper foil, achieving technological breakthroughs in high-performance electronic circuit copper foil such as high-grade RTF (reverse treated copper foil), HTE (high temperature and high elongation copper foil), HVLP (hyper very low profile copper foil), IC packaging extremely thin copper foil, and high-density interconnection (HDI) copper foil. Ultra-thin copper foil (UTF) for PCBs has been mass-produced, and positive progress has been made in the development of RTF/HVLP and other electronic circuit copper foil products for high-frequency and high-speed circuits and IC packaging applications. Among them, RTF has passed the certification testing of top-tier enterprises and possesses mass production capabilities, while other products have also passed the laboratory verification stage and are undergoing testing with downstream customers.

In terms of precision copper wires, the company continues to deeply cultivate the high-end market at home and abroad with a global perspective, leveraging its technological and capacity advantages to accelerate the expansion of its high-end precision copper wire capacity. Currently, it has reached cooperation intentions with important overseas customers.

In addition, the company is conducting R&D on cutting-edge new technologies such as copper foil, composite copper foil, micro-perforated copper foil, monocrystalline copper foil, carrier copper foil, and new-type special copper foil required for solid-state batteries, greatly enriching the company's product structure.

5. What is the designed capacity scale of the company in tons? What is the current capacity utilization rate?

Reply from Jiayuan Technology: The company has completed the construction of six production sites, with a planned capacity of approximately 250,000 mt. Currently, its annual capacity exceeds 120,000 mt, ranking among the top copper foil enterprises in China in terms of capacity scale. At present, the company's capacity utilization rate exceeds 90%. With the increase in orders in Q3, the company's capacity utilization rate will gradually increase accordingly. The company will also seize market opportunities and reasonably plan capacity expansion projects based on downstream market demand and its own financial reserves. The company expects to achieve a total capacity of over 130,000 mt by 2025, with both production and sales exceeding 90,000 mt.

6. What is the supply and demand situation and competitive landscape in the copper foil industry? How do you view the future price trend?

Reply from Jiayuan Technology: In recent years, the copper foil industry has rapidly expanded its capacity, leading to severe cut-throat competition, overcapacity, oversupply, and fierce price competition, resulting in a significant decline in copper foil processing fees. The overall gross profit margin of copper foil enterprises has been relatively low. Last year, processing fees reached their bottom, and currently, processing fees for some products have rebounded slightly. Driven by demand growth, there are clear signs of recovery in the lithium battery industry, with a gradual improvement trend. The demand for electric heavy trucks and electric ships has begun to increase significantly. At the same time, the industry association has called for avoiding vicious competition and blind capacity expansion. It is expected that the annual growth rate will remain above 20% from 2025 to 2030. The application of solid-state batteries in scenarios such as low-temperature environments and commercial vehicles will further expand market demand.

The company expects that processing fees for some high-end customized products will still have room for increase this year. The extent of the increase needs to be comprehensively judged based on factors such as market supply and demand, customer orders, etc. in H2.The company will continue to strengthen communication and cooperation with customers to enhance its competitiveness and profitability. At the same time, the company will also continuously optimize its product structure and improve product quality and service levels. In H2 of this year, with the increase in the proportion of high value-added products, the introduction of overseas customers, and the expansion of sales, it will bring more profit growth points to the company, continuously improving its profitability and market competitiveness.

7. What are the company's future profit growth points and main driving factors?

Reply from Jiayuan Technology: The main driving factors for the company's future profit growth are mainly reflected in the following aspects:

(1) Accelerating new product R&D and iteration. The company will further expedite the R&D and manufacturing of various high-performance copper cathode products, promoting the domestic substitution process of high-end electronic circuit copper foil, developing new products that align with market trends, continuously enriching and optimizing the product mix, gradually increasing the proportion of high-value-added products such as high-tensile-strength, high-elongation lithium battery copper foil and high-end electronic circuit copper foil, effectively enhancing product quality, and boosting product competitiveness and market share through technological innovation;

(2) Expanding overseas market customer base. Actively exploring overseas emerging markets, tapping into high-quality overseas customer resources, expanding business coverage, increasing product market share, accelerating the introduction of strategic customers from Taiwan, China, Japan, South Korea, and Southeast Asia, adjusting the product mix according to overseas market demands, and enhancing batch delivery capabilities;

(3) Focusing on deepening cooperation with high-quality customers. Increasing service investment in high-quality customers with good credit and stable procurement needs, enhancing customer loyalty and order scale through customized solutions and supply chain collaboration optimization, strengthening cooperation with major customers in the fields of lithium battery, NEV, and ESS, and striving for more high-value-added orders. Actively inviting industry leaders to visit and negotiate, aiming to sign long-term cooperation agreements with the world's leading lithium battery manufacturers;

(4) On the basis of consolidating its position in the copper foil industry, the company will thoroughly implement the national "dual carbon" and green energy sustainable development policies, earnestly implement local government strategic deployments, explore and carry out high-performance precision copper wire, PV power generation, and ESS businesses, striving to maintain a leading position in the fierce market competition;

(5) The company will also actively respond to national policies, seek new quality productive forces with synergistic effects with its main business, extend and complement the industrial chain through mergers and acquisitions or cooperation, enhance the company's comprehensive competitiveness, improve profitability, and open up new profit growth points.

8. How is the company's overseas market expansion going?

Reply from Jiayuan Technology: The overseas international top battery enterprise customers developed by the company have started to increase their orders since this year, with product gross profit margins surpassing those in the domestic market. This year, the company will actively enter overseas emerging markets, continuously tap into high-quality overseas customer resources, broaden business coverage, and increase the overseas market share of its products. Currently, the company has introduced overseas customers from Japan, South Korea, Europe, and the United States, and the next step will be to accelerate the introduction of strategic customers from Southeast Asia. The company will continuously adjust its product structure to meet overseas market demand and enhance its mass delivery capabilities.

9. Does the company have any M&A or restructuring plans?

Jiayuan Technology replied: Given the significant cyclical nature of the copper foil industry, to solidify the foundation for the company's stable development, we are actively promoting a second growth curve that can synergize with our core business. Through diversified layouts, we aim to provide new momentum and support for the company's long-term stable growth. The company will focus on new quality productive forces sectors such as AI computing power, semiconductors, robotics, and the low-altitude economy, extending and complementing the core business chain while achieving synergistic development, thereby continuously enhancing the company's intrinsic value and creating greater value for shareholders. Should the company have any relevant plans in the future, it will strictly comply with legal and regulatory requirements to fulfill information disclosure obligations in a timely manner.

10. What are the follow-up arrangements for the company's convertible bonds? Why hasn't the price been adjusted?

Jiayuan Technology replied: The company's board and management will closely align with strategic and operational objectives to actively promote the conversion of convertible bonds. The outstanding balance of convertible bonds is approximately 1 billion yuan, with a maturity of one and a half years. Currently, the company's production and operations are normal, with stable cash flow and good credit standing, demonstrating strong repayment capability. During the term of the convertible bonds, the company will continue to strengthen operational management to lay a solid foundation for conversion, advance strategic implementation, enhance market communication, and further improve market recognition of the company's value, safeguarding the interests of investors. The company's stock price is influenced by various factors, including macroeconomics, market sentiment, industry development, and corporate performance. The current stock price does not accurately reflect the intrinsic value of the company's long-term development. The company will continue to improve operational management, enhance core competitiveness, and strive for better performance to reward shareholders.

Previously asked, "What specific products or key layouts does the company have in the low-altitude economy?" Jiayuan Technology responded on the investor interaction platform on June 20: Batteries for eVTOL aircraft, drones, and other low-altitude vehicles must simultaneously meet high energy density and high safety performance, requiring copper foil to be lightweight and highly flexible. 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 solid-state battery technology routes. Some products have achieved mass delivery within the year and are being used in eVTOL electric aircraft released by leading producers and NEV prototype testing by mainstream automakers.The company has already deployed copper foil projects for the low-altitude economy, such as ultra-thin copper foil with thickness <4.5μm, composite copper foil, and microporous copper foil.

Jiayuan Technology previously disclosed its Q1 2025 report, which showed that in the first quarter of this year, the company achieved a total operating revenue of 1.981 billion yuan, up 113.00% YoY; and a net profit attributable to shareholders of 24.4564 million yuan, turning from a loss to a profit YoY.

Regarding the reasons for the increase in operating revenue in Q1, Jiayuan Technology's Q1 report stated: It was mainly due to the increase in revenue from copper foil product sales, as well as businesses such as Jiayuan Longyuan's high-precision copper alloy and Jiayuan New Energy's PV EPC. Jiayuan Technology stated: The increase in net profit in Q1 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; 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 showed that in 2024, the main reasons for the company's performance changes were as follows:Firstly, affected by the fierce competition in the lithium battery copper foil industry, copper foil processing fees dropped significantly, and the gross profit margin of products decreased YoY, impacting the company's profits; Secondly, credit impairment losses were recognized for receivables in accordance with accounting standards, with a relatively significant increase, mainly due to the increase in sales volume and the moderate relaxation of credit policies for major customers during the reporting period; Thirdly, impairment provisions were recognized for assets showing signs of impairment; Fourthly, the company's loan amount 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 uses 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 fields such as power, communications, automobiles, and new energy.

Regarding business plans, Jiayuan Technology introduced in its 2024 annual report: 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 and expanding business forms, 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 goal for 2025 is to achieve a total copper foil capacity of over 120,000 mt, with both production and sales exceeding 100,000 mt.