On the evening of April 19, Hunan Yuneng (301358) announced that with the development of the new energy vehicle industry overseas, especially in Europe, the overseas market demand for lithium iron phosphate cathode materials is growing. In order to promote the smooth progress of the company's overseas business, support customers nearby, meet overseas market needs, and strengthen the company's market position, the company plans to set up an investment company in Singapore, and the investment company will set up a project company in Spain. Through the project company's investment, the company will build an annual output of 50,000 yuan. tons of lithium battery cathode material projects.
According to the announcement, the total investment in the project is approximately RMB 982 million (approximately 129 million euros, converted based on the Euro-RMB exchange rate of 1:7.5973 on April 17, 2024, and the exchange rate conversion amount at the time of actual investment shall prevail).
Hunan Yuneng said that the implementation of this foreign investment will have a positive impact on the company, which will help expand the European and American markets and customer groups, promote the smooth development of the company's overseas business; it will be conducive to technological innovation and equipment innovation, and enhance the company's comprehensive competitiveness; it will It will help expand the production scale of lithium iron phosphate and increase the company's global market share of lithium iron phosphate.
On the same day, Hunan Yuneng announced its 2023 annual report. The company achieved operating income of 41.338 billion yuan in 2023, a year-on-year decrease of 3.35%; net profit attributable to shareholders of listed companies was 1.581 billion yuan, a year-on-year decrease of 47.44%; deductions attributable to shareholders of listed companies Net profit from non-recurring gains and losses was 1.518 billion yuan, a year-on-year decrease of 49.9%; basic earnings per share was 2.18 yuan. The company's annual profit distribution plan for 2023 is: it plans to distribute 4.18 yuan (including tax) for every 10 shares to all shareholders.
On the evening of April 19, Hunan Yuneng (301358) announced that with the development of the new energy vehicle industry overseas, especially in Europe, the overseas market demand for lithium iron phosphate cathode materials is growing. In order to promote the smooth progress of the company's overseas business, support customers nearby, meet overseas market needs, and strengthen the company's market position, the company plans to set up an investment company in Singapore, and the investment company will set up a project company in Spain. Through the project company's investment, the company will build an annual output of 50,000 yuan. tons of lithium battery cathode material projects.
According to the announcement, the total investment in the project is approximately RMB 982 million (approximately 129 million euros, converted based on the Euro-RMB exchange rate of 1:7.5973 on April 17, 2024, and the exchange rate conversion amount at the time of actual investment shall prevail).
Hunan Yuneng said that the implementation of this foreign investment will have a positive impact on the company, which will help expand the European and American markets and customer groups, promote the smooth development of the company's overseas business; it will be conducive to technological innovation and equipment innovation, and enhance the company's comprehensive competitiveness; it will It will help expand the production scale of lithium iron phosphate and increase the company's global market share of lithium iron phosphate.
On the same day, Hunan Yuneng announced its 2023 annual report. The company achieved operating income of 41.338 billion yuan in 2023, a year-on-year decrease of 3.35%; net profit attributable to shareholders of listed companies was 1.581 billion yuan, a year-on-year decrease of 47.44%; deductions attributable to shareholders of listed companies Net profit from non-recurring gains and losses was 1.518 billion yuan, a year-on-year decrease of 49.9%; basic earnings per share was 2.18 yuan. The company's annual profit distribution plan for 2023 is: it plans to distribute 4.18 yuan (including tax) for every 10 shares to all shareholders.
Hunan Yuneng analyzed that the decline in gross profit margin was due to the intensified competition in the industry and the sharp drop in the price of lithium carbonate. In 2023, in the cathode material industry, driven by demand in fields such as power and energy storage, lithium iron phosphate shipments and demand will continue to maintain rapid growth. However, with the continuous influx of cross-border manufacturers and the accelerated expansion of production by industry "old players" , there is structural excess capacity, and industry competition is becoming increasingly fierce. In addition, the price of raw material lithium carbonate has experienced significant fluctuations from nearly 600,000 yuan/ton to about 100,000 yuan/ton, further exacerbating the challenges to the management of cathode material companies.
Hunan Yuneng's annual report shows that in 2023, the company produced a total of 504,400 tons of lithium iron phosphate, a year-on-year increase of 49.6%, and sold 506,800 tons of lithium iron phosphate, a year-on-year increase of 56.49%. Among them, the proportion of sales of products applied in the energy storage field has increased. to about 28%. The company's lithium iron phosphate products have a market share of over 30%, ranking first in the industry for four consecutive years.
In terms of customers, while Hunan Yuneng continues to deepen its cooperation with its two core strategic customers, CATL and BYD, it is also actively exploring domestic first-class energy storage and power battery customers, accelerating the expansion of its high-quality customer base and striving to build a diversified customer structure. In 2023, except for the two major customers CATL and BYD, the sales volume of other customers has increased to 23.29%.
In terms of production capacity, in 2023, Hunan Yuneng will steadily advance the construction of cathode material production capacity at its Yunnan base and Guizhou base based on market conditions. By the end of 2023, the company will have a designed production capacity of approximately 700,000 tons of lithium iron phosphate, further highlighting its advantages in scale.
In terms of production capacity, in 2023, Hunan Yuneng will steadily advance the construction of cathode material production capacity at its Yunnan base and Guizhou base based on market conditions. By the end of 2023, the company will have a designed production capacity of approximately 700,000 tons of lithium iron phosphate, further highlighting its advantages in scale.
In terms of technology, Hunan Yuneng’s research and development expenses will reach 358 million yuan in 2023. As of the end of 2023, the company and its subsidiaries have a total of 75 patents, including 12 invention patents, and their independent innovation capabilities are constantly increasing.
![[SMM Analysis] ITC Rejects Tariffs on Chinese Graphite Anodes, Final Duties Not Imposed](https://imgqn.smm.cn/usercenter/lzgUR20251217171731.jpg)
