Breaking Down Hunan Changyuan Lico Co.,Ltd. Financial Health: Key Insights for Investors

Founded in 2002, Hunan Changyuan Lico Co., Ltd. (ticker 688779.SS) has built a global battery-materials footprint-selling multi-material precursors, cathode materials and lithium iron phosphate-while rebranding in August 2024 to Minmetals New Energy Materials (Hunan) Co., Ltd. to signal a strategic shift into new energy, forging a Europe-focused partnership with Axens to produce battery materials in France by 2027; despite a steep 48.37% revenue decline in 2024 the company sustains investor backing with a market capitalization near 13.56 billion CNY as of November 2025, employs over 2,000 staff, and anchors its corporate identity on the mission to "keep pace with the times and meet the evolving application needs of customers with quality and innovation," a vision to "be a global leader in the technical development and manufacturing of all‑natural performance materials," and core values of "innovation, growth, and re‑innovation," inviting a closer look at how these stated priorities are shaping R&D, partnerships and market strategy.

Hunan Changyuan Lico Co.,Ltd. (688779.SS) - Intro

• Founded: 2002
• Core products: multi-material precursors, positive electrode materials, lithium iron phosphate (LFP)
• Workforce: >2,000 employees (late 2025)
• Rebranding: renamed in August 2024 to Minmetals New Energy Materials (Hunan) Co., Ltd.

• European expansion: strengthened strategic partnership with Axens to produce battery materials in France, targeting production start by 2027 to serve the European battery supply chain.
• R&D focus: sustained investment in material chemistry and process scale-up to improve energy density, cycle life and cost per kWh for LFP and multi-material cathodes.

• Mission: deliver advanced, cost-competitive battery materials that accelerate electrification-balancing high performance, safety and scalability for global OEMs and ESS customers.
• Vision: become a top-tier, vertically integrated new-energy materials supplier with global manufacturing footprint and technology leadership across LFP and multi-material cathodes.
• Core values: innovation-led R&D, quality and process control, customer-centric supply reliability, strategic partnerships and ESG-conscious manufacturing.

• Stabilize China production and cost structure to recover from the 2024 revenue contraction.
• Scale European output via Axens collaboration to diversify end markets and mitigate regional demand cyclicality.
• Accelerate R&D commercialization to improve material performance and reduce per-kWh material costs.
• Maintain investor confidence and liquidity while pursuing targeted capital expenditure for overseas plants.

Hunan Changyuan Lico Co.,Ltd. (688779.SS) - Overview

Mission: Hunan Changyuan Lico's mission is to 'keep pace with the times and meet the evolving application needs of customers with quality and innovation.' This mission drives the company's strategy across R&D, production scaling and global partnership development, ensuring product relevance in the fast-moving battery materials sector.

• Quality and innovation: continuous upgrades in process control, purity targets and product formats to serve lithium-ion battery, precursor and specialty chemical markets.
• Customer-centric adaptation: product roadmaps tied to evolving EV and energy-storage chemistry requirements.
• Global expansion: strategic collaborations (e.g., Axens in France) to access advanced process technologies and overseas markets.

Operational and strategic metrics that reflect how the mission is translated into action:

How the mission is operationalized - key focus areas:

• Product development: prioritized formulations for high-nickel, high-voltage and long-life cathode chemistries to meet OEM specifications.
• Process innovation: adoption of advanced purification and continuous-processing technologies to raise product consistency and yield.
• Quality management: ISO and industry-specific quality systems ensuring traceable material grades and batch-level documentation.
• Global collaboration: joint R&D and process optimization projects with international partners (e.g., technology collaboration with Axens) to accelerate scale-up.
• Sustainability and compliance: investments in waste reduction, water recycling and emissions control to meet tightening regulatory standards.

Examples of mission-aligned outcomes and KPIs:

Investment and partnership highlights tied to the mission:

• Axens collaboration (France): technology transfer and engineering support to improve downstream purification and environmental performance.
• Customer co-development: multi-year supply and qualification agreements with battery manufacturers to tailor chemistries.
• CapEx program: phased expansions targeting incremental LCE capacity and ancillary chemical production to diversify revenue streams.

Reference for deeper investor context: Exploring Hunan Changyuan Lico Co.,Ltd. Investor Profile: Who's Buying and Why?

Hunan Changyuan Lico Co.,Ltd. (688779.SS) - Mission Statement

• Primary mission focus: research & commercialization of all‑natural performance materials for new energy, battery, electronics and specialty chemical markets.
• Sustainability commitment: minimize lifecycle environmental impact through raw‑material sourcing, green manufacturing and product recyclability.
• Commercial objective: expand global footprint while maintaining vertically integrated quality control from feedstock to finished product.

• Technology leadership - scale lab innovations into industrial processes to reduce cost per kg and improve material performance metrics (e.g., purity, conductivity, thermal stability).
• Market expansion - deepen presence in China and Europe and enter adjacent markets that demand eco‑certified materials.
• Operational excellence - continuous improvement in yield, energy intensity and waste reduction across plants.

• Product roadmap prioritizes naturally derived chemistries that reduce reliance on scarce metals and toxic solvents.
• Capital expenditure emphasizes modular, low‑emissions manufacturing and closed‑loop utilities to cut CO2 per tonne produced.
• Commercial strategy favors certification and traceability (supply‑chain ESG) to access premium segments in Europe and institutional buyers.

• Rebranding and corporate identity refresh to reflect the shift toward 'all‑natural' material leadership.
• Targeted expansion into the European market to serve customers requiring high‑sustainability inputs and to diversify revenue streams.
• Strengthened partnerships across academia and industry for scale‑up, testing and certification to international standards.

Hunan Changyuan Lico Co.,Ltd. (688779.SS) - Vision Statement

• Innovation: sustained R&D investment and cross-disciplinary technology adoption to drive next-generation cathode chemistries and material processing.
• Growth: aggressive market-share expansion targets in China, Southeast Asia, Europe, and North America supported by capacity scale-ups and strategic partnerships.
• Re-innovation: continuous improvement cycles to upgrade existing product lines, reduce unit costs, and improve environmental footprints.

• R&D intensity: target R&D spend of 8-10% of annual revenue to accelerate proprietary technologies and patent filings.
• Capacity growth: multi-year plan to increase electrode and precursor production capacity by 40-60% within three years to meet EV and energy-storage demand.
• Export mix: aim for 25-35% of revenue from international customers through OEM and distributor agreements.

• Board-level oversight of R&D strategy and a performance-linked incentive plan tied to technology milestones and sustainable margins.
• Investment prioritization: capital spending focused 60% on production scaling and 40% on pilot R&D lines and quality/automation upgrades.
• International alliances: joint development and supply agreements to accelerate market entry and share technical know-how while protecting IP.

• Product pipeline: introduction of 3 new high-nickel cathode grades and 2 low-cobalt alternatives within 24 months to meet evolving EV OEM specifications.
• Cost reduction: process re-innovation initiatives targeting a 12-18% reduction in per-unit production cost over three years through yield improvement and energy-efficiency investments.
• Sustainability: reduction in process water usage by 22% and improvement in scrap recycling rates to 87% via closed-loop process upgrades.