Haiwei Electronics Passes Listing Hearing: Expansion Amid Product Price Pressures

ZC Asia has learnt that recent disclosures from the Hong Kong Stock Exchange indicate Hebei Haiwei Electronic New Material Technology Co., Ltd. passed its Main Board listing hearing on 3 November 2025, with China International Capital Corporation Limited acting as sole sponsor.

Industry Opportunities Behind Full Production Capacity

According to data from CIC(灼识咨询), based on 2024 capacitor base film sales volume, Haiwei Electronics ranks second in China's capacitor film market with a 14.2% market share. Established in 2006, the company's primary products include capacitor base film and metallised film—key components of film capacitors ultimately applied across multiple sectors such as new energy vehicles and renewable power systems.

China's capacitor base film market expanded from 46,200 tonnes in 2019 to 113,400 tonnes in 2024, achieving a compound annual growth rate of 19.7%. New energy vehicles represent the primary growth driver. As onboard power supplies increase and charging infrastructure accelerates, the film capacitor usage per vehicle has risen severalfold compared to traditional fuel-powered cars, directly stimulating upstream demand for film materials.

Haiwei Electronics stands as the sole enterprise within the industry possessing independent design and development capabilities for capacitor base film production lines. All five of the company's existing production lines were self-designed and assembled, with an independent production line delivery period of approximately eight months – significantly lower than the industry average of three to five years for imported lines. This technological advantage enables the company to flexibly adjust production line parameters, offering multi-specification products with thicknesses ranging from 2.7 micrometres to 13.8 micrometres.

In 2023, Haiwei Electronics secured strategic investments from new energy giants including BYD and Sungrow Power Supply. BYD became both a shareholder and the company's largest customer from 2023 onwards. Revenue contributions from BYD reached 12.2%, 12.6%, and 12% in 2023, 2024, and the first five months of 2025 respectively. This dual-binding model of ‘shareholder + client’ provides Haiwei Electronics with stable revenue streams and market demand insights.

Navigating Price Pressures

Nevertheless, the company faces multiple operational challenges. Between 2022 and 2024, Haiwei Electronics' revenue grew from RMB 327 million to RMB 421 million. However, the average price of capacitor base film declined from RMB 34,900 per tonne in 2022 to RMB 28,900 per tonne in 2024. This decline in product pricing directly impacted profitability. In 2023, the company's net profit decreased by 31.5% year-on-year to RMB 69.826 million. Although it rebounded to RMB 86.418 million in 2024, it still failed to return to 2022 levels.

From 2022 to 2024, the company's net cash flow from operating activities fluctuated significantly, recording net inflows of RMB 232 million, net outflows of RMB 89 million, and net inflows of RMB 17 million respectively. Concurrently, trade receivables and notes receivable increased from RMB 259 million to RMB 337 million. The accounts receivable turnover days exceeded the industry average of approximately 90 days, indicating challenges in the company's cash recovery.

Regarding the supply chain, the company relies heavily on imports for electrical-grade polypropylene, a key raw material for production. Consequently, raw material costs have consistently accounted for over 80% of the cost of sales. From 2022 to 2024, procurement from the top five suppliers consistently accounted for over 78% of total purchases, with the largest supplier alone representing more than 45% of procurement. This high supplier concentration has somewhat constrained the company's bargaining power in raw material pricing.

Production capacity saturation also presents an urgent issue requiring resolution. Through the first five months of 2025, the company's capacitor base film production capacity utilisation reached 98.2%, while metallised film utilisation stood at 83.1%. Enhancing production capacity to meet growing market demand has become one of the primary objectives for which the company seeks to utilise funds raised through this listing.

According to the prospectus, Haiwei Electronics intends to allocate raised capital towards capacity expansion, technological R&D, and supply chain optimisation. The company plans to construct a new production facility in southern China, adding four new capacitor base film production lines. Concurrently, it will pioneer manufacturing technology for ultra-thin capacitor base films below 2.5 micrometres in thickness and advance R&D into novel film materials such as composite copper foil base films. Furthermore, it will intensify collaboration with domestic chemical enterprises to advance testing for domestic substitution of raw materials, gradually reducing reliance on imported materials.

As its Hong Kong listing progresses, Haiwei Electronics stands to gain capital support to overcome developmental bottlenecks. Against the backdrop of sustained growth in the new energy vehicle sector, capacity expansion, technological upgrades, and supply chain optimisation will become key indicators for assessing this capacitor film manufacturer's future growth potential. While investors focus on the dividends of the new energy sector, they must also closely monitor key factors such as the company's product pricing trends, progress in raw material substitution, and the pace of new capacity deployment.

Disclaimer: The content herein is for reference only and does not constitute any form of investment advice. Should any information contained herein prove inaccurate, incomplete, or potentially misleading, please refer to the company's official announcements. Market risks exist; investment requires caution.