Guoxuan High-Tech Co., Ltd. (hereinafter referred to as 'Guoxuan High-Tech') was officially listed on the Swiss stock exchange at 7:00 p.m. on July 28th Zurich time, with the final issue price of GDRs being $30.00 per share. Before the exercise of the over-allotment rights, the company issued 2,283,340 GDRs, representing 114,167,000 underlying A-share stocks, raising a total of $685 million.
During the process of listing on the Hong Kong Stock Exchange, 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, sponsor, and other professional intermediary institutions in completing relevant parts of the prospectus (such as 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 providing feedback on industry-related issues to the Hong Kong Stock Exchange.
Overview of the Global and Chinese Power Battery Markets
In recent years, the global new energy vehicle market has grown significantly. From 2017 to 2021, global sales of new energy vehicles increased from about 1.162 million to about 6.311 million, with a compound annual growth rate of 52.7%. The penetration rate of new energy vehicles globally increased from 1.6% to 10.0%. With the further acceptance of environmental protection concepts, the new energy vehicle market will continue to expand in the global automotive market. Thanks to the rapid growth of the global new energy vehicle market, the power battery market has also seen tremendous growth, with installed capacity increasing from 64.3 GWh in 2017 to 293.7 GWh in 2021, with a compound annual growth rate of 46.2%. It is expected that from 2022 to 2026, global power battery installed capacity will grow at a compound annual growth rate of 36.3%, reaching 1,688.1 GWh in 2026. China is the largest power battery market, accounting for about 52.6% of the global power battery market in 2021, followed by Europe and the United States, accounting for about 27.2% and 10.4%, respectively.
Global installed power battery capacity (by country and region)
Forecast for 2017 - 2026
Source: Frost & Sullivan report
Lithium iron phosphate batteries and ternary batteries dominate the power battery market, accounting for more than 99% of the market share. With the improvement in the safety and performance of lithium iron phosphate batteries, China's installed capacity of lithium iron phosphate batteries exceeded that of ternary batteries in 2021, reaching 79.8 GWh, accounting for more than 50% of the total installed capacity. In 2026, China's installed capacity of lithium iron phosphate batteries is expected to increase to 621.6 GWh, with a compound annual growth rate of 41.3% from 2022 to 2026. In 2021, the installed capacity of ternary batteries in China was approximately 74.4 GWh. During the forecast period, the installed capacity of ternary batteries is expected to reach 305.8 GWh by 2026, with a compound annual growth rate of 31.0% from 2022 to 2026.
Installed capacity of power batteries in China (classified by battery type)
Forecast for 2017 - 2026
Source: Frost & Sullivan report
Global and China Energy Storage Battery Market Overview
The global installed capacity market for energy storage batteries grew from 4.5 GWh in 2017 to 53.5 GWh in 2021, with a compound annual growth rate of 86.0%. Currently, more than 20 government departments have issued documents encouraging or requiring clean energy power plants to equip with energy storage systems (ESS). Driven by policy support and the continuous expansion of clean energy power generation layout, the energy storage industry in multiple countries and regions has achieved significant growth. In 2021, the United States ranked first globally in terms of installed capacity for energy storage batteries, accounting for about 36.7% of the global total, followed by China and Europe, which accounted for 33.0% and 13.6%, respectively.
Looking ahead, driven by favorable policies, reduced ESS costs, and increased awareness of energy storage, the global installed capacity market for energy storage batteries is expected to grow from 108.2 GWh in 2022 to 682.6 GWh in 2026, with a compound annual growth rate of 58.5%. Driven by policies such as the "14th Five-Year Plan" for new energy storage development implementation in 2022, China's energy storage market will enter a large-scale development phase from its initial commercialization stage. It is expected that by 2026, China will become the largest energy storage battery market, accounting for about 34.3% of the global installed capacity. China, the United States, and Europe will account for more than 80% of the global energy storage battery installations in 2026.
Global installed capacity of energy storage batteriesForecast for 2017 - 2026
Source: Frost & Sullivan report
Since 2020, with the deepening marketization process of the electricity market and commitments to 'carbon peak' and 'carbon neutrality', the trading mechanisms and business models of the electricity market have become more standardized. In addition, the rising demand from communication base stations has also stimulated the growth of the energy storage battery market. Benefiting from continuous reductions in battery costs and government incentives for energy storage, the installed capacity market size of energy storage batteries in China increased from 1.3 GWh in 2017 to 17.6 GWh in 2021, with a compound annual growth rate of 92.6%.
Against the backdrop of national energy transformation and carbon neutrality strategies, energy storage batteries are an important component of the power system reform and new energy consumption. Driven by continuous technological progress, further reductions in energy storage costs, and diversified application scenarios, it is expected that the installed market scale of energy storage batteries in China will grow from 30.3 GWh in 2022 to 233.9 GWh in 2026, with a compound annual growth rate of about 66.7%.
Installed capacity of energy storage batteries in ChinaForecast for 2017 - 2026
Source: Frost & Sullivan report
Global and Chinese Power Battery Industry Competition Landscape
In 2021, Guoxuan High-Tech's global power battery shipments were approximately 420,000 units, accounting for a market share of about 6.5%, ranking fifth in the global power battery market. The top five companies together accounted for about 66.3% of the global power battery shipments. In 2021, Guoxuan High-Tech's power battery shipments in China were approximately 395,000 units, accounting for a market share of about 11.2%, ranking third in the Chinese power battery market. The top five companies together accounted for about 79.5% of the power battery shipments in China.
Top 5 Global and Chinese Power Battery Companies
By the number of power batteries installed in vehicles, 2021
Source: Frost & Sullivan report
In 2021, Guoxuan High-Tech's global installed power battery capacity was about 8.5 GWh, with a market share of approximately 2.9%, ranking eighth in the global power battery market. The top ten companies accounted for about 92.5% of the global installed power battery capacity. In the first quarter of 2022, Guoxuan High-Tech's global installed power battery capacity was about 2.65 GWh, ranking seventh in the global power battery market. In 2021, Guoxuan High-Tech's installed power battery capacity in China was about 8.0 GWh, with a market share of approximately 5.2%, ranking fourth in the Chinese power battery market. The top ten companies accounted for about 92.4% of China's total installed power battery capacity.
Top 10 Global and Chinese Power Battery Industries
By installed power battery capacity, 2021
Source: Frost & Sullivan report
Frost & Sullivan has extensive research experience in battery and raw materials, new energy vehicles, circular economy and environmental protection, as well as other related industries. It has assisted well-known enterprises in successfully listing on capital markets. Successful listings include: GEM, MYSE:LI, NIO, Hailu Environmental Protection (0587.HK), Hongcheng Environmental Protection (2265.HK), SDIC:LI, Nacun Energy Technology (1597.HK), Hygieia Group (1650.HK), Yongshun Holdings (6812.HK), Beikong Urban (3718.HK), Taizhou Water Affairs (1542.HK), Beng Soon (1987.HK), Zhuangchen Holdings (1955.HK), Jinmaoyuan Environmental Protection (6805.HK), Everbright Water Affairs (1857.HK), Weigang Environmental Protection (1845.HK), NIO.NYSE, CNPC Clean Energy (1759.HK), Shanghai Industrial Environment (0807.HK), Boqi Environmental Protection (2377.HK), Zhongcheng Energy (2337.HK), Ligo Holdings (8472.HK), Everbright Green Environmental Protection (1257.HK), Wancheng Global (8309.HK), Dianchi Water Affairs (3768.HK), Xinglu Water Affairs (2281.HK), Canghai Holdings (2017.HK), Yongshun Group (8421.HK), Datang Environment (1272.HK), Peiran Environmental Protection (8320.HK), Jinjiang Environment (CJE.SP), Xint Energy (1799.HK), China Energy Engineering Group Corporation (3996.HK), Chao Wei Power Supply (0951.HK), Tianeng Battery (0819.HK), Huadian Fuxin New Energy (0816.HK), etc.
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