Analysis of Huasheng Lithium Battery (688353) Strong Performance: Driving Factors and Sustainability Assessment

Huasheng Lithium Battery (688353) is a leading electrolyte additive enterprise listed on the STAR Market, specializing in R&D, production, and sales of lithium battery electrolyte additives. It ranked first in domestic market share from 2018 to 2020 [0]. Recently, the stock has shown strong performance: from November 5 to 14, 2025, it achieved a cumulative increase of over 172% in 8 trading days, with a weekly gain of 79.61% [1][2]. Core driving factors are as follows: 1) Product price increase: The price of Vinylene Carbonate (VC) rose from 48,800 yuan/ton in October to 66,500 yuan/ton on November 10 [0]; 2) Strong industry demand: Growth in new energy vehicles (NEV) and energy storage industries has driven electrolyte demand [0]; 3) Leading position: Its dominant market share has enhanced investor confidence [0].

1. Strong Correlation Between Product Prices and Stock Price
   : 94.55% of the company’s revenue comes from two core products—Vinylene Carbonate (VC) and Fluoroethylene Carbonate (FEC) [0]. Product price fluctuations directly affect performance expectations, thereby driving stock price changes.
2. Significant Short-Term Gains
   : 8 consecutive positive trading days with an increase of over 170% reflect market optimism toward the electrolyte additive sector, but short-term profit-taking pressure should be watched [1].
3. Impact of Industry Concentration
   : As an industry leader, the company benefits from increased industry concentration and has strong bargaining power [0].

: 1) Product price fluctuation risk: If new industry capacity is released, prices may decline [0]; 2) Policy risk: Adjustments to new energy industry policies may affect demand [0]; 3) Technology substitution risk: Development of new electrolyte additives may impact the market for existing products [0].
: 1) Rising NEV penetration will continue to drive electrolyte demand [0]; 2) The company’s R&D investment is expected to launch high-value-added products [0]; 3) Global market expansion potential [0].

Huasheng Lithium Battery’s recent strong performance is mainly driven by product price increases, industry demand, and its leading position. Investors should monitor product price trends, industry competition patterns, and policy changes for their impact on the company’s performance. This analysis does not constitute investment advice and is for reference only.