In-Depth Analysis of Putailai's H-Share Listing Plan

Based on the collected information, I now provide you with a systematic and comprehensive analysis report.

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On January 9, 2026, Putailai (603659.SH), a leading lithium battery anode material company, issued an announcement stating that it is planning to issue H-share stocks overseas and apply for listing on the main board of the Stock Exchange of Hong Kong Limited [1][2]. The company stated that this issuance aims to advance its global strategic layout, leverage the advantages of the international capital market, build a diversified capital platform, enhance the company’s overseas financing capabilities, further improve its capital strength and comprehensive competitiveness, boost brand image, accelerate overseas business development, and consolidate and enhance its industry position [2].

• Currently in discussions with relevant intermediaries regarding work related to this H-share issuance and listing
• Issuance details have not yet been determined
• Will not result in changes to the controlling shareholder and actual controller
• Requires review by the board of directors, shareholders’ meeting, and approval from relevant regulatory authorities, with uncertainties involved [1]

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According to the latest data, Putailai currently has a market capitalization of RMB 58.7 billion, and is a leading player in the lithium battery anode material industry [0].

Financial Indicator	Data
Market Capitalization	$58.70B (approx. RMB 58.7 billion)
Current Stock Price	¥27.71
P/E Ratio	35.29x
P/B Ratio	2.95x
ROE	8.68%
Net Profit Margin	11.44%
Current Ratio	1.37

• Operating Revenue: RMB 13.448 billion, a year-on-year decrease of 12.33%
• Net Profit Attributable to Shareholders of Listed Company: RMB 1.191 billion, a year-on-year decrease of 37.72% [3]

• Operating Revenue: RMB 3.215 billion, a year-on-year increase of 5.96%
• Net Profit Attributable to Shareholders of Listed Company: RMB 488 million, a year-on-year increase of 9.64%
• Performance has returned to growth, with a significant quarter-on-quarter improvement [3]

According to EVTank statistics, global anode material shipments reached 2.206 million tons in 2024, a year-on-year increase of 21.3%, with China’s anode material shipment share further rising to 95.9%. Putailai holds an important market position in the coated separator and processing segment; its 2024 coated separator processing volume accounted for over 40% of domestic wet-process separator shipments in the same period, leading in market share [4].

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Putailai has experienced major setbacks in its global layout. On December 19, 2024, the company announced its plan to terminate the 100,000-ton lithium-ion anode material integrated production base project in Sweden [5]. Announced in May 2023, the project had an annual production capacity of 100,000 tons, with a planned total investment not exceeding SEK 15.7 billion (approx. RMB 10.4 billion). It was originally expected to reach 50,000 tons of capacity in 2025, and 100,000 tons by the end of 2026 or early 2027 [5].

On December 3, 2024, the Swedish Inspectorate of Strategic Products raised multiple requirements for the company’s investment project, covering aspects such as equity control of Sweden Zichen (the project implementation entity), management composition, ownership of R&D results, and regulatory arrangements. After careful evaluation, the company believes these requirements pose significant challenges in terms of business logic and practical operation [5].

Against this background, the H-share listing plan is particularly critical:

• Open up international financing channels and reduce reliance on a single capital market
• Provide more convenient financing support for subsequent overseas projects
• Leverage the relatively flexible refinancing mechanism of the Hong Kong stock market [6]

• As a highly international financial center, listing in Hong Kong itself is a strong certification of corporate governance, transparency, and brand reputation
• Helps gain trust from international customers, partners, and investors
• Adds leverage to winning global orders [6]

The company has stated that in 2025, it will focus on exploring the layout of anode material, base film, and coating processing capacity in Southeast Asia to meet the supply diversification needs of overseas customers [3]. The H-share listing will provide financial support for this strategy.

• The lesson from the Sweden project shows that overseas investment faces complex policy environments
• Listing in Hong Kong helps diversify geopolitical risks
• Listing in Hong Kong, a relatively neutral financial center, provides a more convenient investment channel for international investors [6]

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From an industry perspective, lithium battery companies often face valuation discounts when listing H-shares. According to industry research data, there are certain valuation differences between A-share and Hong Kong stock markets for lithium battery industry chain enterprises [7]. The Hong Kong stock market is dominated by international institutional investors, with a more international valuation system that has higher requirements for enterprises’ global capabilities, technological innovation, and profit quality.

Contemporary Amperex Technology Co., Limited (CATL) successfully listed on the Hong Kong Stock Exchange in 2025 (stock code: 9631.HK), with a final global offering price of HK$165.5 per share, and net proceeds of approximately HK$4.14 billion [6]. CATL’s H-share listing has set a benchmark for the industry chain, and its performance in the Hong Kong stock market proves that high-quality lithium battery assets can gain recognition from international capital.

1. Diversified Investor Base
   : H-shares will provide international investors with a convenient channel to directly invest in high-quality Chinese lithium battery assets, attracting attention from global long-term funds, sovereign funds, and professional investment institutions [6]
2. Improved Liquidity
   : A more diversified shareholder structure helps enhance stock liquidity and stabilize the company’s market value
3. Global Narrative
   : Listing on the Hong Kong stock exchange is an excellent window for the company to demonstrate its comprehensive strength and clearly outline its global blueprint

1. Short-Term Valuation Pressure
   : Referring to industry practices, the H-share issuance may face a certain degree of valuation discount
2. Market Recognition
   : Needs to prove its technological strength and global capabilities to international investors
3. Information Disclosure Requirements
   : The regulatory environment in Hong Kong may bring higher compliance costs and information disclosure requirements

• With the substantive advancement of overseas business, valuation is expected to be re-priced by international capital
• In a more international valuation system, enterprises with core technologies and clear overseas layouts are expected to obtain more reasonable valuations [6]

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According to incomplete statistics, in the past year alone, more than 10 enterprises in the upstream and downstream of the lithium battery industry chain have formally submitted listing applications to the Hong Kong Stock Exchange or successfully listed, covering key segments such as cathode materials, anode materials, battery manufacturing, and smart equipment [6]. These include:

• CATL (already listed)
• Zhengli New Energy (stock code: 2458.HK)
• Shuangdeng Group (stock code: 2463.HK)

This wave of concentrated listings is a strategic resonance of the entire industry at a specific development stage [6].

• The global lithium-ion battery equipment market reached RMB 133.14 billion in 2024, a year-on-year decrease of 28.8%, marking the first negative growth in recent years [4]
• The lithium battery industry faces intensified market competition, with periodic supply-demand mismatches still existing in anode materials
• Overseas battery factory construction progress falls short of expectations, affecting the overseas layout demand of material manufacturers [4]

• Global anode material shipments still saw a year-on-year increase of 21.3% in 2024
• The 3C consumer market is ushering in an upgrade wave driven by AI technology
• The long-term trend of lithium battery adoption in electric two-wheelers drives steady growth in the consumer lithium battery market [4]
• Emerging segments such as solid-state battery equipment and sodium-ion battery equipment bring incremental demand [4]

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The H-share listing will bring the following financial advantages to Putailai:

1. Fundraising
   : Proceeds from direct financing can be used for overseas capacity construction, technological R&D, and business expansion
2. Optimize Capital Structure
   : The increase in equity capital helps improve debt ratios
3. Reduce Financing Costs
   : Financing costs in the international capital market may be lower than in the domestic market

Referring to industry practices, H-share fundraising may be used for:

• Capacity construction in emerging markets such as Southeast Asia
• Establishment of overseas R&D centers
• Expansion of international marketing networks
• Potential international M&A opportunities

As of the end of 2024, the planned total investment for Putailai’s major ongoing projects reached RMB 21.436 billion, with RMB 6.865 billion already invested [4]. The H-share listing will effectively alleviate the company’s capital expenditure pressure.

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• Requires review by the board of directors, shareholders’ meeting, and approval from relevant regulatory authorities
• The H-share issuance plan has uncertainties
• Changes in market conditions may affect the timing of issuance and fundraising scale

• The lesson from the failed Sweden project shows that overseas investment faces complex policy environments
• The progress of battery factories going overseas falls short of expectations, affecting the overseas layout demand of material manufacturers
• Challenges such as policies and regulations, cultural differences, supply security, and customer demand [5]

• The lithium battery industry has experienced previous rapid growth, and market focus is shifting from production capacity scale to technological innovation and cost control
• The problem of overcapacity in the industry has not been fundamentally resolved
• Price pressure may affect the company’s profitability

• The Hong Kong stock market has relatively weaker liquidity compared to the A-share market
• International investors need time to understand and accept the company
• May face valuation discount pressure in the short term

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Putailai’s plan to issue H-shares and list on the Hong Kong Stock Exchange is an important measure to advance its global strategic layout. Against the background of the termination of the Sweden project and facing a complex overseas investment environment, the H-share listing will provide the company with:

Strategic Value	Specific Manifestations
Financing Capability	Enhance overseas financing channels to support overseas business development
Brand Endorsement	Listing on the Hong Kong Stock Exchange enhances international credibility and brand influence
Market Expansion	Supports layout in emerging markets such as Southeast Asia
Capital Optimization	Diversifies investor structure and improves market value stability
Long-Term Development	Provides financial support for technological innovation and internationalization strategy

• Short-Term
  : May face certain valuation discount pressure, and needs to prove its value to international investors
• Mid-Term
  : With fundraising in place and substantive advancement of overseas business, valuation is expected to be re-rated
• Long-Term
  : After making substantive progress in its international strategy, it is expected to achieve an international valuation level comparable to leading enterprises such as CATL

Investors should focus on:

1. Specific timeline and fundraising scale of the H-share issuance
2. Substantive progress of overseas business (especially Southeast Asian projects)
3. Whether 2025 performance can continue to improve
4. The arrival of the industry cycle inflection point

Overall, Putailai’s H-share listing plan is an important step in its global strategy. After facing setbacks with the Sweden project, the company needs to rebuild confidence and demonstrate its strength through the international capital market. While facing many short-term challenges, from a long-term strategic perspective, this listing will lay a solid foundation for the company’s global layout.

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[1] NetEase Finance - Putailai: Planning to Issue H-Share Stocks and List on the Stock Exchange of Hong Kong Limited (https://www.163.com/dy/article/KIRLPRN005198CJN.html)

[2] Eastmoney.com - Putailai: Plans to Issue H-Shares and List on the Hong Kong Stock Exchange (http://finance.eastmoney.com/a/202601093614303768.html)

[3] Securities Daily Network: Live Coverage of Putailai’s Performance Briefing: Q1 2025 Profitability Improves Quarter-on-Quarter (http://www.zqrb.cn/gscy/gongsi/2025-04-29/A1745913850715.html)

[4] China Securities Pengyuan - 2025 Corporate Credit Rating Report for Shanghai Putailai New Energy Technology Co., Ltd. (https://www.chinamoney.org.cn/dqs/cm-s-notice-query/fileDownLoad.do?contentId=3166511)

[5] The Beijing News - Leading Anode Material Maker Putailai Terminates RMB 10 Billion Factory Construction Plan in Sweden (https://m.bjnews.com.cn/detail/1734690004129730.html)

[6] News18a - Hong Kong Stocks Become a New Battlefield? Why Are Lithium Battery Giants Moving “Southbound” Collectively? (https://www.news18a.com/news/storys_219713.html)

[7] Zhongyuan Securities Research Institute - Valuation Analysis of the Lithium Battery Anode Material Industry (https://www.inewenergy.com/)

[0] Jinling AI - Putailai Company Profile and Market Data