Graphite electrode manufacturer SANERGY to be listed on the main board of Hong Kong

SANERGY to be listed on the main board of Hong Kong
SANERGY submitted a prospectus to the Hong Kong Stock Exchange on April 7, 2022, and plans to list on the main board of Hong Kong. The company is a global manufacturer of ultra-high-power graphite electrodes. In 2021, the revenue will be US$109 million, the net profit will be US$04 million, the gross profit rate will be 21.00%, and the net profit rate will be 4.04%.

S&TLiveReport has learned that SANERGY GROUP LIMITED (hereinafter referred to as "SANERGY"), which was established in 2012, submitted a listing application on the Hong Kong Stock Exchange on April 7, 2022, and plans to list on the main board of Hong Kong. The company has submitted forms on October 5, 2021, March 31, and September 24, 2020. This is the fourth time the company has submitted a listing application. The sole sponsor is Southwest Securities International.

The company is a global manufacturer of ultra-high power graphite electrodes with a customer base in more than 25 countries around the world, including major global electric arc furnace steel manufacturers in the Americas, EMEA, APAC and China. The equipment and transportation industry sells its products. The company supplies high-quality ultra-high power graphite electrodes, a key industrial material for electric arc furnace steel manufacturers, and is continually striving for cleaner production processes to reduce emissions and waste, as well as energy consumption, according to the Frost & Sullivan report. Ranked ninth among global ultra-high-power graphite electrode manufacturers in 2020, with a market share of approximately 1.2%, and ranked fifth in China's high-quality ultra-high-power graphite electrode manufacturing market in 2020, with a market share of approximately 9.1% (in terms of production volume).

In the global graphite electrode market, the global graphite electrode production excluding China decreased from 0.77 million tons to 0.64 million tons, with a compound annual growth rate of -3.8%. In 2020, the output of ultra-high-power graphite electrodes outside China will account for about 90% of the total output of all graphite electrodes in the world excluding China.

Fluctuations in global graphite electrode consumption are mainly due to fluctuations in demand from the downstream steel industry. With the recovery of the electric arc furnace steelmaking industry, the graphite electrode market is expected to resume its long-term growth momentum. In 2025, the global graphite electrode production and consumption excluding China is expected to reach 0.88 million tons and 1.04 million tons, respectively, with a CAGR of 6.7% and 6.0% from 2020 to 2025, respectively.

Major manufacturers of UHP graphite electrodes are located in Asia and EMEA. Asia is the world's largest producer of ultra-high-power graphite electrodes. In 2020, China's ultra-high-power graphite electrode production accounted for 12.4%, and it is expected to reach 17.7% of the world's total ultra-high-power graphite electrode production. Asia is the region with the largest consumption of ultra-high-power graphite electrodes in the world. In 2020, the consumption of ultra-high-power graphite electrodes in China will account for 10.3%, and it is expected to reach 13.5% of the total consumption of ultra-high-power graphite electrodes in the world.

Compared to the global UHP graphite electrode market, manufacturing UHP graphite electrodes with relatively low performance levels in China is widely recognized by EAF steelmaking manufacturers, and there are few manufacturers in China capable of producing such EAF steel manufacturers. Ultra-high power graphite electrodes for electric arc furnaces. In China, high-quality ultra-high-power graphite electrodes refer to graphite electrodes that meet the global market ultra-high-power graphite electrode standards.

The production volume of graphite electrodes in China decreased from 0.53 million tons in 2015 to 0.50 million tons in 2016, and the production is expected to reach 1,142.6 thousand tons in 2025, growing at a CAGR from 2020 to 2025 The rate is about 9.7%.

In 2020, the top ten ultra-high-power graphite electrode manufacturers accounted for about

44.4%, indicating that the market is highly concentrated. The company ranks ninth, accounting for about 1.2% of the global ultra-high power graphite electrode market
Only a few manufacturers in China can produce high-quality UHP graphite electrodes. The high-quality ultra-high-power graphite electrode industry is quite concentrated. Accordingly, the following sets forth the ranking by the production capacity of premium ultra-high power manufacturers in 2020 and their market share in the premium ultra-high power graphite electrode market in China. The company ranked fifth, accounting for about 9.1% of China's high-quality ultra-high-power graphite electrode market.

Fangda Carbon New Material Technology Co., Ltd. is a high-tech enterprise focusing on the production and development of carbon products. The company's main business is the production and sales of new materials such as graphite and carbon products, lithium-ion battery anode materials, graphene and downstream products. The main products are "Languang" brand ultra-high power, high power and ordinary power graphite electrodes, microporous carbon bricks for blast furnaces, etc., which can provide four series, 38 varieties and 126 kinds of specifications. The company's technical equipment level currently ranks first in the domestic industry. It is the only new carbon brick production base in the country. It has 45 scientific research achievements that have passed provincial and national appraisals, and many products have been included in the "National High-tech Product List".