New Stock News | Dongheng New Energy Submits Application to Hong Kong Stock Exchange as One of the Main Suppliers in the Global New Energy Battery Supply Chain.

According to the disclosure by the Hong Kong Stock Exchange on June 23, Wuxi Dongheng New Energy Technology Co., Ltd. (referred to as Dongheng New Energy) has submitted an application for listing on the main board of the Hong Kong Stock Exchange, with CICC and Dongxing (Hong Kong) as its joint sponsors. The company's technical strength and service capabilities have made it one of the major suppliers in the global new energy battery supply chain, earning long-term trust from global leading new energy battery manufacturers such as Contemporary Amperex Technology, ATL, and Samsung SDI. Company Overview: The prospectus shows that Dongheng New Energy is a leading new energy conductive carbon material technology company in mainland China, leading innovation and customer-oriented to continuously promote sustainable development, aiming to be a global leading new energy conductive carbon material technology company. During the performance period, the company's core business was research and development, production, and sales of high-performance conductive carbon materials, focusing on their application in the field of new energy batteries. Dongheng New Energy has a comprehensive series of conductive carbon material products covering conductive carbon black, carbon nanotubes, and graphene. With abundant industry experience and strong technological innovation capabilities, the company has established a significant competitive advantage in the field of conductive carbon materials. According to Frost & Sullivan data, our core products, conductive carbon black, and carbon nanotubes are among the top in terms of revenue in the mainland China and global markets. In terms of revenue in 2025, the company ranks as the second-largest supplier of carbon nanotubes and the fourth-largest supplier of conductive carbon black among all manufacturers globally, and the second-largest carbon nanotube supplier and the largest conductive carbon black supplier among Chinese manufacturers globally. The company has successfully built a comprehensive conductive carbon material product matrix covering "point (conductive carbon black), line (carbon nanotubes), and surface (graphene)", where different materials can synergistically complement each other: utilizing conductive carbon black particles to fill microgaps, using carbon nanotubes to build an efficient long-range conductive skeleton, utilizing graphene to achieve large-area low impedance contact, ultimately forming a three-dimensional conductive network structure, which helps extend the cycle life of new energy batteries, improve rate performance, and energy density. The company's comprehensive product portfolio enables it to quickly respond to evolving industry trends and specific customer needs, providing customized specifications and material combinations of conductive carbon black, carbon nanotubes, and graphene to meet each customer's specific application focus. This combined capability constitutes a significant competitive barrier. Dongheng New Energy is committed to driving battery technology development through material innovation. According to Frost & Sullivan data, the company has become one of the few conductive carbon material manufacturers in the global market covering all major types of conductive carbon materials for many years. Financial Data: Revenue: In the fiscal years 2023, 2024, and 2025, the company achieved revenues of approximately RMB 324 million, RMB 315 million, and RMB 897 million, respectively. Gross profit and gross profit margin: In the fiscal years 2023, 2024, and 2025, the company recorded gross profits of approximately RMB 108 million, RMB 68.15 million, and RMB 203 million, with corresponding gross profit margins of 33.3%, 21.7%, and 22.6%, respectively. Net profit for the year: In the fiscal years 2023, 2024, and 2025, the company recorded net profits for the year of approximately RMB 13.85 million, -RMB 37.40 million, and RMB 59.50 million, respectively. Industry Overview: Driven by the continuous growth in demand for enhancing conductivity, improving material performance, and increasing durability for various industrial applications, the application of conductive carbon materials in the fields of new energy, electronics, plastics, etc., is expanding. Specifically, as the largest downstream application area of conductive carbon materials, the new energy sector is expected to account for approximately 45% of the global conductive carbon materials market by revenue in 2025. The global new energy conductive carbon material market is expected to grow from RMB 5.1 billion in 2021 to RMB 17.5 billion in 2025, reflecting a robust growth trend driven by downstream application demand growth. Looking ahead, with the continuing electrification trend, demand growth for high-performance materials, and support from the expansion of energy storage and electronic device markets, the market is expected to further grow to RMB 52.2 billion by 2030. Conductive carbon black. In the new energy field, the global conductive carbon black market is expected to grow from RMB 1.5 billion in 2021 to RMB 4.3 billion in 2025, reaching RMB 11.2 billion by 2030, with a compound annual growth rate of 20.0% from 2026 to 2030, driven by its cost competitive advantage and stable conductive performance. Carbon nanotubes. In terms of revenue from paste, the global new energy carbon nanotube market is expected to grow from RMB 3.1 billion in 2021 to RMB 11.4 billion in 2025, reaching RMB 35.0 billion by 2030, with a compound annual growth rate of 23.6% from 2026 to 2030, driven by the rapid penetration of new energy battery applications (such as silicon-based anodes). Graphene. The global new energy graphene market is expected to grow from RMB 100 million in 2021 to RMB 600 million in 2025, reaching RMB 2.7 billion by 2030, with a compound annual growth rate of 31.4% from 2026 to 2030, supported by its excellent conductivity, mechanical strength, and increasing applications in fast charging, high power, and solid-state battery technologies. Others. Other major categories include conductive graphite. The global market for other new energy conductive carbon materials is expected to reach RMB 3.3 billion by 2030, with a compound annual growth rate of 21.3% from 2026 to 2030. Growth drivers include a mature supply chain, stable processing characteristics, and the continuous application of conductive graphite in high-energy density positive and negative electrode formulations, providing reliable conductive performance and structural stability. The market size of the conductive carbon materials market of Shanxi Guoxin Energy Corporation has also grown from RMB 2.8 billion in 2021 to RMB 11.5 billion in 2025, and is expected to reach RMB 36.9 billion by 2030, driven by the continuous development of battery technology, new energy vehicles, and other new energy fields. Board of Directors: The Board of Directors will consist of seven directors, including three executive directors, one non-executive director, and three independent non-executive directors. The Board of Directors is responsible for and has general authorization to manage and operate the company. Equity Structure: Mr. Shen Bohua owns 16.16% of the shares, Mr. Shen Yudong owns 12.42% of the shares, Wuxi Hengcheng owns 4.50% of the shares, together forming the largest shareholder group with a total ownership of 33.07%. Mr. Xie Xinyuan owns 1.50% of the shares; Mr. Jiang Dong owns 0.22% of the shares; other pre-listing investors collectively own 65.21% of the shares. Mr. Shen Bohua is the father of Mr. Shen Yudong. Since its establishment in August 2011, Mr. Shen Bohua and Mr. Shen Yudong have jointly served as key decision-makers of the company. According to the takeover code, based on their family relationship, Mr. Shen Bohua and Mr. Shen Yudong are deemed to be acting in concert. Wuxi Hengcheng is an employee incentive platform of the group, with Mr. Shen Yudong as its general partner, holding approximately 45.24% of the partnership interests in Wuxi Hengcheng. As of the last practicable date, Mr. Shen Bohua, Mr. Shen Yudong, and Wuxi Hengcheng collectively hold 33.07% equity in the total issued share capital of the company, forming the largest shareholder group. Mr. Xie Xinyuan is a director of Nantong Dongheng and therefore a core related party to the company. Mr. Jiang Dong is an executive director of the company and therefore a core related party to the company. Intermediary Team: Joint Sponsors: China International Finance Hong Kong Securities Limited, Dongxing (Hong Kong) Limited Company Legal Advisers: Hong Kong and U.S. law: Deacons (Hong Kong) LLP; Chinese law: Jincheng Tongda & Neal Legal Advisers to Joint Sponsors: Hong Kong and U.S. law: Harneys (Hong Kong) Private Limited; Chinese law: Harneys Auditors and Reporting Accountants: Ernst & Young Industry Consultant: Frost & Sullivan (Beijing) Consulting Co., Ltd. Shanghai Branch Independent Property Valuer: Jones Lang LaSalle (JLL) Corporate Appraisal and Consulting Limited Compliance Consultant: Honbos Capital Limited