Ruipulanjun Energy Co., Ltd. (Stock Code:0666.HK) on2023year12month18The company successfully listed on the main board of the Hong Kong capital market. It is a leading lithium-ion battery manufacturer in China and the world's tenth largest lithium-ion battery manufacturer in new energy applications. The company focuses on the research, development, manufacturing, and sales of lithium-ion power battery products and energy storage battery products. Frost & SullivanFrost & Sullivan,Frost & Sullivan, referred to below as the 'Frost & Sullivan team', provides exclusive industry advisory services for the listing of RuiPuLanJun Energy Co., Ltd. We hereby extend our warmest congratulations on its successful listing.
RuiPu LanJun Energy Co., Ltd. (hereinafter referred to as 'RuiPu LanJun') was established on2023year12month18The company plans to go public on the 1st of July116,070,200stocks, among which104,463,000The shares are being issued internationally.11,607,200The shares are issued in Hong Kong. The final issue price has been set at HK$100 per share18:30HK$, net proceeds from global offering approximately20.13HK$10 billion.
During the Hong Kong listing process, Frost & Sullivan mainly undertook the following tasks: helping the issuer accurately and objectively understand its positioning in the target market, using objective market data to discover, support, and highlight the issuer's competitive advantages, assisting the issuer, investment banks, and other intermediaries in completing relevant parts of the prospectus (such as the overview, competitive advantages and strategy, industry overview, business, and other important sections), helping the issuer communicate with the Hong Kong Stock Exchange and investors, assisting investors in quickly understanding the market ecosystem and competitive landscape, and assisting the issuer in completing feedback on various industry-related issues from the Hong Kong Stock Exchange, etc.
Investment highlights
The company is a leading lithium-ion battery manufacturer in China;
The company has strong R&D capabilities and large-scale production and manufacturing strength;
The company provides high-quality services to meet the needs of high-quality and diverse customer groups;
The company has a long-term stable and low-cost supply chain;
The company adheres to the development direction of 'combining movement and storage', is committed to green sustainable development and highESGstandard
The company has a senior and dedicated leadership team as well as an experienced management team.
According to a report by Frost & Sullivan, by2022Annual Installed Capacity, Company:
Owned in China's power battery products1.7%Market share, ranking tenth;
Owned among global lithium battery manufacturers8.8%Market share, ranking third;
at2020Year-end2022Annual Compound Annual Growth Rate227.4%;
It is the world's tenth-largest lithium-ion battery manufacturer in new energy applications and China's sixth-largest.
Global Power Battery Market Overview
Given the increasing demand for electric vehicles downstream, the global and Chinese power battery markets have seen strong growth, and it is expected that this trend will continue in the near term. The annual installed capacity of power batteries globally has been2017year63.8 GWhincreased to2022year504.5 GWhCompound annual growth rate51.2%, and it is expected to further grow to2027year2,597.1 GWh,2022Year-end2027Annual Compound Annual Growth Rate38.8%.
Source: Frost & Sullivan report
Overview of the Chinese Power Battery Market
Annual installed capacity of power batteries in China2017year36.1 GWhincreased to2022year294.6 GWhCompound annual growth rate52.2%Due to the downturn in the downstream electric vehicle market2023The market initially slowed down briefly at the beginning of the year, and a similar trend has emerged in the power battery market.2023In the first quarter of this year, the total installed capacity of power batteries in China was65.9 GWh, with a year-on-year growth rate of28.4%, and2022The year-on-year growth rate for the first quarter of the year was120.7%With demand self2023It has gradually resumed since the second quarter of 2021, and China's installed power battery capacity has also rebounded.2023Reached in the second quarter of the year86.2 GWh, with a year-on-year growth rate of46.6%.2023In the first half of the year, the total installed capacity of power batteries in China was152.1 GWh, with a year-on-year growth rate of38.1%, and2022The year-on-year growth rate in the first half of the year reached109.8%.2023In the third quarter of 2023, the total installed capacity of power batteries in China was103.5 GWh, with a year-on-year growth rate of23.9%It is expected that the power battery market will continue to grow significantly, but its growth rate will be relatively lower than in previous years. It is estimated that by2027Will reach in1,648.6 GWh, and2022Year-end2027Compound Annual Growth Rate41.1%.
Source: Frost & Sullivan report
Global Energy Storage Battery Market Overview
The annual installed capacity of global energy storage batteries will be121.4%The compound annual growth rate is2017year2.4GWhincreased to2022year119.3 GWhIn the future, energy storage batteries will be applied in a wider range of scenarios. With the increasing global penetration rate of energy storage devices in industrial, commercial, and household applications, as well as5GThe number of base stations is growing rapidly, and power consumption will become one of the most important categories for energy storage batteries. Therefore, it is expected2022Year-end2027The annual installed capacity of energy storage batteries will continue at53.7%The compound annual growth rate increased to2027Will reach in1,023.1 GWh.
Source: Frost & Sullivan report
Annual installed capacity of energy storage batteries in China2017year0.2GWhwith162.6%The compound annual growth rate increased to2022year22.6 GWhExpected to be delivered by2023Year-end2027In 2023, the annual installed capacity of energy storage batteries will continue to grow at51.5%The compound annual growth rate increased, and in2027Reach by the end of the year234.4 GWh.
Source: Frost & Sullivan report
Market competition pattern of lithium-ion batteries in China
The lithium-ion battery industry, especially the power battery market, is highly concentrated in China, with the top ten producers accounting for2022Total installed capacity in China in90%As mentioned above, the energy storage battery market is highly concentrated, with the top10Producers of large-capacity energy storage lithium-ion batteries account for2022Nearly80%The company2017Established in and2019Commercial production was achieved in the year, and as a rising star in the industry, it has seen rapid growth with a continuously expanding market share.
Source: Frost & Sullivan report
Main growth drivers of the lithium-ion battery industry
Growth in the power battery market
The automotive electrification process is accelerating: With the implementation of the 'Net Zero Emissions' target, traditional automakers and new electric vehicle companies continue to accelerate the deployment of electric vehicles. The acceleration of the automotive electrification process will lead to rapid growth in the power battery market.
Government policies are favorable: Major economies have introduced favorable policies that will drive the growth of the electric vehicle market. The main policies focus on setting electrification targets, providing assistance to electric vehicle manufacturers, and promoting carbon neutrality and higher emission standards. It is expected that these favorable policies will continue to increase the penetration rate of electric vehicles and the growth of the power battery market.
The price and cost of power batteries are continuously decreasing: The cost of power batteries accounts for the total cost of electric vehicles30 - 40%With the advancement of battery technology and the economies of scale of battery suppliers, battery production costs have dropped significantly in the past few years and are expected to continue to decrease in the future. The reduction in the cost of power batteries will drive down the price of electric vehicles further, promoting the growth of the power battery industry.
Energy storage battery market growth
Energy transformation in widely applied scenarios: Energy storage batteries are widely used in power system scenarios such as power generation, transmission and distribution, and electricity consumption. The rapid development of renewable energy power system construction has laid a solid foundation for the large-scale deployment of energy storage. With the acceleration of energy transformation, energy storage batteries will embrace more opportunities.
Government policies are favorable: To achieve the 'carbon neutrality' goal, governments of major economies have issued a series of policies encouraging the development of renewable energy and energy storage system projects. It is expected that such favorable policies will continue to drive the growth of installed capacity for energy storage projects and the market for energy storage batteries.
The prices and costs of energy storage batteries and systems are continuously decreasing: In the past few years, with advancements in manufacturing technology, expansion of production scale, and standardization of products, the cost and price of lithium-ion battery energy storage systems have shown a downward trend. As more market participants accumulate research and development experience and improve production efficiency, the production cost of lithium-ion battery energy storage systems and other indirect expenses are expected to further decrease, which will further promote the commercialization of lithium-ion battery reserve technologies.
View the prospectus
Frost & Sullivan has extensive research experience in batteries and raw materials, new energy vehicles, and related industries. It has assisted well-known companies in successfully listing on the capital market. Successful listing cases include: Guohong Hydrogen Energy (9663.HK),Noco-noco（NASDAQ:NCNC),VinFast（NASDAQ:VFS), Guoxuan High-tech (GOTION),U Power（NASDAQ:UCAR), NIO AutoSGX:NIO), NIO AutoNIO.NYSE), Sinopec Clean Energy1759.HK), Zhongcheng Energy2337.HK), Xintele Energy1799.HK), China Energy Engineering Group Corporation (3996.HK), Superpower Power Supply0951.HK), Tianeng Battery0819.HK), Huadian Fuxin New Energy0816.HK) etc.
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