New Stock News | It is rumored that Jinli Power will go public in Hong Kong as early as next year, just months after terminating its A-share IPO in September.

Zhitong App has learned that Hebei Jinli New Energy Technology Co., Ltd. (Jinli Co., Ltd.) is considering an IPO in Hong Kong as early as next year, seeking to raise $2 billion. Insiders say that this is still a preliminary consideration, and there may still be changes in the details of the IPO, including the scale and timing. It is reported that in April of this year, Jinli Co., Ltd. submitted a prospectus to the Shanghai Stock Exchange, planning to raise 1.31 billion yuan. However, in mid-September, they voluntarily withdrew their application for an IPO on the Science and Technology Innovation Board.

According to the prospectus, Jinli Co., Ltd. is a high-tech enterprise specializing in the research, production, and sales of wet-process lithium battery separators. The company's main products include wet-process base film and coated separators based on wet-process base film. In 2021, the company's domestic market share of wet-process lithium battery separators was about 8.9%, ranking fourth in the industry, second only to Enjie Co., Ltd., China National Building Materials Technology Co., Ltd., and Xingyuan Materials Co., Ltd.

In terms of financials, Jinli Co., Ltd.'s operating income from 2019 to the first half of 2022 was 185 million yuan, 219 million yuan, 695 million yuan, and 691 million yuan, respectively. The net profit was -129 million yuan, -170 million yuan, 101 million yuan, and 131 million yuan, respectively.

It is worth noting that Jinli Co., Ltd.'s main customers include well-known lithium battery manufacturers such as BYD, CATL, Guoxuan High-Tech, and EVE Energy. Among them, the company's sales revenue from BYD has grown rapidly. The proportion of the company's sales revenue from BYD to its operating income increased from 0.79% in 2020 to 54.97% in the first half of 2022. BYD is not only an important major customer of the company but also holds 2.24% of Jinli Co., Ltd.'s shares.

In addition, Jinli Co., Ltd. has recently faced patent litigation issues, which have disrupted the company's normal IPO schedule. In May and August of this year, industry leader Enjie Co., Ltd. sued Jinli Co., Ltd. twice. Enjie Co., Ltd. stated that Jinli Co., Ltd. and related parties infringed on the company's invention patents and utility model patents, with a cumulative amount involved reaching 280 million yuan. This may be one of the reasons why Jinli Co., Ltd. terminated its A-share IPO.