New Stock News: Shenzhen Senior Technology Material (300568.SZ) has submitted a second application to the Hong Kong Stock Exchange as a manufacturer of lithium ion battery diaphragms.

According to the disclosure by the Hong Kong Stock Exchange on January 30, Shenzhen Senior Technology Material Co., Ltd. (Shenzhen Senior Technology Material, 300568.SZ) has submitted an application for listing on the main board of the Hong Kong Stock Exchange, with China Securities Co., Ltd. as its exclusive sponsor. The company had submitted its application to the Hong Kong Stock Exchange on July 7, 2025. Company Profile According to the prospectus, Shenzhen Senior Technology Material is a manufacturer of lithium-ion battery separators, founded in 2003, accumulating over 20 years of industry experience in the research, development, production, and sales of lithium-ion battery separators. As a core component of lithium-ion batteries, separators directly influence the quality, safety, and production cost of lithium-ion batteries. According to data from Frost & Sullivan, the company is the first in China to master the dry-process unidirectional stretching technology for lithium-ion battery separators. During the historical period, the majority of the company's revenue came from China, with a compound annual growth rate of 10.6% from 2022 to 2024. The company excels in many key performance indicators for battery separators, including thickness, porosity, thermal shrinkage, air permeability, and puncture strength. The company serves leading lithium-ion battery manufacturers worldwide, such as LG Energy, Samsung SDI, Vision Power, Panasonic, SK On, SAFT, Contemporary Amperex Technology, BYD Company Limited, Gotion High-tech, CALB, Eve Energy Co., Ltd., and Sunwoda Electronic. According to Frost & Sullivan data, the company ranked second globally in lithium-ion battery separator shipments for five consecutive years, with a global market share increasing from 11.0% in 2020 to 14.4% in 2024. In 2024, the company held a market share of approximately 17.1% and ranked second in the Chinese battery separator market. By shipment volume, the company held the top position in the dry-process separator market globally in 2024, and ranked second in the wet-process separator market by shipment volume. Currently, the company has established six production bases in China, with overseas production bases in Europe, Southeast Asia, and the United States under construction. In terms of innovation, the company has set up research and development centers in China, Japan, and Sweden, with plans to establish more in Southeast Asia and the United States. The company's expanding network supports a wide range of customers, including over 100 leading lithium-ion battery manufacturers worldwide. For the fiscal years ending December 31, 2022, 2023, 2024, and the nine months ending September 30, 2025, the company's top five customers collectively generated revenues accounting for 67.4%, 63.8%, 50.9%, and 61.5% of total revenue for each period, respectively. Financial Data Revenue For the fiscal years 2022, 2023, 2024, and the nine months ending September 30, 2025, the company achieved revenues of approximately RMB 2.867 billion, RMB 2.982 billion, RMB 3.506 billion, and RMB 2.932 billion, respectively. Profit For the fiscal years 2022, 2023, 2024, and the nine months ending September 30, 2025, the company recorded annual/period profits of approximately RMB 748 million, RMB 594 million, RMB 371 million, and RMB 141 million, respectively. Gross Margin For the fiscal years 2022, 2023, 2024, and the nine months ending September 30, 2025, the company's gross margins were 44.8%, 43.3%, 28.1%, and 21.3%, respectively. Industry Overview Global and Chinese Lithium-ion Battery Industry Market Size The global lithium-ion battery industry's shipment volume increased from 323.2 gigawatt-hours in 2020 to 1,519.6 gigawatt-hours in 2024, with a compound annual growth rate of 47.3%. It is expected that by 2029, the global shipment volume will exceed 4,600 gigawatt-hours, with a compound annual growth rate of 25.2% from 2024. China remains the largest market globally, with lithium-ion battery shipments growing from 142.5 gigawatt-hours in 2020 to 1,133.0 gigawatt-hours in 2024, with a compound annual growth rate of 67.9%. It is projected that by 2029, the shipment volume will exceed 2,600 gigawatt-hours, maintaining a compound annual growth rate of 18.5% and a market share of over 50% in the global market. The lithium-ion battery shipment volume in regions outside of China is expected to surpass 2,000 gigawatt-hours by 2029, with a compound annual growth rate of 39.4%, higher than that of China. The global market share for regions outside of China is also expected to increase to over 40%. Global and Chinese Battery Separator Industry Market Size By shipment volume, the global battery separator market size increased from 64 billion square meters in 2020 to 277 billion square meters in 2024, with a compound annual growth rate of 44.5%. In 2024, China led the global market with approximately 84.0% of the battery separator shipment volume. Looking ahead, with additional government regulations and technological advances, the global battery separator market shipment volume is expected to increase from 277 billion square meters in 2024 to 841 billion square meters in 2029, with a compound annual growth rate of 24.8%. From 2020 to 2024, the shipment volume of dry-process battery separators in China increased from approximately 10 billion square meters to about 61 billion square meters, with a compound annual growth rate of 57.2%. With further development in downstream industries, the shipment volume of dry-process battery separators in China is projected to reach approximately 118 billion square meters by 2029, with a compound annual growth rate of 14.1% from 2024. In 2024, electric vehicle batteries were the largest downstream application for dry-process battery separators in China, with a market share of approximately 60.0%, followed by energy storage batteries (35.0%) and consumer electronics batteries (4.5%). The shipment volume of wet-process battery separators in China increased from 26 billion square meters in 2020 to 172 billion square meters in 2024, with a compound annual growth rate of 60.4%. Looking ahead, the shipment volume of wet-process battery separators in China is expected to surge from 172 billion square meters in 2024 to 436 billion square meters in 2029, with a compound annual growth rate of 20.4%. In 2024, energy vehicle batteries accounted for about 72.9% of the market share for wet-process battery separators in China, followed by energy storage batteries (22.0%) and consumer electronics batteries (3.4%). Global and Chinese Battery Separator Industry Competitive Landscape In 2024, the total shipment volume of the global battery separator industry was approximately 277 billion square meters. The top five companies accounted for approximately 65.1% of the total market share in the global battery separator market. In 2024, the company ranked second in the global battery separator market with a market share of 14.4%. In 2024, the total shipment volume of the Chinese battery separator market was around 233 billion square meters. The top five companies accounted for approximately 77.5% of the total market share in the Chinese battery separator market. In 2024, the company held a market share of about 17.1% and ranked second in the Chinese battery separator market. Board of Directors Information The company's board of directors consists of 3 executive directors, 1 non-executive director, and 4 independent non-executive directors. Directors serve a term of 3 years and are re-elected upon the completion of their term. Shareholding Structure As of January 26, 2026, Professor Chen and Ms. Chen held approximately 12.67% and 0.03% of the company's shares, respectively. Therefore, Professor Chen and Ms. Chen (spouse of Professor Chen) collectively hold the right to exercise approximately 12.69% of the voting rights attached to the issued shares. Intermediary Team Exclusive Sponsor: China Securities Co., Ltd. (International) Finance Limited Company Legal Advisor: Regarding Chinese Law: King & Wood Mallesons; Regarding U.S. Law: Miller, Canfield, Paddock and Stone, P.L.C.; Regarding Malaysian Law: PHANG THAM TEOH & CO; Regarding Swedish Law: Wigge & Partners Advokat KB; Regarding Swedish Environmental Law: FRBERG & LUNDHOLM ADVOKATBYR AB Exclusive Sponsor Legal Advisor: Regarding Hong Kong Law and U.S. Law: Steward LLP; Regarding Chinese Law: Zhong Lun Law Firm Auditor and Reporting Accountant: RSM (HK) Limited Industry Consultant: Frost & Sullivan (Beijing) Consulting Co., Ltd. Shanghai Branch Compliance Advisor: Golden Link Capital (Corporate Finance) Limited