Jiamao expands overseas production capacity, Changhong Energy plans to raise no more than 903 million yuan through a private placement.

CICC Report CICC Web News (Reporter: Wu Keran) On April 3, Changhong Energy disclosed the 2026 annual stock issuance offering memorandum (draft) to specific targets. The company plans to raise no more than 903 million yuan. Of this amount, 803 million yuan will be used for a high-ratio lithium battery capacity expansion project in Malaysia, and the remaining 100 million yuan will be used to supplement working capital and repay borrowings.

Analysts said that this private placement by Changhong Energy precisely aligns with the direction of the North Exchange’s package of measures for refinancing. It is not only a key move as the company focuses on its main business and expands globally, but also provides a reference paradigm for North Exchange small and medium-sized enterprises to strengthen their core business by using the capital market.

As a core supporting component in fields such as power tools, cleaning tools, portable energy storage, and smart mobility, high-ratio lithium batteries have strong market demand. Combined with the explosive growth in emerging application areas such as drones, robots, and BBUs, they have become an important growth point in the lithium battery industry’s sub-segment market. According to EVTank statistics, in 2024, the global shipment volume of high-ratio lithium batteries reached 4.15 billion units, representing an approximately 30.9% year-on-year increase.

Meanwhile, the competitive landscape in the high-ratio lithium battery sector is undergoing profound changes, with the focus of competition shifting to profitability and core technology. With the fundraising from this private placement, Changhong Energy is well positioned to follow the industry’s high-visibility development trend, and is expected to lay the foundation for capturing market share and consolidating its competitive advantages.

In fact, based on Changhong Energy’s existing production capacity, it is already difficult to keep pace with continuously growing order demand. According to publicly available data, the utilization rate of the company’s high-ratio lithium battery-related production lines has exceeded 90%. If the overseas expansion proceeds smoothly, it will effectively break through the production capacity bottleneck, providing support for fulfilling orders from international core customers.

According to the announcement, the construction period for the high-ratio lithium battery Malaysia capacity expansion project is 1.5 years. After reaching full production, it will add a total of 170 million lithium cell units per year across the 18650 and 21700 series. This is not only a key measure for the company to address the current global mismatch between supply and demand of high-end lithium battery capacity and to break through its own production capacity bottleneck, but also a strategic move that aligns with the industry’s global layout trend and hedges international trade risks.

The performance quick report shows that in 2025, Changhong Energy’s revenue increased 22% year over year, and its net profit attributable to the parent company increased 26% year over year. The aforementioned projects will further improve the company’s “domestic + overseas” dual-base layout, help the company secure more share in the global high-ratio lithium battery sub-segment market, and align with the industry’s development trends.

【Source: China Securities Journal · CICC Web】