Mianyang Fulin Precision Machining Co Ltd

Fulin Precision released its 2026 interim report, with total operating revenue of 11.048 billion yuan, net profit attributable to the parent company of 282 million yuan, and net cash inflow from operating activities of 1.272 billion yuan. The company's asset-liability ratio was 72.92 percent, up 10.76 percentage points from the previous quarter and up 14.15 percentage points from the same period last year. Gross margin was 9.14 percent, down 0.20 percentage points from the previous quarter and down 1.57 percentage points from the same period last year. Diluted earnings per share were 0.16 yuan, the number of shareholders was 64,700, and the top ten shareholders held 49.85 percent of total share capital.

Hunan Yuneng has issued a price adjustment notice to downstream customers, planning to uniformly raise the price of all lithium iron phosphate product series by 2,000 yuan per tonne from the original execution price starting August 1, 2026. The company's securities department confirmed that the price hike notice has been sent, mainly due to rapid increases in upstream raw materials such as phosphoric acid, high capacity utilization rates, and the industry's peak season in the second half of the year. Since the beginning of this year, the price of iron phosphate has risen from about 10,000 yuan per tonne to 15,000 yuan per tonne, an increase of over 50 percent. Iron phosphate accounts for more than 70 percent of the processing cost of lithium iron phosphate, and the rising costs have continuously squeezed profit margins. The company stated that it is currently operating at full capacity, and new production capacity can no longer meet the growing order demand from all customers. Several other cathode material companies, such as Fulin Precision Machining, have also indicated they are communicating with downstream customers about price adjustments, as the industry as a whole faces cost pass-through pressure. The rising upstream raw material prices are being transmitted layer by layer to battery cell manufacturers, but downstream acceptance of price hikes is limited, leaving the upstream and downstream in a stalemate.