A Drop of 1.7 Billion Yuan! Major Changes in the "LFP Leader" Project

Recently, Hunan Yuneng (301358) released a revised draft of its stock issuance plan for specific investors, lowering the total fundraising amount and reducing investment projects.

Revised Fundraising Plan

Specifically, the revised total fundraising amount is capped at 4.8 billion yuan (inclusive). After deducting issuance expenses, the funds are expected to be fully allocated to a 320,000 mt/year LMFP project, a 75,000 mt/year ultra-long cycle LFP project, a 100,000 mt/year iron phosphate project, and to supplement working capital.

Previous Fundraising Plan (Unit: 10,000 yuan)

On August 10, 2023, Hunan Yuneng disclosed its stock issuance plan for specific investors, with a total fundraising amount capped at 6.5 billion yuan (inclusive). After deducting issuance expenses, the funds were planned to be fully allocated to a 320,000 mt/year LMFP project, a 75,000 mt/year ultra-long cycle LFP project, a 100,000 mt/year iron phosphate project, a 20,000 mt/year lithium carbonate and 80,000 mt/year iron phosphate recycling project for waste LFP batteries, and to supplement working capital.

Comparing the two plans, Hunan Yuneng's total fundraising amount has been reduced from 6.5 billion yuan to 4.8 billion yuan. The investment projects have been reduced by removing the 20,000 mt/year lithium carbonate and 80,000 mt/year iron phosphate recycling project for waste LFP batteries. Additionally, the amount allocated to supplement working capital has been reduced from 1.9 billion yuan to 900 million yuan.

According to the 2024 China Lithium Battery Industry Cathode Material Annual Competitiveness Brand List jointly released by EVTank, Hairong Network, Battery Network, EV Economic Research Institute, and China Battery Industry Research Institute, Hunan Yuneng ranked first on the list. Information shows that Hunan Yuneng's main product is LFP cathode material, with production sites located in Xiangtan, Hunan; Jingxi, Guangxi; Suining, Sichuan; Fuquan, Guizhou; and Anning, Yunnan. The current capacity is 560,000 mt/year, including 60,000 mt/year in Xiangtan, 30,000 mt/year in Jingxi, 120,000 mt/year in Suining, 150,000 mt/year in Fuquan, and 200,000 mt/year in Anning. The company has become a supplier to well-known lithium battery enterprises such as CATL, BYD, EVE, SVOLT Energy Technology, Hithium Energy Storage, AESC, REPT, and Pylon Technologies. In H1 2024, the company's LFP material shipments reached 309,400 mt, up 43.3% YoY.