Daily Brief China: Knowledge Atlas Technology, Pop Mart, Contemporary Amperex Technology (CATL), Alibaba, Mech-Mind Robotics Technologies, SITC International, Hunan Yuneng New Energy Battery Material, Qingtao KUNSHAN ENERGY DEVELOPMENT, Sichuan Kelun-Biotech Biopharmaceutical, Hangzhou BOCO Electronics and more

• An addition to the existing index themes will see 14 stocks added to the KraneShares CSI China Internet ETF (KWEB US) next week.
• The trade is over US$2bn round-trip and there is a big funding impact for some of the existing index constituents.
• Following the methodology change, more money could flow into the KraneShares CSI China Internet ETF (KWEB US) as the free float market cap increases significantly.

• Consensus. The Street reset its numbers after the March results and the May update, then stopped while July channel data weakened. We think a second reset is ahead.
• Positioning. July’s bounce is accompied by short covering. Southbound has been a seller since June and the company’s buyback has been idle since April.
• Guidance risk. Management has lowered the bar twice this year. We expect the results call to lower the growth tone again.

• CATL has committed ~Rmb15.5bn across Zhongheng, VNET and DeepSeek in five months — roughly 0.9% of its market cap. None of the three consolidates. Near-term earnings impact is nil.
• The market has declined to pay: shares are down 1.3% over the three sessions since the 14 August definitive signing, and sit 17% below the 52-week high.
• We remain BULLISH with unchanged FV of Rmb500/share. The AI programme cost Rmb3.37/share; one turn of multiple is Rmb21/share. Own CATL for the batteries, consider this option attached for free.

• Alibaba Group Holding Limited is advancing another major portfolio simplification as its Lingxi Games business moves toward new ownership under Asian private-equity firm Trustar Capital.
• The latest development goes beyond preliminary acquisition interest: Alibaba has reached an agreement to sell Lingxi Games, with reports indicating a valuation of more than $1.5 billion, although the final consideration has not been publicly disclosed.
• Lingxi Chief Executive Zhou Bingshu described the transaction as part of Alibaba’s broader effort to sharpen its strategic focus, while the company continues directing more capital toward artificial intelligence, cloud infrastructure, e-commerce and consumption.

• The core competitiveness of Mech-Mind lies in its “perception – cognition – decision-making – execution” full-stack technology. The prominent feature of the Company’s products is its versatility. 
• The industrial scenarios that Mech-Mind is proficient in are fundamentally different from the broader consumer-level scenarios at present.The data trained for industrial scenarios cannot be fully applicable in all cases.
• Considering that Mech-Mind is not yet profitable and has a small revenue scale but a fast growth rate, comfortable P/S range could be 12-18x if based on 2026 revenue forecast.

• SITC International (1308 HK)‘s 1H26 net profit grew 7.4% despite a challenging environment. Its interim dividend payout ratio increased by 5.2pp as net cash surged. 
• The outlook remains decent as fuel, charter and port handling charges elevate freight rates. So far in 2H26, China-SE Asia and China-Korea freight rates are higher YoY. 
• The market is underestimating the 2H26 earnings, implying upgrade potential. Its 12.3x PER and 5.4x P/B are undemanding given high ROE and net cash on hand.

• Hunan Yuneng New Energy Battery Material Co., Ltd. is a globally leading new energy materials company focused on R&D, manufacturing, and sales of phosphate-based cathode materials, primarily LFP cathode materials.
• The company ranked #1 globally in phosphate-based cathode materials shipment volume for six consecutive years (2020-2025), holding a 28.2% global market share in 2025.
• Revenue was RMB41,357,671 in 2023, with total assets of RMB49,271,086 and total equity of RMB19,103,243 as of March 31, 2026.

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• Qingtao KUNSHAN ENERGY DEVELOPMENT (QEDG) plans to raise around US$900m in its upcoming Hong Kong IPO.
• QEDG manufactures solid-liquid hybrid and all solid-state batteries for electric vehicle (EV) and energy storage system (ESS) applications.
• In this note, we look at its past performance and other deal dynamics that might impact the listing.

• Sichuan Kelun-Biotech Biopharmaceutical (6990 HK) 1H26 revenue increased 3% YoY to RMB 978.3M, as pharmaceutical products grew to RMB 657M (vs RMB 309.8M in 1H25).
• Sac-TMT’s NDA was accepted by NMPA for 1L treatment of patients with recurrent or metastatic triple-negative breast cancer (TNBC) who have a PD-L1 combined positive score (CPS).
• Given the prospective drug pipeline, company’s R&D capabilities and extensive licensing agreements already in place we prefer to remain bullish on the name.

• Rapid Scale and Market Leadership: Founded in 2021 by a seasoned engineering team from Delta Electronics, Hangzhou BOCO Electronics has scaled rapidly to become the No. 2 provider of high-performance computing server power supplies in Mainland China (15.8% market share in 2025) and No. 5 globally (6.9% market share), achieving a 3-year revenue CAGR exceeding 100% (from RMB 261.2m in 2023 to RMB 1,044.6m in 2025).
• Emerging Dual-Engine Architecture: The company is transitioning from a specialized digital computing power supply pure-play (68.8% of 2025 revenue) into high-density AI data center power supplies (surging 754.4% YoY in Q1 2026) and Energy Storage System (ESS) power conversion systems (30.5% of 2025 revenue), supported by a RMB 1.0bn smart manufacturing base in Hengyang, Hunan.
• Near-Term Earnings & Working Capital Pressure: Despite top-line momentum (+35.2% YoY to RMB 215.0m in Q1 2026), BOCO swung into an operating net loss of RMB -5.32m due to a 70.2% YoY surge in R&D expenses, elevated FX hedging losses (RMB 8.15m), acute customer concentration (top-5 clients generating 93.5% of revenue), and stretched debtor days (83.8 days) leading to an operating cash outflow of RMB -79.77m.

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