Skyworth Holdings: There is a risk that the industrialization and commercialization of lithium sulfide material preparation patents may not meet expectations.

Tianjin Horizon Technology Co., Ltd. announced abnormal fluctuations in its stock price, with the closing price deviating by more than 20% for two consecutive trading days, indicating unusual volatility in stock trading. The company is currently working on industrializing the preparation of lithium sulfide materials, with a team of 7 researchers, including 3 core researchers. Approximately 5 million R&D expenses have been invested in this project so far. The project has passed the initial small-scale tests, and the company will now move on to conducting larger-scale tests to analyze the cost and difficulty of the industrial process in order to determine the optimal process. Following this, the company will enter the pilot phase to further scale up the optimal process, comprehensively verify the stability of the production process, the adaptability of equipment, and complete customer samples. The technical development process is still in its early stages, and it will require a lengthy process of optimization and verification before commercializing the product from patents to stable, mass-produced products. If in the future, a superior and lower-cost solid-state electrolyte technology emerges, it may weaken the competitive advantage of lithium sulfide technology. Additionally, during the industrialization process, issues such as product consistency and stability often arise during the pilot stage with successful laboratory formulas and processes. Therefore, there are risks of the industrialization and commercialization of this project not meeting expectations.