Lu Stock Watch | Shida Shenghua files for listing on the Hong Kong Stock Exchange, leading electrolyte solvent manufacturer accelerates international expansion

Article | Niu Xingjun

Recently, Shida Shenghua New Materials Group Co., Ltd. (hereinafter referred to as “Shida Shenghua”) officially launched its process to list in Hong Kong.

On April 1, Shida Shenghua submitted an application to the Hong Kong Exchanges and Clearing Limited to issue its initial public offering of overseas listed foreign shares (H shares) and to list on the Main Board of the Hong Kong Stock Exchange, and published the application materials on the same day.

This filing marks that the new-energy materials company—already listed on the A-share market—is accelerating the global layout of its strategy by leveraging the Hong Kong capital markets platform.

Image source: HKEX

Occupying a leading position in the industry, building a full industrial-chain layout

The prospectus shows that Shida Shenghua is a comprehensive supplier of materials related to lithium-ion batteries, and has established a dominant position in the electrolyte solvent field.

According to Frost & Sullivan’s data, since 2020, the company’s shipment volume in the global electrolyte solvent market has ranked No. 1 for six consecutive years, and in 2025 the global shipment volume market share reached 22.2%. More notably, Shida Shenghua’s market share in the global high-end carbonate ester solvent market has exceeded 40%, and its downstream customers include leading electrolyte manufacturers worldwide.

Shida Shenghua’s predecessor was a university-run enterprise of a national “Double First-Class” discipline construction university—China University of Petroleum (East China), founded in December 2002. On May 29, 2015, the company was listed on the Main Board of the Shanghai Stock Exchange. After more than two decades of development, Shida Shenghua has grown from a university-run enterprise into a leading company in the new energy materials sector.

With ongoing investment in the new energy sector, Shida Shenghua has built a full industrial-chain layout covering electrolyte solvents, lithium hexafluorophosphate (LiPF6), electrolyte additives, electrolytes, and other high-end new materials.

Public information shows that Shida Shenghua has the capability of vertical integration across the full industrial chain of lithium-ion battery materials—from solvents to lithium salts, additives, electrolytes, and silicon-based anode materials—forming three major business segments: lithium battery solvents, electrolytes, and high-end new materials. Of note is that the company is the only one in the electrolyte industry that extends its upstream reach to propylene oxide, enabling self-supply of more than 95% of basic raw materials.

In terms of capacity planning, Shida Shenghua has set up five production bases across the country, located in Dongying, Shandong; Zoucheng, Shandong; Wuhan, Hubei; Quanzhou, Fujian; and Meishan, Sichuan, forming an industrial pattern characterized by multi-base coordination and clear division of labor.

According to Shida Shenghua’s official website, the company’s electrolyte solvent production capacity has now reached 800,000 tons per year, and its electrolyte production capacity reaches 500,000 tons per year.

Image source: Shetu.com

Seeking breakthroughs amid performance pressure, raising funds to deepen the industry layout

Financial data shows that in recent years, Shida Shenghua’s performance has faced certain pressure.

In 2024, the company recorded operating revenue of 5.547 billion yuan, down 1.56% year over year; net profit attributable to shareholders was 16.4196 million yuan, down 12.32% year over year. In 2025, operating revenue increased to 6.808 billion yuan, up 22.75% year over year, but profit attributable to the parent company edged down to 15.8985 million yuan, down 3.17% year over year.

Shida Shenghua stated that the main reasons for the performance pressure include fierce competition in the electrolyte market leading to lower product prices, overcapacity in the carbonate ester industry, and a substantial increase in financial expenses.

This move to list in Hong Kong is not Shida Shenghua’s only capital action in the near term. In August 2025, Shida Shenghua just completed a targeted issuance of shares to specific investors, raising a total amount of about 1 billion yuan. The funds are mainly to be used for a 220,000-ton/year integrated lithium battery materials production and R&D project, a 100,000-ton/year liquid lithium salt project, a 11,000-ton/year additive project, and supplementing working capital.

The rapid development of the new energy vehicle and energy storage industries has brought tremendous opportunities to the lithium battery materials sector. In its prospectus, Shida Shenghua said that the company is actively advancing R&D of high-end new materials such as sulfide solid-state electrolytes and polyetheretherketone (PEEK), aiming to meet the needs of emerging application areas such as solid-state batteries, humanoid robots, aerospace, and medical implants.

Against the backdrop of the global energy transition and the rapid development of the new energy vehicle industry, whether this Chinese leader in new energy materials can further consolidate its industry position with the help of capital markets is worth ongoing attention from the market.

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