Electric vehicle battery giant lists in HK, eyes strong growth

CALB, a leading new energy technology company specializing in electric vehicle batteries and batteries for energy storage scenarios, was listed on the Hong Kong Stock Exchange on Thursday, and this could lead to the radical transformation of China's EV battery market and help the company rival its global competitors.

Huatai International is the sole sponsor of CALB's Hong Kong initial public offering.

CALB's opening price on its first trading day was HK$38 ($5) per share, with the share reaching a session high of HK$38.45. The closing price of the share was flat at HK$36.65, with volume reaching 41.80 million shares and turnover value of HK$1.79 billion.

The company said CALB is one of the strongest, high-quality new stocks among those issued in this period. Although CALB closed slightly lower the day after its listing, that was seen by market players as normal. "You can value its long-term investment value," said a company executive.

With more than 13 years of experience in battery technology and research and development, CALB has an all-around patent portfolio of more than 1,200 patents in such fields as chemical materials, battery structure and integrated management.

It has six R&D platforms, 11 industry-leading technologies and a team of experts. Since 2018, CALB has rolled out a series of advanced technologies and products including high-voltage ternary batteries, high-voltage technology and "one-stop "solutions.

CALB is one of only two battery companies that have high-voltage ternary battery products. Featuring long battery life and excellent safety, its square battery cells of medium-nickel 6 Series launched in 2021 have an energy density of up to 280 watt-hours per kilogram and a battery system with the energy density of up to 225 Wh/kg, far exceeding the industry average.

"We are also the first to introduce the battery of 'One-stop' with the minimalist structure to save costs and increase the profitability of our company," said a company executive.

Instead of resting on its laurels, CALB decided to ride new trends in the sector. It said it will continue to increase its R&D investment in solid-state EV batteries and lithium-sulfur batteries, to build a lasting edge in next-generation battery technology.

"We are a leading EV battery producer to manufacture medium-nickel 5 Series batteries with an energy density that could parallel that of the high-nickel 8 Series batteries. As lower nickel utilization allows for less chance of overheating and thus better safety through the development of such a product, we managed to elevate the energy density and safety of our products and at the same time, enhance the utilization of lithium and nickel," the company executive said.

CALB's leading technology also lays a solid foundation for mass production. Its production capacities will experience sharp growth compared to its existing production capacities, the company said.

Led by Chairwoman Liu Jingyu, the company has been following a customer-centered philosophy for years and its performance as an EV battery supplier has been recognized by its customers, which include GAC Aion, Changan NEV, Xpeng, Leapmotor, Geely, SAIC-GM-Wuling Automobile, Honda and Mercedes-Benz Smart.

With rapid expansion of its production capacity, CALB has sought and successfully developed new customers and expanded a high-quality customer base. "We formed close collaboration with our major customers to develop new products that meet their needs," a company executive said.

"Our customer loyalty remains strong as we are chosen to be the supplier to back up their new models. Some have been provided with a knockout advantage while others are first to market."

CALB has a closed-loop control intelligent coating system and a leading fully automated assembly line which has the ability to manage the whole production life cycle, featuring industry-leading automation, digitization and intelligent features. Its utilization rate reached 95 percent, higher than the industry average, according to market research company Frost & Sullivan.

Its production capacity expanded from 3 GWh in 2019 to 11.90 GWh in 2021 and its effective production capacity is expected to hit approximately 90 GWh in 2023.

Other than EV batteries, CALB also designs, conducts R&D, manufactures and sells ESS products, which feature "high safety, long life, high efficiency and high integration".In the context of the national strategy of energy transformation and carbon neutrality worldwide, CALB has undertaken many national demonstration projects and its ESS goods have been used on offshore islands, remote plateaus and frigid areas with low pressure. It reflects the company's excellent technical strength and product strength.

The revenue generated by ESS products has maintained a steady and rapid pace of growth, from 180 million yuan ($25.3 million) in 2019 to 450 million yuan in 2021, with a compound annual growth rate of about 57 percent.

With the company's continuous progress in technological and manufacturing processes, the gradual embodiment of scale, and excellent cost control ability, its financial performance is expected to improve greatly in the future.

CALB also has excellent supply chain management capabilities, a complete raw materials procurement framework ensuring that the company has not encountered any material shortage, as well as an evaluation system for performance of upstream raw material suppliers and downstream customers.

While business is important to CALB, its management team is part of a broader ethos surrounding its corporate spirit of "beyond commerce, bettering mankind".

Liu, who has extensive international company management experience, has a clear and precise vision on market trends. She has integrated resources to adjust CALB's development strategy in a timely manner and ultimately established its leading position in the EV battery industry.

"We should pursue common prosperity rather than getting involved in a rat race. Our entrepreneurs are the key to the healthy growth of the EV battery industry and CALB can take the lead," Liu said at an industry summit in 2021.

Her innovative views and dedication to customers, to products and to the industry have scooped her honorary titles such as one of the top Chinese female entrepreneurs, one of the top 10 female elites in science and technology innovation in Jiangsu province and the innovation star of Jiangsu.

For years to come, the star-studded list of CALB cornerstone investors offers a sneak peek into the company's future growth. They include Tianqi Lithium HK, Han's Laser Technology, XPeng and Vivo.

The company said it will focus on three strategies — an all-around technology advancement strategy, scaling-up strategy and promoting sustainable industry development.

To maintain its leading position in the industry, it will continue to increase R&D investment and production capacity as well as expand overseas markets. Adhering to the vision of being "mutually beneficial", the company is committed to building a healthy ecosystem for the industry.