---
title: "New Stock Outlook | Senior: Lithium battery separator prices continue to decline, can increasing globalization recalibrate the value coordinates?"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/248233250.md"
description: "Senior has submitted a listing application to the Hong Kong Stock Exchange, planning to raise funds for overseas expansion, research and development, and debt repayment. The company is a global leader in lithium battery separator manufacturing, established in 2003, and is already listed on the Shenzhen and Swiss stock exchanges. The growing demand for lithium-ion batteries is driving the expansion of the separator market, with global shipments expected to exceed 4,600 GWh by 2029"
datetime: "2025-07-12T02:38:03.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/248233250.md)
  - [en](https://longbridge.com/en/news/248233250.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/248233250.md)
generator: "portal-rs"
---

# New Stock Outlook | Senior: Lithium battery separator prices continue to decline, can increasing globalization recalibrate the value coordinates?

In recent years, the demand for new energy vehicles and consumer electronics has grown, driving a rapid increase in the shipment volume of lithium-ion batteries. According to a report by Frost & Sullivan, the global lithium-ion battery industry shipment volume increased from 323.2 GWh in 2020 to 1519.6 GWh in 2024, with a compound annual growth rate (CAGR) of 47.3%. It is expected that by 2029, the global shipment volume will exceed 4600 GWh, with a CAGR of 25.2% during the period from 2024 to 2029.

The positive demand for lithium-ion batteries has directly driven the expansion of the lithium-ion battery separator market, while also prompting lithium-ion battery separator manufacturers to generate new financing needs.

According to Zhitong Finance APP, on July 7, Shenzhen Senior Material Technology Co., Ltd. (Senior Material, 300568.SZ) submitted a listing application to the main board of the Hong Kong Stock Exchange, with CITIC Securities International serving as the sole sponsor. The prospectus shows that Senior Material plans to use the funds raised from this listing mainly for overseas capacity expansion, research and development investment, debt repayment, strategic investment, and supplementing working capital.

## **Global Leading Lithium Battery Separator Manufacturer**

According to the prospectus, Senior Material was founded in 2003 and began the sales and research and development of lithium-ion battery separators. In 2016, the company was listed on the Growth Enterprise Market of the Shenzhen Stock Exchange; in 2023, it was listed on the Swiss Stock Exchange. After more than twenty years of development, Senior Material has become a world-class manufacturer of lithium-ion battery separators. The company is the first to achieve mass export of lithium-ion battery separators and is also the first and one of the few companies in China to possess three production technologies: dry method, wet method, and coated separators.

The so-called dry separator is formed by unidirectional or bidirectional stretching of polyolefin materials to create a microporous structure. This technology is relatively simple and cost-effective, widely used in the mid-to-low-end market. The wet separator, on the other hand, utilizes the principle of thermally induced phase separation, using high-boiling organic solvents as diluents, mixed with polyolefin resin, and produced through processes such as extrusion, cooling, and bidirectional stretching. Its microporous structure is more uniform and has smaller pore sizes, effectively enhancing the energy density and cycle life of the battery, and is mostly used in high-end lithium batteries. The coated separator involves applying ceramic alumina, PVDF binders, and other coating materials to one or both sides of the base film made from dry or wet separators, further improving the thermal stability, oxidation resistance, adhesion, and safety of the base film.

![image.gif](https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20250712/1752287415299807.gif?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

In the first quarter of 2025, Senior Material's dry separator achieved revenue of 162 million yuan (RMB, the same below), accounting for 18.4%; the wet separator achieved revenue of 160 million yuan, accounting for 18.2%; and the coated separator achieved revenue of 559 million yuan, accounting for 63.4%.

!\[image.gif\](https://img.zhitongcaijing.com/image/20250712/1752287444793566.gif? According to a report by Frost & Sullivan, the global battery separator industry market size, measured by shipment volume, increased from 6.4 billion square meters in 2020 to 27.7 billion square meters in 2024, with a compound annual growth rate of 44.5%. During the same period, the shipment volume of Senior increased alongside the industry growth, with its global market share rising from 11.0% in 2020 to 14.4% in 2024.

![image.gif](https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20250712/1752287461787597.gif?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

As one of the earliest Chinese lithium-ion battery separator manufacturers to enter the overseas market, Senior has established a global presence with nine production bases covering China, Europe, Southeast Asia, and the United States, as well as R&D centers in South China, East China, Japan, and Sweden. The company's clients include lithium-ion battery manufacturers such as LG Energy Solution, Samsung SDI, Envision AESC, Murata, SK On, SAFT, CATL, BYD, Guoxuan High-Tech, Zhongchuang Innovation, EVE Energy, and Xinwanda.

## **Revenue Growth Without Profit Increase, Financial Pressure Becomes Apparent**

In terms of performance, Senior achieved revenues of approximately 2.867 billion, 2.982 billion, 3.506 billion, and 881 million yuan for the fiscal years 2022, 2023, 2024, and the three months ending March 31, 2025, respectively; during the same period, net profits were approximately 748 million, 594 million, 371 million, and 51 million yuan. Revenue shows a growth trend, reflecting the company's effectiveness in market expansion. However, gross margin and net profit margin have continued to decline, with the gross margins for separator products being 44.8%, 43.3%, and 28.1% from 2022 to 2024, and dropping to 23.6% in the first quarter of 2025. The company's net profit margin fell from 26.1% in 2022 to 5.7% in the first quarter of 2025.

![image.gif](https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20250712/1752287525501681.gif?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

The company's revenue growth without profit increase is primarily due to intensified industry competition, leading to increasingly fierce price wars for products. For example, in 2024, the average selling prices of dry separators, wet separators, and coated separators plummeted to 0.35 yuan, 0.81 yuan, and 1.25 yuan per square meter, representing year-on-year declines of 38.6%, 23.6%, and 39.2%, respectively. Although the company has made efforts to reduce costs through optimizing production processes and achieving economies of scale, the decline in product prices far exceeds the reduction in costs, severely compressing profit margins ![image.gif](https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20250712/1752287542697316.gif?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

The decline in profits has triggered a chain reaction in the company's financial situation. The net cash flow from operating activities in 2024 was 368 million yuan, a year-on-year decrease of 67.5%, indicating a weakened ability of the company's core business to generate cash; the net cash flow from investing activities remained negative during the reporting period, reflecting the company's large-scale investments in capacity expansion and technological research and development; the cash flow from financing activities shows that the company alleviated financial pressure through debt financing, but this also further exacerbated the debt burden. The asset-liability ratio of Senior rose from 37.36% in 2022 to 56.92% in 2024, and further increased to 57.4% in the first quarter of 2025.

![image.gif](https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20250712/1752287564372329.gif?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

## **Increasing Capacity in Progress**

It is noteworthy that in the face of a complex and changing market environment, Senior has formulated a series of development strategies and plans that are expected to help the company improve its operational quality.

In terms of capacity, Senior is advancing its global layout and expanding production capacity. According to the prospectus, in 2024, Senior's lithium battery separator design capacity will reach 4.476 billion square meters, with a capacity utilization rate of up to 90%. As of March 31, 2025, the company's production bases in Guangdong Province, Malaysia, Sweden, and the United States are under construction or in trial production stages. These projects are expected to gradually enter mass production from the end of 2025 to the first half of 2027, at which point the company will add 3.88 billion square meters of lithium battery separator capacity.

![image.gif](https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20250712/1752287607181378.gif?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

According to a Frost & Sullivan report, driven by additional government regulations and technological advancements, the global battery separator market shipment volume is expected to increase from 27.7 billion square meters in 2024 to 84.1 billion square meters in 2029, with a compound annual growth rate of 24.8%. At the same time, influenced by the capacity enhancement in Europe and the United States and the overseas expansion of Chinese separator manufacturers to align with the global lithium-ion battery supply chain, the shipment volume of battery separators outside China is expected to increase from 16% in 2024 to 34.1% in 2029, with a compound annual growth rate of 45.3% ![image.gif](https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20250712/1752287621668901.gif?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

In response to the growing demand for lithium battery separators and structural development opportunities, Senior plans to use part of the funds raised from its listing for the research and development of solid-state battery-related products, other functional films, and next-generation lithium-ion battery separator products. Among them, in the area of solid-state battery-related products, the company is committed to systematically developing solid-state battery materials, solid-state electrolyte films, and semi-solid electrolyte films.

In the field of semiconductor materials, Senior has developed high-purity ceramic materials such as alumina, silica, and barium titanate, which can be applied to thermoelectric semiconductors, ceramic substrates, and quartz components. The company also plans to invest in enterprises focused on new battery separator materials and the semiconductor field to enhance core technologies and broaden its product portfolio, thereby constructing a second growth curve. Specifically, the company's potential investment targets mainly include manufacturers in the new materials and semiconductor industries, focusing on those with leading technologies in their respective fields to gain a competitive advantage in the future battery separator and semiconductor materials industry.

In summary, as a leading enterprise in the lithium-ion battery separator industry, Senior possesses advantages in terms of technological strength, market position, and global layout. However, it also faces numerous challenges such as revenue growth without profit increase, increasing financial pressure, and intensified industry competition. While investors pay attention to the potential opportunities brought by its strategic layout in overseas capacity expansion and R&D investment, they must also fully consider the risks the company may encounter in a complex market environment. In the future, whether Senior can effectively respond to challenges and achieve sustainable development based on its advantages is worth the market's continued attention

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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**