Hunan Corun New Energy Co., Ltd. Business Report FY ended Dec. 2024

Financial Overview

(CNY millions)

	FY ended Dec. 31, 2024	FY ended Dec. 31, 2023	Change (%)
Sales	3,938.17	3,704.62	6.30
Operating income	48.31	(166.14)	-
Ordinary income	49.26	(170.78)	-
Net income	46.80	(135.69)	-

Factors

1. In 2024, the sales of HEV models from major clients in the nickel battery business increased significantly, effectively boosting the company’s sales volumes of nickel products, power batteries, and electrode plates. Through optimization and restructuring of the business mix, costs were reduced and gross margin improved, leading to higher profits in the nickel battery segment.
2. In 2024, the mining and beneficiation capacity of Tong’an Mine under subsidiary Donglian Mining expanded from 50,000 tons per year to 400,000 tons per year, enabling annual production of at least 10,000 tons of lithium carbonate. This expansion will enhance Donglian Mining’s profitability and increase the company’s self-sufficiency in lithium carbonate raw materials.

Management Status

Nickel-Metal Hydride Battery Materials
-In 2024, Changde Liyuan achieved sales of 2.4622 million m² of nickel foam for HEVs, up 6.5% year-on-year, with revenue of approximately 233 million yuan, down 4.90%.
-Keba’s HEV electrode plates saw a 10.24% increase in sales volume year-on-year, with revenue of about 1.248 billion yuan, down 3.70%.

Lithium Battery Materials
-The four underground lithium-bearing kaolinite mines (Tong’an, Ejing, Diyi, and Dangtian) under subsidiary Donglian are estimated to have total ore reserves of no less than 12 million tons. Considering the high lithium content of these underground deposits, the total lithium reserves are equivalent to approximately 400,000 tons of lithium carbonate.
-In 2024, subsidiary Jinfeng Lithium achieved revenue of 481 million yuan in the lithium battery materials segment, representing a year-on-year increase of 158.03%.

R&D Expenditure

	FY ended Dec. 31, 2024	FY ended Dec. 31, 2023	FY ended Dec. 31, 2022
R&D Expenditure (CNY millions)	90.26	32.83	59.76
R&D expenses as percent of Sales (%)	2.29	2.15	1.58

-By the end of 2024, the company had 185 R&D staff members, accounting for 6.51% of the total number of employees.

R&D structure

-Corun has realized the layout of the entire industrial chain of nickel-metal hydride batteries and nickel foam raw materials. It has successively established five R&D centers and seven industrial bases, forming a complete industrial chain.

R&D Centers	Main business	Year founded	Location	Shareholding (%)	Other shareholdings
National Engineering Research Centre for Advanced Energy Storage Materials Co., Ltd.	R&D activities on nickel-battery materials, lithium-battery materials, supercapacitor-battery materials, fuel cell materials, etc.	2010	Changsha, Hunan	87.50	Jinchuan Jidan Company Limited 6.25% Central South University Education Foundation 6.25%
Corun CHS Japan Technology Research Co., Ltd.	Development of HEV systems	2016	Nagoya, Japan	97.23	Others 2.77%