What’s new: One of China’s largest electric vehicle (EV) battery makers, CALB Co. Ltd., has filed for an IPO in Hong Kong, a move that could capitalize on investor interest after China’s new-energy vehicle sales more than doubled in 2021.
The Jiangsu province-based company did not specify a timetable or how much it aims to raise, but said that it plans to use the IPO proceeds to buy equipment and build plants as well as for trial production, according to its preliminary prospectus published on Friday.
The IPO will be solely sponsored by Huatai International Ltd., the prospectus said.
The background: In 2021, CALB was China’s third-largest EV battery supplier in terms of installed capacity with a market share of 5.9%, according to data from research firm Frost & Sullivan. The top three players collectively controlled 74.2% of the market that year.
Last year, CALB reported a net profit of 111.5 million yuan ($17.5 million), compared with a net loss of 18.3 million yuan in 2020, on revenue of 6.8 billion yuan, up 141% year-on-year, according to the prospectus.
Backed by investors like Guangzhou Automobile Group Co. Ltd. (GAC) and the Yangtze River Xiaomi Industry Fund, the company said that more than 70% of its 2021 revenue came from sales of batteries to GAC, Chongqing Changan Automobile Co. Ltd. and Xpeng Inc.
Contact reporter Ding Yi (yiding@caixin.com) and editor Bertrand Teo (bertrandteo@caixin.com)
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