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Hi-Tech Spring, a Chinese supplier for electrolytes used in Li-ion batteries, announced on March 22 that it will be launching an IPO in the second-board market. The company also released its prospectus on the same day.
According to the prospectus, the company will issue no more than 55,740,800 shares at its IPO. This amount will account for no less than 25% of the company’s total share capital following the IPO. The target of the IPO is set at RMB 1.512 billion. The proceeds will all be used to fund the development of the second phase of a new electrolyte solvent project.
The second phase of this project comprises one production line that has 40,000 tons per year of production capacity for battery-grade ethylene carbonate; one production line that has 60,000 tons per year of production capacity for battery-grade ethyl methyl carbonate and diethyl carbonate; and two production lines with a total production capacity of 70,000 tons per year for dimethyl carbonate.
Earlier, the website of the government of the Xuwei New Area of Lianyungang in China’s Jiangsu Province revealed that the first phase of the electrolyte solvent project comprises one production line with 40,000 tons per year for battery-grade ethylene carbonate and one production line with 60,000 tons per year for battery-grade ethyl methyl carbonate and diethyl carbonate.
In addition to electrolyte solvents based on the carbonate ester series, Hi-Tech Spring’s main offerings include high-end propylene glycol products and isopropanol products. The company is actually a major supplier for propylene glycol and isopropanol in China.
Hi-Tech Spring is considered a mainstream supplier in China and other regional markets. The main customers for its electrolyte solvents in China include Tinci Materials, BYD, Guotai-Huarong, and Shanshan Group. Its main foreign clients include MCC, Central Glass, Chunbo, and ENCHEM. The foreign clients listed here are all suppliers for electrolytes used in Li-ion batteries.
In terms of financial performance, Hi-Tech Spring’s revenue figures for 1H19, 1H20, 1H21, and 1H22 reached RMB 1.046 billion, RMB 1.66 billion, RMB 3.07 billion, and RMB 1.566 billion respectively. Its net profit figures for the same four period, in order, were RMB 122 million, RMB 153 million, RMB 607 million, and RMB 317 million.
This article is a translation of a Chinese article posted by TrendForce. It contains information that is either sourced from other news outlets or accessible in the public domain. Some Chinese names are transcribed into English using Hanyu Pinyin.