SUNWODA(SZ:300207) Jing Ji Guan Cha Bao·2025-09-09 11:22Core Viewpoint - XINWANDA has submitted an application for H-share listing on the Hong Kong Stock Exchange, aiming to become the third lithium battery company in China to achieve dual listing. However, the company faces significant challenges including low net profit margins, ongoing losses in its power battery business, and difficulties in increasing market share [1]. Group 1: Business Overview - XINWANDA's core business focuses on the research and manufacturing of lithium-ion batteries. In the consumer battery sector, it is the largest global supplier of mobile phone batteries with a market share of 34.3%, and the second largest for notebook and tablet batteries with a market share of 21.6% [2]. - In the power battery and energy storage sectors, XINWANDA holds a market share of only 2.1% and 1.4% respectively, ranking tenth globally in power batteries and facing intense competition from top players [2]. Group 2: Financial Performance - As of Q1 2025, XINWANDA's net profit margin was a mere 0.24%, indicating a "revenue growth without profit" scenario. Revenue fluctuated between 47.862 billion and 56.021 billion yuan from 2022 to Q1 2025, but net profit margins have been below 1% due to product price declines [4]. - The company has reported significant losses in its power battery segment, with cumulative losses nearing 4.7 billion yuan from 2022 to 2024. The gross profit margin for power batteries is only 8.80%, significantly lower than competitors [4]. Group 3: Operational Challenges - XINWANDA has halted major investment projects in Chengdu and Zhuhai in 2024 and paused a 14 billion yuan investment project in Ningxiang and Zhuhai in April 2025 due to industry overcapacity [3]. - The company's asset-liability ratio reached 64.59% by the end of Q1 2025, with outstanding debts totaling 28.287 billion yuan, of which approximately 49.7% is due within one year, indicating substantial short-term repayment pressure [4]. Group 4: Cash Flow and Future Prospects - Despite having 10.752 billion yuan in cash as of Q1 2025, XINWANDA's short-term borrowings amount to 10.297 billion yuan, limiting its financial flexibility. The funds raised from the IPO are intended for overseas production base construction and global sales network expansion, posing a critical test for the company to find a profitable balance in a competitive market [5].