Analysis of Changes in the Proportion of Liqi Intelligence's Sales to CATL

Based on the collected data, I will generate a complete visual chart and provide a detailed analysis report for you.

According to the data from Liqi Intelligence’s prospectus and its responses to audit inquiry letters, the proportion of the company’s sales to CATL has undergone significant changes during the reporting period [0]:

From 2022 to 2024, the proportion of Liqi Intelligence’s sales to CATL experienced drastic fluctuations of “first rising then falling”:

• 2022-2023
  : The proportion rose from 46.55% to 60.16%, with CATL remaining the company’s largest customer
• 2024
  : The proportion plummeted to 18.57%, a year-on-year decrease of 41.59 percentage points, and CATL fell to the position of second-largest customer
• H1 2025
  : The proportion further dropped to 13.61%, continuing the downward trend [1]

This change reflects a fundamental adjustment in Liqi Intelligence’s customer structure — transitioning from heavy reliance on a single customer to a diversified customer system.

In sharp contrast to the decline in sales to CATL, sales to BYD have shown explosive growth:

• 2023
  : BYD entered the top five customers for the first time, ranking fifth with a proportion of only 2.67%
• 2024
  : Sales revenue increased by approximately 819 million yuan, and the proportion jumped to 37.66%, making BYD the largest customer [0][1]

This “customer shift” has enabled Liqi Intelligence to successfully reduce customer concentration risk.

According to the prospectus and the company’s explanations, the main reasons for the decline in sales to CATL include [1][2]:

• Fluctuations in Capacity Utilization
  : CATL’s capacity utilization has shown a fluctuating trend, resulting in a slowdown in the pace of equipment procurement and acceptance
• Impact of Capacity Expansion Cycle
  : CATL’s capacity expansion cycle slowed down relatively in 2023-2024, leading to a decrease in equipment demand
• Reduced Order Acceptance
  : Affected by the above factors, the company received relatively fewer orders from CATL in 2023-2024
• Delayed Revenue Recognition
  : The company’s products can only be recognized as revenue after on-site installation, commissioning, trial operation, and passing acceptance

Liqi Intelligence has proactively taken measures to reduce customer concentration risk:

• Deepened Cooperation with BYD
  : The company’s subsidiary began cooperating with BYD in 2015, and the proportion of sales has gradually increased as cooperation deepened
• Expanded Overseas Markets
  : The company has become a supplier for overseas bases of domestic enterprises such as CATL and Envision Group, as well as overseas enterprises including Volkswagen Group and Ford Motor Company
• Developed Non-Lithium Battery Segments
  : The company has actively deployed equipment for processing emerging materials such as high-purity electronic chemicals and polyimide in sectors like fine chemicals and composite materials

Although customer concentration is still at a relatively high level, it shows a declining trend year by year, indicating that the company has achieved initial results in adjusting its customer structure [1].

Despite the decline in the proportion of sales to CATL, Liqi Intelligence’s industry position remains stable [0][3]:

• Market Share
  : According to statistics from GGII (Gao Gong Industrial Research Institute for Lithium Batteries), Liqi Intelligence’s market share in China’s lithium battery slurry feeding system market increased from 27% in 2023 to 43% in 2024,
  ranking first in the industry for two consecutive years
• Increased Industry Concentration
  : From 2023 to 2024, the CR3 of China’s lithium battery slurry feeding industry rose from 57% to 71%, showing a clear trend of head concentration, and Liqi Intelligence’s market share has increased significantly
• Technological Advantages
  : The company holds 400 patents (including 29 invention patents), participated in the drafting of 3 national standards, and its independently developed “BDS-200 Intelligent Batching System Complete Equipment for Lithium Batteries” was recognized as the first major equipment (set) in Jiangsu Province

Despite the sharp decline in the proportion of sales to CATL, the company’s overall performance has maintained steady growth, mainly due to:

• Rapid volume growth of orders from new customers such as BYD
• Continuous expansion of overseas markets (new overseas orders reached 1.733 billion yuan in 2024)
• Abundant backlog of orders (as of the end of November 2025, the amount of backlog orders was 5.98 billion yuan) [0][3]

1. Customer Structure Risk
   : Although concentration has decreased, the proportion of sales to the top five customers is still relatively high. If major customers experience significant adverse changes in their business plans, it will have a negative impact on the company’s order acquisition [1]
2. Technology Route Risk
   : The market share of circulating pulping technology has continued to increase (from 0-10% in 2021 to 20-30% in 2024). The proportion of the company’s dual-planetary pulping products exceeds 90%, exposing the company to the risk of technology route iteration
3. Gross Profit Margin Decline Risk
   : After excluding the impact of inventory valuation appreciation, the company’s gross profit margin has continued to decline from 41.77% in 2022 to 31.17% in H1 2025 [1]

• Overseas Market Expansion
  : The company has become a supplier for battery projects of overseas automakers such as Volkswagen and Ford, with sufficient overseas backlog orders
• Layout in Emerging Segments
  : Actively develop the segment of equipment for processing emerging materials such as high-purity electronic chemicals and polyimide
• Solid-State Battery Technology
  : The company has deployed dry and wet solid-state battery solutions to embrace the next generation of battery technology transformation

[0] Liqi Intelligence’s Prospectus and Responses to Audit Inquiry Letters (http://qxb-pdf-osscache.qixin.com/AnBaseinfo/99d5949200f371f6cd99f61135cca4d9.pdf)

[1] TMTPost - “Liqi Intelligence: Dilemma of Low R&D and High Gross Profit Margin, Doubts over Decline in CATL Orders and Fundraising for Liquidity Supplement” (https://finance.sina.com.cn/cj/2026-01-19/doc-inhhvfrz6979814.shtml)

[2] Beijing Business Daily - “Largest Customer Changed, Liqi Intelligence Continues to Pursue IPO” (https://xinwen.bjd.com.cn/content/s687754e0e4b0bd64e2e0fbb4.html)

[3] TF Securities - “Looking at the Recovery of Lithium Battery Equipment from the Prospectuses of Honggong, Liqi, and Shangshui” (https://pdf.dfcfw.com/pdf/H301_AP202508041721384818_1.pdf)