Hunan Yuneng

Business

Hunan Yuneng (湖南裕能新能源电池材料股份有限公司) makes phosphate cathode materials, mainly lithium iron phosphate (LFP), for power and energy-storage batteries. It says it has ranked first in the world for phosphate cathode shipments every year since 2020, which is its own claim (2026 interim report, p. 12). It sells direct, and says its customers cover almost all of China's main power and storage battery makers, naming CATL, BYD, EVE, Hithium, Envision, Ruipu Lanjun and Gotion (pp. 14, 15).

Results

In the first half of 2026 it sold 667,200 tonnes of phosphate cathode, up 38.8%. Revenue rose 142.9% to ¥34.88bn and net profit attributable to shareholders rose 853.5% to ¥2.91bn (pp. 8, 16). Revenue grew far faster than volume, which fits a higher lithium price being passed through to customers. The gross margin on phosphate cathode was 14.81%, up 7.84 points (p. 18). Operating cash flow was negative ¥1.76bn (p. 8).

Market and integration

It cites industry data (GGII) that China's cathode shipments were 3.32 million tonnes in the half year, up 59%, of which phosphate cathode was 2.70 million tonnes, up 68%, and that LFP was 80.3% of power battery installations (p. 11). On those figures its sales were about a quarter of China's phosphate cathode shipments (our calculation, comparing its sales with industry shipments).

The company says it is integrating backwards. Its Guizhou base links phosphate rock, phosphorus chemicals, precursor and cathode, it makes its own iron phosphate, and it is adding lithium carbonate processing and battery recycling (p. 15).

Planned Hong Kong listing

On 17 August 2026 Hunan Yuneng filed an application to issue H shares and list on the main board of the Hong Kong Stock Exchange, and published its draft listing document there. It says the document is a draft that may be updated, and that the listing still needs approvals from the China Securities Regulatory Commission, Hong Kong's Securities and Futures Commission and the exchange, and depends on market conditions, so it remains uncertain (announcement).

Where it stands

Yuneng's scale is large and growing, but a 14.8% margin on a product whose price moves with lithium leaves it exposed to lithium price swings; see lithium mining and refining.