On December 16, Huayou Cobalt announced that the company has signed a binding Memorandum of Understanding with an internationally renowned customer. The agreement stipulates that the company's subsidiary will supply 79,600 tonnes of ternary precursor products to the customer's designated buyers within the agreed term. The implementation of this memorandum is not expected to have a significant impact on the company's operational performance for the year 2025, nor will it affect the independence of the company's business operations. Upon the commencement of formal supply, it is anticipated to positively influence the company's operational performance.
Given the extended duration of this memorandum, its fulfillment may be subject to uncertainties such as policy changes, market conditions, and environmental factors, potentially leading to delays or incomplete execution. There remains a degree of uncertainty regarding the actual sales volume. Additionally, the product pricing is determined based on the market prices of core raw materials and processing costs. Significant fluctuations in the market prices of core raw materials in the future may introduce uncertainties regarding the profitability of this agreement post-implementation.
Edited by Cassie Li, lixiangying@mysteel.com
