Core Viewpoint - Fengyuan Co., Ltd. has signed a three-year framework agreement with Chuangneng New Energy to supply 100,000 tons of lithium iron phosphate cathode materials, which may help the company reverse its two-year loss trend [2][3]. Group 1: Agreement Details - The agreement is set to last from September 20, 2025, to December 31, 2028, with Chuangneng New Energy committing to prioritize purchasing from Fengyuan under equal business conditions [2]. - Fengyuan Lithium Energy is required to ensure stable supply of qualified products, and both parties will collaborate on material iteration and cost optimization [2]. Group 2: Production Capacity and Utilization - Fengyuan currently has a production capacity of 240,000 tons for lithium battery cathode materials, with an additional 75,000 tons under construction [2]. - As of the end of 2024, the capacity utilization rate for lithium battery cathode materials is only 32.65%, which could improve by approximately 14 percentage points with the new order [3]. Group 3: Financial Performance - Fengyuan has reported consecutive losses for two years, with a net loss of 389 million yuan in 2023 and a narrowed loss of 362 million yuan in 2024, alongside a significant revenue decline of 46.35% year-on-year [4]. - In the first half of 2025, the company achieved a revenue of 723 million yuan, a year-on-year increase of 21.23%, but still reported a net loss of 243 million yuan, a decline of 201.29% [4]. Group 4: Challenges and Explanations - The company attributes its losses to the ramp-up phase of new production capacity, mismatch between new capacity and downstream demand, and increased depreciation costs from expanded production lines [5].