New Stock News | Changzhou Fusion New Material (688503.SH) submitted its application to the Hong Kong Stock Exchange. Its sales revenue of photovoltaic conductive slurry ranks first in the world.

According to the disclosure on January 14th by the Hong Kong Stock Exchange, Changzhou Fusion New Material Co., Ltd. (referred to as Changzhou Fusion New Material, 688503.SH) has submitted an application for listing on the main board of the Hong Kong Stock Exchange, with Huatai International and Jefferies acting as its joint sponsors. Company Overview According to the prospectus, the company is an advanced materials company driven by research and development located in China. Since its establishment in 2015, the company has continuously invested in research and development to deepen its expertise in the field of advanced materials, especially photovoltaic conductive pastes. The company's capabilities include the synthesis of inorganic and organic materials, formulation design, manufacturing processes, analysis, and application development, creating a diversified product portfolio. Additionally, the company maintains a stable and efficient operating management system to support the continuous advancement and sustainable growth of its business. The company is a global leader in the photovoltaic conductive paste market. According to data from Zhousi Consulting, for the nine months ending September 30, 2025, the company's sales revenue of photovoltaic conductive paste ranks first among all photovoltaic conductive paste manufacturers worldwide. The company's core business is the development and manufacturing of a comprehensive range of photovoltaic conductive paste products suitable for different photovoltaic cell structures, including TOPCon, PERC, HJT, and X-BC. Based on the core technological capabilities accumulated in the field of photovoltaic conductive paste, the company is strategically expanding into adjacent growth markets. The company has successfully commercialized pastes and adhesives for use in the communication, consumer electronics, and automotive electronics industries. In addition, the company plans to further penetrate the semiconductor materials field through the acquisition of SKE's blank photomask business in response to the national strategic goal of semiconductor self-sufficiency. The company's products are mainly divided into two categories: (i) photovoltaic conductive paste and (ii) other electronic materials. According to data from Zhousi Consulting, the photovoltaic conductive paste industry is characterized by rapid technological iteration aimed at reducing costs and enhancing the efficiency of photovoltaic cells. The company has developed a comprehensive range of conductive paste products to support multiple generations of photovoltaic cells, from early aluminum back-contact cells to P-type PERC, to today's mainstream TOPCon, HJT, and X-BC N-type technologies, and is researching the next-generation photovoltaic conductive paste technology routes such as perovskite cells. To maintain a leading position in the rapidly evolving market, the company actively aligns its research and development direction with emerging industry demands and accelerates the commercialization of high-performance solutions. This approach enables the company to keep pace with technological advancements and continuously meet market demands for cost reduction and enhanced efficiency of photovoltaic cells. The company also provides low-silver and silver-free conductive paste solutions to enhance the efficiency and reduce costs in the photovoltaic industry. For example, silver-plated copper conductive paste achieved ton-scale production and commercial shipments in March 2025, while copper conductive paste for use in TOPCon and HTJ cells has completed research, trial production, and small-batch delivery. The company's main product portfolio includes: TOPCon: TOPCon cell front and back main grid pastes, front fine grid LECO pastes, and back fine grid pastes PERC: PERC cell front fine grid paste and front main grid paste HJT: HJT cell low-temperature paste and silver-plated copper paste X-BC: X-BC cell paste In the field of other electronic materials, the company has a diversified business layout for pastes and adhesives used in the communication, consumer electronics, and automotive electronics industries. The company is expanding into the semiconductor field by acquiring SKE's blank photomask business. This strategic move enables the company to enter the core links of the semiconductor industry chain, and the company plans to leverage its own research and development platform, industrialization experience, and operational capabilities to accelerate the localization innovation, production, and market application of blank photomasks in China. Financial Information Revenue For the fiscal years 2023, 2024, and the nine months ending September 30, 2025, the company's revenue was approximately RMB 10.23 billion, RMB 12.39 billion, and RMB 10.607 billion, respectively. Profit For the fiscal years 2023, 2024, and the nine months ending September 30, 2025, the company's net profits for the year/period were approximately RMB 441 million, RMB 410 million, and RMB 234 million, respectively. Gross Margin For the fiscal years 2023, 2024, and the nine months ending September 30, 2025, the company's gross margins were 9.2%, 7.8%, and 6.5%, respectively. Industry Overview The global conductive paste market has experienced rapid growth in the past few years, driven by the development of the photovoltaic industry, increasing from RMB 28.2 billion in 2020 to RMB 72.2 billion in 2024. Photovoltaics are the largest application sector for conductive paste, accounting for 69.8% in 2024. With further expansion of the photovoltaic and semiconductor industries, the global conductive paste market is expected to grow further to RMB 152.8 billion by 2029, with a CAGR of 15.0% between 2025 and 2029. The global market for photovoltaic conductive paste has rapidly developed along with the rise of the photovoltaic industry, increasing from RMB 14.7 billion in 2020 to RMB 50.4 billion in 2024. The market is expected to continue to grow steadily, reaching RMB 114.5 billion by 2029, with a CAGR of 16.2% between 2025 and 2029, driven by the decrease in silver consumption per unit of photovoltaic cell and the promotion of non-precious metal materials. With strong conductivity and mature process compatibility, silver paste still dominates the photovoltaic conductive paste market, accounting for 98.4% of the market in 2024. Aluminum paste and other conductive pastes contributed 6.16 thousand tons of sales volume in 2024. By 2029, the market size of photovoltaic silver paste is expected to grow to RMB 108.4 billion, with a sales volume of 9.06 thousand tons. Although the current commercial application of new material systems such as silver-plated copper accounts for a relatively small percentage, in response to the urgent pursuit of extreme cost reduction in the photovoltaic industry, it has become a core technological path and future development direction to promote the reduction of silver content, silver-free process, mitigate the risk of fluctuating precious metal prices, and reduce non-silicide costs. By 2029, the market size of new pastes is expected to reach RMB 6 billion, accounting for 5.3%, with a CAGR of 43.5% between 2025 and 2029. China is the largest producer of photovoltaic cells and the largest market for photovoltaic conductive paste. In 2024, sales of photovoltaic conductive paste in China reached RMB 46.5 billion, accounting for 92.3% of the global market. In the future, with the establishment of photovoltaic cell production lines in emerging regions such as Southeast Asia, the Middle East, and India, overseas sales of photovoltaic conductive paste will grow rapidly, reaching RMB 3.9 billion in 2024 and further increasing from RMB 5 billion in 2025 to RMB 17.4 billion in 2029, with a CAGR of 36.3% between 2025 and 2029. Board of Directors Information The company's board of directors consists of nine directors, including four executive directors, two non-executive directors, and three independent non-executive directors. The term of office for the directors is three years and can be re-elected upon the expiration of the term. According to relevant laws and regulations in China and the Listing Rules of Hong Kong, the term of office for independent non-executive directors shall not exceed six years. Shareholding Structure Mr. Liu Haidong, Pengji Limited Partnership, Pengyi Limited Partnership, Penxi Limited Partnership, and Penqi Limited Partnership collectively constitute the single largest shareholder group of the company, and Mr. Liu Haidong has the right to exercise approximately 20.46% of the voting rights attached to the company's issued shares (excluding 10,550,334 A-shares held as treasury shares). Intermediary Team Joint Sponsors: Huatai Financial Holdings (Hong Kong) Limited, and Jefferies Financial Group Hong Kong Limited; Legal Advisors: King & Wood Mallesons, Shanghai Guangfa Law Firm; Auditors and Reporting Accountants: Crowe (Hong Kong) Limited; Industry Consultants: Zhousi Enterprise Management Consulting (Shanghai) Co., Ltd.; Compliance Advisors: Changjiang Financing (Hong Kong) Limited.