New stock news: Shida Shinghwa Advanced Material Group (603026.SH) submits application to Hong Kong Stock Exchange, ranked first in global electrolyte solvent market shipments for six consecutive years.

According to the Hong Kong Stock Exchange disclosure on April 1st, Shida Shinghwa Advanced Material Group Co., Ltd. (referred to as Shida Shinghwa Advanced Material Group, 603026.SH) submitted its listing application to the Hong Kong Stock Exchange. CICC is its exclusive sponsor. Company Overview The company is a comprehensive supplier of lithium-ion battery-related materials and has established a leading position in the field of electrolyte solvents. With continuous investment in the field of new energy, the company has built a complete industry chain layout covering electrolyte solvents, lithium hexafluorophosphate (LiPF6), electrolyte additives, electrolytes, and other high-end new materials. The company is committed to providing integrated lithium-ion battery-related materials for global customers. The company is a global leader in the field of lithium-ion battery electrolyte solvents. According to Frost & Sullivan data, since 2020, the company has ranked first in the global electrolyte solvent market volume for six consecutive years, with a market share of 22.2% in 2025. The company is the first in the country to achieve production capacity for the five major carbonate solvent (the most widely used electrolyte solvent in lithium-ion batteries) enterprises. With complete vertical integration capabilities and core technology, the company integrates key production links of carbonate solvents, including ethylene carbonate (EC), propylene carbonate (PC), dimethyl carbonate (DMC), ethyl methyl carbonate (EMC), and diethyl carbonate (DEC), covering from raw materials to finished products. The company's core management team has been deeply involved in the fields of fine chemicals and new energy materials for over 20 years. With the technological accumulation and industrial experience of Petrochina University (East China), it has profound chemical material technology accumulation and excellent industry insight. Since its establishment, the company has led the development of carbonate solvent products and maintained a leading position in the global lithium-ion battery electrolyte solvent field; at the same time, it has deepened its exploration into the new energy and new materials fields and has become an emerging force in the electrolyte field and a key participant in the full industry chain of lithium-ion battery-related materials. Leveraging its strong research and development foundation and the industrial extension capability based on long-term customer cooperation, the company has successfully expanded its business to electrolyte products and has complemented its production capacity for lithium hexafluorophosphate (LiPF6) and electrolyte additives, forming a core integrated product system of lithium-ion battery-related materials. At the same time, the company is actively promoting the research and development of high-end new materials such as sulfide solid electrolytes and polyetheretherketone (PEEK) to meet the needs of emerging applications such as solid-state batteries, humanoid Siasun Robot & Automation, aerospace, and medical implants. According to Frost & Sullivan data, since extending its industrial chain to electrolyte products in 2022, the company's global electrolyte market shipment ranking jumped to sixth place in 2025, with an annual compound growth rate of 292.2% from 2023 to 2025, reflecting the rapid market recognition of the company's product strength. As of December 31, 2025, the company has established five production bases in China, located in Dongying, Shandong, Zoucheng, Shandong, Wuhan, Hubei, Quanzhou, Fujian, and Meishan, Sichuan, forming a production system with multiple bases collaborating and complementing each other. Financial Information Revenue In 2023, 2024, and 2025, the company's revenue was approximately RMB 5.635 billion, RMB 5.547 billion, and RMB 6.808 billion, respectively. Loss In 2023, 2024, and 2025, the company's annual losses and comprehensive income totaled RMB 65.234 million, RMB 70.423 million, and RMB 5.879 million respectively. Gross Margin In 2023, 2024, and 2025, the company's gross margins were 6.3%, 5.3%, and 7.1% respectively. Industry Overview The development of the lithium battery materials industry is closely related to the downstream lithium battery shipments. From 2020 to 2025, the global lithium battery shipments increased from 262.7 GWh to 1,971.8 GWh, and it is expected to reach about 6,563.2 GWh by 2030. In terms of regional structure, China continues to lead the global lithium battery industry growth. From 2020 to 2025, China's lithium battery shipments increased from 105.7 GWh to 1,176.7 GWh, with a compound annual growth rate of approximately 61.9%; it is predicted that China's lithium battery market will continue to grow at a high speed, with lithium battery shipments reaching 3,639.7 GWh by 2030. Electrolyte, as a core material of lithium batteries, has a growing demand with the expansion of the new energy industry. From 2020 to 2025, global electrolyte shipments increased from 327.6 thousand tons to 2,381.4 thousand tons, with a compound annual growth rate of 48.7%. It is estimated that by 2030, the shipment volume will reach about 6,380.6 thousand tons. From a regional perspective, China has become a major production base for global electrolytes. In 2025, China's electrolyte shipments reached 2,209.9 thousand tons, accounting for over 90.0% of the global shipment volume, and it is expected that by 2030, China's electrolyte shipments will reach 5,500.1 thousand tons. The electrolyte material is mainly lithium hexafluorophosphate (LiPF6). From 2020 to 2025, global LiPF6 shipments increased from 44.0 thousand tons to 259.2 thousand tons, with a compound annual growth rate of approximately 42.6%. The global LiPF6 shipment volume is expected to reach 603.6 thousand tons by 2030. From a regional perspective, China has always accounted for over 90% of global LiPF6 shipments. In 2025, China's LiPF6 shipments totaled approximately 244.6 thousand tons, with the Chinese market expected to maintain its growth momentum with shipments forecast to reach 525.0 thousand tons by 2030. Solvents act as a crucial medium for dissolving lithium salts and conducting ions, with shipment volumes rapidly increasing as demand for electrolytes expands. From 2020 to 2025, global electrolyte solvent shipments increased from 320.2 thousand tons to approximately 2,300.1 thousand tons, with a compound annual growth rate of about 48.3%; it is expected that by 2030, the shipment volume will reach 6,099.1 thousand tons. From a regional perspective, China has become a major production base for global electrolyte solvents. In 2025, China's electrolyte solvent shipments reached approximately 2,134.5 thousand tons, and it is predicted that by 2030, China's electrolyte solvent shipments will reach 5,257.5 thousand tons. Board Information At the time of compilation, the board of directors consists of 9 directors, including 2 executive directors, 4 non-executive directors, and 3 independent non-executive directors. The term of office for elected directors is 3 years and may be re-elected, but in accordance with relevant Chinese laws and regulations, the cumulative term of office for independent non-executive directors shall not exceed 6 years. Ownership Structure According to the Hong Kong Listing Rules and the "New Listing Applicant Guide" Chapter 1.1C, China Petrochemical Corporation Holdings, Rongfa Group, Kaitou Group, Dr. Guo, and Shandong Weipu are the single largest shareholder group, holding approximately 21.51% of the company's issued shares as of the latest practicable date (March 25, 2026). Intermediary Team Exclusive Sponsor: China International Finance Hong Kong Securities Limited; Legal Advisors: Smithfield Law Firm, King & Wood Mallesons Law Firm; Exclusive Sponsor and Compiling Legal Advisors: Hogan Lovells, Beijing Tongshang Law Firm; Auditors and Reporting Accountants: KPMG Accounting Firm; Industry Advisors: Frost & Sullivan (Beijing) Consulting Co., Ltd. Shanghai Branch.