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

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

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

This filing marks that this 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 market platform.

Image source: HKEX

Occupying a leading position in the industry, building an end-to-end full industry-chain layout

The prospectus shows that Shida Shenghua is a comprehensive supplier of lithium-ion battery-related materials, establishing a leading position in the electrolyte solvent sector.

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

Shida Shenghua’s predecessor was the school-run enterprise of China University of Petroleum (East China), a “Double First-Class” discipline construction university, established 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 school-run enterprise into a leading company in the new energy materials sector.

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

Public information indicates that Shida Shenghua has the capability for vertical integration across the full industry 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. It is worth noting that the company is the only enterprise in the electrolyte industry that extends upstream to epichlorohydrin, enabling self-supply of more than 95% of basic raw materials.

In terms of capacity layout, Shida Shenghua has set up five production bases nationwide, located in Dongying, Shandong; Zoucheng, Shandong; Wuhan, Hubei; Quanzhou, Fujian; and Meishan, Sichuan, forming an industrial pattern characterized by coordinated operations across multiple bases 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 totals 500,000 tons per year.

Image source: Zhaotu.com

Performance under pressure in search of breakthroughs, raising funds to deepen its industry layout

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

In 2024, the company achieved operating revenue of 5.547 billion yuan, down 1.56% year-on-year; net profit attributable to shareholders of the listed company was 16.4196 million yuan, down 12.32% year-on-year. In 2025, operating revenue increased to 6.808 billion yuan, up 22.75% year-on-year, but net profit attributable to the parent company slightly decreased to 15.8985 million yuan, down 3.17% year-on-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 industry, and a significant increase in financial expenses.

This overseas listing in Hong Kong is not the only capital move by Shida Shenghua in the near term. In August 2025, Shida Shenghua just completed a share issuance to specific subscribers, raising a total amount of approximately 1 billion yuan. The proceeds are mainly intended for a 220,000-ton/year lithium battery materials production and R&D integrated 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 polyether ether ketone (PEEK), aiming to meet the needs of emerging application areas including solid-state batteries, humanoid robots, aerospace, and medical implants.

Against the backdrop of the global energy transition and the rapid growth of the new energy vehicle industry, whether this leading Chinese new energy materials company can further consolidate its position in the industry with the help of capital markets is a matter the market will continue to watch.

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