--- title: "CATL \"circle of friends\" groups for IPO: Dongheng New Energy submits application to Hong Kong Stock Exchange, last year \"King Ning\" supported 3/4 of revenue" type: "News" locale: "en" url: "https://longbridge.com/en/news/290814197.md" description: "CATL's supply chain company Dongheng New Energy submitted its prospectus to the Hong Kong Stock Exchange on June 23. The company mainly focuses on conductive carbon materials and is closely tied to CATL, which has contributed approximately 75% of its revenue. Although it is expected to incur losses in 2024 due to fluctuations in overseas demand and increased expenses, it has turned profitable in 2025. This move signifies that the IPO window for the lithium battery supply chain surrounding CATL is accelerating" datetime: "2026-06-25T10:12:10.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/290814197.md) - [en](https://longbridge.com/en/news/290814197.md) - [zh-HK](https://longbridge.com/zh-HK/news/290814197.md) --- # CATL "circle of friends" groups for IPO: Dongheng New Energy submits application to Hong Kong Stock Exchange, last year "King Ning" supported 3/4 of revenue Another lithium battery industry chain company from CATL is rushing to IPO. According to the Hong Kong Stock Exchange's official website, on June 23, Dongheng New Energy officially submitted its prospectus. Starting from the niche of conductive carbon materials, Dongheng New Energy is not only deeply embedded in CATL's supply system but also has a binding relationship with CATL in terms of capital structure. At the same time, companies in various segments such as electrolyte additives, electrolytes, and battery safety components are also advancing their listing processes, and an IPO window centered around CATL is accelerating to emerge. **CATL supported three-quarters of revenue last year** Dongheng New Energy was established in 2011, with its main products being conductive carbon black and carbon nanotubes, positioned in the upstream segment of the entire lithium battery industry chain. The company cites data from Frost & Sullivan in its prospectus, stating that based on 2025 revenue, it is the third-largest supplier of new energy conductive carbon materials globally and the second-largest in China. Conductive carbon materials are a type of advanced carbon-based material with excellent conductivity and other good physical and chemical properties. As a necessary component of new energy batteries, conductive carbon materials are added to electrodes to form a conductive network that facilitates electron transfer. Due to the unique bonding characteristics of carbon atoms, they exist in various forms such as points (conductive carbon black), lines (carbon nanotubes), and surfaces (graphene). Conductive carbon materials have outstanding mechanical, electrical, and thermal properties, which establish their key role in the new energy battery field and have broader application potential in advanced composite materials, semiconductors, artificial intelligence, and embodied intelligence. "High-performance conductive carbon materials are crucial for the performance of new energy battery electrodes, enhancing cycle life, rate performance, and energy density, and represent a high-barrier, high-value niche market in the auxiliary materials industry for new energy batteries," states Dongheng New Energy's prospectus. Dongheng New Energy's performance has fluctuated in recent years. After achieving a net profit of 14 million yuan in 2023, the company reported a loss of 37 million yuan in 2024. The company explained that this was due to fluctuations in overseas market demand leading to a decline in sales of carbon nanotube powder products to overseas customers, as well as increased administrative expenses from expanding the administrative team and operating the newly established production base in Zigong. In 2025, the company turned a profit, achieving a net profit of 60 million yuan. Illustration by Beike Finance reporter Zhu Yueyi Dongheng New Energy's customers are mainly new energy battery manufacturers. From 2023 to 2025, the total revenue from the top five customers of Dongheng New Energy for each year was 310 million yuan, 297 million yuan, and 860 million yuan, accounting for 95.6%, 94.2%, and 96.1% of the company's total revenue, respectively; among them, the revenue from the largest customer for each year accounted for 45.9%, 49.9%, and 74.9% of its total revenue "Our customer concentration mainly reflects the highly concentrated characteristics of the downstream new energy battery industry, which is dominated by a few major global players holding significant market shares," Dongheng New Energy stated. The company's ability to meet the stringent technical requirements, large-scale supply demands, and continuous innovation needs of these industry leaders is crucial for its development. According to the prospectus, Dongheng New Energy's largest customer is the global lithium battery leader CATL. **"Ning Wang" circle, queuing outside the exchange** The cooperation between Dongheng New Energy and CATL has deepened in recent years. In 2021, Dongheng New Energy achieved mass production of conductive carbon black and became a supplier of conductive carbon black to CATL; by 2025, the company became a supplier of thin-walled carbon nanotubes and single-walled carbon nanotubes to CATL, which drove an increase in Dongheng New Energy's capacity utilization that year. In addition, CATL has also strengthened its cooperation with upstream material suppliers through equity relationships. CATL's wholly-owned subsidiary, Wending Investment, participated in Dongheng New Energy's B+ round financing in November 2021 for a consideration of 36.8 million yuan. As of now, Wending Investment holds a 4.17% stake in Dongheng New Energy. Dongheng New Energy has dedicated a section in its prospectus to explain that although the company's revenue sources are concentrated on CATL, the risk of significant adverse changes or termination of its business relationship with CATL is relatively low. The procurement agreement disclosed by Dongheng New Energy with CATL indicates that the pricing of products provided to CATL should generally be competitive compared to similar products offered to other customers under similar commercial conditions. Regarding the use of funds raised from this IPO, Dongheng New Energy stated that it will mainly be used for capacity expansion, strengthening research and development, and for the company's working capital. The company plans to increase the total production capacity of conductive carbon black, carbon nanotube slurry, and carbon nanotube powder to approximately 15,000 tons, 125,000 tons, and 1,500 tons, respectively, by the end of 2027, which is equivalent to 2.7 times, 4.9 times, and 1.7 times the company's respective capacities as of the end of 2025. Including Dongheng New Energy, CATL's "circle of friends" is queuing outside the exchange. Illustration/Beike Finance reporter Zhu Yueyi New Jing Bao Beike Finance reporter Zhu Yueyi Editor Yue Caizhou Proofreader Lu Xi ### Related Stocks - [03750.HK](https://longbridge.com/en/quote/03750.HK.md) - [300750.CN](https://longbridge.com/en/quote/300750.CN.md) - [002709.CN](https://longbridge.com/en/quote/002709.CN.md) - [301596.CN](https://longbridge.com/en/quote/301596.CN.md) - [HCCD.SG](https://longbridge.com/en/quote/HCCD.SG.md) ## Related News & Research - [CATL Speeds up Global Expansion of Battery Swapping Business With Hong Kong Launch](https://longbridge.com/en/news/290826732.md) - [Top CATL boss cools expectations over next major leap in EV batteries](https://longbridge.com/en/news/290789150.md) - [CATL sources battery components from China instead of Debrecen](https://longbridge.com/en/news/290556679.md) - [CATL and Octopus Energy plan battery-swapping network for eHGVs in Europe](https://longbridge.com/en/news/290437154.md) - [02:18 ETCATL Debuts World's First Field-Validated Sodium-Ion BESS, Bringing Sodium Storage to Commercial Reality](https://longbridge.com/en/news/290519239.md)