Senior Material once again seeks listing: revenue growth, gross margin decline, significant drop in product prices

Source | Beiduo Business & Beiduo Finance

On January 30, Shenzhen Senior Material Technology Co., Ltd. (referred to as 'Senior Material', SZ:300568 $Shenzhen Senior Technology Material (300568.SZ)$ ) submitted its prospectus again, aiming for a listing on the main board of the Hong Kong Stock Exchange. According to Beiduo Business & Beiduo Finance, Senior Material had previously filed in July 2025, and this submission is an update after the previous filing lapsed.

In its recent attempt to list on the Hong Kong stock market, Xingyuan Material plans to allocate funds for the research and development of solid-state battery-related products, other functional films, and next-generation lithium-ion battery separator products; expand its overseas network by building production bases in Malaysia and the United States, and establishing an operations and R&D center in Singapore; and repay fixed-asset loans for its production base in Sweden.

Information from the Tianyancha app shows that Xingyuan Material is a company listed on the A-share market. It went public on the ChiNext Board of the Shenzhen Stock Exchange on December 1, 2016. As of the close on February 3, 2026, the closing price of Xingyuan Material was 13.70 yuan per share, with a market value of approximately 18.44 billion yuan.

According to the prospectus, Xingyuan Material is a manufacturer of lithium-ion battery separators. According to Frost & Sullivan, Xingyuan Material was the first company in China to master the uniaxial stretching technology for dry-process lithium-ion battery separators. In 2024, based on shipment volume, Xingyuan Material ranked second in the global battery separator market, with a market share of 14.4%.

As disclosed in the prospectus, Xingyuan Material was established in September 2003 under the former name of Shenzhen Fuyida Electronic Technology Co., Ltd., and restructured into a joint-stock company in 2008. In December 2016, the company was listed on the ChiNext Board of the Shenzhen Stock Exchange and subsequently listed on the Swiss Stock Exchange in December 2023.

Xingyuan Material stated in the prospectus that the company has built a comprehensive global network in terms of production, R&D, and customer base. Its global presence covers nine major production bases in China, Europe, Southeast Asia, and the United States, with R&D centers in South China, East China, Japan, and Sweden, serving more than 100 lithium-ion battery customers.

Currently, Xingyuan Material serves several lithium-ion battery manufacturers, including LG Energy Solution, Samsung SDI, Envision AESC, Murata, SK On, SAFT, CATL, BYD, Guoxuan High-Tech, CALB, EVE Energy, and Sunwoda.

In 2022, 2023, 2024, and the first nine months (the first three quarters) of 2025, Xingyuan Material’s revenue was approximately 2.867 billion yuan, 2.982 billion yuan, 3.506 billion yuan, and 2.932 billion yuan, respectively. Net profits were approximately 748 million yuan, 594 million yuan, 371 million yuan, and 141 million yuan, respectively.

It is not difficult to see that while Xingyuan Material’s revenue maintained a growth trend, its profit margins continued to decline. In 2022, the net profit was about 748 million yuan, decreasing by 20.6% to 594 million yuan in 2024, and further dropping by 37.6% to 371 million yuan in 2024. In the first three quarters of 2025, the company's net profit fell by 59.9% year-on-year to 141 million yuan.

Measured by non-IFRS standards, Xingyuan Material’s adjusted net profits for 2022, 2023, and 2024 were approximately 782 million yuan, 599 million yuan, and 383 million yuan, respectively. In the first three quarters of 2025, the company’s adjusted net profit was approximately 183 million yuan, compared to 363 million yuan during the same period in 2024.

Beiduo Business & Beiduo Finance found that this decline is directly related to Xingyuan Material’s falling gross margin levels. In 2022, 2023, 2024, and the first three quarters of 2025, the company’s gross margins were 44.8%, 43.3%, 28.1%, and 21.3%, respectively, showing a continuous downward trend.

Meanwhile, despite revenue growth, Senior Material's gross profit margin increased slightly from approximately RMB 1.285 billion in 2022 to RMB 1.29 billion in 2023, but fell significantly to RMB 984 million in 2024. In the first three quarters of 2025, Senior Material’s gross profit was about RMB 626 million, compared to RMB 773 million for the same period in 2024.

Regarding the gross margin, Senior Material stated in its prospectus that this is mainly due to market competition, which caused the average selling price of products to drop more than production costs. Revenue growth was primarily driven by existing customers increasing orders for new product launches, boosting overall sales volume.

It is worth noting that for the decline in profits in 2023, Senior Material attributed it to business expansion and an increase in general and administrative staff numbers, leading to a rise in employee benefit expenses. Additionally, a legal settlement was reached in 2023, resulting in related expenses (settlement costs were approximately RMB 108 million).

Furthermore, Senior Material stated that the company expects a sharp decline in net profit in 2025 due to intensified market competition stemming from supply-demand imbalances, with the drop in average selling prices far exceeding the reduction in production costs.

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