Recently in the evening, Zhongwei Co., Ltd. (300919.SZ) announced that the company intends to issue overseas shares (H shares) and list on the Hong Kong Stock Exchange Limited. The company's board of directors has authorized the company's management to initiate the preliminary preparation work for this H-share listing. According to Bloomberg reports, Zhongwei New Materials is consulting with Morgan Stanley and Huatai Securities on its IPO plan, aiming to raise 400 to 500 million US dollars (about 3.12 to 3.9 billion Hong Kong dollars). As of the closing on February 13, Zhongwei Co., Ltd. (300919.SZ) closed at 35.94 yuan per share, with a market capitalization of 33.679 billion yuan. Zhongwei Co., Ltd. was listed on the ChiNext Board in December 2020. The main reasons for Zhongwei's planned Hong Kong IPO and realization of "A+H" dual listing are to further advance the company's "global development" strategic deployment, build an international capital operation platform, and help its global industrial layout continue to upgrade. As a professional new energy material comprehensive service provider, Zhongwei Co., Ltd. is mainly engaged in the R&D, production, processing and sales of lithium battery cathode material precursors. According to data, in the first half of 2024, the shipment volume of Zhongwei's four-series products including nickel, cobalt, phosphorus and sodium exceeded 140,000 tons, a year-on-year increase of 15%. Among them, the combined shipment of nickel and cobalt products exceeded 120,000 tons, and the market share of both products ranks first globally. The company's independently developed high-voltage cobalt tetroxide, high-nickel NCM, NCA and other new energy materials have entered the high-end supply chains of Global Fortune 500 companies in China, Europe, the United States, Japan and South Korea, and are widely used in 3C, power and energy storage sectors. Benefiting from the rapid growth of the global new energy market and the continuous release of the company's production capacity, Zhongwei's profitability has improved rapidly. From 2020 to 2023, Zhongwei Co., Ltd. achieved operating revenues of 7.44 billion yuan, 20.072 billion yuan, 30.344 billion yuan and 34.273 billion yuan respectively, with year-on-year growth of 40.07%, 169.81%, 51.17% and 12.95%; net profits were 420 million yuan, 939 million yuan, 1.543 billion yuan and 1.947 billion yuan respectively, with year-on-year growth of 133.65%, 123.48%, 64.33% and 26.15%. In the first three quarters of 2024, Zhongwei Co., Ltd. achieved operating revenue of 30.163 billion yuan, a year-on-year increase of 15.17%; net profit was 1.324 billion yuan, a year-on-year decrease of 4.54%; the net profit excluding non-recurring gains and losses was 1.141 billion yuan, a year-on-year increase of 0.92%. Among them, in the third quarter of 2024, Zhongwei Co., Ltd. achieved operating revenue of 10.077 billion yuan, a year-on-year increase of 12.91%; net profit was 460 million yuan, a year-on-year decrease of 25.68%. It is worth noting that in the first half of 2024, Zhongwei's operating revenue from overseas markets was 9.125 billion yuan, a year-on-year increase of 26.56%, which was much higher than the growth rate of domestic market revenue, accounting for 45.4% of the company's current operating revenue. Zhongwei Co., Ltd. fully launched its internationalization strategy in 2021. From the perspective of overseas layout, at present, Zhongwei has established four major raw material production bases for nickel resource smelting in Indonesia, with a completed and under-construction production capacity of nearly 200,000 metal tons. At the same time, the company's Indonesia NNI 80,000-ton low-grade nickel matte project and Indonesia Zhongqing New Energy 60,000-ton nickel matte project are both in the capacity ramp-up stage. In Morocco, it is cooperating with AL MADA to advance projects with an annual production capacity of 120,000 tons of ternary precursor materials and its supporting raw material refining, 60,000 tons of phosphorus-based materials and 30,000 tons of black powder recycling. After the project is completed, it can provide battery materials for more than 1 million electric vehicles every year. Zhongwei's planned Hong Kong listing is also to further advance the company's "global development" strategic deployment, build an international capital operation platform, help its global industrial layout continue to upgrade, and accelerate the establishment of the new development paradigm of dual circulation with the domestic market as the mainstay and domestic and international markets reinforcing each other. While advancing its globalization strategy, Zhongwei Co., Ltd. has also further expanded its business scope and market reach through strategic cooperation with Dangsheng Technology. On February 10, Zhongwei Co., Ltd. disclosed that it had signed the "Strategic Cooperation Framework Agreement" with Dangsheng Technology (300073.SZ). The two parties agreed to establish a long-term, comprehensive and stable strategic cooperative relationship in fields such as product supply and marketing, technical cooperation, production capacity layout, upstream resource development and resource recycling. In addition to common products such as ternary materials, lithium cobalt oxide, lithium (manganese) iron phosphate, sodium battery materials, solid-state lithium battery materials and semi-solid-state lithium battery materials for lithium batteries in the fields of power and energy storage, the two parties also mentioned emerging hot fields such as low-altitude travel, AI and robotics. According to the announcement, in the next 3 to 5 years, the two parties expect the cooperation volume of products including ternary precursors, cobalt tetroxide, lithium (manganese) iron phosphate, sodium battery precursors, solid-state precursors, polyanionic precursors and lithium-rich manganese-based precursors to reach 30,000 to 100,000 tons per year. Moreover, to avoid horizontal competition, the cathode material business will be led by Dangsheng Technology, while the precursor material business will be led by Zhongwei Co., Ltd. The two parties can establish upstream-downstream integrated cooperative relationships through mutual shareholding and investment, and jointly develop domestic and overseas markets. © 2021 Meishun (Hong Kong) Management Consulting Co., Ltd. and Meishun (Hangzhou) Management Consulting Co., Ltd. All rights reserved. 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