On the evening of August 19, Hunan Yuneng (SZ301358, share price 71.50 yuan, market cap 60.613 billion yuan) released its semi-annual report for 2026. The report showed that in the first half of 2026, the company achieved operating revenue of 34.877 billion yuan, a year-on-year increase of 142.92%, and net profit attributable to shareholders of listed companies of 2.910 billion yuan, a year-on-year surge of 853.51%, marking a substantial growth in performance.

Revenue and Profit Surge with Higher Premium and Storage Contribution

According to the semi-annual report, in the first half of 2026, Hunan Yuneng recorded operating revenue of 34.877 billion yuan, up 142.92% year-on-year; net profit attributable to shareholders of listed companies was 2.910 billion yuan, up 853.51% year-on-year; net profit attributable to shareholders of listed companies excluding non-recurring gains and losses was 2.958 billion yuan, up 854.20% year-on-year; basic earnings per share stood at 3.62 yuan, with a weighted average return on net assets of 17.39%.

The company stated that during the reporting period, sales volume of phosphate-based cathode materials increased compared to the same period last year, while rising prices of main raw materials such as lithium carbonate drove up product selling prices, leading to a corresponding year-on-year growth in operating revenue. In the first half of 2026, the company sold 667,200 tons of phosphate-based cathode materials, an increase of 38.77% year-on-year; among which, sales of premium products reached approximately 416,700 tons, with their share of total sales rising to 62.46%; sales of products applied in the energy storage sector increased their share of total sales to approximately 53%. During the reporting period, the company aggressively expanded overseas markets, with overseas sales of phosphate-based cathode materials reaching 18,000 tons, achieving leapfrog growth compared to the same period last year.

In terms of profitability, during the reporting period, the gross margin for phosphate-based cathode materials was 14.81%, an increase of 7.84 percentage points compared to the same period last year. In terms of production capacity, as of the end of the reporting period, the company's phosphate-based cathode material capacity stood at 704,000 tons, with a capacity utilization rate of 95.92%. In terms of cash flow, the net cash flow generated from operating activities during the reporting period was -1.763 billion yuan. The company explained that this was mainly due to the impact of payments for fixed assets and other long-term assets settled via notes; if this factor were excluded, the net cash flow from operating activities in the first half of 2026 would have been 381 million yuan.

Additionally, the company continues to advance its integration and globalization strategy. During the reporting period, the company pushed forward the mining and excavation progress of the Huangjiapo phosphate mine and completed preliminary work such as site leveling for the Dashichang phosphate mine, further refining its layout in the phosphate chemical segment; Hunan Yuneng Recycling initiated a new round of project construction to expand lithium carbonate production capacity; and in the first half of 2026, the Spain project fully commenced engineering construction. The company plans not to distribute cash dividends, not to issue bonus shares, and not to convert capital reserve into share capital.

Global Leadership Solidified with Shares Up Over 10% This Year

Hunan Yuneng is a globally leading new energy materials company that combines technological innovation with advanced manufacturing capabilities, focusing on the research, development, production, and sales of phosphate-based cathode materials (primarily lithium iron phosphate). Its products are mainly used in the manufacturing of lithium-ion batteries for power batteries and energy storage batteries. Since 2020, the company has ranked first globally in phosphate-based cathode material shipments for six consecutive years.

The company's downstream customer base is extensive, achieving near-full coverage of mainstream domestic power and energy storage battery enterprises, including well-known lithium battery companies such as CATL, BYD, EVE Energy, Hithium, AESC, Rept Battero, and Gotion High-tech. The company adheres to an integrated industrial layout of "resources - precursors - cathode materials - recycling," with its Guizhou base possessing integrated production advantages spanning phosphate rock resources, phosphate chemicals, precursors, and cathode materials.

In terms of share price, Hunan Yuneng's stock has trended upward overall this year. As of the close on August 19, the company's share price had risen approximately 11% compared to the beginning of 2026 (January 5).

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