Hunan Yuneng Files for HKEX Listing, 2025 Revenue RMB 34.625 Billion, Global Phosphate Cathode Leader for Six

On 17 August 2026, Hunan Yuneng submitted a listing application to the Hong Kong Stock Exchange (HKEX), with CICC International and HSBC as joint sponsors. The company is listed on the ChiNext board of the Shenzhen Stock Exchange and primarily engages in the research, development and production of lithium iron phosphate cathode materials. According to Frost & Sullivan, by shipment volume, the company ranked first among global phosphate-based cathode material suppliers for six consecutive years from 2020 to 2025, with a 28.2% global market share in 2025. The prospectus shows that the company's operating scale continued to expand in 2023, 2024, 2025 and the first quarter of 2026. In 2025, the company achieved operating revenue of RMB 34.625 billion, up 53.22% year on year; net profit attributable to shareholders was RMB 1.277 billion, up 115.18%; sales of phosphate-based cathode materials reached 1.1371 million tonnes, up 60.03%. In 2025, phosphate-based cathode materials accounted for 97.94% of the company's operating revenue. Net cash generated from operating activities was negative RMB 1.042 billion and negative RMB 1.546 billion in 2024 and 2025, respectively, showing large net outflows for two consecutive years. The company explained that this was mainly because a significant portion of sales proceeds were settled by customers with bank acceptance bills and electronic debt instruments, some of which were subsequently endorsed and transferred to pay for long-term asset purchases rather than being redeemed at maturity to form operating cash inflows. At the end of each reporting period, the outstanding balance of endorsed and discounted bills receivable (including electronic debt instruments) not yet matured at the balance sheet date reached RMB 10.652 billion, RMB 6.619 billion, RMB 13.087 billion and RMB 16.846 billion, respectively. At the respective reporting period ends, the Hunan Yuneng group had unused tax losses of RMB 117 million, RMB 187 million, RMB 236 million and RMB 258 million available to offset future profits, showing a rising trend. The prospectus noted that since future profits cannot be predicted, the company has not recognised deferred tax assets for these tax losses. In 2025, while the group's attributable net profit reached RMB 1.277 billion, certain entities within the group still accumulated unrecognised tax losses of RMB 236 million. In the same period, the carrying value of inventories was RMB 3.629 billion, rising to RMB 5.112 billion at the end of the first quarter of 2026; the inventory provision at the end of 2025 was RMB 40.06 million. Hunan Yuneng continues to expand production capacity. As of the end of 2025, short-term borrowings increased from RMB 2.455 billion at the beginning of 2024 to RMB 4.73 billion, mainly due to an increase in discounted financing bank acceptance bills not yet matured; long-term borrowings increased from RMB 3.756 billion to RMB 5.339 billion. Contract liabilities declined from RMB 603 million at the end of 2023 to RMB 19.41 million at the end of 2024, and remained at RMB 18.67 million at the end of 2025. The prospectus explained this was mainly because a major customer had made prepayments under a supply assurance arrangement, which were used to offset product purchases after the arrangement was completed earlier in 2024. The top five customers of Hunan Yuneng in 2025 accounted for total sales of RMB 24.716 billion, representing 71.3% of annual sales. Sales to the largest customer were RMB 10.295 billion, accounting for 29.7%. CATL and BYD are not only core major customers, but also significant shareholders. In 2025, the top five suppliers accounted for 34.9% of total purchases. Hunan Yuneng's 2025 A-share annual report disclosed that purchases and sales of lithium carbonate supplied by CATL and its subsidiaries and processed into specified phosphate-based cathode materials are accounted for on a net basis. In 2025, the offset cost amount under the net method was RMB 1.307 billion. The related-party sales amount included net-method revenue of RMB 687 million, corresponding to an original total sales amount of RMB 1.994 billion. In 2025, the overall gross margin of the company's lithium-ion battery cathode material business was 8.89%, while Lopal Technology's gross margin for lithium iron phosphate cathode materials was 9.24%. There are differences between the A-share and H-share financial statements in the disclosure of key items. The 2025 A-share annual report shows that as of the end of 2025, Hunan Yuneng's accounts payable balance was RMB 7.156 billion, including RMB 2.49 billion for goods payable, RMB 4.461 billion for project payables, and RMB 206 million for freight payable. In the HKEX prospectus, the accounts payable balance as of the end of 2025 is stated as RMB 2.695 billion, with the RMB 4.461 billion in project and equipment payables included under other payables and accrued expenses.