TINCI(SZ:002709) Hua Xia Shi Bao·2025-09-27 12:17Core Viewpoint - The largest electrolyte manufacturer, Tianqi Materials, is seeking to list on the Hong Kong Stock Exchange, joining a trend of Chinese lithium battery companies pursuing overseas listings amid increasing domestic competition [2][3]. Company Overview - Tianqi Materials has submitted an IPO application to the Hong Kong Stock Exchange, aiming to raise funds for expanding its production capacity, particularly in Morocco [2]. - The company plans to allocate 60% of the raised funds for a 150,000-ton electrolyte production base in Morocco, 20% for other overseas production bases, and the remaining 20% for R&D and working capital [2][8]. Financial Performance - Tianqi Materials' revenue and profit have declined significantly from 2022 to 2025, with revenues of 223.17 billion, 154.05 billion, 125.18 billion, and 70.29 billion respectively, and profits of 58.44 billion, 18.42 billion, 4.78 billion, and 2.65 billion [5]. - The average selling price of lithium-ion battery materials has dropped sharply, from 48,300 yuan/ton in 2022 to 13,800 yuan/ton in 2025, reflecting a nearly halved price each year [5]. Market Dynamics - The electrolyte market is currently experiencing a tight supply-demand balance, with prices stabilizing and showing slight upward trends [3][6]. - The company has a high price-to-earnings (P/E) ratio of 127, significantly above the industry average of 35.36 [4]. Production Capacity and Utilization - As of the first half of 2025, Tianqi Materials achieved a production capacity utilization rate of 73%, up from 59% in 2024 [3][5]. - The company produced 360,200 tons of electrolytes in the first half of 2025, with a total capacity of 496,800 tons [5]. International Expansion - Tianqi Materials is expanding its international presence, with plans for production bases in Morocco and the U.S., aiming to capture overseas market growth [7][8]. - The company has signed investment agreements for the Moroccan project, which is expected to cost $280 million and take 36 months to complete [8]. Industry Outlook - The global electrolyte market is projected to grow at a compound annual growth rate (CAGR) of 23.2% from 2024 to 2030, with Europe and the U.S. expected to see the fastest growth [6]. - The Chinese lithium-ion battery market has maintained a CAGR of 57% from 2020 to 2024, with expectations of continued growth in overseas markets [6].