Industry Sales:

• Battery materials: approx. 60%
• Cobalt products: approx. 25%
• Nickel products: approx. 15%

TOP 3 Markets:

1. China: approx. 50%
2. Europe: approx. 30%
3. North America: approx. 15%

Zhejiang Huayou Cobalt Co., Ltd generates the majority of its revenue from the production and sale of battery materials, which are in high demand, especially in the electric vehicle industry. The Chinese market is the largest sales market, driven by the strong demand for electric vehicles and government support.

Europe and North America follow as important markets, as there is also a growing need for sustainable battery solutions supported by strict environmental regulations and an increasing electrification of the transportation sector.

Production Sites:

1. China: Main production facilities are located in the province of Zhejiang.
2. Indonesia: Production plants for processing nickel and cobalt.
3. Democratic Republic of the Congo: Cobalt mines and processing plants.

Zhejiang Huayou Cobalt Co., Ltd has established its production capacities in several countries to efficiently manage the supply and processing of raw materials. In China, the main production facilities responsible for the processing and manufacturing of cobalt products are located. To ensure the supply of raw materials, the company operates mines and processing plants in the Democratic Republic of the Congo, one of the world's largest producers of cobalt. Additionally, Huayou Cobalt has invested in Indonesia to expand the processing of nickel and cobalt, which is strategically important for the production of battery materials.

Strategy for Future Growth:

1. Diversification of the Supply Chain: Zhejiang Huayou Cobalt Co., Ltd. has been increasingly investing in diversifying its supply chain in recent years to reduce dependence on individual sources of raw materials. This includes expanding partnerships in Africa and South America.

2. Expansion of Production Capacities: The company plans to increase its production capacities by constructing new processing plants. These investments aim to meet the growing demand for cobalt in battery manufacturing.

3. Focus on Sustainable Practices: Huayou Cobalt is committed to implementing more sustainable mining methods to reduce the ecological footprint. This includes the introduction of technologies for more efficient resource utilization and minimizing environmental impacts.

4. Market Expansion in Asia and Europe: The company aims to strengthen its presence in the Asian and European markets to benefit from the growing demand for electric vehicles and renewable energies.

These strategic measures are intended to strengthen the market position of Zhejiang Huayou Cobalt and ensure long-term growth.

Main raw materials: Cobalt, Nickel, Lithium
Main importing countries: Democratic Republic of the Congo, Indonesia, Australia

Zhejiang Huayou Cobalt Co., Ltd. is heavily involved in the procurement of cobalt, nickel, and lithium, which are essential raw materials for the production of battery materials.

Cobalt is mainly imported from the Democratic Republic of the Congo, which is the world's largest producer of this raw material. Nickel is primarily sourced from Indonesia, which has significantly increased its production in recent years. Lithium, another critical raw material for batteries, is mostly imported from Australia, which is considered one of the leading lithium producers worldwide.

These import strategies enable Zhejiang Huayou Cobalt to secure its production capacities and meet the demand for battery materials driven by the growing market for electric vehicles and energy storage solutions.

Market share in the cobalt sector: approximately 20% (2024)

Revenue growth: 18% (2024)

EBITDA margin: 25% (2024)

Zhejiang Huayou Cobalt Co., Ltd has a significant competitive advantage in the cobalt sector, which is manifested by several factors. Firstly, the company holds a significant market share of about 20%, making it one of the leading players in the industry. This strong market position enables Huayou Cobalt to benefit from economies of scale and optimize its cost structure.

The 18% revenue growth in 2024 demonstrates that the company is able to further expand its market position and benefit from the increasing demand for cobalt, especially in the field of battery technology for electric vehicles.

The 25% EBITDA margin underscores the efficiency and profitability of the company, indicating effective cost control and a strong negotiating position with suppliers and customers. These financial metrics, combined with strategic partnerships and investments in research and development, secure Huayou Cobalt a sustainable competitive advantage in a dynamic and high-growth market.

Institutional Investor Share: approximately 35% (estimated for 2025)

Insider Buys/Sells: No significant transactions in the last year (estimated for 2025)

The institutional investor share in Zhejiang Huayou Cobalt Co., Ltd is estimated to be around 35%. This indicates that a significant portion of the shares are held by large financial institutions, suggesting a certain level of trust in the company's long-term stability and growth potential.

Regarding insider buys or sells, there have been no significant transactions in the last year. This could suggest that the management and other insiders currently do not expect any major changes in the company's valuation or view their positions as stable.

Market share of Zhejiang Huayou Cobalt Co., Ltd: 18% (estimated, 2025)

Top competitors and their market shares:

1. Glencore plc: 25%
2. China Molybdenum Co., Ltd: 22%
3. Zhejiang Huayou Cobalt Co., Ltd: 18%
4. Sherritt International Corporation: 12%
5. Umicore: 10%
6. Vale S.A.: 8%
7. Freeport-McMoRan Inc.: 5%

Zhejiang Huayou Cobalt Co., Ltd has a significant market share of 18% in the cobalt sector, which is attributed to their strong presence in the battery materials supply chain. Their moat mainly consists of their vertically integrated production chain, ranging from resource extraction to processing. This enables them to have cost-efficient production and better quality control.

However, Glencore and China Molybdenum have larger market shares and benefit from a broader geographical presence and diversified commodity portfolios. This diversification can be seen as a stronger moat, as they are less vulnerable to market fluctuations in a single commodity.

Overall, Zhejiang Huayou Cobalt has a solid moat through its vertical integration and specialization, but competitors could have a long-term advantage due to their size and diversification.

Revenue Growth: 18% (2024) Profit Growth: 20% (2024)

Zhejiang Huayou Cobalt Co., Ltd recorded strong revenue growth of 18% in 2024, driven by the increasing demand for cobalt and other battery materials. The company is benefiting from the growing electrification of the transportation sector and the increasing demand for electric vehicles.

The 20% profit growth in the same year indicates that the company was able to efficiently manage its costs and improve its margins. These positive financial figures suggest that Zhejiang Huayou Cobalt is well positioned to benefit from global trends in battery production.

Additionally, the company has invested in expanding its production capacities to meet the rising demand, which could support further growth in the long term. Given these factors, Zhejiang Huayou Cobalt's stock could present an attractive investment opportunity, especially for investors interested in the development of the electromobility industry.

Dividend yield: 2.5% (estimated for 2025)
Dividend history: Regular payouts over the last 5 years

Zhejiang Huayou Cobalt Co., Ltd has regularly distributed dividends to its shareholders in recent years. The estimated dividend yield for 2025 is around 2.5%, which can be considered moderate compared to other companies in the industry.

The reliability of dividend payments is supported by the company's stable financial performance. Huayou Cobalt has benefited from the increasing demand for cobalt, which is used in the production of batteries for electric vehicles. This has led to a solid revenue and profit growth, reinforcing the company's dividend policy.