Junda's "Three Battles" for Hong Kong IPO, Solar Cell Manufacturer Aims to Accelerate Its Global Expansion

The Hong Kong IPO journey of Junda Co., Ltd. (002865.SZ), a top-tier enterprise in the solar cell sector, has been "full of twists and turns": since the second Hong Kong IPO prospectus submitted on April 14 this year expired, the company quickly initiated the third submission. Tonight's announcement shows that the company's 76th meeting of the fourth board of directors was held today, reviewing and approving the relevant arrangements for the global offering of H shares and listing on the Hong Kong Stock Exchange.

According to data from the third-party industry research firm InfoLink, the company ranks third globally in battery product shipments, with N-type battery product shipments leading the industry, and its total battery capacity reaching 44GW. The company first disclosed its application for overseas listing of H shares on the Hong Kong Stock Exchange on February 6, 2024. If successfully completed, Junda Co., Ltd. will become the first PV enterprise to achieve dual-platform listing on both A-share and H-share markets.

However, Junda Co., Ltd.'s Hong Kong listing has not been smooth sailing. Half a year after the first submission, it expired on August 6 of that year; two months later, Junda Co., Ltd. submitted the application again on October 14, 2024, and it expired again on April 14 this year due to no progress after six months of submission.

This is already the third time Junda Co., Ltd. has submitted to the Hong Kong Stock Exchange. Currently, several PV enterprises, including JA Solar Technology (002459.SZ), have announced plans to raise funds in Hong Kong. In the investor communication minutes disclosed this month, the company stated that by listing in Hong Kong, it aims to build an international capital operation platform, integrate various shareholder resources, and provide guarantees for global development. The company's Hong Kong listing project is currently progressing as planned. The company also mentioned that after the completion of the Hong Kong listing, the asset-liability ratio is expected to be significantly improved.

According to the company's previous disclosure, the listing committee of the Hong Kong Stock Exchange has held a listing hearing to review the company's application for this issuance and listing. According to the company's announcement today, the board of directors reviewed and approved the relevant arrangements for the global offering of H shares, the issuance of a prospectus that complies with relevant laws and regulations, and other related documents for the global offering, as well as handling the H share issuance process and related matters.

Due to the phased supply-demand imbalance in the industry chain, Junda Co., Ltd. faces significant performance pressure. The company's previously released financial report shows that in 2024, the company achieved revenue of 9.952 billion yuan, a YoY decline of 46.66%, and a net loss attributable to shareholders of the listed company of 591 million yuan, turning from profit to loss YoY.

In Q1 this year, the company achieved revenue of 1.875 billion yuan, a YoY decline of 49.52%; a net loss attributable to the parent company of 106 million yuan, turning from profit to loss YoY; and a net loss after non-recurring gains and losses of 217 million yuan, with the loss expanding by 27.10% YoY.

This is the fourth consecutive quarter of single-quarter losses for the company. Under continuous losses, the company is targeting high-value overseas markets. In 2024, the company's overseas sales ratio increased significantly from 4.69% in 2023 to 23.85%. Among them, the company's market share in major overseas markets such as India, Turkey, and Europe leads the industry.

In terms of capacity, the company plans to invest in the construction of a 5GW high-efficiency battery capacity in Oman. The company stated that it is continuously promoting the fundraising, project design, construction, and other preliminary preparations for the Oman project based on changes in the overseas market situation. The project is expected to be completed and put into operation by the end of 2025.