New Stock Update | Jiangsu HSC New Energy Materials (688353.SH) submits application to Hong Kong Stock Exchange, specializing in the research, development, production, and sales of lithium battery electrolyte additives.

According to the disclosure by the Hong Kong Stock Exchange on April 15th, Jiangsu HSC New Energy Materials Co., Ltd. (referred to as Jiangsu HSC New Energy Materials (688353.SH)) has submitted its listing application to the main board of the Hong Kong Stock Exchange, with Huatai International as the sole sponsor. Company Profile The prospectus shows that Jiangsu HSC New Energy Materials is a lithium battery material supplier engaged in the research, development, production, and sales of lithium battery electrolyte additives. Its products include vinylene carbonate (VC), fluoroethylene carbonate (FEC), and other lithium battery materials. According to Zocinsight, in 2025, the company is the world's largest supplier of lithium battery electrolyte additives by sales volume, with a market share of 15.2%. The company focuses on lithium battery electrolyte additives, with its core business revolving around lithium battery materials, mainly providing lithium battery materials including electrolyte additives such as VC and FEC, as well as other materials including negative electrode materials, LiBOB, MMDS, and special organic silicon. Electrolyte additives such as VC and FEC are the company's core products. During the historical period, VC and FEC collectively contributed most of the company's revenue. VC is a key film-forming additive in lithium battery electrolyte. It can undergo electrochemical reactions on the negative electrode surface in the initial charge-discharge process of lithium batteries, forming an SEI film to inhibit the embedding of solvent molecules in the electrolyte. Since 2022, VC has been the company's main product and largest single source of revenue. FEC is a crucial electrolyte additive in lithium batteries and has become an indispensable key additive for the commercial application of high-energy density silicon-based negative electrode batteries. Currently, FEC-enhanced lithium batteries are mainly used in the automotive sector for hybrid and pure electric vehicles, with broad future market prospects. As a leading supplier of mainstream lithium battery electrolyte additives such as VC and FEC, the company's products are widely used in downstream markets including energy storage systems (ESS), new energy vehicles (NEV), consumer electronics, humanoid Siasun Robot & Automation, and low-orbit economy. Sales are both domestic and international, covering Asia, Europe, and North America, achieving extensive global coverage. The company's customer base mainly includes leading lithium battery electrolyte and lithium battery manufacturers. For each year during the historical period, revenue from the top five customers accounted for 79.0%, 80.3%, and 79.6% of total revenue, respectively. Financial Information Revenue In 2023, 2024, and 2025, the company's revenues were approximately RMB 525 million, RMB 505 million, and RMB 869 million respectively. Annual Profit The company recorded losses of approximately RMB 33.942 million, RMB 189 million, and RMB 2.564 million in 2023, 2024, and 2025 respectively. Gross Margin The company's gross margin was 6.6%, -22.9%, and 9.7% in 2023, 2024, and 2025 respectively. Industry Overview From 2020 to 2025, the global lithium battery market experienced rapid growth, with the market size expanding from approximately 303.0 GWh in 2020 to 2,257.0 GWh in 2025, with a compounded annual growth rate of 49.4% during this period. In the future, with the advancement of global energy transformation and the implementation of carbon neutrality goals, the global lithium battery market is expected to continue to expand, reaching approximately 6,284.3 GWh by 2030, with a compounded annual growth rate of 22.7% from 2025 to 2030. Electrolyte is a key medium for lithium ion transmission within batteries, and its performance directly affects the safety and cycle life of batteries. There are various types of electrolyte additives, with VC and FEC being the most common types. Global lithium battery electrolyte shipments increased from 30.29 thousand tons in 2020 to 201.81 thousand tons in 2025, with a compounded annual growth rate of 46.1%. China is the world's largest producer of lithium battery electrolytes, with the largest shipments in the world, increasing from 244 thousand tons in 2020 to 1,877.2 thousand tons in 2025, with a compounded annual growth rate of 50.4%. Industry growth is mainly driven by the large-scale application of energy storage systems, the increase in penetration rates of new energy vehicles, and the iterative upgrade of consumer electronics. By 2030, global and Chinese lithium battery electrolyte shipments are projected to reach 546.73 thousand tons and 471.19 thousand tons respectively, with compounded annual growth rates of 22.1% and 20.2% from 2025 to 2030. The global lithium battery electrolyte additive market is entering a rapid development stage. VC and FEC play a central role in the industry expansion, with compounded annual growth rates of 68.9% and 39.0% respectively. It is expected that the global lithium battery electrolyte additive market will continue to grow, reaching 391.5 thousand tons by 2030, with VC and FEC maintaining their dominant positions, with compounded annual growth rates of approximately 25.0% and 23.1% respectively. China is the largest market for lithium battery electrolyte additives globally. Its market size increased from approximately 13.2 thousand tons in 2020 to about 124.6 thousand tons in 2025, with a compounded annual growth rate of 56.7%. VC and FEC will continue to be the dominant products, with compounded annual growth rates of 23.4% and 23.0%. By 2030, their market sizes are expected to reach 194.9 thousand tons and 55.3 thousand tons respectively. Board Information The company's board of directors consists of 9 members, including 4 executive directors, 2 non-executive directors, and 3 independent non-executive directors, serving a term of 3 years and eligible for re-election at the end of the term. Independent non-executive directors cannot serve for more than 6 consecutive years. Shareholding Structure As of April 7, 2026, Mr. Shen, Mr. Shen Ming, Huaying No. 2 (limited partnership), Huaying No. 3 (limited partnership), and the concerted parties are deemed to have the right to exercise a total of 93,123,401 A-shares attached voting rights, accounting for approximately 60.2% of the total issued share capital of the company (excluding treasury A-shares), and are considered the controlling shareholders of the company. The Chairman and Executive Director Mr. Shen directly holds 17,440,726 A-shares, accounting for approximately 11.3% of the total issued share capital of the company. He also serves as a general partner of Huaying No. 3 (limited partnership) and controls the voting rights attached to 3,103,000 A-shares held by Huaying No. 3 (limited partnership), accounting for approximately 2.0% of the total issued share capital of the company. The General Manager and Executive Director Mr. Shen Ming (Mr. Shen's son) directly holds 5,901,228 A-shares, accounting for approximately 3.8% of the total issued share capital of the company. He also serves as a general partner of Huaying No. 2 (limited partnership) and controls the voting rights attached to 5,597,000 A-shares held by Huaying No. 2 (limited partnership), accounting for approximately 3.6% of the total issued share capital of the company. According to the concerted action agreement, Mr. Shen and Mr. Shen Ming are deemed to control the voting rights attached to 8,012,003 A-shares held by the concerted parties, accounting for approximately 5.2% of the total issued share capital of the company. Additionally, under the voting rights delegation agreement, Mr. Shen exercises the voting rights attached to an additional 53,069,444 A-shares held by Golden Farm Union entities and Dunxing entities, accounting for approximately 34.3% of the total issued share capital of the company. Intermediary Team Sole Sponsor: Huatai Financial Holdings (Hong Kong) Limited Company's Legal Advisors: Hong Kong law firms Junxuan Law Firm and Tongshang Law Firm; Chinese law firm Guohao Law Firm (Nanjing) Legal Advisors for the Sole Sponsor: Hong Kong law firm Deloitte Legal LLP (Hong Kong) and Chinese law firm Shanghai Chengming & Zheng Law Firm Reporting accountants and independent auditors: Rongcheng (Hong Kong) Certified Public Accountants Limited Industry Consultant: Zocinsight Industry Consulting Co., Ltd. Compliance Consultant: Bright Capital (Asia-Pacific) Limited.