Zhongwei New Materials Faces CSRC Scrutiny Ahead of Hong Kong IPO

Zhongwei New Materials, a company specializing in innovative new energy materials, has been asked by China's securities regulator to provide additional information regarding its business scope and compliance with the Negative List for Foreign Investment Access. The company, which is planning to list on the Hong Kong Stock Exchange, has been a global leader in the shipment of nickel and cobalt-based lithium-ion battery cathode active material precursors (pCAM) since 2020. It has also been the top supplier of phosphate-based pCAM for the global export market in the first quarter of 2025.

The China Securities Regulatory Commission (CSRC) has requested that Zhongwei New Materials clarify whether its business operations fall under the Negative List for Foreign Investment Access, which outlines sectors that are subject to special management measures for foreign investment. The regulator has also asked for details on the company's technology export business over the past three years, as well as information on its overseas subsidiaries' foreign investments and compliance with foreign exchange registration procedures.

Zhongwei New Materials, which filed its listing application with the Hong Kong Stock Exchange on April 22, 2025, has been advised to provide a legal opinion from its lawyers on the aforementioned matters. The company's business scope includes the research, development, production, and sale of new energy battery materials and new energy metal products. It aims to contribute to global low-carbon and energy transition efforts by providing high-performance and environmentally friendly new energy materials.

The company has established a comprehensive research and development platform that covers the entire production process and product lifecycle, from mineral metallurgy to new energy material research and mass production, equipment design and optimization, product testing and evaluation, and recycling. Zhongwei New Materials has been at the forefront of industry innovation, developing new products that meet customer needs and using advanced technologies to improve efficiency. Some of its notable achievements include the industry's first ultra-high nickel pCAM, 4.55V high-voltage cobalt-based pCAM, and low-cost NFPP pCAM, as well as experimental titanium-doped LFP pCAM. The company was also the first in the world to adopt the environmentally friendly OESBF pyrometallurgical technology for processing laterite nickel ore and has pioneered the use of centrifugal extraction technology to revolutionize the hydrometallurgical processing of nickel and cobalt.