New Stock News | Power and Energy Storage Battery Manufacturer iPower submits an application to the Hong Kong Stock Exchange. As of the end of March, the total design production capacity of the company's battery cells is 25.5GWh.

According to the disclosure by the Hong Kong Stock Exchange on July 26, Jiangsu Zonergy New Energy Battery Technology Co., Ltd. (referred to as "Zonergy New Energy") has submitted an application for listing on the main board of the Hong Kong Stock Exchange, with CICC and CMB International as its joint sponsors. As of March 31, 2024, the total design capacity of the company's battery cell products is 25.5GWh. The prospectus revealed that Zonergy New Energy is a leading manufacturer of power and energy storage batteries in China, providing integrated solutions for battery cells, modules, battery packs, battery clusters, and battery management systems, dedicated to expanding the large-scale application of electrochemical products in the interconnected scenarios of land, sea, and air (LISA). Data shows that for the three months ending March 31, 2023, up until the three months ending March 31, 2024, based on the year-on-year growth rate of installed capacity as of the three months ending March 31, 2024, the company ranks second among the top ten companies in terms of installed capacity in the power battery market, first among the top ten companies in the lithium iron phosphate power battery market, and second among the top ten companies in the ternary power battery market. According to a Frost & Sullivan report, the global power battery market has been steadily growing in recent years, with the global power battery installed capacity expected to increase from 716.0GWh in 2023 to 3,513.1GWh in 2028 at a compound annual growth rate of 37.5%. The China Shipbuilding Industry Group Power battery installed capacity is expected to increase from 389.0GWh in 2023 to 1,943.3GWh in 2028 at a compound annual growth rate of 37.9%. The structure of the new energy vehicle market has also seen significant changes. With BEV vehicles holding the largest market share, PHEV vehicles have achieved rapid growth due to lower costs and range advantages. According to Frost & Sullivan data, the market penetration rate of BEV vehicles in China was 22.2% in 2023 and is expected to grow at a compound annual growth rate of 12.1% from 2023 to 2028; the total market share of PHEV (including EREV) vehicles in China was 9.3% in 2023 and is expected to grow at a compound annual growth rate of 38.6% from 2023 to 2028, with PHEV vehicles expected to grow faster than BEV vehicles and surpassing BEV vehicle sales by 2025. Zonergy New Energy develops a diverse range of product combinations driven by market demand and technology, striving to cover the full range of applications in interconnected land, sea, and air scenarios. While developing BEV products, the company has proactively identified and developed PHEV and EREV battery products, seizing structural growth opportunities while meeting the needs of different customers. The company's PHEV and EREV batteries have extremely high cycle life, with up to 4,000 cycles, and can be fast-charged to 80% in 30 minutes. In addition, the Qilong series BEV battery pack has a high capacity of 170kWh, making it the largest battery system in Chinese passenger cars as of June 30, 2024, with an energy density of 306Wh/kg and using dual semi-solid technology that can fast-charge from 10% to 70% in 9 minutes. Zonergy New Energy's power battery customers include large central state-owned enterprises, new car manufacturing forces, and multinational leading vehicle manufacturers. The company's market share of battery products for core models of top global enterprises such as First Automotive Works, GAC Trumpchi, LEAPMOTOR, SAIC-GM-Wuling, and SAIC-GM continues to increase. As of March 31, 2024, Zonergy New Energy's sales penetration rates for core BEV models of LEAPMOTOR and core PHEV product GL8 Lutz PHEV of SAIC-GM have each exceeded 50%. In addition, the company has cooperated with companies such as Ningbo Deye Technology around storage battery development and actively seeks to collaborate with clients in the aviation and maritime sectors to accelerate product manufacturing. Financially, as of March 31, 2021, 2022, 2023, and 2024, the company reported revenues of 1.499 billion yuan, 3.29 billion yuan, 4.162 billion yuan, and 737 million yuan, respectively. During the same periods, the company reported gross profits of 30.178 million yuan, -29 million yuan, 20.8 million yuan, and 68.228 million yuan, respectively. Zonergy New Energy's loss increased from 402 million yuan in 2021 to 1.72 billion yuan in 2022, primarily due to the cancellation of purchase orders by customer X. The company's losses subsequently decreased to 590 million yuan in 2023, mainly due to increased sales and operational efficiency improvements resulting from economies of scale. Losses decreased from 168 million yuan in the three months ending March 31, 2023 to 69.899 million yuan in the three months ending March 31, 2024, mainly due to higher manufacturing cost allocation after the cancellation of purchase orders by customer X. In its prospectus, Zonergy New Energy stated that as it is still in a growth stage, the company has not yet achieved profitability and cannot guarantee if and when profitability will be achieved. The company's future profitability will depend not only on product sales but also on cost control. Failure to sufficiently expand sales while controlling operating costs may result in continued losses in the future. Furthermore, the prospectus warned that Zonergy New Energy may not be able to increase production capacity as planned, and even if the company's expansion projects proceed as planned, it may not be able to increase capacity in a timely manner or achieve the expected production volume. Despite reaching a commercial scale with its current capacity, Zonergy New Energy has not yet reached the expected capacity level necessary to fully meet market demand for its products. The company plans to expand its design capacity to 50.5GWh by 2026.