Tianci Materials Secondary Listing on HKEX, the "Electrolyte Leader" Expands into the European Market

Southern Finance Reporter Yang Qixin, Guangzhou Report

Currently, lithium battery industry chain companies are experiencing a wave of going public in Hong Kong.

According to incomplete statistics, since 2025, starting with industry leader CATL, more than 16 lithium battery-related companies have clustered to list in Hong Kong, covering core links in the entire industry chain such as batteries, materials, and equipment, forming a scaled listing boom.

On March 27, Guangzhou Tinci High-tech Materials Co., Ltd. (,简称"天赐材料"), submitted its prospectus to the Hong Kong Stock Exchange, planning to list on the Main Board of Hong Kong. Notably, this is its second application after its previous filing expired on September 22, 2025.

Previously, Tinci Materials had decided to issue GDRs and list on the Swiss Stock Exchange to raise funds for projects such as the Moroccan lithium battery materials project. However, in April 2025, the GDR issuance plan was terminated due to changes in internal and external environments.

Tinci Materials stated that the company seeks to list on the Hong Kong Stock Exchange to further promote its global strategic layout, establish an international capital operation platform, optimize its capital structure, expand diversified financing channels, and enhance overall competitiveness.

The prospectus shows that Tinci Materials is a leader in the global electrolyte field. The company is the world’s first and currently the only enterprise to achieve large-scale industrial production of liquid LiPF6, known as the “leader of electrolytes.” According to data from Zhuoshi Consulting, since 2016, Tinci Materials has ranked first in global electrolyte shipments for nine consecutive years. In 2024, its global market share was approximately 35.7%, far higher than the second industry player, BYD (15.6%).

Data indicates that in 2025, Tinci Materials achieved operating revenue of 16.65 billion yuan, a year-on-year increase of 33.00%; net profit attributable to parent was 1.36B yuan, a surge of 181.43% year-on-year. Wind data shows that in 2025, Tinci Materials’ stock price increased by 136.25%, ranking in the top five of the battery chemicals industry.

From daily chemicals to electrolyte giants

From inception to revenue exceeding 10 billion yuan, Tinci Materials’ development history is considered a “legend.” Its founder, Xu Jinfu, initially worked in the daily chemical industry, focusing on personal care product materials such as shampoo and body wash. In 2000, he invested 5.1 million yuan to establish Guangzhou Tinci High-tech Materials Technology Co., Ltd.

As the business expanded, Xu Jinfu keenly perceived the huge commercial prospects in lithium-ion batteries and new energy vehicles, and decisively shifted from the daily chemical sector into lithium battery materials. In 2014, Tinci Materials successfully listed on the Shenzhen Stock Exchange; in 2021, leveraging the new energy vehicle industry boom, its market value once exceeded 100 billion yuan.

Currently, the company’s main businesses are divided into two segments: lithium-ion battery materials and daily chemical materials and specialty chemicals. In the field of lithium-ion battery materials, the company has established strategic cooperation with leading global battery manufacturers and vehicle companies. In 2024, eight of the top ten global power battery manufacturers, all top ten global energy storage battery manufacturers, and nine of the top ten global consumer battery manufacturers are either customers of Tinci Materials or use its products in their supply chains.

It is noteworthy that Tinci Materials has deeply integrated with CATL, enjoying the benefits of the growth of the new energy vehicle industry.

The prospectus reveals that CATL is Tinci Materials’ largest customer. The cooperation began in 2017, and as CATL continued to grow, its procurement amount from Tinci Materials increased steadily. In 2022, CATL’s procurement from Tinci reached 12.17B yuan, accounting for 54.5% of the company’s sales revenue. As of 2025, CATL remains the largest customer, with procurement of 6.01B yuan, accounting for 36.1% of sales revenue.

In terms of capacity, Tinci Materials currently has an electrolyte capacity of 860k tons, covering multiple bases including Jiujiang, Nantong, Sichuan, Jiangmen, and Fuding. In 2025, its annual shipment volume is expected to reach 773k tons, making it a leader in the field. The company also produces 112k tons of lithium hexafluorophosphate and 30k tons of lithium bis(fluorosulfonyl)imide.

In the daily chemical sector, Tinci Materials’ products include surfactants, silicone oils, and other series, widely used in personal care and household products. Data shows that Tinci Materials is Asia’s largest producer of amphoteric surfactants, with carbomer capacity reaching 5,000 tons, ranking second in the industry. It maintains close cooperation with international giants such as L’Oréal and Procter & Gamble, serving nine of the top ten global personal care brands in 2024.

Looking at overall performance over the past three years, in 2023, 2024, and 2025, Tinci Materials’ revenue was 860k, 773k, and 16.65 billion yuan, respectively, with net profits of 112k, 478 million, and 30k yuan, showing a trend of decline followed by recovery. Tinci Materials explained that the revenue decline was mainly due to intensified competition in the lithium-ion battery materials industry, leading to a decrease in average selling prices.

It is important to note that the company’s core materials are highly volatile in price and closely related to global commodity market trends. In 2025, the direct material costs amounted to 15.41B yuan. A 5% fluctuation in raw material prices could impact pre-tax profits by over 500 million yuan.

Chinese lithium giants rush into Europe

Currently, the global lithium battery industry is undergoing profound restructuring, with “going overseas” and “local production” becoming core industry keywords.

The continuous growth in demand for overseas power and energy storage batteries, combined with strict policies such as the EU’s “New Battery Regulation” on supply chain localization and carbon footprint, is driving the irreversible trend of localizing electric vehicle and battery production.

Among them, Europe, with its huge demand potential and strict policy orientation, has undoubtedly become a key battleground in this global industry competition. According to Zhuoshi Consulting data, the European lithium-ion battery market has grown rapidly from 85.4 GWh in 2020 to 256.4 GWh in 2024, and is expected to reach 1,109.9 GWh by 2030, with a compound annual growth rate of 27.7%, significantly higher than China’s estimated 23.5%.

More critically, since 2025, the policy environment in Europe has shifted, with countries like the UK, Italy, and Germany restarting new energy vehicle subsidies, further releasing market demand. Against this backdrop, leading Chinese lithium industry companies are rapidly expanding capacity and capital into Europe.

In battery manufacturing, top companies like CATL and EVE Energy have taken the lead by establishing local production in Europe. CATL plans to invest 90% of its Hong Kong IPO funds into Hungary, with a total investment of up to 37.1 billion yuan. Its Hungary plant’s first phase completed commissioning by the end of 2025 and is expected to gradually start production; meanwhile, CATL’s German factory has achieved stable profitability, and its joint venture with Stellantis to build a factory in Spain is progressing, further completing its European capacity layout.

EVE Energy is also following suit, focusing its fundraising on the large cylindrical battery project in Hungary to capture the high-end European power battery market. Industry data shows that by the third quarter of 2025, Europe’s under-construction battery capacity reached 340 GWh, with Chinese companies accounting for as much as 58%.

Not only are battery companies accelerating their overseas expansion, but lithium battery material companies are also following industry trends. Tinci Materials’ global layout clearly reflects this strategic shift. By the end of 2025, Tinci Materials will have established 16 operational production bases and one under-construction base domestically, consolidating its domestic industry foundation. Meanwhile, the company has also set up initial supply points in the US and Germany through entrusted processing, laying the groundwork for overseas expansion. To further meet the growing demand in global and European markets, Tinci Materials plans to build new production bases in Morocco and the US, continuously expanding its overseas footprint.

Among these, the Morocco project is a key step in Tinci Materials’ European expansion. In June 2025, Tinci Materials signed an investment agreement with the Moroccan government to build an integrated production base for electrolyte and core materials with an annual capacity of 150k tons.

It is noteworthy that Morocco, separated from Europe by the sea and rich in phosphate resources—one of the core raw materials for electrolyte production—has a unique geographical and resource advantage. This allows the project to efficiently serve European market demand. The project is scheduled to start construction between late 2025 and the first quarter of 2026, with completion and commissioning expected by late 2027 to mid-2028.

From a funding perspective, Tinci Materials’ Hong Kong IPO fundraising plan also leans toward overseas deployment. The prospectus shows that about 60% of the funds raised will be used for the Morocco project.

Industry analysts believe that the overseas listing and large-scale investment by leading companies like Tinci Materials aim to build an international capital platform, broaden financing channels to support heavy-asset overseas bases, and significantly enhance international brand influence.

However, challenges are also evident: the company’s overseas revenue share remains relatively low, and large-scale overseas investments will face geopolitical, cultural, and operational management challenges. Additionally, project construction cycles are long, which may put short-term pressure on cash flow.

As of the close on March 31, Tinci Materials’ stock price was 46 yuan per share, down 4.5%, with a total market value of 12.52B yuan.