On December 23, Gronghui reported that Hunan Corun New Energy (600478.SH) recently stated during a meeting with institutional investors that the price fluctuations in the Lithium carbonate market have indeed posed certain challenges for the company. The company owns four Lithium mines and Lithium carbonate production lines. Since 2024, the continuous decline in the price of Lithium carbonate has led to profits from Lithium carbonate products not meeting expectations, and the business is facing the cyclical tests of the Industry. However, amid the market downturn, the company has actively deployed strategies, utilizing technological innovations, cost reductions, and capacity optimizations to make thorough preparations for the adjustment of the Industry cycle.

Currently, among the company's four mining areas, the Tong'an mine and the Dangtian mine have completed detailed surveys, with a total reserve of approximately 7 million tons, while the detailed surveys of the other two mining areas are being accelerated. In the first half of 2024, the company will complete the transition from the old system to the new system in its mining areas, and Wukang 23 Mining Construction Group will become the company's partner in mine development. The completion of the transition work further enhances the level of automation in mine construction, effectively increasing ore output, safety levels, and extraction efficiency. It is expected that the mining license change for the Tong'an mining area will be completed within the year, and efforts will be actively promoted to enhance production capacity and progress in various business operations in the other three mining areas to meet the raw material needs of the Lithium carbonate business. Regarding Lithium carbonate production capacity, the first phase of 10,000 tons of Lithium carbonate capacity has been put into production, and new mineral processing and Lithium extraction technologies are under development, which can significantly reduce production costs once commercial application validation is completed.

In 2025, the company will continue to strengthen its layout in the energy storage Business and gradually reintegrate the relevant Businesses laid out in 2024, thereby better stimulating and driving the company's production and sales capacity of Lithium carbonate products.