As the global lithium battery industry shifts from a scale competition to a refined competition focused on "yield, efficiency, and cost," mid-stream equipment, which determines the core performance of battery cells, has become a key differentiator in the supply chain. At this critical juncture of industrial evolution, Shenzhen GreenSheng Technology Co., Ltd. ("GreenSheng"), which has been specializing in lithium battery mid-stream equipment for 17 years, officially submitted its listing application to the Main Board of the Hong Kong Stock Exchange on May 15, with Nanhua Financial Group Limited acting as its sole sponsor. The proceeds from GreenSheng's proposed IPO will primarily be used for capacity expansion, core technology R&D, advancing strategic initiatives, and supplementing working capital.
A Leading Supplier of Lithium Battery Mid-Stream Equipment According to the prospectus, GreenSheng was founded in 2009 and is a leading market participant in the global lithium-ion battery mid-stream intelligent equipment industry. The company focuses on the research, development, and manufacturing of lamination technology and equipment for the new energy battery sector, particularly serving lithium-ion battery manufacturers in China and overseas. GreenSheng provides fully automated equipment solutions for core mid-stream manufacturing processes, primarily focusing on lithium-ion battery manufacturing and assembly equipment, including: - Slitting stage: Involves the R&D and manufacturing of laser slitting machines. - Lamination stage: Involves the R&D and manufacturing of various models of lamination machines, ranging from single-station to multi-task lamination machines. The company also engages in the R&D and manufacturing of integrated slitting-lamination machines. - Winding stage: Involves the R&D and manufacturing of winding machines for prismatic and cylindrical cells. - Electrolyte filling stage: Involves the R&D and manufacturing of various electrolyte filling machines for prismatic, cylindrical, and pouch cells. - Production of automated conveyor lines and other equipment as purchased by customers. In 2025, slitting-lamination machine products accounted for 58.7% of the company's revenue, while electrolyte filling machines and winding machines accounted for 15.9% and 19.4% of revenue, respectively. GreenSheng is renowned for its high-speed lamination technology, consistently achieving industry breakthroughs in lamination speed. For instance, the machine's lamination efficiency improved from 0.6 seconds per piece in 2016 to 0.1 seconds per piece as of the latest practicable date. The company's lamination machines employ various proprietary lamination technologies tailored for prismatic and pouch battery production, ensuring minimal battery variability, high consistency, and efficient automated manufacturing. During the track record period, the company's customers included nine of the world's top ten lithium-ion battery manufacturers by shipment volume in 2025. These relationships are built on high entry barriers, stringent and lengthy certification processes, and rigorous requirements for product safety and reliability. The company has established five production facilities located in Shenzhen and Jiangmen in Guangdong Province, Huangshan in Anhui Province, and Xiaogan in Hubei Province, with a total floor area exceeding 60,000 square meters. According to a Frost & Sullivan report, based on fiscal year 2025 revenue, the company ranked second among global lithium-ion battery slitting-lamination machine providers, with a market share of approximately 9.8% of global total revenue. It ranked fourth among global lithium-ion battery mid-stream intelligent equipment providers, with a market share of approximately 5.7% of global total revenue.
Turnaround to Profitability, Yet High Accounts Receivable Persists In terms of financial performance, for the years 2023, 2024, and 2025, GreenSheng achieved revenues of approximately RMB 1.165 billion, RMB 1.155 billion, and RMB 1.221 billion, respectively. Gross profit for the same periods was approximately RMB 176 million, RMB 204 million, and RMB 208 million, corresponding to gross margins of 15.1%, 17.6%, and 17.1%, respectively. Net profit for the same periods was approximately RMB -16.844 million, RMB 17.572 million, and RMB 48.235 million, respectively. The prospectus indicates that the company's ability to turn losses into profits and achieve sustained growth during the industry adjustment cycle is primarily attributed to three factors: First, improved profitability of core products, with the gross margin of slitting-lamination machine sales increasing from 10.4% in 2023 to 18.2% in 2025. In 2025, revenue recognition increased following the completion of equipment acceptance procedures for slitting-lamination machine projects, with the proportion of revenue from these machines rising by nearly 20 percentage points year-on-year to 58.7%. Second, effective cost control, with sales, administrative, and R&D expense ratios remaining generally stable. It is noteworthy that alongside improved performance, GreenSheng also faces challenges common in the lithium battery equipment industry: high accounts receivable and customer concentration. Prospectus data shows that as of the end of 2023, 2024, and 2025, the company's accounts receivable balance was RMB 436 million, RMB 602 million, and RMB 530 million, accounting for approximately 16.1%, 26.2%, and 27.1% of the current total current assets, respectively. The accounts receivable turnover days were 116 days, 169 days, and 169 days, respectively, indicating an overall lengthy collection cycle. If cyclical fluctuations in the downstream industry lead to a slowdown in the expansion pace of key customers, or if customers' operating conditions experience significant adverse changes, the company may face risks of delayed collection or even bad debts, adversely affecting its cash flow and operating performance. The core reasons for the high accounts receivable lie in the industry's business model and customer structure. On one hand, lithium battery equipment follows an "order-based production, installment payment" model. The prospectus shows that GreenSheng's customers in the lithium-ion battery intelligent equipment industry typically pay about 30% of the total contract price upon signing the sales agreement, another 30% upon passing the relevant Factory Acceptance Test (FAT), a further 30% upon passing the relevant Site Acceptance Test (SAT), and settle the remaining 10% within 30 days after the 12-month warranty period expires. Consequently, as some cash inflows are deferred to later stages of the project cycle while funds for R&D, raw material and component procurement, production activities, and project execution are typically required in the early stages, a mismatch between cash inflows and outflows may occur. On the other hand, GreenSheng has a high degree of customer concentration. During each year of the track record period, revenue from the top five customers accounted for approximately 57.3%, 53.8%, and 72.2% of the total annual revenue, respectively. Sales to the largest customer during the same periods accounted for approximately 25.8%, 20.1%, and 35.3% of the total annual revenue, respectively. Downstream lithium battery manufacturers generally hold a strong position with greater bargaining power, leading to universally longer payment cycles.
Sustained High Growth in Lithium Battery Sector, Bright Prospects for Mid-Stream Equipment Despite facing interim challenges related to accounts receivable and customer concentration, the lithium battery mid-stream equipment sector where GreenSheng operates remains on a long-term growth trajectory. Downstream demand expansion and technological upgrades jointly open up growth space for the industry. According to a Frost & Sullivan report, the global new energy battery industry maintains rapid growth and has become a crucial support for global energy transition and the new industrial system. Lithium batteries account for over 90% of global new energy battery shipments. It is projected that by 2030, global lithium battery shipments will reach 6,572.1 GWh, with a CAGR of 23.6% from 2025. China remains the world's largest market for lithium battery intelligent equipment, with its market size expected to grow from RMB 36.9 billion in 2025 to RMB 85.2 billion in 2030. Meanwhile, the European and North American markets show significant growth, with projected CAGRs of approximately 27.7% and 25.5%, respectively, from 2025 to 2030. The mid-stream segment directly impacts battery structural stability, energy density, and product yield rate. It is a key segment in lithium battery manufacturing with relatively high technological barriers and concentrated value. In 2025, mid-stream intelligent equipment accounted for approximately 34% of the global lithium battery intelligent equipment market. With upgrades in high-energy-density battery technology, large-scale expansion of energy storage and power battery production lines, and continuous increases in efficiency and yield rate requirements from battery enterprises, demand for mid-stream intelligent equipment is expected to grow steadily. The global market size for lithium battery mid-stream intelligent equipment is projected to increase from RMB 21.5 billion in 2025 to RMB 64.6 billion in 2030, representing a CAGR of 24.6%. In terms of equipment types, slitting-lamination machines, winding machines, and electrolyte filling machines constitute the core mid-stream equipment system. Currently, power lithium batteries still primarily use winding processes. However, as power batteries develop towards longer, thinner formats and higher energy density, slitting-lamination machines are expected to experience rapid growth. The global market size for lithium battery slitting-lamination machines is projected to grow from RMB 7.3 billion in 2025 to RMB 29.0 billion in 2030, with a CAGR of approximately 31.8%, outpacing the growth rate of winding machines. By 2030, the global market sizes for winding machines and electrolyte filling machines are expected to reach RMB 17.4 billion and RMB 8.2 billion, respectively. The rapid growth of the lithium battery mid-stream equipment sector places GreenSheng at a critical strategic crossroads. Current industry competition has evolved from pure technological rivalry to a comprehensive contest of "delivery capability + technological iteration speed + global service," which is also a core reason for the company's choice to list on the Hong Kong stock market at this time. Overall, GreenSheng is a distinctive specialist in lithium battery mid-stream equipment. Seventeen years of deep cultivation have enabled it to establish solid technological barriers and a high-quality customer base. Its clear strategic positioning has also secured a leading market position in its niche segment. This Hong Kong listing will provide capital support for the company's capacity, R&D, and globalization efforts, helping it further consolidate its market position in the efficiency revolution of the lithium battery industry. For investors, monitoring the company's capacity release progress, technological iteration achievements, and overseas market expansion will be key indicators for assessing its long-term investment value.
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