Core Viewpoint - Huasheng Lithium Electric is planning to issue H-shares and list on the Hong Kong Stock Exchange to accelerate its international strategy and enhance overseas financing capabilities [1] Group 1: Company Overview - Huasheng Lithium Electric, established in 1997 and headquartered in Jiangsu Zhangjiagang, is a leading enterprise in the field of electrolyte additives for lithium batteries, primarily engaged in the R&D, production, and sales of lithium battery electrolyte additives [1] - The company's core products include Vinylene Carbonate (VC), Fluoroethylene Carbonate (FEC), and Lithium Bis(oxalate)borate (BOB), which are mainly used in power batteries, energy storage batteries, and 3C electronic products [1] Group 2: Financial Performance - For the third quarter of 2025, Huasheng Lithium Electric reported a revenue of 539 million yuan, a year-on-year increase of 62.29%, but the net loss attributable to shareholders reached 103 million yuan [1] - The company exhibits a "revenue without profit" characteristic, with a gross margin of -2.31% and a net margin of -20.9%, indicating a loss of over 20 yuan for every 100 yuan in sales [1] - The cumulative net loss from 2023 to the first three quarters of 2025 exceeded 300 million yuan, with losses of 23.91 million yuan, 174.7 million yuan, and 103 million yuan respectively [1] Group 3: Accounts Receivable and Cash Flow - As of the end of the third quarter of 2025, accounts receivable reached 373 million yuan, a year-on-year increase of 163.75%, significantly outpacing the revenue growth of 62.29% [2] - The company may have relaxed credit policies to maintain revenue growth, increasing the risk of collection and potential bad debts [3] - Operating cash flow per share was -1.23 yuan, a year-on-year decrease of 112.49%, raising concerns about the company's cash flow performance [3] Group 4: Market and Industry Analysis - Huasheng Lithium Electric's performance is heavily reliant on capital expenditures, necessitating attention to the return on capital projects and financial pressures [4] - The price of electrolyte additives has seen significant increases due to the booming demand in the power battery and energy storage industries, which may be a key factor in the company's revenue growth [4] - The company acknowledges that the prices of its additive products are subject to market factors and other unpredictable influences, with price fluctuations being uncertain [5] Group 5: IPO Outlook - The Hong Kong IPO market is expected to remain active in 2026, with Deloitte predicting around 160 new listings and a total fundraising of at least 300 billion HKD [5] - It remains to be seen whether Huasheng Lithium Electric can improve its financial situation through this upcoming IPO [5]

Core Viewpoint - The company, Shida Shenghua, is advancing its globalization strategy by planning to issue shares and list on the Hong Kong Stock Exchange to enhance its international capital operation platform and overall competitiveness [1] Group 1: Company Overview - Shida Shenghua, established in 2002 and headquartered in Dongying, is a full-chain company under Shida Holdings that provides lithium-ion battery electrolyte solvents, solutes, and additives [3] - The company has a production capacity of 500,000 tons/year for electrolytes, 800,000 tons/year for electrolyte solvents, 100,000 tons/year for solutes, and 21,000 tons/year for additives [3] Group 2: Financial Performance - The company has faced significant financial pressure, with a sharp decline in profitability. From 2022 to 2024, revenues were 8.316 billion yuan, 5.635 billion yuan, and 5.547 billion yuan, reflecting year-on-year changes of -17.86%, -32.24%, and -1.56% respectively [3] - Net profit attributable to shareholders dropped from 891 million yuan in 2022 to 18.726 million yuan in 2023 and further to 16.42 million yuan in 2024, with declines of 24.43%, 97.9%, and 12.32% respectively [3] Group 3: Recent Developments - In the first three quarters of this year, the company reported its first loss, with revenues of 4.635 billion yuan, a year-on-year increase of 11.41%, but a net profit of -62.2018 million yuan, a decline of 652.16% [4] - The loss is attributed to intense market competition and a decrease in product prices, leading to increased market investment and R&D expenses [5] Group 4: Accounts Receivable - The company's accounts receivable have remained high, with year-end balances of 870 million yuan, 613 million yuan, and 1.389 billion yuan from 2022 to 2024, reaching 1.706 billion yuan by September 2025 [6] Group 5: Stock Performance - Shida Shenghua was listed on the Shanghai Stock Exchange in May 2015 at an issue price of 6.51 yuan per share, with a peak price of 348.88 yuan in September 2021, followed by a decline [6] - In September this year, the stock price surged due to interest in lithium battery electrolytes, reaching a high of 110.56 yuan on November 17, before experiencing a pullback, closing at 79.45 yuan on December 24 [6]