On May 29, the official website of the Hong Kong Stock Exchange showed that Jiangsu Riyu Photovoltaic New Materials Co., Ltd. had submitted its listing application. Based in Wuxi, Jiangsu Province, Riyu Photovoltaic is a supplier of conductive silver paste and metallization paste solutions, specializing in the manufacturing and supply of conductive silver paste for photovoltaic (PV) applications. The proceeds from its Hong Kong IPO will be used to invest in the research and development of forward-looking technologies.
As of May 23, 2025, Riyu Photovoltaic’s Chairman of the Board, Guo Peng, directly held 32.91% of the company’s shares. Wuxi Pengkun Limited Partnership, Wuxi Pengxin Limited Partnership, Wuxi Pengsheng Limited Partnership, and Wuxi Pengjie Limited Partnership held approximately 12.89%, 9.67%, 1.10%, and 0.83% of the shares, respectively.
Proceeds to Fund Forward-Looking Technology Development
According to a report by China Insights Consultancy, Riyu Photovoltaic is a leading global supplier of conductive PV silver paste. Based on revenue growth from 2022 to 2024, the company ranked first among the top five global PV silver paste manufacturers in 2024. Its prospectus states that the company is capable of producing conductive PV silver paste for various types of solar cells, including TOPCon, xBC, and PERC cells.
Conductive PV silver paste is a specialized paste used in the manufacturing of solar cells, known for its high conductivity and low resistivity. It is used to form the front and rear electrodes of crystalline silicon solar cells, collecting and conducting electricity generated by the cells. The company mainly manufactures and sells TOPCon silver paste, xBC silver paste, and PERC silver paste.
The IPO proceeds will be invested in the development of forward-looking metallization solutions, including TOPCon 5.0/6.0, next-generation N-type BC cell solutions, overlay technology-based xBC solutions, and low-temperature metallization solutions for HJT, HBC, and perovskite tandem PV cells.
Strong Revenue and Gross Profit Growth
Riyu Photovoltaic has achieved rapid growth in revenue and gross profit. The company's revenues in 2022, 2023, and 2024 were RMB 393 million, RMB 1.594 billion, and RMB 2.285 billion, respectively. Gross profits were RMB 37.46 million, RMB 179 million, and RMB 212 million, with gross margins of 9.5%, 11.2%, and 9.3%, respectively.
Raw Material Costs Account for Over 90% of Sales Cost
"The Chinese conductive PV silver paste market is highly competitive, with pronounced supply-demand imbalances," said Lv Jinbiao, a consulting expert at the China Photovoltaic Industry Association, in an interview with China Securities Journal. He added that in the long run, as industry concentration increases, innovation-driven structural optimization will be key to the sector’s high-quality development.
Riyu Photovoltaic warned of increasing competition from new market entrants. Some competitors may have greater production capacity, stronger brand recognition, or higher market acceptance, allowing them to respond more swiftly to market changes. Fierce competition may exert pricing pressure on the company, potentially reducing its profit margins and revenues.
According to China Insights Consultancy, the conductive PV silver paste industry is capital-intensive and requires significant long-term investment, including equipment purchases and ongoing R&D spending. Riyu Photovoltaic cautioned that if its financing cannot meet its working capital needs, it may need to issue additional equity or debt securities or seek new or expanded credit facilities.
The company’s prospectus revealed that raw material costs comprise the largest portion of its sales costs. In 2022, 2023, and 2024, raw material costs were RMB 345 million, RMB 1.382 billion, and RMB 2.018 billion, accounting for 97.2%, 97.7%, and 97.3% of total sales costs, respectively. The main raw materials used include silver powder, glass powder, and organic materials. The company noted that suppliers may not always be readily available or able to deliver when needed. If Riyu Photovoltaic is unable to procure materials from its preferred suppliers, it may face higher costs or delays. Failure to secure alternative sources in a timely manner could negatively affect its business, reputation, and financial performance.
Source：https://mp.weixin.qq.com/s/nJLSxOFGR2WUjhbgyQ2jwA
