We are a lithium-ion battery separator manufacturer. We were founded in 2003 and accumulated more than 20 years of industry experience in research and development, production and sales of lithium-ion battery separators. Separator is one of the core components of lithium-ion battery with the function of preventing physical contact between electrodes while serving as the electrolyte reservoir to enable ionic transport. It directly affects the quality, safety and production cost of a lithium-ion battery.
The battery separator market in Chinese Mainland has maintained a steady growth trend in recent years benefiting from positive impacts, such as the increasing shipment volume of new energy vehicle (NEV), rapid growth in energy storage, and other rising of end-use demand. From 2021 to 2025, the shipment volume of battery separator in Chinese Mainland increased from 7.6 billion m2 to approximately 34.6 billion m2, representing a CAGR of 46.1%. During the Track Record Period, the majority of our revenue was derived from the PRC, with a CAGR of 16.9% from 2023 to 2025.
During the Track Record Period, our revenue increased by 36.7% from RMB2,981.9 million in 2023 to RMB4,076.8 million in 2025, representing a CAGR of 16.9%, primarily due to the increase in shipment volume of our coated separators and wet process separators driven by growing downstream demand. During the same period, our overall average selling price of separator products decreased from 2023 to 2024 and then remained generally stable in 2025, while the average selling prices of wet process separators and coated separators continued to decline from 2024 to 2025. This decrease was mainly attributable to intensified market competition as a result of supply-demand imbalances in China. In line with the decline in average selling prices, our gross profit margin decreased from 43.3% in 2023 to 28.1% in 2024, and further to 21.7% in 2025, also trended downwards during the Track Record Period. Going forward, we plan to proactively expand our overseas markets, where the selling prices of our products are generally more favourable than in the domestic market. According to Frost & Sullivan, the oversupply and overcapacity situation in the battery separator industry led to an industry-wide decline in average selling prices during the Track Record Period, and the decrease in our average selling prices was consistent with the overall industry trend. According to Frost & Sullivan, the average selling prices of separators in China are expected to stabilise and slightly increase after 2026.
As an early entrant in the lithium-ion battery sector, we have established ourselves as a recognised supplier within the global lithium-ion battery separator market. Our unique position as one of the few companies with independent equipment research and design capabilities, together with our proprietary microporosity forming technology, has enabled us to build competitive battery separator production lines. We excel in many key performance indicators for battery separators, including thickness, porosity, thermal shrinkage, breathability and puncture strength. Utilising our technological expertise and commitment to quality, we serve world-leading lithium-ion battery manufacturers such as LG Energy Solution, Samsung SDI, AESC, Murata, SK On, SAFT, CATL, BYD, Gotion High-tech, CALB, EVE Energy and Sunwoda. According to Frost & Sullivan, we are the first Chinese company to master the dry process uniaxial stretching technology for lithium-ion battery separators.
According to Frost & Sullivan, our lithium-ion battery separator shipment volume ranked second globally for the last six years consecutively, with our global market share increasing from 11.0% in 2020 to 11.6% in 2025. In 2025, our Group accounted for a market share of approximately 13.5%, and ranked second in the Chinese Mainland battery separator market, according to Frost & Sullivan. We are the first and one of the few enterprises in Chinese Mainland with capabilities in all three types of lithium-ion battery separator production technologies, namely dry process, wet process and coated process separators. In 2025, our Group accounted for a market share of approximately 21.5% in the global dry process battery separator market and 9.0% in the global wet process battery separator market, ranking first and fourth globally by shipment volume, respectively.
We have developed a clear plan for a comprehensive network encompassing production, R&D and customer engagement. Currently, we have established five manufacturing bases within the PRC.
Our overseas manufacturing bases in Europe, Southeast Asia and the U.S. are under construction, demonstrating our commitment to a global footprint. In terms of innovation, we have established R&D centres in the PRC, Japan and Sweden. Our expanding network supports a broad customer base, including more than 100 leading lithium-ion battery manufacturers worldwide. We have established stable relationships with all the world’s top ten lithium-ion battery manufacturers in 2025 and are one of the few battery separator companies that supply to all of the world’s top ten lithium-ion battery manufacturers according to Frost & Sullivan.
We are committed to advancing industrial upgrades through the application of advanced technologies, not only in the lithium-ion battery separator industry but also membranes in other fields. Building on our extensive expertise in lithium-ion battery separators and guided by our core strategy of ‘‘in-depth technology + diverse applications,’’ we have developed a portfolio of solid-state electrolyte membranes and other functional membranes that spans various scenarios.
Solid-state electrolyte membrane are a type of battery separator used primarily in next-generation batteries. Unlike traditional batteries that use a liquid electrolyte, our solid-state electrolyte membranes employ a solid material to conduct ions between the battery’s anode and cathode.
Through our advanced technologies in functional membranes, including heat exchange membranes for air ventilation and energy recovery systems, waterproof and breathable membranes for outdoor apparel and water treatment membranes for municipal water treatment, we aim to provide reliable material solutions for relevant high-value industries, including green energy and semiconductors.
Our planned expansion into the semiconductor materials sector is an extension of our existing expertise in advanced materials, particularly those supporting the lithium-ion battery industry. See ‘‘Business — Our Core Technologies’’. We believe that we are well positioned to support the new business line considering the following factors. First, our robust R&D infrastructure, including proven experience and in-house experts in polymer chemistry and membrane science, provides a strong foundation to support this diversification; where new expertise is required, we can readily expand its R&D team. Second, our in-house equipment design capabilities allow for tailored machinery development, ensuring flexibility and speed in adapting to semiconductor sector needs.
Many existing production lines, originally used for high-precision membrane fabrication, can be reconfigured for semiconductor material manufacturing, reducing significant new investment and enabling faster deployment. Third, there is considerable overlap in raw materials and core processing technologies, supporting knowledge transfer and operational efficiency. Fourth, our established global customer relationships, including with companies already operating in or adjacent to the semiconductor industry, open up valuable pathways to potential customers in the new sector.
Finally, our rigorous quality control systems and experience in meeting international standards align well with the requirements of the semiconductor industry, allowing for a smooth expansion into this business.
Source: Senior Material (06067) Prospectus (IPO Date : 2026/06/12) |