Against the backdrop of persistently low carbonate solvent prices, Haike Xinyuan (SZ:301292) has played its trump card by forming a strategic alliance with a new energy giant.
On the evening of January 26, Haike Xinyuan announced the signing of a three-year long-term cooperation agreement with Shenzhen BYD Lithium Battery Co., Ltd. This pipeline supply agreement, based on the Hubei project, stipulates an annual supply of at least 100,000 tons of electrolyte solvent.
This move effectively locks in BYD's substantial baseline demand for Haike Xinyuan. However, the other side of the coin reveals that despite a revenue surge of over 40% in the first three quarters of 2025, the company's net profit remained in negative territory.
With the agreement explicitly stating that it "does not involve specific transaction amounts" as a risk disclaimer, can this volume-for-margin partnership with a giant become the clarion call for a turnaround in the company's performance?
The announcement indicates that Haike Xinyuan and BYD Lithium Battery formally signed the "Long-term Cooperation Agreement and Hubei Project Pipeline Supply Agreement" on January 23, 2026.
BYD Lithium Battery is a wholly-owned subsidiary of the A-share new energy vehicle giant BYD. Established in 1998, the company has a registered capital of 6.16 billion yuan.
According to the agreement, the cooperation period is set for three years. During this term, Haike Xinyuan will supply the contracted products via pipeline to BYD's Hubei project, with a guaranteed annual volume of no less than 100,000 tons.
The cooperation covers four core electrolyte solvents: Dimethyl Carbonate (DMC), Ethylene Carbonate (EC), Ethyl Methyl Carbonate (EMC), and Diethyl Carbonate (DEC). As critical raw materials for lithium-ion battery electrolytes, the stable supply of these four solvents is paramount for battery manufacturers.
A key feature of this cooperation model is the "pipeline supply" method. Compared to traditional tanker truck transportation, pipeline supply signifies an extreme physical proximity, achieving a "zero-distance"对接 between the two parties. This model typically involves upstream and downstream enterprises within a chemical industrial park, using dedicated pipelines for direct liquid chemical transfer.
This approach not only substantially reduces logistics and transportation costs and mitigates road safety risks but, more importantly, establishes an exclusive, highly sticky partnership. Once the pipeline is laid, it implies a long-term binding of the supply-demand relationship between the two companies.
In fact, Haike Xinyuan had already been strategically planning its supply chain management. In its 2025 semi-annual report, the company revealed that "optimizing raw material transportation methods, shifting some from road transport to pipeline delivery to reduce logistics costs" was a key measure for cost reduction and efficiency improvement.
Under the agreement, Haike Xinyuan will be responsible for the construction and associated costs of the pipeline, ensuring its products are prioritized to meet the continuous production needs of BYD Lithium Battery's Hubei electrolyte plant.
Haike Xinyuan noted that "this agreement does not stipulate specific transaction amounts, and the precise impact of its signing on the company's financial position for the current and future fiscal years remains uncertain." This suggests that the final settlement price will likely be market-driven.
A review of Haike Xinyuan's financial data over the past two years clearly reveals an awkward situation of increasing revenue without corresponding profit growth.
The 2024 annual report showed that Haike Xinyuan achieved total operating revenue of 3.615 billion yuan, a year-on-year increase of 7.49%. However, its net profit attributable to shareholders plummeted, recording a loss of 267 million yuan, a drastic decrease of 944.35% year-on-year. The company attributed this primarily to intensified competition from new industry capacity, leading to significant declines in product selling prices and gross profit margins, coupled with higher allocated fixed costs due to the initially low operational load of the newly commissioned Hubei Xinyuan Haoke New Materials Co., Ltd. facility.
This situation showed some improvement in 2025 but was not fundamentally reversed. The Q3 2025 report indicated that revenue for the first three quarters reached 3.653 billion yuan, a substantial year-on-year increase of 43.17%, already surpassing the full-year 2024 revenue. Nonetheless, the net profit attributable to shareholders from the start of the year to the reporting period remained negative, at a loss of 128 million yuan.
More notably, although the net loss attributable to shareholders narrowed significantly to 42.8306 million yuan in the first half of 2025, the loss showed signs of widening again in the third quarter, with a single-quarter loss of approximately 85.19 million yuan.
In this context, the pipeline cooperation with BYD carries significant implications. On one hand, it may directly address the pain point of the "low operational load at the Hubei project," helping to dilute the high fixed costs and thereby improve gross margins. On the other hand, this deep integration also signifies that Haike Xinyuan will become more reliant on the pricing power of a single major client.
In investor communications in September 2025, Haike Xinyuan stated that it would enhance performance through measures such as "consolidating strategic cooperation with leading downstream enterprises, accelerating overseas expansion, and optimizing supply chain management."
