Hunan Yuneng (301358.SZ): The industry's internal competition is severe, which has intensified the urgency of cathode material enterprises to tap potential and reduce costs.

Gelonghui Finance · Jul 16 06:49

On July 16th, Yuneng (301358.SZ) from Hunan stated in an investor relations event that the industry's consolidation has exacerbated the urgency for cathode material companies to explore potential cost reductions. This investment in copper smelting projects will creatively apply the highly-coupled industry of copper smelting and phosphate cathode material production to promote the complementary advantages between the two major industries, thus achieving the ultimate cost reduction of the company's phosphate cathode material business. The new industrial ecology will also form new productivity to further empower the company's core business development. Specifically, the by-products such as sulfuric acid and steam produced during copper smelting can be self-used by the company to produce phosphoric acid and iron phosphate. Due to its strong self-consumption capacity and low inventory pressure, the company will have a wider and more flexible selection in copper concentrate procurement and will have more room for price negotiations, forming a unique competitive advantage. By-product steam can be used for iron phosphate production in the company's Guizhou base, which has lower energy conversion losses than other copper smelting enterprises that mainly use steam for power generation. Overall, copper has a wide downstream application and strong domestic demand with unimpeded sales channels. As a futures trading commodity, the company will fully utilize the hedging function in the futures market to alleviate copper price fluctuations. The investment in copper smelting projects is an innovative measure to achieve the company's ultimate cost reduction and product cost-effectiveness improvement. It is in line with the company's long-term development plan and will provide sustained momentum for the company to further refine and strengthen the phosphate cathode material industry.

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湖南裕能(301358.SZ)：行业内卷严重，加剧了正极材料企业挖潜降本的迫切性

Hunan Yuneng (301358.SZ): The industry's internal competition is severe, which has intensified the urgency of cathode material enterprises to tap potential and reduce costs.

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