New Stocks Outlook | With an annual revenue of 48.6 billion yuan, leading lithium battery company Eve Energy Co., Ltd. intends to list on the "A+H" market.

After the success of Contemporary Amperex Technology in breaking through the Hong Kong stock market IPO, another lithium battery giant announced plans to list "A+H". Recently, Huizhou Eve Energy Co., Ltd. (hereinafter referred to as "Eve Energy Co., Ltd.") has submitted a listing application to the Hong Kong Stock Exchange, intending to list on the main board of Hong Kong, with CITIC SEC as the exclusive sponsor. It is reported that Eve Energy Co., Ltd. was established in 2001 and went public on the A-share market in 2009. As of the close on July 11th, the company's market value on the A-share market is approximately 93.8 billion yuan, making it a well-known leader in the lithium battery industry. With over twenty years of experience in the lithium battery field, the company has achieved a revenue of up to 48.6 billion yuan and a net profit of over 4.2 billion yuan by 2024, relying on its three pillars of consumer batteries, power batteries, and energy storage batteries. Since 2025, leading A-share listed companies have started their second round of listings by embracing the A+H model. Industry giants such as Jiangsu Hengrui Pharmaceuticals and Contemporary Amperex Technology have successfully knocked on the door of the Hong Kong Stock Exchange to achieve A+H listings. As another lithium battery leader, what are Eve Energy Co., Ltd.'s intentions for listing in Hong Kong this time? Industry forefront with an annual revenue of 48.6 billion yuan GMTEight understands that Eve Energy Co., Ltd.'s main business is the research, development, production, and sales of power batteries, energy storage batteries, and consumer batteries. After 24 years of high-quality development, the company has achieved a leading position internationally in all three major businesses, establishing a comprehensive research and development platform covering materials, cells, BMS, and systems. Its products are widely used in areas such as smart living, green transportation, and energy transformation. According to Frost & Sullivan data, Eve Energy Co., Ltd. has strong competitiveness in the consumer battery, power battery, and energy storage battery sectors. By shipment volume, in 2024, the company ranked third in consumer battery shipments globally with a market share of 11.7%; its power battery shipments ranked among the top five in Chinese manufacturers with a market share of 2.8%; and its energy storage battery shipments ranked second globally with a market share of 17.2%. At the same time, Eve Energy Co., Ltd. has a wide range of customers, with long-term deep cooperation with the three largest electric tool manufacturers in the world, covering over 80% of the top ten global electric tool companies and over 60% of the top twenty new energy passenger car suppliers. Specifically, the company's well-known consumer battery customers include Samsung, Stanley Black & Decker, Bosch, Xiaomi, SF Express, and Smoore; its well-known automotive customers include international brands such as BMW, Mercedes-Benz, and Jaguar Land Rover, domestic brands such as Guangzhou Auto, FAW, and Changan, as well as well-known new forces such as Xiaopeng and Leapmotor, and commercial vehicle customers such as Sany Heavy Truck, Geely Longyun, and Dongfeng Commercial Vehicle; and its well-known energy storage customers include China Mobile Limited, State Grid Corporation of China, ABB, and Delta Electronics. With the company's substantial revenue and profit scale, it is clear that Eve Energy Co., Ltd. has a firm position in the industry. According to the prospectus data, from 2022 to 2024, the company achieved revenues of 36.3 billion yuan, 48.784 billion yuan, and 48.615 billion yuan respectively. Its gross profits were 5.786 billion yuan, 8.119 billion yuan, and 8.465 billion yuan respectively, showing a steady increase each year. Its annual net profits were 3.672 billion yuan, 4.52 billion yuan, and 4.221 billion yuan respectively. The 2024 net profit decreased by 6.6% year-on-year, possibly due to factors such as asset impairment losses and a decrease in other income such as government subsidies. Breaking down the revenue structure for 2024, Eve Energy Co., Ltd. had consumer battery income of 10.322 billion yuan, accounting for 21.2%; power battery income of 19.167 billion yuan, accounting for 39.4%; and energy storage battery income of 19.027 billion yuan, accounting for 39.1%. These three business segments have indeed steadily driven performance like "the three pillars of performance." With the double-digit growth in the three major tracks, consolidating competitiveness remains key Looking at the three major segments, the consumer battery, power battery, and energy storage battery sectors in which Eve Energy Co., Ltd. operates still show high growth potential. In the consumer battery sector, driven by the trends of electrification and intelligence, the market demand for consumer batteries is steadily increasing. According to Frost & Sullivan statistics, the market size based on shipment volume is expected to increase from 21.7 billion units in 2025 to 55.1 billion units in 2029, with a compound annual growth rate of 26.2%. The business demand in the consumer battery industry is diverse and rapidly changing, and only companies that provide multiple solutions and can understand market demand can seize opportunities. In the power battery sector, driven by policy guidance and technological breakthroughs, downstream demand for power batteries is growing significantly. According to Frost & Sullivan statistics, the total shipment volume of global electric vehicle batteries is expected to increase from 1,376.4GWh in 2025 to 3,548.3GWh in 2029 at a compound annual growth rate of 26.7%. In addition, due to the rapid development of electrification globally, the market space is still huge, with commercial vehicles and construction machinery being potentially lucrative markets in the power battery sector. In the energy storage battery sector, rapid market growth combined with technological advancements is accelerating the construction of new formats in the global energy storage industry. According to Frost & Sullivan statistics, the global energy storage battery shipment volume is expected to increase from 479.2GWh in 2025 to 1,101.3GWh in 2029 at a compound annual growth rate of 23.1%. Given the rapid pace of technological advancements, the sensitivity to technical indicators in the future may be higher due to their long-term nature, with requirements for full lifecycle management and operation and maintenance. This will raise the technological capabilities required of industry participants. However, it is important to note that the battery industry is highly competitive, and if a company fails to maintain a leading position in the battery industry in the future, its operational performance may be negatively affected. Based on this consensus, Eve Energy Co., Ltd. continues to consolidate its competitive advantage from multiple dimensions. In its prospectus, Eve Energy Co., Ltd. disclosed its development strategy, stating that the company intends to deepen its globalization strategy, strategically expand its production capacity to meet global customer needs, increase research and development investment to continuously enrich cutting-edge technology reserves and expand product scenarios, and promote growth through global cooperation. For example, Eve Energy Co., Ltd.'s cylindrical battery project for passenger cars in Debrecen, Hungary completed its ground construction in 2024 and is expected to start production in 2026; the equipment for the cylindrical lithium battery project in Malaysia started entering the site in December 2024, with an annual production capacity of 680 million small cylindrical batteries expected to begin mass production in early 2025. In addition, in 2024, the company also added projects for manufacturing energy storage batteries and consumer batteries. With such significant strategic moves, it is clear that more capital investment is needed. As of December 31, 2024, Eve Energy Co., Ltd. held cash and cash equivalents of 8.512 billion yuan. Due to the high investment in overseas expansion and the long return period, the company to some extent also needs to alleviate short-term pressure through entry into the Hong Kong stock market and consolidate its competitive advantage. In conclusion, Eve Energy Co., Ltd.'s listing in Hong Kong is a necessary choice for its globalization strategy, aiming to support overseas expansion and optimize financing structures with international capital. If the Hong Kong Stock Exchange fund-raising proceeds smoothly, it will significantly relieve short-term pressure, but long-term attention will still be needed for overseas market volume and profit recovery capabilities. If the issuance valuation is reasonable, the company, as one of the industry leaders, still has strong medium to long-term value for configuration.