Corun has replied to the Shanghai Stock Exchange's inquiry letter regarding its 2025 annual report, denying any related-party transactions or premature revenue recognition in its energy storage business. In 2025, the company's energy storage revenue reached 1.748 billion yuan, a year-on-year increase of 1668.95 percent, with the fourth quarter contributing nearly half of the full-year revenue, a gross margin of 9.37 percent, and a significant rise in accounts receivable and contract assets. The company explained that the project cycle of energy storage led to concentrated delivery in the fourth quarter, and customer funds mainly came from financing or self-raised capital, with a small portion from energy storage industry funds in which the company has invested. However, these customers are not related parties, and the company does not control the industry funds, making the gross method of revenue recognition compliant. Additionally, regarding the lithium mine assets acquired at a high premium, the company stated that although the price of lithium carbonate once fell to 60,000 yuan per ton in 2025, it rebounded to 120,000 yuan per ton by year-end and reached 175,000 yuan per ton by the end of April 2026, indicating no signs of impairment for the related assets. The company also acknowledged that interest-bearing debt increased to 3.755 billion yuan, with an asset-liability ratio of 72.82 percent, and the controlling shareholder's share pledge ratio has long been above 80 percent, posing short-term liquidity pressure.
Hunan Corun New Energy Co LtdHigh debt, high asset-liability ratio, and high share pledge ratio pose liquidity pressure.