Shenzhen Dynanonic Co., Ltd. (300769)

Equity Research Report | Sector: Lithium Battery Materials (Lithium Iron Phosphate Cathode Materials) | Report Date: September 13, 2026 | 2026-09-11 Close (Friday); Market snapshot source page timestamps: Sina Finance 2026-09-11 15:15/16:29, East Money Qian Gu Qian Ping 2026-09-11 16:00, 9fzt 2026-09-11 market close

This report is automatically compiled and generated by AI based on public information, for reference only, and does not constitute investment advice.

1. Core Summary

Dynanonic achieved operating revenue of RMB 10.3998 billion in H1 2026, up 167.92% year-on-year, with net profit attributable to parent of RMB 455.4 million, up 216.55% year-on-year, turning profitable from a loss of RMB 390.8 million in the same period last year. Non-GAAP net profit attributable to parent was RMB 456.4 million, up 206.34% year-on-year, gross margin was 11.3% (up 13.5pct year-on-year), net margin attributable to parent was 4.4% (up 14.4pct year-on-year), and basic earnings per share was RMB 1.63. In H1 2026, LFP shipments were 202,000 tonnes (up 65% year-on-year, per Soochow Securities estimates), LFP revenue was RMB 10.2 billion (up 179% year-on-year), and capacity of 450,000 tonnes remained at full utilization. However, profitability weakened sequentially: Q2 2026 revenue was RMB 6.063 billion (up 39.82% quarter-on-quarter), net profit attributable to parent was RMB 191 million (down 28.10% quarter-on-quarter), and Q1 2026 net profit attributable to parent was RMB 265 million.

The core variables of the company's performance are lithium prices and its position in the industry chain. Among its upstream procurement, lithium source (lithium carbonate) accounted for 81.92% of procurement value in 2023, 66.62% in 2024, 69.29% in 2025, and 80.03% in H1 2026. In H1 2026, the average procurement price of lithium source was RMB 139,000/tonne, up 111.29% from 2025, and the three raw materials (lithium source/iron source/phosphorus source) together accounted for 93.26% of procurement value. Per the company's own estimates for 2022, for every 5% increase in lithium source price, the sensitivity coefficient of comprehensive gross margin was -3.14 and that of net profit attributable to parent was -5.01; a roughly 19.95% increase in lithium source price would bring net profit to zero. Downstream customer concentration has long been high (top five customers accounted for over 90% of revenue on a 2018–2023H1 basis; the largest customer CATL accounted for 47.65% in 2023H1). Pricing follows a "cost + reasonable profit" and "one order, one price" model. The company is a link in the lithium price transmission chain rather than being unilaterally squeezed on price, but transmission involves time lags.

Cash flow and inventory pressures are rising in tandem: H1 2026 net operating cash flow was -RMB 1.24 billion (down 62% year-on-year), and inventory at end-Q2 2026 was RMB 2.71 billion, up 117% from the beginning of the year. Full-year 2025 net profit attributable to parent was -RMB 821 million (narrowing loss by 38.63% year-on-year), Q4 2025 standalone net profit attributable to parent was -RMB 280 million with approximately RMB 300 million in asset impairment losses recognized, and 2025 net operating cash flow was -RMB 768 million (down 636.58% year-on-year). At end-2025, the company's debt-to-asset ratio was 63.93% (up 2.58pct from the prior year), ROE was -16.45%, the parent company's undistributed profit was -RMB 347 million, and consolidated undistributed profit was -RMB 531 million. No cash dividend, no bonus shares, and no capital reserve conversion were planned for 2025.

The private placement and capacity expansion are advancing in parallel: the company plans to issue shares to no more than 35 specific investors to raise no more than RMB 2.9 billion, of which RMB 2.15 billion will be invested in the "Lithium Battery New Materials Integration (Phase I)" project (the Qujing 200,000 tonnes/year phosphate new materials project, with total project investment of RMB 2.400 billion, targeting fourth/fifth-generation high-compaction-density lithium iron phosphate and other high-end products), and RMB 750 million will supplement working capital. It was accepted by the Shenzhen Stock Exchange on 2026-08-24, and application documents were updated on 2026-09-09 due to semi-annual report disclosure. It still needs to pass SZSE review and obtain CSRC registration approval. On capacity, the Qujing 200,000-tonne project is under construction, and the company expects it to reach full production by mid-2028. As of the 2026-09-11 close, the share price was RMB 39.51 (-3.35%), total market capitalization was RMB 11.070 billion, price-to-book was 2.04, TTM P/E was approximately 438x while the dynamic P/E annualized based on the 2026 interim report was approximately 12–13x — the two measures differ enormously and must not be conflated.

2. Company Overview

2.1 Basic Information

2.2 Main Business and Product Portfolio

• Nano lithium iron phosphate (core basic product, accounting for 96%+), using the proprietary "self-heating evaporative liquid-phase synthesis method," featuring high compaction density/high kinetics (for power applications) and ultra-long cycle life of over 10,000 cycles (for energy storage), having iterated to fourth-generation high-compaction and fifth-generation ultra-high-compaction
• Lithium manganese iron phosphate (LMFP, next-generation cathode), produced via liquid-phase method, already mass-produced and "first to be installed in vehicles" entering commercialization
• Lithium supplementation enhancer (cathode lithium supplementation material), already validated by multiple core customers and shipped in volume; one of the important materials for solid-state/semi-solid-state batteries (the "solid-state battery" description comes from the Cailian Press stock page, a single source, subject to the annual report)
• Historical note: At listing, the company also produced carbon nanotube conductive liquid (2021 revenue only RMB 19 million, 0.40% share), which has now essentially exited the main product lineup

2.3 Industry Chain Position and Cost-Profit Structure

The company is positioned in R&D, production, and sales of core materials for lithium-ion batteries, with products used in power batteries and energy storage batteries, and end markets in new energy vehicles and energy storage. Revenue structure (per the fundraising prospectus, in RMB 10,000): 2023 phosphate-based cathode materials 1,691,500.19 (99.66%), other 5,750.70 (0.34%), total 1,697,250.89; 2024 736,116.78 (96.69%), 25,177.34 (3.31%), total 761,294.12; 2025 848,905.75 (97.39%), 22,743.49 (2.61%), total 871,649.24. Source: 2026 semi-annual financial data updated version of the fundraising prospectus.

• Actual procurement categories: lithium source (primarily lithium carbonate), iron source (steel billet), phosphorus source — not vaguely "raw materials." The three together accounted for 91.35% of procurement value in 2023, 84.73% in 2024, 88.98% in 2025, and 93.26% in H1 2026.
• Procurement value structure (RMB 10,000/share): 2023 lithium source 988,641.11 (81.92%), iron source 30,789.33 (2.55%), phosphorus source 82,990.47 (6.88%); 2024 lithium source 458,772.23 (66.62%), iron source 26,743.93 (3.88%), phosphorus source 97,945.77 (14.22%); 2025 lithium source 491,394.86 (69.29%), iron source 29,493.64 (4.16%), phosphorus source 110,114.45 (15.53%); H1 2026 lithium source 755,488.18 (80.03%), iron source 25,745.35 (2.73%), phosphorus source 99,070.63 (10.50%).
• Procurement unit prices (RMB 10,000/tonne): lithium source 2023 22.27 → 2024 7.67 (-65.55%) → 2025 6.58 (-14.30%) → H1 2026 13.90 (up 111.29% from 2025); iron source 0.38/0.36/0.32/0.32; phosphorus source 0.59/0.59/0.63/0.74. Earlier: lithium source unit price 2020 3.15 → 2021 9.31 → 2022 39.61 (+325%) → 2023Q1 37.51. Source: same fundraising prospectus; 2023 inquiry letter response.
• Cost elasticity: direct materials as a proportion of operating costs 2020 72.17% → 2021 84.92% → 2022 93.14% → 2023H1 91.82%; of which lithium source as a proportion of direct materials was 84.52% in 2022 and 86.08% in 2023H1.
• Bargaining power assessment: The company is a "price taker" for lithium source. Per the company's own estimates for 2022, for every 5% increase in lithium source price, the sensitivity coefficient of comprehensive gross margin was -3.14 and that of net profit attributable to parent was -5.01; a roughly 19.95% increase in lithium source price would bring net profit to zero, and a roughly 31.86% increase would bring gross margin to zero. → Upstream lithium prices are the company's first variable for profit.
• Upstream positioning (hedging actions): Qujing subsidiary has laid out lithium phosphate capacity; the Dynanonic New Energy Industry Fund has laid out lithium mining resources in Sichuan; strategic investment in lithium source supplier Tianqi Lithium; in June 2022, signed a long-term lithium carbonate supply framework agreement with Tianqi Lithium for 2022/7–2024/12 (no specific amounts involved).
• Energy: Electricity procurement 2023 RMB 510,688,000/1.22 billion kWh/RMB 0.42; 2024 RMB 473,436,200/1.146 billion kWh/RMB 0.41; 2025 RMB 519,247,200/1.398 billion kWh/RMB 0.37 (-10.06%); H1 2026 RMB 357,636,000/870 million kWh/RMB 0.41. The declining electricity price benefits from Yunnan's market-based hydropower pricing plus wet-season policies — this is a cost rationale for the company's site selection in Qujing.
• Customers: CATL, EVE Energy, BYD and other leading battery manufacturers (direct sales model, "product + overall solution").
• Top five customer concentration (as % of operating revenue): 2018 91.75% / 2019 90.36% / 2020 90.04% / 2021 97.33% / 2022 94.01% / 2023H1 96.52%.
• Largest customer CATL share: 2018 67.90% / 2019 65.08% / 2020 65.28% / 2021 69.66% / 2022 49.31% / 2023H1 47.65%. Source: Convertible bond prospectus and inquiry letter response. ※ Note: These figures are for 2023 and earlier; the company has not disclosed updated customer shares in the retrieved materials; single source (all company announcements, credible but dated).
• Structural bargaining dynamics: Unlike the "annual price reduction" model for power batteries, the company's pricing follows "cost + reasonable profit," with major customers essentially having no explicit price adjustment agreements and adopting "one order, one price"; BYD can negotiate periodically on a quarterly/monthly basis. → Prices are linked bidirectionally with market prices of lithium carbonate/lithium iron phosphate; the company is more "a link in the lithium price transmission chain" rather than being unilaterally squeezed on price, but transmission involves time lags (during lithium price upswings, selling price adjustments lag market prices; during lithium price downswings, high-priced inventory cannot be passed through to downstream).
• Deep binding mechanisms: Joint ventures with CATL (Qujing Lintie, CATL holds 40%) and EVE Energy (Qujing Defang EVE, EVE Energy holds 40%, 100,000 tonnes LFP); JV capacity supplies the corresponding battery customers on a priority basis.
• The research notes do not provide the ratio of accounts receivable to net profit or revenue, accounts receivable turnover days, prepayments/accounts payable, or other specific working capital occupation data. This data is missing, and it is not possible to judge the working capital evidence of actual bargaining relationships in the industry chain. Refer to the latest annual report for specifics.
• Top five customer concentration figures are on a 2018–2023H1 basis (as % of operating revenue: 2018 91.75%, 2019 90.36%, 2020 90.04%, 2021 97.33%, 2022 94.01%, 2023H1 96.52%), sourced from the convertible bond prospectus and inquiry letter response, a single source (company announcements, credible but dated). The company has not subsequently disclosed updated customer shares in the retrieved materials; refer to the latest annual report for specifics. Largest customer CATL share: 2018 67.90%, 2019 65.08%, 2020 65.28%, 2021 69.66%, 2022 49.31%, 2023H1 47.65%. Regarding upstream procurement concentration, the research notes do not disclose specific supplier concentration data.

The company is positioned in the middle of the smile curve (cathode material processing and manufacturing segment), belonging to midstream processing with a thin-margin positioning: it is a price taker for upstream lithium source (lithium carbonate), and lithium prices are the first variable for profit (per 2022 estimates, a roughly 19.95% increase in lithium source price would bring net profit to zero); downstream are leading battery manufacturers such as CATL, EVE Energy, and BYD, with top five customer concentration above 90% over the long term (2018–2023H1 basis), pricing follows "cost + reasonable profit" and "one order, one price," making the company a link in the lithium price transmission chain rather than being unilaterally squeezed on price, but transmission involves time lags. Further gross margin improvement drivers mainly depend on: cost elasticity from falling upstream lithium source prices, product mix upgrading (ramp-up of fourth/fifth-generation high-compaction-density LFP, LMFP, lithium supplementation enhancers and other new categories), low electricity cost advantages from Yunnan Qujing's market-based hydropower, and deep customer binding and scale effects from priority supply of JV capacity.

3. Financial Data and Valuation Analysis

3.1 Recent Operating Performance

The latest financial report is the 2026 semi-annual report (disclosure date 2026-08-27 evening). H1 2026 operating revenue was RMB 10.3998 billion (RMB 10,399,817,836.18), net profit attributable to parent was RMB 455.4 million (RMB 455,448,105.69), non-GAAP net profit attributable to parent was RMB 456.4 million (up 206.34% YoY), basic EPS was RMB 1.63, gross margin was 11.3% (up 13.5pct YoY), net margin attributable to parent was 4.4% (up 14.4pct YoY), versus a loss of RMB 390.8 million in the same period last year. Q2 2026 standalone revenue was RMB 6.063 billion (up 39.82% QoQ), net profit attributable to parent was RMB 191 million, non-GAAP was RMB 201 million; Q1 2026 standalone (back-calculated) revenue was RMB 4.336 billion, net profit attributable to parent was RMB 265 million. H1 2026 LFP revenue was RMB 10.2 billion (up 179% YoY), shipments were 202,000 tonnes (up 65% YoY), which are Soochow Securities estimates rather than company disclosures. H1 2026 net operating cash flow was -RMB 1.24 billion (down 62% YoY); inventory at end-Q2 2026 was RMB 2.71 billion, up 117% from the beginning of the year. On capacity, phosphate-based cathode material capacity was 450,000 tonnes and remained at full utilization; the Qujing 200,000-tonne project is under construction, and the company expects it to reach full production by mid-2028; the company plans no cash dividend, no bonus shares, and no capital reserve conversion. The 2025 annual report (disclosure date 2026-04-29): revenue RMB 8.716 billion, net profit attributable to parent -RMB 821 million, non-GAAP net profit approximately -RMB 780 million, gross margin 1.30% (up 5.94pct YoY), net margin attributable to parent -9.4%, diluted EPS -RMB 2.95, debt-to-asset ratio 63.93% (up 2.58pct from the prior year), ROE -16.45%, net operating cash flow -RMB 768 million (down 636.58% YoY); main lithium battery cathode material revenue RMB 8.489 billion (up 15.32% YoY, 97.39% share), output 285,800 tonnes (+20.76%), sales volume 280,000 tonnes (+24.04%); Q4 2025 standalone revenue RMB 2.68 billion (up 148% YoY/up 24% QoQ), net profit attributable to parent -RMB 280 million, with approximately RMB 300 million in asset impairment losses recognized. Historical comparison: revenue 2022 RMB 22.557 billion → 2023 RMB 16.973 billion → 2024 RMB 7.613 billion → 2025 RMB 8.716 billion; net profit attributable to parent 2022 +RMB 2.380 billion → 2023 -RMB 1.636 billion → 2024 -RMB 1.338 billion → 2025 -RMB 821 million. Note on measure differences: some media report "RMB 10.400 billion/+167.92%," others "RMB 455 million/+216.55%," and Soochow rounds to "RMB 460 million/+217%," which are substantially consistent.

The company turned profitable in H1 2026, with revenue up 167.92% YoY and net profit attributable to parent up 216.55% YoY, turning from a loss of RMB 390.8 million in the same period last year to a profit of RMB 455.4 million, mainly driven by high LFP shipment growth (H1 2026 shipments of 202,000 tonnes, up 65% YoY) and profitability recovery; gross margin rose 13.5pct YoY to 11.3%, and net margin attributable to parent rose 14.4pct YoY to 4.4%. By quarter, Q2 2026 revenue rose 39.82% QoQ to RMB 6.063 billion, but net profit attributable to parent fell 28.10% QoQ to RMB 191 million, with profitability retreating sequentially; Q1 2026 net profit attributable to parent was RMB 265 million. It should be noted that H1 2026 net operating cash flow was -RMB 1.24 billion (down 62% YoY), and inventory at end-Q2 2026 was RMB 2.71 billion, up 117% from the beginning of the year, with rising cash flow and inventory pressures. Full-year 2025 remained loss-making (net profit attributable to parent -RMB 821 million), but the loss narrowed 38.63% YoY, with approximately RMB 300 million in asset impairment losses recognized in Q4 2025. Overall, industry supply-demand and profitability remain in a recovery channel, with capacity at full utilization and the Qujing 200,000-tonne project under construction, but operating cash flow performance is relatively weak.

3.2 Earnings Forecast

Earnings forecasts are sourced from East Money F10 consensus estimates (6-institution snapshot: 2026E EPS RMB 3.3817, 2027E EPS RMB 4.3833, 2028E EPS RMB 5.1500, corresponding to net profit attributable to parent of RMB 949.3 million/RMB 1.230 billion; the 2028E net profit figure was truncated on the webpage and is missing; net assets per share 2026E RMB 21.73, 2027E RMB 25.90, 2028E RMB 30.52; ROE 2026E 15.80%, 2027E 17.00%, 2028E 16.61%) and another earlier East Money snapshot (4 institutions: 2026E net profit attributable to parent RMB 940.2 million, 2027E RMB 1.249 billion, 2028E RMB 1.520 billion; 2026E revenue RMB 20.27 billion, 2027E RMB 24.81 billion, 2028E RMB 28.15 billion), as well as broker individual stock forecasts: Soochow Securities (2026-08-28 semi-annual report review, expecting 2026–28 net profit attributable to parent of RMB 940 million/RMB 1.15 billion/RMB 1.4 billion, up 215%/22%/21% YoY, revenue forecasts 2026E RMB 17.493 billion, 2027E RMB 22.835 billion, 2028E RMB 25.009 billion), Huachuang Securities (2026-09-07 semi-annual report review, 2026E EPS RMB 3.40), Changjiang Securities (2026-05-19 review, 2026E EPS RMB 3.75). Note that consensus estimates have multiple snapshots that are inconsistent with each other: the 6-institution and 4-institution versions differ little in EPS, but the corresponding PE (11.7x vs 15.3x) differs greatly, mainly because the two pages used different prices (approximately RMB 40 vs approximately RMB 51); revenue consensus estimates diverge even more (4 institutions RMB 20.2 billion vs Soochow single institution RMB 17.5 billion). The 2028E net profit attributable to parent is not fully shown in the 6-institution consensus; the 4-institution version of RMB 1.520 billion is close to Soochow's RMB 1.4 billion, but the sample is small, representing a "minority broker" measure rather than broad consensus.

3.3 Valuation Levels and Institutional Ratings

TTM basis (as of 2026-06-30): TTM revenue approximately RMB 15.23 billion (=87.16+104.00-38.82, consistent with stockanalysis TTM Revenue 15,235 million); TTM net profit attributable to parent approximately RMB 25 million (=-8.21+4.554-(-3.908)), so PE(TTM) is approximately 470x, essentially losing reference significance. Total share capital approximately 279 million shares (derived from stockanalysis Net Cash Per Share -17.34 and net debt RMB 4.846 billion back-calculating approximately 279.5 million shares, consistent with approximately 278.3 million shares derived from 2025 EPS -RMB 2.95 and net profit -RMB 821 million). Reference share prices approximately RMB 39.51 (Sohu Securities), RMB 41.62 (eastmoney report, approximately 2026-08-28), RMB 42.84 (stockanalysis, 2026-09-03); based on 279 million shares × approximately RMB 42.84, total market capitalization is estimated at approximately RMB 11.9–12.0 billion. Forward PE: based on 2026E EPS RMB 3.38 and a price near RMB 40, approximately 11–12x; based on 2027E RMB 4.38, approximately 9x; based on 2028E RMB 5.15, approximately 7–8x. PB: based on end-2025 net assets per share of RMB 17.81 and a price of approximately RMB 42.84, approximately 2.4x; based on 2026E net assets per share of RMB 21.73, approximately 2.0x. PS: FY2025 market cap/revenue approximately 1.4x (stockanalysis shows FY2025 PS 1.40); TTM PS approximately 0.78 (stockanalysis). 52-week range: high RMB 88.30; low has source discrepancies — Investing Hong Kong stock page RMB 32.16, Investing Chinese page RMB 31.10, please note. On foreign bank target prices: JPMorgan Sell, target price RMB 52.00 (2026-06-02/03); Citi Hold, target price RMB 43.10 (2025-09-29/30); Goldman Sachs Sell, target price RMB 30.00 (2025-09-01/02); the Investing compilation's "12-month average target price" contradicts itself across two pages (Hong Kong stock page RMB 54.20, range 35–68, 1 buy/3 hold/1 sell; Chinese page RMB 55.95, range 50–63.8, 2 buy/2 hold/1 sell), both claiming to be based on 4 analysts but with different compositions, reliability questionable, usable only as rough reference. Consensus rating distribution (East Money): past 1 month comprehensive rating "Buy," coefficient 4.75, 3 buys + 1 overweight totaling 4 institutions; past 6 months comprehensive rating "Buy," coefficient 4.83, 5 buys + 1 overweight totaling 6 institutions; earlier snapshot (within 3 months) coefficient 5.00, all buys (4 institutions). Key uncertainties to highlight: consensus estimates have multiple snapshots that are inconsistent with each other, and the price date must be noted when citing PE; 2028E net profit attributable to parent is not fully shown in the 6-institution consensus, with a small sample; foreign bank ratings are mostly dated.

4. Recent News and Announcements

4.1 2026 Private Placement Progress: Proposed Fundraising of No More Than RMB 2.9 Billion

The company plans to issue shares to no more than 35 specific investors via competitive bidding, raising no more than RMB 2.9 billion. Of this, RMB 2.15 billion will be invested in the "Lithium Battery New Materials Integration (Phase I) Project" (i.e., the 200,000 tonnes/year phosphate new materials project, implemented by Qujing Zhanyi District Dynanonic Technology Co., Ltd., with total project investment of RMB 2,400,181,600, adding 200,000 tonnes/year of new-generation high-compaction phosphate new materials capacity for fourth/fifth-generation high-compaction-density LFP and other high-end products); the remaining RMB 750 million will supplement working capital. The issue price shall be no less than 80% of the average price over the 20 trading days preceding the pricing benchmark date, and subscribed shares may not be transferred within 6 months. Timeline: 2026-06-18 first disclosure of proposed fundraising of no more than RMB 2.9 billion (source: People's Finance/STCN e-Company, China Chemical Information 2026-09-11); 2026-08-24 receipt of SZSE "Acceptance Notice" (SZSE Review ﹝2026﹞ No. 265), announced 2026-08-25 (announcement no. 2026-068); 2026-09-09 update of fundraising prospectus and other application documents due to the 2026 semi-annual report (disclosed 2026-08-28) (announcement no. 2026-079). Status: still needs to pass SZSE review and obtain CSRC registration approval; uncertainty exists (per company).

4.2 2025 Annual Results Forecast: Expected Net Loss Attributable to Parent of RMB 760–860 Million, Loss Narrowed YoY

Disclosed 2026-01-30 (announcement no. 2026-003): expected 2025 net loss attributable to parent of RMB 760–860 million (-RMB 760,000,000 to -RMB 860,000,000), narrowing loss by 35.71%–43.18% YoY (prior year -RMB 1,337,652,800); non-GAAP net loss of RMB 720–820 million (-RMB 720,000,000 to -RMB 820,000,000), narrowing loss by 40.30%–47.58% YoY (prior year -RMB 1,373,454,000). Expected non-recurring gains and losses impact on net profit of -RMB 36–46 million. Key reasons: 2025 planned provision for asset and credit impairment losses totaling RMB 405–530 million, reducing total profit by the same amount (announcement 2026-004, unaudited). Operating side: fourth-generation high-compaction-density LFP shipments and share steadily increased, fifth-generation ultra-high-compaction material validation progressed smoothly; LMFP shipped steadily; lithium supplementation enhancers obtained increasing exclusive designated projects; gross margin gradually improved from Q3 2025.

4.3 2025 Q3 Report: First Three Quarters Revenue RMB 6.036 Billion, Net Profit Attributable to Parent -RMB 544 Million

Disclosed 2025-10-30: first three quarters revenue RMB 6.036 billion, down 7.57% YoY; net profit attributable to parent -RMB 544 million (loss narrowed 33.78% YoY); non-GAAP -RMB 528 million; Q3 standalone revenue RMB 2.154 billion (-1.60%), standalone net profit attributable to parent -RMB 153 million; debt-to-asset ratio 62.00%; gross margin -0.41%. Source: Jiemian News, cnfin announcement page.

4.4 2025 Annual Report Summary: No Cash Dividend, No Bonus Shares, No Capital Reserve Conversion

Disclosed 2026-04-29: Rongcheng Certified Public Accountants issued a standard unqualified opinion. Plans no cash dividend, no bonus shares, no capital reserve conversion; reason being the parent company's undistributed profit of -RMB 347,247,697.44 and consolidated undistributed profit of -RMB 531,009,772.48, which do not meet cash dividend conditions. Limitation: This summary did not obtain the final audited net profit attributable to parent for full-year 2025 (only the forecast range and dividend/undistributed profit information from the annual report summary); the actual disclosed value should refer to the full annual report on cninfo.

4.5 2025 Employee Stock Ownership Plan Implementation Progress

2025 Employee Stock Ownership Plan: shares sourced from the company's centralized competitive bidding repurchased A-shares, transfer price RMB 14.41/share, total scale no more than 2,807,600 shares, fundraising cap RMB 40,457,516. Approved by the extraordinary shareholders' meeting on 2025-06-27. First grant transfer of 2,167,000 shares on 2025-07-17 (0.77% of total share capital), with 366 actual contributors, subscription of RMB 31,226,470 (announcement date 2025-07-18). Reserved grant transfer of 478,900 shares on 2025-10-27, with 182 actual contributors, subscription of RMB 6,900,949 (announcement 2025-10-28, no. 2025-070). On 2026-05-19, the 26th meeting of the fourth board of directors approved the grant of the remaining reserved portion of 161,700 shares (31 persons, price RMB 14.41/share), announcement no. 2026-039, disclosed 2026-05-21; on the same day, approved the proposal for deferred assessment of the first batch of initial and reserved portions (deferred to the second batch for combined assessment due to failure to meet company-level assessment). Tonghuashun employee stock ownership plan materials show: completion announcement date 2026-06-19, share purchase completion date 2026-06-17, lock-up period 2025-07-17 to 2027-06-16, duration until 2030-07-16.

4.6 Share Repurchase: Previous Round Completed, No New Repurchase Plan as of December 2025

Previous round repurchase (2023 plan): approved by the board on 2023-12-04, total funds RMB 100–200 million, price cap RMB 112.69/share, term 12 months. As of the expiration on 2024-12-03, cumulative repurchase of 2,807,600 shares, highest transaction price RMB 60.20/share, lowest RMB 25.96/share, total transaction amount RMB 104,948,914.80 (approximately RMB 105 million). Repurchase completion disclosed 2024-12-04 (announcement 2024-102). On 2025-05-07 and 2025-12-11 investor interaction platform: the company replied "has previously completed RMB 105 million repurchase... will continue to monitor relevant policies, market conditions and planning considerations for repurchase plans," i.e., as of December 2025, no new repurchase plan exists.

4.7 Subsidiary Capital Increase and Introduction of Strategic Investors

2025-09-29: controlling subsidiary Defang Chuangyu introduced strategic investor "Shenzhen New Energy Storage Industry Collaborative Equity Fund Partnership" via capital increase, with RMB 30 million capital increase, subscribing to new registered capital of RMB 1,306,707.40, acquiring 1.347381% equity after the capital increase; after the capital increase, Defang Chuangyu's registered capital increased to RMB 96,981,285.85. Source: 21st Century Business Herald.

4.8 External Guarantees and Board Resolutions and Other Operating Announcements

2026-09-09: External guarantee progress announcement (no. 2026-078) — providing joint and several liability guarantee for a RMB 30 million credit facility from Industrial Bank Shenzhen Branch for wholly-owned subsidiary Foshan Defang; providing guarantee for a RMB 400 million credit facility from Bank of Communications Qujing Branch for Zhanyi Defang; providing joint and several liability guarantee of approximately RMB 4,226,700 principal for controlling subsidiary Defang Chuangyu on a pro-rata basis. The related quota framework is for 2026 application for comprehensive credit facilities of no more than RMB 18 billion and external guarantees estimated at no more than RMB 8.5 billion (announcement 2026-026, disclosed 2026-04-29). 2026-09-08: Fourth Meeting of the Fifth Board of Directors (no. 2026-077), approving the special report on the use of previous fundraising proceeds (as of 2026-06-30), with a verification report issued by Rongcheng Certified Public Accountants. 2025-10-28, 21st Meeting of the Fourth Board of Directors: approved the 2025 Q3 report and multiple internal governance systems (information disclosure deferral and exemption, management departure management, interactive platform information release review, external financial assistance management, etc.). 2025-11-14: announcement regarding participation in the 2025 Shenzhen-area listed company investor online collective reception day activities.

4.9 Industry/Policy Related (Brief)

The results forecast and interactive platform repeatedly emphasize: the new energy vehicle and energy storage markets are booming, demand for LFP cathode materials continues to be strong, and LFP is at the "early stage of demand explosion" (context of investor interactive platform question on 2025-11-26). Qualitative management judgment, not quantified policy.

4.10 Uncertainties to Note

1. Current time basis: multiple announcement pages and market pages show September 2026 dates (latest 2026-09-11), but the user prompt did not specify the current date; this summary is organized as "as of September 11, 2026." If the actual time differs, please refer to the latest disclosure on cninfo. 2. Final full-year 2025 results: this summary only obtained the 2026-01-30 results forecast range (net profit attributable to parent -RMB 760–860 million) and profit distribution/undistributed profit information from the annual report summary, but did not obtain the final audited net profit attributable to parent from the full annual report; recommend referring to the "2025 Annual Report" on cninfo. 3. 2026 semi-annual report: confirmed disclosure on 2026-08-28, but this summary did not obtain its specific revenue/profit data; the latest operating performance on revenue and losses is pending. 4. Private placement progress: only at the stage of acceptance and updating application documents; whether it can pass SZSE review and CSRC registration, and whether the fundraising scale will ultimately materialize, are uncertain (per company). 5. Market price references (not cross-verified): Sina Finance page shows Dynanonic at approximately RMB 40.76 (-1.92%, date suspected 2026-09-09); Sohu Securities page shows RMB 39.51 (-3.35%, date unclear). The two are inconsistent; please refer to official market data for price/market cap figures, and these are not used as conclusions. 6. Share reductions/major shareholder increases or decreases: this search did not find explicit announcements of reductions by controlling shareholders or directors/supervisors/senior management; only share transfers due to employee stock ownership plan grants were seen. For a complete "shareholder dynamics" review, recommend supplementary searches for "Dynanonic equity change report / simplified equity change / block trades" to confirm.

5. Share Price Trend and Technical Analysis

5.1 Price Overview

5.2 Technical Indicators

As of the 2026-09-11 close, Dynanonic (300769) closed at RMB 39.51, down 3.35% on the day, falling on increased volume (turnover rose from approximately RMB 240–270 million the previous day to RMB 347.7 million, turnover rate 3.51%), with the share price trading below all major moving averages in a bearish alignment. MACD formed a death cross below the 0 axis on September 2 and continued to weaken downward; RSI formed a death cross on August 31 and fell below 50; a daily-level "bear point" appeared on August 25; the strength trend crossed down from the holding zone to the wait-and-see zone on August 28, with medium-term technicals weakening; only the KD D value of approximately 10.29 indicates short-term oversold, which is "oversold within weakness" rather than reversal confirmation. The 52-week range is RMB 36.42–88.30, with the current price near the lower edge of the range. On the capital side, main force (large orders + block orders) net outflow on September 11 was approximately RMB 26.9 million, and third-party measures show continuous net outflow of main force funds over the past 10 days (two sources show -RMB 171 million and -RMB 201 million respectively, with measure differences), while turnover rate and turnover are at moderate levels. Valuation measures diverge significantly: TTM P/E is approximately 438x, while annualized dynamic P/E based on the 2026 interim report is only approximately 12–13x; both measures are for reference and must not be conflated. Two uncertainties and data gaps should also be noted: first, the Sina page shows "suspended/temporarily suspended" but the same page also shows full-day transaction details, judged more likely to be a residual template field, which could not be independently confirmed this time; second, Bollinger Band upper/lower values and official MA10/MA20 values for 2026-09-11 were not obtained, and the related ranges below are derived from MA5, prior platform, same-day low, 52-week low, and public closing prices.

5.3 Short-Term Trend Outlook (Next Week, Scenario Projection, for Reference Only)

⚠️ Risk Warning: The following content is merely a subjective scenario projection based on 2026-09-11 closing data and historical prices and technical indicators. The weights used are subjective heuristic judgments based on the current technical and capital market landscape, not statistical probabilities, and do not constitute any investment advice or buy/sell operation instructions.

① Key Technical Levels

② Next Week Scenarios (Subjective Weights, Not Statistical Probabilities)

• Range-bound consolidation (relatively high weight, approximately 60% (subjective heuristic weight, not statistical probability)): The share price fluctuates repeatedly within the RMB 38.6–42.5 range. Trigger and maintenance conditions: no new news catalysts, the battery materials sector overall stable, turnover maintained at the recent normal level of RMB 240–350 million. In this scenario, KD oversold may bring technical repair, but before the bearish moving average alignment and MACD death cross below the 0 axis reverse, rebound height is constrained by the RMB 41.0–42.5 resistance band.
• Weaker downward (medium weight (subjective heuristic weight, not statistical probability)): If turnover expands again (exceeding RMB 350 million) while the share price breaks below the September 11 intraday low of RMB 38.6, it may probe the RMB 36.4–37.0 strong support area. Trigger conditions: main force funds continue net outflow (September 11 large orders + block orders combined net outflow approximately RMB 26.9 million, third-party measures show net outflow of RMB 171–201 million over the past 10 days), overall sector weakness, or negative news.
• Rebound strengthening (relatively low weight (subjective heuristic weight, not statistical probability)): If sector resonance or catalyst news appears, and single-day turnover significantly expands with an effective stand above RMB 42.5 (upper edge of calculated MA10/MA20), the short term may recover toward approximately RMB 45. Trigger conditions: volume breakout and stabilization above the RMB 41.0–42.5 resistance band, MACD low-level golden cross, or RSI returning above 50. It must be emphasized: against the backdrop of a fully bearish moving average alignment, this scenario requires volume confirmation, otherwise it is more likely just a technical rebound after oversold conditions.

③ Capital and Liquidity Background

Liquidity and chip background (all actually verified data this time): normal trading day turnover rate approximately 2.3%–3.5%, daily turnover approximately RMB 240–350 million; September 11 was a recent high-volume day (turnover rate 3.51%, turnover RMB 347.7 million). Main force funds over the past 5 days were mainly net outflow: 9/3 -RMB 13,901,100, 9/4 -RMB 14,436,000, 9/7 +RMB 5,473,000, 9/8 -RMB 13,775,100, 9/9 -RMB 7,257,200; on 9/11 main force (large orders + block orders) combined net outflow approximately RMB 26.9 million (of which large orders -RMB 22,180,300, block orders -RMB 4,723,500, odd lots -RMB 1,345,800, small orders -RMB 8,503,700). Cumulative measures differ by source: stcn (captured around 2026-09-02) shows past 3-day net inflow -RMB 34,039,300, past 10-day -RMB 171 million, past 20-day -RMB 86,301,500; 9fzt (2026-09-11) states main force fund outflow of RMB 201 million over the past 10 days. The two sources' 10-day measures differ (-RMB 171 million vs -RMB 201 million), both marked as third-party measure differences, with no single measure adopted. Institutional participation 28.25%, "moderate control"; East Money shows latest 1-day main force cost RMB 39.31, latest 20-day main force cost RMB 45.18; 9fzt shows chip average cost RMB 46.66; the current price is significantly below the 20-day main force cost and chip average cost, with overhead trapped positions creating pressure. It must be clearly noted: this research summary does not include top ten shareholder concentration data, nor information on whether public funds/social security/QFII and other institutional holders have entered the top ten shareholders; this data is missing, and it is not possible to judge shareholder structure (institutional vs controlling family/PE) and the resulting liquidity impact; moreover, shareholder register data typically has a disclosure lag of more than one quarter, and the actual structure may have changed. Based on the verified trading data, the stock's daily turnover is at the RMB 200–350 million level with a turnover rate below 4%, so impact cost is acceptable for small and medium-sized funds, but rapid short-term entry and exit may still face some slippage.

Volume confirmation signal: If single-day turnover continues to expand above RMB 400 million (clearly above the upper edge of the recent normal range of RMB 240–350 million) and the share price simultaneously stands above the RMB 41.0–42.5 resistance band, this can be regarded as a confirmation signal of capital entry; conversely, if volume expands while the price breaks below the September 11 intraday low of RMB 38.6, this is regarded as a signal of accelerating capital exit.

④ Key Points to Watch (Observation Ideas Only, Not Operation Instructions)

• Key level observation: upside RMB 41.0–42.5 is the short-term resistance band formed by calculated MA5 and the lower edge of MA10/MA20; downside RMB 38.6–39.5 is the first support formed by the same-day low and 1-day main force cost; RMB 36.4–37.0 is strong support formed by the 52-week low; breakouts or breaks below each level serve only as observation coordinates, not operation instructions.
• Volume observation: recent normal turnover is RMB 240–350 million; single-day turnover expanding above RMB 400 million accompanied by the price stabilizing above the resistance band is only then regarded as capital entry confirmation; please note whether volume expansion matches price direction.
• Capital side observation: main force funds net outflow on September 11 was approximately RMB 26.9 million; third-party measures show cumulative net outflow of RMB 171–201 million over the past 10 days (the two sources differ); continue tracking whether main force funds shift from net outflow to net inflow.
• Indicator and data gap observation: KD D value of approximately 10.29 is oversold, but MACD death cross below the 0 axis, RSI below 50, and bearish moving average alignment have not yet reversed; Bollinger Band upper/lower values, same-day official MA10/MA20, top ten shareholders and institutional holdings data were not obtained this time, are data gaps, and are pending subsequent supplementary verification. The above are all observation ideas, not operation instructions.

The above scenario projection is based on 2026-09-11 closing data and historical prices and technical indicators. Short-term share prices will also be disturbed by multiple factors such as news, capital flows, and the broader market environment. Technical indicators themselves have lag and limitations, do not guarantee actual future trends, and do not constitute buy/sell advice. Please combine with the latest market information to make independent judgments and bear investment risks yourself.

6. Industry Landscape and Competitor Analysis

6.1 Industry Status

The research notes do not provide specific industry size, growth rate, or other data; note: the search process reached the step limit, and the 4th "competitive landscape" search did not return results, so industry data for the competitive landscape section is missing; refer to the latest annual report and industry research for specifics. The verified industry background is: the company's industry is electrical machinery and equipment manufacturing/lithium battery materials (lithium iron phosphate cathode materials), with products used in power batteries and energy storage batteries, and end markets in new energy vehicles and energy storage; the power battery industry has relatively high concentration, with CATL and BYD as industry leaders.

6.2 Competitive Landscape

• The "competitive landscape" search in the research notes did not return results; specific descriptions of the industry competitive landscape (such as major competitor shares, capacity rankings, etc.) are missing; refer to the latest annual report and industry research for specifics.
• The downstream power battery industry has relatively high concentration, with CATL and BYD as industry leaders. The company's major customers CATL, EVE Energy, BYD, etc. are all leading enterprises in the lithium-ion battery industry, and the lithium battery industry has relatively high concentration.
• Product technology route: The company uses the proprietary "self-heating evaporative liquid-phase synthesis method" to produce nano lithium iron phosphate, having iterated to fourth-generation high-compaction and fifth-generation ultra-high-compaction; LMFP has been mass-produced and "first to be installed in vehicles" entering commercialization; lithium supplementation enhancers have been validated by multiple core customers and shipped in volume (the "solid-state battery" description comes from the Cailian Press stock page, a single source, subject to the annual report).
• Upstream cost side: Lithium source (lithium carbonate) price volatility is an industry-wide variable, 2020 RMB 31,500/tonne → 2021 RMB 93,100/tonne → 2022 RMB 396,100/tonne (+325%) → 2023 RMB 222,700/tonne → 2024 RMB 76,700/tonne (-65.55%) → 2025 RMB 65,800/tonne (-14.30%) → H1 2026 RMB 139,000/tonne (up 111.29% from 2025).
• Cost elasticity: direct materials as a proportion of operating costs 2020 72.17% → 2021 84.92% → 2022 93.14% → 2023H1 91.82%; of which lithium source as a proportion of direct materials was 84.52% in 2022 and 86.08% in 2023H1.
• Per company's own estimates: for every 5% increase in lithium source price in 2022, comprehensive gross margin sensitivity coefficient -3.14, net profit attributable to parent sensitivity coefficient -5.01; a roughly 19.95% increase in lithium source price would bring net profit to zero, and a roughly 31.86% increase would bring gross margin to zero.
• Customer structure: top five customer concentration (as % of operating revenue) 2018 91.75% / 2019 90.36% / 2020 90.04% / 2021 97.33% / 2022 94.01% / 2023H1 96.52%; largest customer CATL share 2018 67.90% / 2019 65.08% / 2020 65.28% / 2021 69.66% / 2022 49.31% / 2023H1 47.65% (figures for 2023 and earlier; no updated disclosure subsequently).
• Peer competition-related data (such as shares, capacity, and profitability comparisons of other LFP cathode material companies) was not obtained in this research summary; the competitive landscape section has missing data; refer to the latest annual report and industry research for specifics.

6.3 Major Competitors

The research summary lacks direct comparison data between the company and comparable peers in terms of gross margin, capacity, market share, etc. (the "competitive landscape" search did not return results); it can only confirm the company's relative position in the industry chain: it is a price taker for upstream lithium source (lithium source accounted for 81.92% of procurement value in 2023, 66.62% in 2024, 69.29% in 2025, and 80.03% in H1 2026), downstream customer concentration has long been above 90% (2018–2023H1 basis, single source and dated), pricing follows "cost + reasonable profit" and "one order, one price," making the company a link in the lithium price transmission chain; it is deeply bound with CATL and EVE Energy through JV capacity. Specific comparison data for other comparable companies in the same industry and industry competitive landscape rankings are not provided in the research summary; refer to the latest annual report and industry research for specifics.

7. Risk Warnings

• Reverse risk of cost elasticity from the significant rise in lithium source (lithium carbonate) prices in H1 2026: H1 2026 lithium source procurement unit price was RMB 139,000/tonne, up 111.29% from 2025, rising to 80.03% of procurement value, with the three raw materials together accounting for 93.26% of procurement value. Per the company's own 2022 estimates, for every 5% increase in lithium source price, comprehensive gross margin sensitivity coefficient -3.14, net profit attributable to parent sensitivity coefficient -5.01; a roughly 19.95% increase in lithium source price would bring net profit to zero, and a roughly 31.86% increase would bring gross