Shuangdeng Group Co IPO – Oversubscription ~263× demand
📌 Company Overview
Name: Shuangdeng Group Co., Ltd. (雙登集團股份有限公司)
Incorporation: Joint stock company with limited liability, PRC
Stock Code: 6960 (HKEX)
Industry: Energy storage batteries and systems (lithium-ion & lead-acid)
Core Business: Design, R&D, manufacturing, and sales of energy storage batteries for telecom base stations, data centers, electrical energy storage, and other applications.
📌 Market Position
Telecom & Data Centers:
Served 5 of world’s top 10 telecom operators & equipment makers.
Supplied 30% of global top 100 telecom operators & equipment manufacturers.
Supplied all top 5 Chinese telecom operators.
Partnered with Alibaba, JD.com, Baidu, GDS, ChinData for data center storage.
2024 Market Share:
#1 globally in telecom & data center energy storage batteries (11.1% market share).
#12 globally in energy storage (2.5% market share).
Customer Relationships:
Top 5 customers contributed 54.2% (2022) → 34% (2025 May) of revenue.
Largest single customer contribution dropped from 24.3% (2022) → 10.2% (2025 May).
📌 Product Portfolio
Lithium-ion batteries (mainly LFP): Flexible packaging & square aluminum shell.
Lead-acid batteries: Absorbent glass mat, gel, lead-carbon.
Applications:
Telecom base stations – backup for outages, peak/off-peak load management.
Data centers – backup + energy optimization.
Grid & residential storage – power balancing, grid congestion relief, household use.
Other: UPS, vehicle start-stop batteries.
📌 Global Offering (IPO) Details
Offer Shares: 58,557,000 H shares (subject to over-allotment)
Hong Kong Public Offering: 5,856,000 shares (~10%)
International Offering: 52,701,000 shares (~90%)
Over-allotment Option: up to 8,783,500 shares
Offer Price: HK$14.51 per H share (nominal value RMB 1.00)
Stock Code: 6960
Application: Fully electronic (White Form eIPO, HKSCC EIPO via FINI system)
Minimum Application: 500 shares (≈ HK$7,328.17)
📌 Timetable
Prospectus Date: August 18, 2025
Application Period: Aug 18–21, 2025
Allocation Results Announcement: August 25, 2025
Dealings on HKEX: August 26, 2025, 9:00 a.m.
📌 Financial Highlights
Revenue
2022: RMB 4,072.5m
2023: RMB 4,259.8m
2024: RMB 4,498.5m
5M 2025: RMB 1,866.6m (vs RMB 1,394.2m in 5M 2024)
Profit
2022: RMB 281.0m
2023: RMB 385.2m
2024: RMB 353.3m
5M 2025: RMB 126.7m
Gross Profit Margin
Ranged 16.7%–20.3%, most recent (5M 2025) 14.9%
Key Expense Ratios
R&D: ~2.5–3.0% of revenue
Selling & Admin: ~6–7% of revenue combined
Finance Costs: Declining (RMB 49.4m in 2022 → RMB 12.0m in 5M 2025)
📌 Supply Chain
Raw materials: Lithium iron phosphate, lead alloy, lead ingots.
Purchases from top 5 suppliers: ~42–50% of total purchases.
Largest single supplier: ~17.5–25.4% share of purchases.
📌 Strategy & Growth Plans
Enhance and expand energy storage business.
Increase presence in data center energy storage.
Invest further in R&D.
Expand global footprint.
Already involved in large projects (e.g., State Grid Zhangbei Energy Storage System Project) and international expansion (Cambodia, Mongolia, Guinea, Central Africa, Europe, Asia, Africa).
📌 Risks & Regulatory Issues
High customer concentration (though declining).
Competition in telecom supply chains reducing margins.
Exposure to raw material price fluctuations.
Sales to “Relevant Regions”: generated ~RMB 59.2m (2022) → RMB 8m (5M 2025). Customers not under UN/EU/US/AU sanctions, but some on BIS Entity List. Company assessed no material sanction risk.
✅ In Summary:
Shuangdeng Group (Stock Code 6960) is a leading energy storage battery provider for telecom and data centers, ranking #1 globally in shipment volumes in these sectors. It is raising capital via a HK$14.51/share IPO (58.6m H shares) with listing on HKEX starting Aug 26, 2025. Financials show steady revenue growth (~RMB 4.5b in 2024) and solid profitability, though margins face pressure. Its strategy focuses on expanding data center storage, global projects, and R&D investment.
Shuangdeng Group is offering 58.557 million H‑shares at HK$14.51 each, targeting approximately HK$850 million gross proceeds, with a cornerstone investment of RMB 220 million (~28% of the offering) secured by Sanshui Venture Capital.
The IPO is oversubscribed by about 263×, indicating extremely high demand.
The only identified peer listing in the same period is Jiaxin International Resources (03858.HK), listed on August 28, 2025, in the metals & minerals sector.
Given the net ~263× oversubscription and the presence of a cornerstone investor, market interest is clearly robust. This typically translates to high first‑day listing demand. Strong subscription overshoot suggests a high probability of notable first‑day outperformance.
Given the clear signs of strong demand and institutional interest, it appears highly likely the stock will debut meaningfully above the IPO price. The strength of demand suggests it may trade strongly above HK$14.51 upon listing.
Applications run from August 18 to August 21, 2025.
Minimum board lot: 500 shares (~HK$7,328 application fee).
Applications are electronic only, via White Form eIPO or HKSCC EIPO through brokers and custodians. Receiving banks in Hong Kong include:
Industrial and Commercial Bank of China (Asia)
Agricultural Bank of China (Hong Kong Branch)
Bank of China (Hong Kong)
Summary Table (where applicable)
Factor Insight
Offering Size & Price 58.557 m shares @ HK$14.51
Cornerstone Backing RMB 220 m (~28% of offering)
Oversubscription ~263× demand
Peer IPO Same Period Jiaxin (03858.HK), no performance data yet
Likely First-Day Performance Highly likely to perform strongly above IPO price
Application Window August 18–21, 2025
Minimum Lot / Fee 500 shares; ~HK$7,328
Application Methods White Form eIPO; HKSCC EIPO; via major HK banks
– Extremely strong subscription (263×) and cornerstone backing signal high investor interest.
– Likely to trade well above HK$14.51 on listing day.
– Application is online-only via brokers or specified HK banks.
Thank you
