Core Viewpoint - Zhongwei Co., Ltd., a leading global supplier of lithium battery precursor materials, has officially initiated its listing process on the Hong Kong Stock Exchange, with an expected listing date of November 17, 2025, and an offering price range set between HKD 34.00 and HKD 37.80 [1][3]. Company Overview - Zhongwei Co., Ltd. is the largest precursor supplier for CATL and has been listed in A-shares for nearly five years, marking a significant step towards international capital markets [1][3]. - The company is positioned as a key player in the production of battery cathode materials, which directly influence battery energy density and lifespan [3]. Financial Performance - The company reported a net profit decline of 17.33% year-on-year in Q3 2025, continuing a downward trend for four consecutive quarters [12]. - As of H1 2025, Zhongwei had interest-bearing liabilities of CNY 28.5 billion and a cumulative net cash outflow of CNY 36 billion from operating and investing activities [12]. - Despite challenges, the company showed resilience with a revenue of CNY 107.87 billion in Q1 2025, a 16.1% increase year-on-year, and a net profit of CNY 3.08 billion, although it represented an 18.9% decline [16][18]. Market Position - Zhongwei holds a dominant position in the global market, ranking first in market share for nickel and cobalt-based materials for five consecutive years, with a nearly 30% share in the global market for cobalt tetraoxide as of H1 2025 [13]. - The company is recognized as the top supplier of ternary precursors in the Chinese lithium battery market for the first three quarters of the previous year [13]. IPO and Valuation Insights - The dual listing (A/H shares) is a landmark event in the new energy materials sector, reflecting significant differences in pricing and market performance between the two exchanges [5][8]. - The IPO is expected to provide a valuation re-evaluation opportunity, with the potential for a scarcity premium as international investors recognize the company's core asset value [19][20]. Industry Context - The Hong Kong IPO market for new energy lithium sectors has seen a surge, with 41 mainland companies applying for listings, tripling the number from the previous year [10]. - The listing is part of a broader trend where companies are seeking international capital to enhance their competitive edge and support global expansion [10][21]. Future Outlook - The company aims to transition from a materials supplier to a leader in the new energy ecosystem, with a diversified product matrix covering nickel, cobalt, phosphorus, sodium, and new energy metals [21]. - Forecasts for 2025 predict a net profit of CNY 15.4 to 15.82 billion, with a year-on-year growth of 5% to 8% [22].