On November 18, the chairman Yin Jianping responded to the impact of battery technology changes on product demand at the earnings conference held by Guoli Technology today, stating that the rapid development of new battery technologies such as solid-state batteries and sodium-ion batteries has intensified market competition, requiring continuous innovation for the company to maintain its competitive advantage. Guoli Technology has signed a strategic cooperation agreement with a leading domestic solid-state battery company, establishing a "co-creation, co-sharing, and win-win" strategic partnership focusing on deep cooperation in technology research and development, market expansion, and brand collaboration.

Guoli Technology is an electronic vacuum device manufacturer. According to Yin Jianping, in the field of new energy vehicles and charging facilities, the company's self-developed high-voltage direct current contactor plays a crucial role in power control. It serves as a key safety device in battery control systems and complete vehicle high-voltage distribution systems, providing stronger current-carrying capacity and higher safety performance compared to traditional air contactors.

In recent years, Guoli Technology has successively established cooperation with multiple well-known leaders in the new energy battery and electronic control industries, as well as complete vehicle manufacturers. Faced with increasingly intense market competition, Guoli Technology has developed new energy control box products. These products utilize the latest Y-Series high-voltage direct current contactors developed by the company for the 800-1000V direct voltage level, achieving cost reduction, miniaturization, and lightweight characteristics.

It is understood that since its launch, Guoli Technology's control box products have rapidly gained market traction, with major customers including SAIC Motor Group and Contemporary Amperex Technology. Leveraging the new generation Y-Series relays, the control box has realized integration, modularization, and miniaturization, meeting customer demands for reduced volume, weight, and cost.

Guoli Technology's innovative products in the field of new energy offer the opportunity to expand into the low-altitude economic market. Guoli Technology has previously stated that the company has generated revenue in the eVTOL field and possesses the relevant research and development teams and technological foundations.

Analyst Chen Zhou from Huaxi Securities, in a research report released in the second quarter of this year, stated that manned low-altitude flights are the most important application scenario for the future of the low-altitude economy, with eVTOL being the most promising segment. Guoli Technology simultaneously has a series of products and technological accumulation in the automotive and aviation fields, providing a great advantage in expanding the eVTOL market. It is expected that the new energy sector will continue to provide performance support.

Regarding new market and business prospects, Yin Jianping stated at today's earnings conference that the company's products have uniqueness in some specific areas, leading to many innovative projects seeking cooperation with the company. Therefore, the company's future business development prospects are broad. However, Yin Jianping also mentioned that new businesses require research and development for expansion, balanced with assessing project development risks, and the company will thoroughly analyze the industry and market outlook for new business ventures.

In the semiconductor sector, the performance growth of China National Power Corporation is a major driver. In the third quarter of 2024, China National Power Corporation's revenue was 0.214 billion yuan, an increase of 8.61% compared to the same period last year. The company stated that the main reason for the performance growth is the high prosperity of the new energy autos and semiconductor industries, leading to significant increase in customer demand compared to the same period last year.

Looking at the products, in the first three quarters of 2024, China National Power Corporation's revenue from direct current contactor products was 0.287 billion yuan, an increase of 62.6% compared to the same period last year. Its direct current contactor is mainly used in new energy autos and charging facilities; the revenue from vacuum capacitor products was 0.057 billion yuan, an increase of 112.5% compared to the same period last year, with its vacuum capacitor mainly used in semiconductor equipment manufacturing.

In the semiconductor application sector, China National Power Corporation's products are widely used in equipment such as plasma etching, enhanced chemical vapor deposition, and gas phase cleaning. According to the institutional research summary released by China National Power Corporation in May of this year, the company continues to advance its semiconductor business with Huawei, with a certain amount of product shipments already completed at that time. After the delivery of this batch of products is completed, it is expected that customer demand for product supply will increase. Additionally, the company has made incremental progress in product verification with major semiconductor equipment manufacturers such as Naura Technology Group and Advanced Micro-fabrication Equipment Inc. China this year, expecting an increase in supply volume this year.

Huang Hao, the general manager of China National Power Corporation, stated at the earnings conference that the vacuum capacitor primarily used in the semiconductor sector is a key product project developed by the company. After years of continuous research and development investment, along with the promotion of major customer application projects, the market space continues to expand rapidly with a broad application market coverage and vast market potential, promising future prospects.

China National Power Corporation views the overseas market as an important growth area for its future business development. On November 6th this year, China National Power Corporation's subsidiary, Guoli Yuan Tong, signed a cooperation agreement with the Indian listed company Sterling Tools. China National Power Corporation stated that this collaboration signifies its successful entry into the Indian and Southeast Asian markets.

Zhang Xuemei, Secretary of the Board of Directors of China National Power Corporation, mentioned that the company has established a new mode of cooperation with overseas customers through technical licensing and core device exports. In the future, it will further provide non-standard customized services, expand the variety of products for overseas exports, expand diversified overseas layouts to meet more specific and personalized customer needs.