On November 22, according to The Star Daily (Reporter Yu Jiaxin), at Li Yuanheng's earnings conference for the third quarter of 2024, regarding multiple investors' inquiries about how to stop the losses and company strategy-related issues, the chairman and president Zhou Junxiong stated, "The new energy market environment (is facing) complex and variable challenges, with an increasingly upgrading competitive situation, resulting in (the company) experiencing slowing business growth and operational performance pressure, leading to losses."

Zhou Junxiong further stated, "The company will dynamically adjust the operation strategy and optimize management operations in response to changes in the market environment, expand overseas markets, layout photovoltaic equipment, deeply explore power lithium battery and consumer lithium battery equipment businesses, and focus on launching market-competitive intelligent warehousing logistics production lines, cell assembly lines, coating machines, formation and capacity machines, etc., to minimize the adverse effects of the industry cycle downturn and operational losses."

"On the other hand, the company will continue to maintain a research and development investment of about 10%, especially in core equipment production lines such as the Hai Kui Cloud Intelligent Factory, coating, stacking, blade batteries, large cylindrical batteries, solid state batteries, sodium batteries, and perovskite." Zhou Junxiong said.

In the first three quarters of this year, Li Yuanheng achieved a revenue of 2.323 billion yuan, a year-on-year decrease of 45.17%; realizing a net income of -0.52 billion yuan, a year-on-year decrease of 3328.84%. Among them, in the third quarter of this year, the company reported a net loss of 0.347 billion yuan, turning from profit to loss compared to the previous quarter.

According to Li Yuanheng at the earnings conference, it mainly engages in the research, development, production and sales of high-end intelligent manufacturing equipment, primarily providing smart factory solutions for new energy sector (lithium battery, photovoltaic, hydrogen energy, electric drive, intelligent warehousing) enterprises, "Facing the rapid development opportunities in the industry, the company will seize the new equipment demands arising from the industrial application of new technologies and new processes."

On November 12 of this year, Li Yuanheng announced that it had won the bid for the first sulfide solid state battery production line project of a leading domestic enterprise, which covers the upstream, midstream, and downstream equipment of solid state battery production.

At the earnings conference, regarding the progress of the aforementioned project which many investors were concerned about, Li Yuanheng's chairman and president Zhou Junxiong stated, "The solid state battery sulfide production line that the company has won the bid for is currently in the internal design and manufacturing stage."

The industrialization of solid state batteries is currently progressing rapidly, with significant potential for future development. The company's solid state battery business began its layout as early as 2020, and has provided Qingtao Energy with equipment such as formation and capacity, laser welding, laser molding integration machines, and cell assembly lines. The main equipment has been delivered. Currently, the company has successfully developed prototypes of key equipment such as dry electrode, solid electrolyte pressing transfer, and lithium copper composite equipment, and has achieved phased results in equipment for forming insulation adhesive frames for electrode sheets and high voltage formation and capacity devices." said Zhou Junxiong.

However, Zhou Junxiong also acknowledged: "The company is actively collaborating with customers to develop solid state battery equipment. Revenue is expected to be relatively small in 2025, but will gradually increase with industry development and customer demand."

Recently, Liyuanheng disclosed that it has received a batch order for high-speed intelligent coating machines from a leading automotive enterprise. In response, Zhou Junxiong stated that the coating order for which the company recently announced winning the bid is expected to be delivered and recognized as revenue in 2025.

"In terms of market competition, the domestic market of the lithium battery industry is still in a destocking phase, while the overseas market will become a new direction for the business expansion of lithium battery equipment companies," said Zhou Junxiong.

As for the overseas market, as of now, Liyuanheng has established subsidiaries and offices in 13 countries and regions overseas, providing localized services for enterprises going abroad and local clients.

Zhou Junxiong stated, "In the coming years, the investment enthusiasm for overseas new energy business is expected to continue to increase. The company will closely follow domestic enterprises going abroad, strengthen communication with overseas customers, and continuously deepen markets in Southeast Asia and Europe and the United States, providing global new energy clients with quality high-end equipment production lines for lithium batteries, photovoltaic equipment, and intelligent warehousing logistics."

Regarding merger and acquisition matters of interest to investors, Zhou Junxiong stated, "The company will actively evaluate and seize merger and acquisition opportunities based on market, policy, and other factors, according to the company's global strategy and development needs. If there are relevant plans, the company will strictly fulfill its information disclosure obligations in accordance with relevant regulations in a timely manner."