Guangdong Jiayuan Technology Co.,Ltd. is a leading lithium battery copper foil company with a top market share, strong R&D capabilities, high proportion of high-end products and overseas customers, and historically stable operations with significantly lower interest-bearing debt ratio than industry peers. The lithium battery copper foil industry has begun to recover, and the company's main lithium battery copper foil business is expected to have good profit elasticity in the coming years. The company recently invested 500 million yuan to hold a 13.6% stake in Wuhan Enda Optcom, whose main business is high-speed optical modules serving international renowned customers, with promising strong growth prospects.
**Executive Summary**
Guangdong Jiayuan Technology is a leading lithium battery copper foil enterprise. The company is a domestic leading lithium battery copper foil enterprise, deeply cultivating the industry for over 20 years, mastering core technologies in ultra-thin/extremely thin copper foil manufacturing and additive technologies. With a leading market share and quality customer structure, it has established a joint venture with CATL to build an annual 100,000-ton copper foil project and has entered the supply system of overseas battery companies. In the first half of 2025, the company's lithium battery copper foil production and sales volumes reached 41,400 tons and 40,700 tons respectively, increasing significantly by 72.46% and 63.01% year-over-year. In the first half, it achieved revenue of 3.963 billion yuan, up 63.55% year-over-year, and net profit attributable to shareholders of 37 million yuan, turning from loss to profit.
The profitability of the lithium battery copper foil industry is beginning to recover. The lithium battery copper foil industry overall remains relatively oversupplied, with processing fees for mid-to-low-end copper foil fluctuating at low levels. However, high-end copper foil has relatively high technical and customer barriers, with a more orderly supply-demand situation. After industry-wide losses in 2024, the industry began a mild recovery in 2025. From processing fee perspective, fees for high-end products have started to increase. From operational results perspective, several leading companies have begun to turn profitable through cost reduction, efficiency improvement, and product premiumization.
**Investment in Enda Optcom**
The company invested 500 million yuan (150 million yuan for equity transfer, 350 million yuan for capital increase) to hold a 13.59% stake in Wuhan Enda Optcom Company. Enda Optcom is a high-speed optical module manufacturer with deep industry expertise, serving internationally renowned customers. After the company's capital injection, Enda Optcom will have better conditions to expand capacity and solve delivery issues, with promising strong growth prospects.
**Company Overview**
**1. Guangdong Jiayuan Technology as Lithium Battery Copper Foil Industry Leader**
Guangdong Jiayuan Technology is a large domestic lithium battery copper foil manufacturer. Founded in September 2001, the company focuses on research, manufacturing, and sales of high-performance electrolytic copper foil, composite copper foil, and high-performance high-precision copper alloy wire materials. The company's copper foil products are divided into lithium battery copper foil and standard copper foil according to downstream applications. Main product models include double-sided bright copper foil, high-strength high-ductility double-sided bright copper foil, RTF reverse electrolytic copper foil, micro-pore copper foil, IC packaging board copper foil, and nickel-plated copper foil.
The company's controlling shareholder is Shandong Jiayuan Industrial Investment Co., Ltd., holding 21.19% of shares. The actual controller is Liao Pingyuan, holding 90.00% of Jiayuan Industrial shares, with Liao Caixing holding 10.00%. Liao Caixing and Liao Pingyuan are father and son. Currently, Liao Pingyuan serves as Chairman of Guangdong Jiayuan Technology and Executive Director, General Manager, and CFO of Jiayuan Investment.
The company listed on the Science and Technology Innovation Board in July 2019. Since listing, the company has continuously invested in R&D and production of copper foil products. As of 2025, it has copper foil capacity exceeding 130,000 tons and copper alloy wire capacity exceeding 20,000 tons. Expected total copper foil capacity can reach over 150,000 tons by 2026, with capacity scale and market share both ranking among industry leaders.
**2. Financial Status and Performance: Significant H1 2025 Performance Recovery**
Operations recovered in the first half. After industry-wide losses in 2024, copper foil processing fees stabilized and recovered slightly compared to 2024 in the first half of this year. The company's operations also recovered significantly, with net profit attributable to shareholders turning positive at 37 million yuan in the first half.
Lithium battery copper foil is the absolute main business. By business segment, H1 2025 total revenue was 3.963 billion yuan, including lithium battery copper foil revenue of 3.32 billion yuan, other business revenue of 501 million yuan, and standard copper foil revenue of 142 million yuan, accounting for 83.8%, 12.6%, and 3.6% respectively. In H1 2025, the company's sales gross profit was 201 million yuan, with lithium battery copper foil contributing 188 million yuan, other business contributing 22 million yuan, and standard copper foil gross profit at -9 million yuan.
From 2020 to H1 2025, Guangdong Jiayuan Technology's period expense ratio decreased from 8.24% to 4.29%, with sales expense ratio decreasing from 0.35% to 0.21%, management expense ratio decreasing from 3.01% to 1.58%, financial expense ratio increasing from -1.15% to 1.81% due to rising asset-liability ratio, and R&D expense ratio decreasing from 6.03% to 0.69%.
**Company's Strong Lithium Battery Copper Foil Competitiveness**
**1. Deep Cultivation of Core Technologies, Leading Product Iteration**
The company has strong R&D and technical capabilities, successively recognized as National Enterprise Technology Center, National Technology Innovation Demonstration Enterprise, National Intellectual Property Demonstration Enterprise, and High-tech Enterprise. It has established multiple research platforms including Guangdong Provincial Enterprise Key Laboratory, Provincial Engineering Technology R&D Center, Provincial Enterprise Technology Center, Academician Workstation, Doctor Workstation, Copper Foil Research Institute, and Science and Technology Commissioner Workstation.
**Mastering Eight Core Technologies**: Lithium battery copper foil production technology belongs to high-precision, highly specialized manufacturing technology with high control standards at each stage. Through long-term R&D experiments and continuous process optimization, the company has gradually mastered eight core technologies including ultra-thin and extremely thin electrolytic copper foil manufacturing technology, additive technology, cathode roll grinding technology, copper dissolution technology, copper powder cleaning technology, copper foil precision slitting technology, electrolytic copper foil wastewater treatment technology, and copper foil detection technology. Among these, additive technology is the company's proprietary technology, while other core technologies are industry common technologies.
**Leading Industry Product Iteration**: The company has developed high-strength/ultra-high/extra-high strength lithium battery copper foil, micro-pore copper foil, single crystal copper foil, high-grade RTF copper foil, HVLP copper foil, composite copper foil, IC packaging ultra-thin copper foil, high-precision bare copper wire, tin-plated wire, stranded wire and other new products, as well as cutting-edge new technologies for novel special copper foils. The company closely follows battery technology route developments, conducting research and sampling work for new negative electrode current collector products required for solid-state batteries, silicon-based negative electrode batteries, and low-altitude economy applications. Copper foil for all-solid-state and semi-solid-state batteries has been supplied in small batches, and high-strength/ultra-high strength/extra-high strength lithium battery copper foil and PCB ultra-thin copper foil (UTF) are in mass production.
**2. Rapid Growth in Production and Sales Volume, Future Capacity Release Potential**
The company's copper foil capacity has expanded rapidly with fast-growing production and sales volumes. Production increased from 27,800 tons in 2021 to 67,700 tons in 2024, reaching 41,400 tons in H1 2025, up 72.46% year-over-year. Sales increased from 28,100 tons in 2021 to 67,000 tons in 2024, reaching 40,700 tons in H1 2025, up 63.01% year-over-year.
**High Capacity Utilization Rate**: As one of the leading domestic high-performance electrolytic copper foil enterprises, the company focuses on extremely thin lithium battery copper foil with thickness below 6μm as main products, with relatively stable product structure. Production and sales of ≤6μm copper foil accounted for over 80% in 2022-2024. The company maintains high production-to-sales ratios of 92.63%, 99.48%, and 101.04% in 2022-2024 respectively, indicating good sales performance.
**3. Quality Customer Structure and Close Cooperation with Leading Enterprises**
Close cooperation with CATL and other leading enterprises. The company has established long-term partnerships with renowned battery manufacturers including CATL, CATL New Energy, and BYD, becoming their core lithium battery copper foil supplier. In 2024, the company's largest customer was CATL series (CATL and related companies on consolidated basis), accounting for 65.81% of total sales revenue, followed by CATL New Energy series at 8.71% of total sales revenue. The company also cooperates extensively with important battery manufacturers and large electronics industry chain enterprises including Kingboard, Envision Power, and Tianjin Lishen. The top five customers accounted for 80.41% of total sales revenue in 2024.
**Active Expansion of Quality Overseas Customers**: In August 2024, the company established cooperation with Samsung and began small-batch supply. In July 2025, the company further stated that developed overseas international top battery enterprise customers began volume production this year, with product gross margins superior to domestic levels. This year the company will actively enter overseas emerging markets, continuously explore quality overseas customer resources, broaden business coverage, and enhance overseas market share. The company has introduced customers in Japan, South Korea, Europe and America, and will accelerate introduction of strategic customers in Southeast Asia.
**Lithium Battery Copper Foil Industry Profitability Recovery**
The lithium battery copper foil industry structure remains dispersed with low market concentration. According to industry data, China's lithium battery copper foil shipments reached 528,000 tons in 2023, up 23.9% year-over-year, accounting for nearly 80% of the global market and maintaining dominance. Despite rapid overall industry growth, market concentration improvement is limited. The combined market share of top four companies (Longdian Huaxin, Defu Technology, Guangdong Jiayuan Technology, Huachuang New Materials) was 47.3% in 2023, essentially flat with 2022 levels, showing relatively stable industry structure.
**Industry Profitability Gradual Recovery, High-end Product Proportion Increase**: Processing fees for mid-to-low-end copper foil fluctuate at low levels, but high-end copper foil has relatively higher technical and customer barriers with slightly better supply-demand dynamics. After industry-wide losses in 2024, the lithium battery copper foil industry began mild recovery in 2025. High-end product processing fees have started to increase, and several leading companies have begun turning profitable through cost reduction, efficiency improvement, and product premiumization.
**Investment in Enda Optcom Participation**
**4.1 Company Invests 500 Million Yuan for 13.59% Stake in Enda Optcom**
Guangdong Jiayuan Technology plans to acquire 13.59% equity in Enda Optcom through "equity transfer + capital increase" combination. On August 30, 2025, Guangdong Jiayuan Technology announced external investment, with the company acquiring 4.5% equity in Enda Optcom for 150 million yuan, corresponding to 495,000 yuan registered capital, while simultaneously investing 350 million yuan in capital increase for Enda Optcom.
**4.2 Enda Optcom Overview**
Enda Optcom is a leading domestic optical module manufacturing enterprise. Wuhan Enda Optcom Technology Co., Ltd. was established in 2017, mainly engaged in R&D, production, and sales of optoelectronic devices in optical communication field. Products include high-speed optical modules, active devices, passive devices, etc., widely applied in data centers and AI computing center optical interconnections.
Enda Optcom adopts independent R&D system with 800G optical module mass production capability. In 2023, it was honored as national-level fifth batch "Specialized, Refined, Differential, and Innovative" "Little Giant". In 2025, it was listed among the first "Gazelle Selection" enterprises.
**4.3 AI Training Computing Power Demand Surge, Long-term Optical Module Benefits with Certainty**
Optical modules are core components of optical communication systems, mainly used for optical-electrical signal conversion. In recent years, AI large model maturation has driven surge in inference and training side computing power demand. Taking GPT series models as example, inference side large model training computing power increased over 3 orders of magnitude in five years.
Computing power demand surge drives cloud vendor capital expenditure rapid growth. In H1 2025, North American cloud vendors including Amazon, Microsoft, Google, Meta, Oracle and Cisco had actual capital expenditure of $175.56 billion, up 72% year-over-year. Chinese internet companies including Baidu, Tencent and Alibaba had combined capital expenditure of $16.47 billion, up 138% year-over-year.
800G and 1.6T optical modules will become mainstream data center products. Under exponential data traffic growth background, requirements for optical module data transmission rate and capacity have increased sharply, with 800G-represented optical modules gradually becoming mainstream choice for AI data centers.
**4.4 Enda Optcom Future Operating Potential**
Achieving rapid growth with improvement potential compared to industry leading companies. In 2024, Enda Optcom achieved operating revenue of 1.477 billion yuan and net profit of 97.94 million yuan. Original Enda Optcom shareholders committed 2025 net profit no less than 143 million yuan, but H1 2025 already achieved revenue of 1.316 billion yuan and net profit of 121 million yuan, basically matching 2024 performance. H1 2025 net profit margin was 9%, significantly lower than industry leading companies' 27-40% levels. Profitability is expected to improve significantly with product volume scale effects and product structure upgrades.
**Profit Forecasting**
Production and sales volume assumptions: Based on company capacity and market conditions, we assume 2025-2027 total copper foil sales volumes of 90,000, 100,000, and 110,000 tons respectively.
Copper price assumptions: Considering tight global copper mine supply and strong downstream demand, we assume 2025-2027 cathode copper average prices of 79,800, 84,100, and 88,400 yuan/ton respectively.
We estimate 2025-2027 operating revenues of 8.757, 10.224, and 11.636 billion yuan respectively, with net profits attributable to shareholders of 126, 433, and 593 million yuan, corresponding to P/E ratios of 116.0, 33.9, and 27.6.
**Risk Warning**
1. New product and technology development risks: If related technologies undergo major changes reducing customer demand for company products, it will affect company product technology development and profitability.
2. Processing fee fluctuation and operating performance decline risks: Intensified industry competition, competitor advantage gains, or new energy subsidy policy retreats leading to copper foil industry prosperity decline may adversely affect company product processing fees.
3. New business expansion below expectations risks: If the company cannot continuously expand new business markets and customers while improving operational efficiency, new business expansion may fall short of expectations, with investment loss risks.
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