2 1 Shi Ji Jing Ji Bao Dao·2025-07-21 11:58Core Viewpoint - Xingyuan Material (300568.SZ) has submitted an IPO application to the Hong Kong Stock Exchange, aiming to expand its market presence in the lithium battery separator industry, where it ranks among the top two globally [1] Industry Overview - The lithium battery industry has faced overcapacity and intense price competition over the past three years, particularly affecting separator prices [2] - The separator market is highly concentrated, with the top five players accounting for over 65% of total shipments, and the leading company, Enjie Co., holds over 30% market share, nearly double that of Xingyuan Material [6] Company Performance - Xingyuan Material's gross margin has significantly declined from 45.57% in 2022 to 25.53% in Q1 2025, indicating a nearly halved profitability [3][5] - Despite a slight revenue increase from 2.867 billion yuan in 2022 to 3.506 billion yuan in 2024, net profit has decreased from 748 million yuan to 371 million yuan during the same period [5] - The company's total interest-bearing debt exceeded 11 billion yuan, with a capital debt ratio reaching a historical high of 57.43% [4] Strategic Initiatives - To counteract industry challenges, Xingyuan Material plans to expand its overseas production capacity, with projects in Malaysia and the United States, and aims to establish a research and operations center in Singapore [8] - The company has already completed the first phase of its Malaysian factory, which is expected to contribute half of its profits once operational [8] - Xingyuan Material is also exploring opportunities in solid-state battery materials and semiconductor sectors, indicating a diversification strategy for future growth [9]