Surpassing China Innovation Airlines, the lithium battery company with the highest market capitalization in Hong Kong changed hands

Tsingshan lithium battery company Ruipu Lanjun (00666.HK) went public today.

On December 18, Ruipu Lanjun was officially listed on the main board of the Hong Kong Stock Exchange with an issue price of HK$18.3, and as of 10 a.m., its share price rose to HK$19.18, up 4.81%, with a current market value of HK$43.67 billion (about 39.9 billion yuan).

As a result, Ruipu Lanjun surpassed China Innovation Airlines (03931.HK) and became the lithium battery company with the highest market capitalization in Hong Kong. China Innovation Airlines was listed in Hong Kong in October last year and currently has a market capitalization of HK$32.26 billion (about 29.4 billion yuan).

Ruipu Lanjun offered 116 million shares globally, raising a net proceeds of HK$2.013 billion. Eighty percent of the funds raised will be used to expand the company's production capacity, and the remaining part is planned to be invested in R&D and working capital.

Founded in October 2017 by Xiang Guangda, the founder of Tsingshan Group, one of the world's top 500 companies, Ruipu Lanjun is mainly engaged in power and energy storage batteries, and Tsingshan Group is the world's largest stainless steel manufacturer and nickel metal producer. Xiang Guangda holds 62.64% of the equity of Ruipu Lanjun and is the actual controller.

Ruipu Lanjun first submitted a prospectus to the Hong Kong Stock Exchange in December 2022, and in June this year, the company's listing application lapsed. In the same month, it submitted a prospectus to the Hong Kong Stock Exchange again, and passed the listing hearing of the Hong Kong Stock Exchange at the end of November.

In the first half of 2023, Ruipu Lanjun achieved a revenue of 6.5 billion yuan and a loss of 710 million yuan. From 2020 to 2022, despite the significant increase in revenue, Ruipu Lanjun has lost money for three consecutive years, with a total loss of 1.1 billion yuan.

Ruipu Lanjun said that the main reasons for the continuous loss are the low utilization rate due to the expansion of production capacity, the fluctuation of raw material prices, product mix and pricing strategy, and the market conditions of the electric vehicle industry at the beginning of this year.

In view of the continued market competition in the lithium-ion battery industry in the second half of 2023, Ruipu Lanjun expects to continue to lose money this year, but at the same time, it predicts that it will achieve profitability and generate operating cash inflows in 2025.

Among the global lithium battery manufacturers, Ruipu Lanjun had a market share of 8.8% in the installed capacity of energy storage batteries last year, ranking third in the world. As of the first half of this year, the company's market share of installed energy storage capacity fell to 5.7%, ranking fourth, and China Innovation Airlines ranked eighth with a market share of 3%.

In the field of energy storage batteries, Ruipu Lanjun's customers include Sunshine Energy Storage, Growatt, GoodWe, etc.

In terms of power batteries, in 2022 and the first half of this year, Ruipu Lanjun's market share in China will be 1.7% and 1.2% respectively, ranking tenth. middleNational MovementAccording to the latest data from the Power Battery Industry Innovation Alliance, in the first 11 months of this year, Ruipu Lanjun's domestic power battery loading capacity reached 3.99 GWh, with a market share of 1.17%, ranking eleventh. China Innovation Airlines ranked third with a market share of 7.21%.

Ruipu Lanjun's power battery customers include SAIC-GM-Wuling, Leapmotor, Weirui Electric and other companies, as well as a well-known car company headquartered in the Netherlands, a luxury car company headquartered in Germany, and an American electric vehicle manufacturer.

Ruipu Lanjun plans to achieve a cell production capacity of more than 150 GWh by the end of 2025. As of the first half of this year, it has a designed annual capacity of 35.2 GWh, with plans to increase capacity to 69 GWh by the end of the year.

To achieve this goal, Ruipu Lanjun will expand the production capacity of the Jiashan plant to 77 GWh and the Wenzhou plant to 50 GWh by the end of 2025, and will also build new production plants in Foshan, Liuzhou and Chongqing.

At the global level, Ruipu Lanjun plans to build a battery module and battery pack production plant in Europe in the near future, and a battery cell production plant in the future. Ruipu Lanjun also intends to establish battery cell and battery pack production plants in Southeast Asia and South America, respectively. Lithium batteries usually adopt the assembly mode of cell-module-battery pack, and the battery cell is the smallest unit that makes up the battery pack.