--- title: "New Stock Outlook | Senior: Steady Revenue Growth VS Profit Pressure, Can the Lithium Battery Separator Giant Still Aim for \"A+H\"?" type: "News" locale: "en" url: "https://longbridge.com/en/news/276403628.md" description: "Senior has submitted a listing application to the Hong Kong Stock Exchange, planning to focus on the development of solid-state batteries and next-generation lithium-ion battery separator products through this fundraising, improve its global production capacity layout, and invest in new battery separator materials and the semiconductor field. The company is the world's second-largest manufacturer of lithium-ion battery separators, with 20 years of industry experience, dedicated to enhancing battery performance" datetime: "2026-02-20T02:22:06.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/276403628.md) - [en](https://longbridge.com/en/news/276403628.md) - [zh-HK](https://longbridge.com/zh-HK/news/276403628.md) --- > Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/276403628.md) | [繁體中文](https://longbridge.com/zh-HK/news/276403628.md) # New Stock Outlook | Senior: Steady Revenue Growth VS Profit Pressure, Can the Lithium Battery Separator Giant Still Aim for "A+H"? Global leading lithium battery separator manufacturer - Shenzhen Senior Material Technology Co., Ltd. (300568.SZ) is once again targeting "A+H". According to information from Zhitong Finance APP, as disclosed by the Hong Kong Stock Exchange on January 30, Senior Material has submitted a listing application to the main board of the Hong Kong Stock Exchange, with CITIC Securities International as its sole sponsor. The company previously submitted an application to the Hong Kong Stock Exchange on July 7, 2025. According to the prospectus, the funds raised by Senior Material will focus on four major areas: first, research and development of solid-state battery-related products, other functional films, and next-generation lithium-ion battery separator products; second, improving the global production capacity layout and promoting the construction of overseas production bases in Malaysia, the United States, and other locations; third, investing in companies focused on new battery separator materials and the semiconductor field; fourth, repaying loans for overseas bases and supplementing working capital. ## **The Second Largest Lithium-Ion Battery Separator Manufacturer Globally** According to the prospectus, Senior Material is a lithium-ion battery separator manufacturer founded in 2003, with over 20 years of industry experience in the research, production, and sales of lithium-ion battery separators. The company was 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 coating separators. Dry method separators are formed by unidirectional or bidirectional stretching of polyolefin materials to create a separator with a microporous structure. This technology is relatively simple and cost-effective, widely used in the mid-to-low-end market. Wet method separators utilize the principle of thermally induced phase separation, using high-boiling organic solvents as diluents mixed with polyolefin resin, and are produced through processes such as extrusion, cooling, and bidirectional stretching. Their microporous structure is more uniform with smaller pore sizes, effectively enhancing the energy density and cycle life of batteries, and is mainly used in high-end lithium batteries. Coated separators involve applying ceramic alumina, PVDF binders, and other coating materials to one or both sides of the base film made from dry or wet method 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/20260220/1771553621851569.gif?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) The company excels in numerous key performance indicators for battery separators, including thickness, porosity, thermal shrinkage, permeability, and puncture strength. The company serves world-leading lithium-ion battery manufacturers such as LG Energy Solution, Samsung SDI, Envision AESC, Murata, SK On, SAFT, CATL, BYD, Guoxuan High-Tech, Zhongchuangxin Hang, Yiwei Lithium Energy, and Sunwoda. Currently, the company has established six production bases in China. Overseas production bases in Europe, Southeast Asia, and the United States are under construction. In terms of innovation, the company has established R&D centers in China, Japan, and Sweden, and plans to establish more R&D centers in Southeast Asia and the United States. The company's expanding network supports a broad customer base, including over 100 leading lithium-ion battery manufacturers worldwide According to Frost & Sullivan data, the company's lithium-ion battery separator shipments ranked second globally for the past five consecutive years, with its global market share increasing from 11% in 2020 to 14.4% in 2024. In 2024, the group occupies approximately 17.1% of the market share, ranking second in the Chinese battery separator market. In terms of shipment volume, the company holds the largest market share in the dry separator market globally in 2024, while it ranks second in the wet separator market by shipment volume. ![image.gif](https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20260220/1771553668626519.gif?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) ## **Stable Revenue Growth, Product Prices Under Pressure Limiting Profitability** Zhitong Finance APP notes that the operating conditions of Senior show significant phase characteristics, facing profit pressure from intensified industry competition while continuing to expand in scale. In terms of revenue, from 2022 to 2024, the company's operating income was 2.867 billion yuan (RMB, the same below), 2.982 billion yuan, and 3.506 billion yuan, respectively; in the first nine months of 2025, it achieved revenue of 2.932 billion yuan, a year-on-year increase of 13.7%, mainly due to the release of overseas production capacity and support from core customer order deliveries. However, the fluctuations in profit levels directly reflect the impact of intensified industry competition on the company. From 2022 to 2024, the company's annual profits were 748 million yuan, 594 million yuan, and 371 million yuan, showing a downward trend year by year; in the first nine months of 2025, it achieved a profit of 141 million yuan, a significant year-on-year decrease of 59.9%. The weakening of profitability is also reflected in the gross profit margin and net profit margin, with the company's separator product gross profit margins for 2022-2024 and the first nine months of 2025 being 44.8%, 43.3%, 28.1%, and 21.3%, respectively, while the net profit margin declined from 26.1% in 2022 to 4.8% in the first nine months of 2025. ![image.gif](https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20260220/1771553804830181.gif?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) The decline in Senior's profitability is partly due to price competition caused by structural overcapacity in the industry, which directly compresses the company's profit space. 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, respectively, representing year-on-year declines of 38.6%, 23.6%, and 39.2%. Although the company has made efforts to reduce costs through optimizing production processes and economies of scale, the decline in product prices far exceeds the reduction in costs, severely compressing profit margins. In the first nine months of 2025, the average selling price of the company's three major products dropped to 0.86 yuan per square meter, a year-on-year decrease of 6.5% On the other hand, the depreciation and amortization, as well as the increase in financial costs brought about by the company's overseas base construction and capacity expansion, have also put certain pressure on profits. In the first nine months of 2025, the company's financial costs reached 153 million yuan, a year-on-year increase of 47.3%. ![image.gif](https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20260220/1771553820147939.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 a chain reaction on 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 technology research and development; the cash flow from financing activities shows that the company alleviates financial pressure through debt financing, but this also further exacerbates the debt burden. The asset-liability ratio of Senior rose from 37.4% in 2022 to 56.9% in 2024, and further increased to 60.8% in the first nine months of 2025. ![image.gif](https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20260220/1771553873825565.gif?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) ## **There is still growth potential in the industry, and diversified layout seizes growth opportunities** Despite facing profit pressure in the short term, Senior's long-term development prospects are deeply tied to industry growth trends, and multiple positive factors will bring broad growth space for the company. According to a report by Frost & Sullivan, 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/20260220/1771553941690224.gif?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) To seize the growth in lithium battery separator demand and structural development opportunities, Senior plans to use part of the funds raised from the 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, for 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 beryllium oxide, which can be applied in 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 building 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 the short term, Senior faces pressure from industry price competition, declining profits, and rising debt ratios, with the pace of profit recovery being the core focus. In the long term, benefiting from the growth dividends of the global new energy vehicle and energy storage industries, combined with the second growth curve brought by diversified layouts in solid-state batteries and semiconductor materials, the industry's incremental space provides broad opportunities for the company. For investors, the investment value of Senior hinges on the release of profit elasticity under the improvement of the industry supply-demand pattern, as well as the actual progress of technology research and development transformation, overseas production capacity establishment, and order delivery. As a rare target with a leading global position, technological barriers, and a global layout, its market performance after listing in Hong Kong deserves continuous attention ### Related Stocks - [Senior (300568.CN)](https://longbridge.com/en/quote/300568.CN.md) ## Related News & Research - [Boralex and Six Nations Close $202 Million Green Loan for Ontario Battery Storage Project](https://longbridge.com/en/news/281546581.md) - [First battery energy storage systems enter Greek electricity market](https://longbridge.com/en/news/281644701.md) - [Leoch International Steps Back From US Spin-off of Battery Unit](https://longbridge.com/en/news/281458144.md) - [Redmi Note 15 Special Edition with 5800mAh battery launched: Check price](https://longbridge.com/en/news/281482793.md) - [Qcells wants solar + storage built into every new home](https://longbridge.com/en/news/281577701.md)