CALB’s Listing on the Hong Kong Stock Exchange Injects Strong Positive Energy to China’s New Energy Industry

On October 6, CALB Co., Ltd. (CALB or the Company; HKG: 3931) was officially listed on the Hong Kong Stock Exchange. The number of H Shares of the Company under the Global Offering is 265,845,300, with issue price HK$38/share and proceeds HK$ 9,863.9 million (prior to the exercise of the Over-allotment Option). The successful listing of CALB has also made it the first enterprise of power battery in Hong Kong, representing the strong positive energy of China’s new energy industry.

Well-recognised investment value with leading edge product portfolio
Recently because of the impact of multiple factors, Hong Kong stocks continue to be lukewarm. But the company still received the attention and support of many investors which include upstream and downstream of the industrial chain and long-term investors, and the company successfully completed the stock pricing process. At the same time, the IPO of the company is one of the largest public offering in Hong Kong stock exchange this year. In the current difficult capital market, the successful pricing of such a large IPO is a huge success which also reflect the company’s long-term investment value.

Meanwhile, the Company has entered into cornerstone investment agreements with 15 cornerstone investors, including Tianqi Lithium HK Co., Limited, Wang Sing International Resources Limited, Han’s Laser Technology Co., Limited, CNGR Hong Kong Material Science & Technology Co., Limited, XPeng Inc., vivo Mobile Communication Co., Ltd*, Jiangmen New Energy, etc. The cornerstone investors subscribed for 149,331,400 offer shares in total, representing a total of approximately 8.43% of the issued share capital of the Company immediately following the completion of the share offering and a total of approximately 56.17% of the total number of offer shares under the share offering. This indicates that institutional investors have fully recognised the investment value of CALB.

According to public information, CALB is a leading new energy technology company, mainly engaged in the design, research and development, production and sales of power batteries and energy storage system products. In the first quarter of 2022, CALB ranked fifth among global third-party power battery companies and second in China in terms of installed capacity.

Since its establishment, CALB has paid great attention to the technological innovation of products, and has been the leader of innovation and technology in the industry. It is a power battery enterprise with all-round independent research and development capabilities that can independently complete the production of power batteries. Its outstanding innovation capability enables the Company to develop a series of innovative core technologies and products, including high-voltage ternary battery, “magazine” battery, and “One-stop” product, which have leading advantages in energy density, safety and economy, and have been successfully installed on numerous new energy hot-selling vehicles and widely recognised by new energy vehicle manufacturers.

Relying on its strong innovation capability and strong technical strength, CALB has carried out in-depth cooperation with Changan, GAC, Geely, Dongfeng and other enterprises, and currently supports 28 car companies with more than 70 models, including GAC Aion, Changan New Energy, XPeng, Geely, SGMW, FAW Hongqi, Dongfeng, Dongfeng Peugeot, Chery, Guangzhou Toyota, Guangzhou Honda, Leapmotor, HYCAN, Smart and other traditional car companies and new car manufacturers, further consolidating its position in the industry.

The share price is expected to take off with huge development potential for industry
At present, driven by carbon peak emissions and carbon neutrality goal and green economic transformation, the development of renewable energy is of great significance, and new energy has become an important field for countries to compete and invest in, becoming the main battlefield of the new energy revolution.

The implementation of the “double carbon” campaign and the coordinated promotion of green, low-carbon and high-quality development are constantly promoting the accelerated development of China’s new energy vehicle industry. According to the Ministry of Public Security, the number of domestic new energy vehicles has exceeded 10 million in June this year, making China the world’s largest new energy vehicle market.

Under this backdrop, the power battery, as an important component of new energy vehicles, has huge development potential. According to estimates, the global installed capacity of power batteries will reach 1386.7GWH, nearly 1400WGH in 2026, and China’s installed capacity of power batteries is expected to increase from 154.5GWH in 2021 to 762GWH in 2026.

CALB will also continue to expand its production capacity. The overall effective production capacity is expected to expand to approximately 35GWh and 90GWh in 2022 and 2023, respectively, representing a year-on-year increase of up to 194% and 157%.

CALB’s production capacity is all high-quality that can be mass-produced to meet the full range of customer needs, which downstream customers unanimously recognize. The company’s products are widely demanded in the market, and this can be expected that the impact of the company’s economy of scale will continue to increase.

As a benchmarking enterprise of China’s power battery, CALB is bravely taking the lead at the critical moment of economic restructuring, which is not only the ambition of an enterprise, but also the best illustration of supporting China’s carbon peak emissions and carbon neutrality goal. The listing of the Company as the first enterprise of power battery in Hong Kong marks the Company’s official entry into the capital market, and also opens a new chapter of rapid and sustainable development for the Company. It is believed that with the help of the capital market, the Company will continue to improve the company’s technical strength and product competency in the long run and strengthen the long-term competitiveness of the company , and its share price is expected to take off continuously.