On February 6, 2024, Hainan Drinda New Energy Technology Co., Ltd. from Haikou, Hainan, submitted its prospectus to the Hong Kong Stock Exchange for an IPO on the main board of the Hong Kong Stock Exchange.

Hainan Drinda New Energy Technology Co., Ltd., listed on the main board of the Shenzhen Stock Exchange on April 25, 2017, with stock code 002865.SZ.

Link to the prospectus of Hainan Drinda New Energy Technology Co., Ltd.:

https://www1.hkexnews.hk/app/sehk/2024/106223/documents/sehk24020600323_c.pdf

Main Business

Established in 2003, Hainan Drinda New Energy Technology Co., Ltd., as a leading global professional photovoltaic battery manufacturer, has been continuously focusing on the research and development, production, and sales of high-efficiency photovoltaic batteries. Hainan Drinda New Energy Technology Co., Ltd. acquired the photovoltaic battery business through the acquisition of Jutta Technology and its subsidiaries in September 2021. Prior to acquiring the photovoltaic battery business, the original main business of Hainan Drinda New Energy Technology Co., Ltd. was the research, production, and sales of automotive plastics components, which was sold to the Yang family and ceased operation in June 2022.

According to Frost & Sullivan data, in the first six months of 2023 by shipment volume, Hainan Drinda New Energy Technology Co., Ltd.'s global market share of photovoltaic batteries reached approximately 10.8%, ranking fifth. The company's N-type TOPCon battery global market share reached approximately 57.4%, ranking first.

Hainan Drinda New Energy Technology Co., Ltd. continues to lead the industry in N-type TOPCon batteries and P-type PERC batteries, and has always been at the forefront of various mainstream photovoltaic batteries. In the era of monocrystalline photovoltaic cells that began in 2018, the conversion efficiency of the monocrystalline P-type PERC cells developed by the company and Jutta Technology exceeded 23.8%. According to Frost & Sullivan data, the company's product performance is at an international advanced level, non-silicon cost efficiency continues to lead the industry, the industry was the first to complete the production line upgrade from 166mm photovoltaic cells to 182mm photovoltaic cells, driving the industry upgrade from small to large photovoltaic cell sizes. In the era of N-type batteries that began in 2022, the company became the world's first professional photovoltaic battery manufacturer to achieve R&D and large-scale production of N-type TOPCon batteries. In December 2023, the company's TOPCon battery mass production conversion efficiency exceeded 26.0%, according to Frost & Sullivan data, this achievement is the highest large-scale production conversion efficiency in the field of photovoltaic batteries in the current industry.

In December 2023, Hainan Drinda New Energy Technology's photovoltaic battery annual capacity is approximately 50GW, with the N-type TOPCon battery annual capacity around 40 GW. The company has production bases in Shangrao, Chuzhou, and Huaian.

Hainan Drinda New Energy Technology mainly provides the following three key products:

• 210-N N-type TOPCon monocrystalline solar cell. Launched in 2023, this model of cell has 18 front-side busbars and 18 rear-side busbars, with a thickness of 130μm ± 13μm. Its dimensions are 210mm * 210mm ± 0.5mm. Its front-side efficiency is ≥26.0%, and its bifaciality is ≥80%.

• 182N N-type TOPCon monocrystalline solar cell. Launched in 2022, with 16 front-side busbars and 16 rear-side busbars, a thickness of 130μm ± 13μm, and dimensions of 182mm * 182mm ± 0.5mm. Its front-side efficiency is ≥26.0%, and its bifaciality is ≥80%.

• 182P P-type PERC monocrystalline solar cell. Launched in 2021, with 10 front-side busbars and 10 rear-side busbars, a thickness of 170μm ± 17μm. It has dimensions of 182mm * 182mm ± 0.5mm, with a front-side efficiency of ≥23.8%, and a bifaciality of ≥70%.

Revenue of Hainan Drinda New Energy Technology comes from selling N-type TOPCon and P-type PERC batteries to customers, as well as providing manufacturing services mainly for P-type PERC batteries.

Shareholder Structure

According to the prospectus disclosure, as of January 31, 2024, Hainan Drinda New Energy Technology's ownership structure:

The Yang family (Mr. Lu Xuyang, Mr. Yang Renyuan, Ms. Lu Huifen, Mr. Xu Xiaoping, Ms. Lu Xiaohong, Mr. Xu Weidong, Ms. Lu Yuhong, Mr. Xu Yong, Ms. Lu Xiaowen) owns 80% of Hainan Jindi through the Yang family investment, holding 20.46% of the shares.

Other shareholders of Hainan Jindi: Mr. Chen Bingkun (10%), Heze Mingda Enterprise Management (10%)

Ms. Lu Xiaohong, holding 2.32% of the shares;

The Yang family is able to exercise about 22.78% of the company's voting rights, the largest shareholder group.

Shares in Shangrao Development Zone account for 9.78%;

Employees shareholding platform of Jetek Technology, Shangrao Zhanhong (Mr. Zheng Hongwei 25.9%, as the acting managing partner), holding 4.07%;

Mr. Zhang Manliang, holding 0.40%;

Mr. Zheng Hongwei, holding 0.40%;

Ms. Zheng Tong, with a 0.1% stake;

Other A-share shareholders hold approximately 62.47%.

Board of directors and executives

The board of directors of Hainan Drinda New Energy Technology consists of 10 directors, including 5 executive directors (Ms. Lu Xiaohong, Mr. Xu Xiaoping, Mr. Zhang Manliang, Mr. Zheng Hongwei, and Ms. Zheng Tong), 1 non-executive director (Mr. Xu Yong), and 4 independent non-executive directors (Mr. Zhao Hang, Mr. Shen Wenzhong, Mr. Yang Youjun, and Mr. Zhang Liang).

The supervisory board has 3 members (Ms. Wang Menglin, Ms. Lin Caiying, and Ms. Lin Ting).

Apart from the executive directors, the top management includes CFO Ms. Huang Falian and CMO Ms. Chen Pingxian.

Corporate Performance

The prospectus shows that in the past 2021, 2022, and the first nine months of 2023, Hainan Drinda New Energy Technology's revenue was RMB 1.639 billion, 11.086 billion, and 143.42 billion respectively; the corresponding net income from continuing operations during the same periods were RMB 0.01 billion, 0.513 billion, and 16.38 billion.

Intermediary Team

Hainan Drinda New Energy Technology's main intermediaries for this IPO include: Huatai International, CMB International, and Deutsche Bank as its joint sponsors; Deloitte as its auditor; Tianyuan and Mayer Brown serving as its company's legal counsel in China, Hong Kong, and the USA respectively; Jintiancheng and Rui Sheng serving as its brokerage legal counsel in China and Hong Kong respectively; and Freshfields Bruckhaus Deringer as its industry consultant.