LOPAL(SH:603906) Huan Qiu Lao Hu Cai Jing·2025-12-03 14:31Core Viewpoint - Longpan Technology has secured a significant long-term procurement agreement worth approximately 4.5 to 5.5 billion RMB for lithium iron phosphate cathode materials, indicating a potential turnaround for the company after a period of losses [1][2][5] Group 1: Recent Contracts - Longpan Technology's subsidiary LBM New Energy (AP) Pte. Ltd. signed a long-term procurement agreement with Sunwoda to supply a total of 106,800 tons of lithium iron phosphate cathode materials from 2026 to 2030, with an estimated sales amount of 4.5 to 5.5 billion RMB [1][2] - Just days prior, Longpan Technology signed another agreement with Chuangneng New Energy to supply 1.3 million tons of lithium iron phosphate cathode materials, with an estimated total value exceeding 45 billion RMB [3] - In 2023, Longpan Technology has secured contracts with various battery manufacturers, with total order amounts exceeding 65 billion RMB [4] Group 2: Company Background and Transformation - Longpan Technology, initially focused on automotive chemicals, transformed its business model in 2021 to produce lithium iron phosphate cathode materials, leading to a significant increase in revenue [5][6] - The company experienced rapid growth from 2020 to 2022, with revenues increasing from 1.915 billion RMB in 2020 to 14.072 billion RMB in 2022, and net profits also showing substantial growth [6] - However, the company faced a downturn in 2023, with revenues dropping to 8.729 billion RMB and net losses of 1.233 billion RMB [7][8] Group 3: Industry Context - The recent surge in long-term agreements within the lithium battery supply chain reflects a broader trend, with multiple companies signing significant contracts to secure raw material supplies amid rising demand [9][10] - The growth in the electric vehicle and energy storage markets has driven this trend, with a notable increase in sales and production of batteries in China [10]