Ningde Times BYD's shareholding support!

According to public information on the Shenzhen Stock Exchange, Hunan Yuneng New Energy Battery Materials Co., Ltd. (Hunan Yuneng) has submitted its GEM IPO application and was accepted on September 28. In this IPO, Hunan Yuneng will issue no more than 189 million shares and raise funds of about 1.8 billion yuan for the third phase of Sichuan Yuneng’s 60,000 tons of lithium iron phosphate project and the fourth phase of 60,000 tons of lithium iron phosphate. Project and supplement the daily working capital of the above two projects.

Hunan Yuneng is a major domestic supplier of cathode materials for lithium-ion batteries, focusing on the research, development, production and sales of cathode materials for lithium-ion batteries. The company's main products include lithium iron phosphate, ternary materials and other lithium-ion battery cathode materials. Currently, lithium iron phosphate is the main product. According to the data of Gaogong Lithium Battery, the company's market share in the domestic lithium iron phosphate cathode material field in 2020 will be 25%, and lithium iron phosphate shipments rank first, and it is an absolute leader in the cathode material industry.

Hunan Yuneng’s prospectus shows that although the company's shipments ranks first in the industry, its downstream customers are extremely concentrated. More than 90% of its sales share is occupied by CATL and BYD, which is in power with the two companies. The share of the lithium battery market is also directly related (in 2020, the two companies have a market share of 61.9%). In December 2020, CATL and BYD have already deployed the upstream industry chain in advance, and as strategic investors, they have invested in some shares of Hunan Yuneng. Currently, CATL and BYD hold 59,846,100 shares and 29,923,100 shares of Hunan Yuneng, respectively. The shares are the third and seventh largest shareholders of Hunan Yuneng.

The IPO of Hunan Yuneng will further enhance the production capacity of the company and will play an important role in strengthening its leading position in the industry. The subsequent further increase in capital and shareholding of CATL and BYD will also stabilize the supply of upstream materials, improve and enhance market competitiveness, and consolidate its position in the power battery industry.