China Digest: Huasun, Kuntian raise $295m each amid dealmaking frenzy in new energy

China Digest: Huasun, Kuntian raise $295m each amid dealmaking frenzy in new energy

Heterojunction technology (HJT) solar cells developed by Anhui Huasun Energy. Visuals from the company website

Dealmaking in China’s new energy sector has ended on a high note before the mainland market moves into a week-long New Year holiday, as Kuntian and Huasun pocketed over 2 billion yuan ($294.7 million) each in new financing.

Battery materials maker Kuntian closes pre-IPO round

Hebei Kuntian New Energy, a manufacturer of anode materials used in lithium-ion batteries, has closed its pre-IPO funding round at over 2 billion yuan ($294.7 million) to build new manufacturing facilities in southwestern China.

China Renaissance, the financial advisor of the deal, said in a Friday announcement that Kuntian raised its pre-IPO round in two tranches from industry investors and financial investors, respectively.

Its industry investors include SK China, the China branch of South Korean conglomerate SK Group; Sinopec Capital, which is affiliated with China’s state oil and gas major Sinopec Group; Chinese conglomerate Fosun’s private equity (PE) unit Fosun Capital; and Chinese publicly listed heavy equipment manufacturer SANYI Group, among others.

DealStreetAsia reported about the first tranche of investment in November 2022.

The latest tranche saw Kuntian rope in financial investors including China Broadband Capital, Seoul-based Hana Financial Group, and Xiamen C&D Corporation Limited, just to name a few.

The net proceeds will fund the firm’s plan of scaling its production facilities in Yunnan Province, wherein it aims to deliver 200,000 tonnes of anode materials on a yearly basis.

Solar tech developer Huasun plans IPO next year

Solar technology developer Anhui Huasun Energy announced on Thursday the completion of its Series B funding round at over 2 billion yuan to advance the development and production of its heterojunction technology (HJT)-backed solar cells.

The Chinese developer of HJT – a solar panel production method known for its capability in increasing efficiency and power output – raised the new financing from China National Building Material (CNBM), the largest cement and gypsum board producer in China. As the lead investor, CNBM invested in the deal through its new material industry investment fund.

Hidden Hill Capital, a PE arm of Asia’s warehouse operator GLP, and Dayone Capital, a multi-stage consumer and green tech investment firm, participated in the round. Existing shareholders such as Hefei Industry Investment Group, Kungang Equity Investment, Nuoyan Capital, and Puhua Capital re-upped in the new round.

Headquartered in eastern China’s Anhui Province, Huasun had set a target of achieving an annual production capacity of 2.7 gigawatts (GW) in 2022 before further expanding to deliver over 7.5GW per year, the company CEO Zhou Dan revealed at an industry event in September 2022.

Zhou said that Huasun was likely to initiate its plan for an initial public offering (IPO) in 2024 when its yearly production scale was projected to hit 10GW.

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