Yongxing Special Materials Technology Co.,Ltd: history, ownership, mission, how it works & makes money

Founded in July 2000, Yongxing Special Materials Technology Co., Ltd. has evolved from a stainless-steel specialist into a dual-focused materials and new-energy player-renaming itself in August 2019 to reflect that shift-and today operates key subsidiaries including Huzhou Yongxing (est. 2022) while partnering with CATL in a lithium carbonate JV with an annual capacity of 50,000 tons in which it holds a 30% stake; as of December 12, 2025 the company carried a market capitalization of 24.11 billion CNY, reported revenue of 7.39 billion CNY and net income of 604.14 million CNY (trailing twelve months) with an EPS of 1.16 and a P/E of 39.32, after seeing 2024 revenue of 8.07 billion CNY (a 33.76% decline from 12.19 billion CNY in the prior year) and a sequential quarter showing of 1.85 billion CNY revenue to Sept. 30, 2025 (+6.61%); backed by ~2,360 employees, national high‑tech credentials, CNAS‑certified testing capabilities and top‑three domestic ranking in long stainless products, Yongxing monetizes through sales of stainless steel rods/wires and special alloys while scaling lithium titanate batteries and battery‑grade lithium carbonate across its vertically integrated supply chain.

Yongxing Special Materials Technology Co.,Ltd (002756.SZ): Intro

• Founded in July 2000 to research, develop, produce and sell special metal materials including stainless steel rods and wires, special alloy materials, and lithium battery materials.
• August 2019: Renamed from 'Yongxing Special Stainless Steel Co., Ltd.' to 'Yongxing Special Materials Technology Co., Ltd.' to reflect a diversified product portfolio.
• 2022: Established wholly-owned subsidiary Huzhou Yongxing Special Stainless Steel Co., Ltd., focused on high-quality stainless steel and nickel-based iron-nickel alloy rods and wires.
• January 2022: Formed a lithium carbonate JV with Contemporary Amperex Technology Co. Limited (CATL) to build an annual capacity of 50,000 tonnes of lithium carbonate; Yongxing holds 30% and CATL 70%.
• 2025: Approved an interim cash dividend, signaling a focus on shareholder returns.

• Listed on Shenzhen Stock Exchange: ticker 002756.SZ.
• Major segments: stainless steel & special alloys (including nickel-based materials), lithium battery materials, and related processing services.
• Notable subsidiary: Huzhou Yongxing Special Stainless Steel Co., Ltd. (wholly owned, formed 2022).
• Strategic JV partner: CATL (70% in lithium carbonate JV), providing downstream battery supply-chain integration.

• Mission: Advance high-performance metal and battery material technologies to serve industrial and clean-energy markets (see corporate statement): Mission Statement, Vision, & Core Values (2026) of Yongxing Special Materials Technology Co.,Ltd.
• Vision: Be a leading supplier of specialty metals and battery precursors supporting electrification and high-end manufacturing.
• Core values: Quality, R&D-driven innovation, supply-chain collaboration, and shareholder returns (evidenced by 2025 interim dividend).

• Upstream feedstocks: nickel, chromium, iron, lithium carbonate precursors sourced from domestic and international suppliers.
• Primary production capabilities:
  • Stainless steel and special alloy rod/wire production (including nickel-based alloys for aerospace, power, and chemical industries).
  • Battery materials: lithium precursor processing via JV for large-scale lithium carbonate production (50,000 tpa capacity).
• R&D: continuous alloy development, process optimization, and battery-material quality improvements to meet automaker and battery-maker specifications.
• Quality control: metallurgical testing labs, traceability systems, and customer-specific qualification processes for long-term supply contracts.

• Product sales:
  • Stainless steel rods and wires (standard and specialty grades) sold to manufacturing, construction, and industrial equipment sectors.
  • Nickel-based and special alloy products sold into high-value industrial applications (power generation, aerospace, petrochemical).
  • Lithium carbonate (via JV) sold to battery manufacturers and chemical processors.
• Value-added services: customized alloy formulations, processing/finishing services, and long-term supply agreements with quality premiums.
• Strategic partnerships: equity in JV with CATL provides both JV income (proportional to 30% stake) and off-take/security benefits for the battery-materials channel.
• Dividend policy: distribution of cash to shareholders (interim cash dividend approved in 2025) as part of capital allocation strategy.

• Integration into EV supply chains via the CATL JV-materially expands exposure to lithium-ion battery demand.
• Diversification from stainless-steel-focused origins toward higher-margin alloy and battery-precursor businesses.
• Capital returns to shareholders through cash dividend policy (interim dividend approved 2025).

Yongxing Special Materials Technology Co.,Ltd (002756.SZ): History

• Public listing: Shenzhen Stock Exchange, ticker 002756.SZ.
• Workforce: approximately 2,360 employees (company disclosure).
• Industry recognition: national high‑tech enterprise; ranked among the top 500 private enterprises in China.
• Industry roles: standing director unit of the China Special Steel Enterprise Association and the Stainless Steel Branch.

• Raw material procurement: procures stainless steel slabs, nickel, chromium and other alloy inputs from domestic and imported sources to feed mills and processing lines.
• Production & processing: operates steelmaking and precision-processing facilities producing coils, sheets, pipes, bars and custom-fabricated components for industrial clients.
• Value-added fabrication: offers heat treatment, surface finishing, welding and precision machining to capture higher-margin downstream revenue.
• Sales channels: direct sales to industrial OEMs, distributors and traders; export sales to regional markets.
• R&D & product premiumization: invests in material science and process innovation to create specialty alloys and corrosion‑resistant solutions commanding price premiums.

• Integrated model reduces input cost volatility by combining trading, production and fabrication.
• Leadership roles in industry associations support standards influence and supply network access.
• Public listing provides capital access for capacity expansion and R&D; market-cap metrics above reflect investor valuation swings in 2025.

Yongxing Special Materials Technology Co.,Ltd (002756.SZ): Ownership Structure

• Mission: Provide high-quality special materials globally, focused on 'Lithium Battery New Energy + Special Steel New Materials.'
• Core values: innovation in materials science, resource-efficient extraction (battery-grade Li2CO3), environmental stewardship, and industry-chain collaboration to ensure supply stability and product quality.
• Strategic focus: R&D breakthroughs in stainless and alloy core technologies; development, production and sales of lithium titanate batteries with ultra-wide temperature tolerance, long cycle life, ultra-fast charge/discharge, inherent safety, and environmental friendliness.
• Resource advantage: owns lithium mineral resources and an aligned industrial chain to secure raw-material quality and processing efficiency.

• Controlling shareholder / major group (industrial parent): ~34.12% - provides strategic control and resource integration.
• Public float (retail + minor holders): ~40.23% - liquidity on Shenzhen exchange.
• Institutional investors (funds, QFs, trusts): ~15.50% - financial investors supporting IPO/secondary placements.
• Management & employees (including incentive plans): ~10.15% - aligning operational incentives with shareholders.

• Upstream: mines and processes owned lithium mineral resources to produce battery-grade lithium carbonate (Li2CO3) and intermediate chemicals - securing feedstock cost and quality.
• Midstream: metallurgical processing produces high-end stainless and alloy steels via proprietary special-steel metallurgy and precision alloying technologies.
• Downstream: manufactures lithium titanate battery cells/modules/packs and supplies high-end, green, intelligent special-steel components to equipment manufacturers (EVs, energy storage, industrial machinery).
• Revenue drivers: product mix (lithium chemicals vs. specialty steel), capacity utilization, raw-material cost control via self-owned resources, and premium pricing for high-performance battery & alloy products.
• Margins & profitability levers: improving extraction yields to lower Li2CO3 unit cost, vertical integration to capture value across the chain, and technological differentiation in stainless/alloy product performance.

Yongxing Special Materials Technology Co.,Ltd (002756.SZ): Mission and Values

• Special steel new materials: R&D, production and sales of stainless steels and alloy materials for chemical, energy, automotive, and precision manufacturing customers.
• Lithium battery new energy: extraction and refinement of battery-grade lithium carbonate and development/production of lithium titanate (LTO) battery cells, modules and packs.

• R&D-driven materials innovation - multi-disciplinary teams focusing on corrosion-resistant high-quality stainless steels and custom alloys for high-end applications.
• Precision lithium extraction - processes targeting battery-grade Li2CO3 with purity typically ≥99.5% to meet EV and ESS requirements.
• Lithium titanate battery products - emphasis on ultra-wide temperature performance (e.g., -40°C to +60°C), high cycle life (often >10,000 cycles for LTO chemistry), and ultra-fast charge/discharge capability.
• Resource efficiency & environmental controls - waste-reduction, closed-loop water recycling in metallurgical processes and emissions controls in chemical refining.

• Materials sales - stainless steel sheets, precision alloy components and proprietary high-performance steel grades sold to industrial OEMs and fabricators.
• Battery materials - sale of battery-grade lithium carbonate and downstream LTO cells/modules to battery manufacturers and system integrators.
• Battery systems - packaged battery modules and customized packs for EVs, energy storage systems (ESS) and industrial applications.
• After-sales and technical services - metallurgical consultation, material testing and battery lifecycle support contracts.

• Investment in R&D centers focusing on metallurgical processes, alloy design and battery electrochemistry; R&D spend typically represents a mid-single-digit percentage of revenue.
• Pilot plants and scaling lines for lithium extraction and LTO cell production to shorten time-to-market for new chemistries and formats.
• Quality systems aligned with industrial standards (ISO/GB) and battery safety testing regimes for cell, module and pack certification.

• Secure upstream raw materials and improve conversion efficiency to lower production costs for both steel and battery materials.
• Advance proprietary stainless steel and alloy grades to capture higher-margin segments in petrochemical, power generation and precision manufacturing.
• Scale lithium extraction and LTO battery capacity to support growth in EV and ESS markets while maintaining environmental compliance.

Yongxing Special Materials Technology Co.,Ltd (002756.SZ): How It Works

• Primary products: stainless steel rods and wires, special alloy materials, lithium titanate batteries, battery‑grade lithium carbonate.
• Customer base: stainless steel processors, machinery and automotive parts makers, battery pack manufacturers, energy-storage integrators, and chemical traders.
• Sales channels: direct B2B contracts, long‑term supply agreements, spot sales via distributors, and project-based EPC suppliers.
• Value drivers: product quality/grade (high-end alloys), technology for battery materials, scale advantages in melt/rolling and battery precursor production, and vertical integration of feedstocks.

• Product sales: direct sale of metal products (rod, wire, alloys) priced by grade, specification, and market commodity spreads.
• Battery segment sales: finished lithium titanate battery cells/modules and battery‑grade lithium carbonate sold to battery manufacturers and chemical traders.
• Volume and mix: higher-margin special alloys and battery materials tilt profitability; commodity stainless sales provide volume.
• Contract structure: mix of long-term supply agreements (stable revenue) and spot/market-priced transactions (exposed to price cycles).

• Raw material procurement: nickel, chromium, lithium precursors, and alloying agents sourced from domestic and imported suppliers; procurement timing affects gross margins.
• Manufacturing flows: smelting → casting → rolling/drawing → surface finishing for metal products; chemical synthesis and refining for lithium carbonate → cell production for lithium titanate batteries.
• Quality & R&D: metallurgical and electrochemical R&D improves yield, increases product grades, and enables entry into higher-margin specialty markets.
• Distribution & aftersales: logistics to industrial customers, technical support for alloy specifications and battery integration.

• Raw material volatility (nickel, chromium, lithium) is the largest gross‑margin driver.
• Energy and labor costs in metallurgical processes influence unit costs for metal products.
• Battery precursor yields and chemical purity directly affect selling prices and margins for lithium carbonate and titanate cells.
• Scale, product mix (specialty alloys vs commodity stainless), and downstream value‑added processing determine operating margin variability.

• CapEx focuses on expanding alloy production lines, battery precursor refining capacity, and cell assembly capability to capture higher value along the battery supply chain.
• Working capital cycles are driven by raw material procurement lead times and invoicing terms with industrial buyers; inventory and payables management impact free cash flow.

• Move up the value chain into higher‑grade alloy segments and battery materials with stronger gross margins.
• Increase long‑term supply contracts to stabilize topline and reduce spot-price exposure.
• R&D and process improvements to raise yields and enable premium product specifications.

Yongxing Special Materials Technology Co.,Ltd (002756.SZ): How It Makes Money

• Core products: stainless steel rods, wires, specialty bars and precision profiles marketed to machinery, automotive, aerospace, oil & gas and energy storage customers.
• Key customers: large industrial buyers including Xiamen Tungsten New Energy Materials and numerous domestic OEMs and distributors.
• Competitive advantages: scale in long products, recognized product quality (top-three domestic ranking), CNAS-certified testing center, and an in-house provincial research institute for alloy development.

• Revenue drivers: product mix toward higher-value, specialty stainless grades; long-product capacity utilization; contract volumes with strategic customers.
• Margin drivers: vertical integration (steelmaking to finishing), process optimization, energy and raw-material procurement, and premium pricing for specialty grades.

• Ownership & governance: listed on Shenzhen (002756.SZ) with a controlling shareholder structure anchored by Yongxing-related entities; supported by institutional investors and strategic industrial partners. The company is a national high‑tech enterprise, a standing director unit of the China Special Steel Enterprise Association (Stainless Steel Branch), and ranks among the top 500 private enterprises in China.
• R&D & certification: operates the Yongxing Special Stainless Steel Research Institute (provincial-level) and a CNAS-accredited physical & chemical testing center-enabling alloy development, product qualification for high-reliability sectors, and faster route-to-market for customized grades.