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Huayou Cobalt delivered its most impressive annual report since inception in 2025. Driven by global high-growth in new energy vehicle sales, a significant rebound in cobalt prices, and the synergistic effects of the company's integrated industrial chain, both revenue and profits recorded substantial growth, with profitability continuously strengthening.
In 2025, Huayou Cobalt realized operating revenue of 81.019 billion yuan, a year-on-year increase of 32.94%; net profit attributable to the parent company was 6.11 billion yuan, up 47.07% year-on-year; and non-recurring net profit was 5.793 billion yuan, up 52.64% year-on-year. A cash dividend of 5.00 yuan per 10 shares (tax included) is proposed for all shareholders.
The core driver behind this performance surge was a structural reversal in the cobalt market. Implementation of export control policies in major cobalt-producing countries such as the Democratic Republic of Congo caused a sharp contraction in global effective supply. The supply-demand dynamic swiftly shifted from structural surplus to acute shortage, propelling cobalt prices on a strong upward trajectory.
Meanwhile, global new energy vehicle sales grew by 29.1% year-on-year to 23.542 million units in the same period, while lithium-ion battery shipments increased by 47.6% to 228.05 GWh, providing solid volume and price support for Huayou Cobalt's core lithium battery materials business.
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<h2>Strong Cobalt Price Rebound Becomes Key Profit Catalyst</h2>
The sudden shift in the cobalt industry landscape was one of the most significant external variables during the reporting period.
Impacted by export control policies in major supplying nations, global effective cobalt supply in 2025 was approximately 120,000 metric tons, a sharp decline from the previous year. In contrast, global cobalt demand reached about 214,000 metric tons, up 4.4% year-on-year. This dramatic shift from structural surplus to supply tightness propelled cobalt prices into a robust upward cycle driven by supply constraints.
According to USGS data, the Democratic Republic of Congo accounts for approximately 75% of global cobalt mine production. This highly concentrated supply structure significantly amplified the impact of export control policies. Huayou Cobalt has deeply invested in cobalt and copper resource development in Africa, and its own mine supply system provided direct support for benefiting from this round of cobalt price recovery.
Looking ahead, the company anticipates that advancements in technologies such as AI, 6G, and the Internet of Things will substantially increase power requirements per smart terminal unit, potentially driving the consumer electronics market into a new growth cycle. Additionally, the commercialization of new technologies like large cylindrical batteries and solid-state batteries will further push battery evolution toward higher energy densities, ushering the cobalt market into a new cycle of simultaneous volume and price growth.
<h2>New Energy Lithium Business Remains Highly Prosperous</h2>
The rapid expansion of the new energy vehicle and lithium battery industry chains provided a solid foundation for the company's core businesses.
According to EVTank data, global new energy vehicle sales reached 23.542 million units in 2025, a 29.1% year-on-year increase, with China accounting for 16.545 million units, up 29.5%. Global lithium-ion battery shipments totaled 228.05 GWh, up 47.6% year-on-year, with China contributing 188.86 GWh, up 55.5%.
However, the cathode material market exhibited clear structural differentiation.
According to ICC Sino-Lithium data, global lithium iron phosphate (LFP) production reached 3.938 million metric tons in 2025, a 63.0% year-on-year increase, while ternary material production was 1.033 million metric tons, up 7.4%. LFP, leveraging cost advantages, dominated the energy storage and mid-to-low-end vehicle markets, whereas ternary materials maintained dominance in the premium segment thanks to their superior energy density and low-temperature performance.
Huayou Cobalt's ternary precursor products have been widely adopted in the supply chains of premium electric vehicles from Tesla, Volkswagen, BMW, Hyundai, Stellantis, General Motors, and Ford, and the company has signed a framework supply agreement with Tesla.
The company forecasts that accelerated industrialization of large cylindrical and solid-state batteries, alongside rapid development of emerging scenarios such as embodied intelligence, drones, and low-altitude economy, will open broader growth prospects for ternary cathode materials.
<h2>Nickel Sector Under Pressure, Lithium Prices Show V-Shaped Reversal</h2>
In the nickel sector, global supply reached 3.81 million metric tons against a demand of 3.6 million metric tons in 2025. This mismatch kept nickel prices oscillating primarily within a bottom range throughout the year, with a significant rebound occurring only at year-end due to tightening expectations regarding Indonesia's RKAB quota policy.
Given the highly concentrated pattern of nickel production in Indonesia, developments in its quota policy have become a critical variable influencing the global nickel supply-demand balance.
Regarding lithium, according to Mysteel data, global lithium carbonate supply in 2025 was approximately 1.78 million metric tons, with demand around 1.678 million metric tons, resulting in an oversupply of roughly 103,000 metric tons. Oversupply pressure was concentrated in the first half of the year, leading to a V-shaped price trend characterized by an initial decline followed by a recovery.
Rapid scaling of energy storage demand in the second half drove a significant rebound in lithium carbonate demand, markedly improving the market supply-demand dynamics. The company believes that the dual drive of &#34;power batteries + energy storage&#34; will provide long-term support for lithium carbonate demand.
<h2>Integrated Layout Strengthens Profit Resilience, Cash Flow Under Pressure</h2>
Huayou Cobalt has built a full-chain integrated industrial ecosystem spanning nickel, cobalt, and lithium resource development, green smelting and processing, ternary precursor and cathode material manufacturing, and resource recycling. Internal synergies have provided strong buffering for profitability amid significant fluctuations in multi-metal prices.
From a quarterly perspective, the company's profitability showed a sequential improvement trend. Net profit attributable to the parent company in the fourth quarter reached 1.894 billion yuan, the highest for any quarter of the year, representing an approximate 51% increase compared to the first quarter's 1.252 billion yuan. This reflects the resonant effect of rising cobalt prices and recovering new energy demand in the latter half of the year.
However, net cash flow from operating activities was 4.012 billion yuan, down 67.73% year-on-year, marking the lowest level in nearly three years, indicating certain working capital pressures faced by the company during its rapid expansion phase.
In terms of financial indicators, the asset-liability ratio decreased from 64.38% in 2024 to 61.85%, while the interest coverage ratio surged from 2.91 to 4.28, reflecting an improved debt structure. The company currently has multiple technology innovation bonds outstanding, with a total balance exceeding 5 billion yuan, scheduled to mature between 2026 and 2027.

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In 2025, Huayou Cobalt achieved revenue of 81 billion yuan, a year-on-year increase of 32.94%; net profit attributable to the parent company reached 6.1 billion yuan, up 47.07% year-on-year, setting new all-time highs for both metrics. The performance drivers were export controls in major cobalt-producing countries like the Democratic Republic of Congo, which pushed cobalt prices higher, and sustained growth in new energy vehicle sales, boosting demand for the company's lithium battery materials business

Huayou Cobalt Sets All-Time High in 2025 Earnings as Cobalt Price Recovery Resonates with New Energy Demand | Financial Report Insights