Summary of Key Points
Jianbang Metal, which ranks third in domestic sales of photovoltaic silver powder and first in the XBC battery silver powder segment, has submitted its application for listing to the Hong Kong Stock Exchange for the third time. The previous two attempts were unsuccessful due to the expiration of the six-month validity period. This time, the company has changed its legal structure from an offshore company registered in the Cayman Islands to a domestic joint-stock limited company. Although Jianbang Metal has seen rapid growth in revenue and profit, its gross margin and net profit margin are extremely low (it primarily earns profits from processing fees). Its supply chain and customer base are highly concentrated, with major customers becoming competitors. The photovoltaic industry is clearly moving towards a “de-silverization” trend. Although the company plans to raise funds for research and development of non-silver materials, its transformation is lagging behind, leaving the prospects for its IPO uncertain.
Detailed Analysis
1. Three Attempts at Listing: Why Did the Previous Two Fail? What’s the Purpose of the Change in Structure This Time?
Jianbang Metal’s applications in May and November 2025 were both rejected because the Hong Kong Stock Exchange’s IPO application has a six-month validity period, after which it becomes invalid. Before submitting this application, the company changed its legal structure from an offshore company to a domestic joint-stock limited company. The reason for this change may be to meet regulatory requirements more effectively, as domestic companies generally have higher transparency, or perhaps to reassure investors (offshore structures can sometimes be perceived as less transparent). However, whether this structural change will help the application succeed still depends on the subsequent review process.
2. Rapid Revenue Growth, but Meager Profits
Jianbang Metal’s financial performance appears impressive: revenue increased from 2.78 billion yuan to 5.06 billion yuan (a compound annual growth of 35%) between 2023 and 2025, and net profit more than doubled from 59.89 million yuan to 169 million yuan in 2025. Revenue in the first five months of this year soared to 4.05 billion yuan (a year-on-year increase of 187%), with a net profit of 55.71 million yuan (an increase of 191%). However, these growth figures are somewhat misleading due to extremely low profit margins:
- Gross Margin: 3.9% in 2023, 4.7% in 2025, and down to 2% in the first five months of this year (meaning only a 2% profit on every 100 yuan sold).
- Net Profit Margin: 2.2% in 2023, and 1.4% in the first five months of this year (meaning only a 1.4% profit on every 100 yuan sold).
The reason for these low margins is Jianbang Metal’s pricing model, which is based on cost plus a small processing fee. In some cases, customers even provide the silver, and Jianbang only charges for the processing, resulting in very little profit margin.
3. Supply Chain and Customer Concentration: Vulnerable to Disruption
Jianbang Metal’s success is heavily dependent on its suppliers and customers:
- Supplier Concentration: The main raw material for silver powder is silver nitrate, which accounts for 99.6% of the total cost. In the first five months of 2026, the company’s largest supplier accounted for 75.1% of its purchases, and the top five suppliers together accounted for 99.8%. In 2025, the number of suppliers was reduced from five to two (Lanzhou Jinchuan and Zhongwei Xinyin), meaning the company is highly vulnerable to price increases or supply disruptions.
- Customer Concentration: The majority of its revenue comes from photovoltaic silver paste manufacturers, with the top five customers accounting for over 70% of total sales, and the largest customer accounting for approximately 20%. Moreover, one of these major customers, Juxin New Materials, acquired Jianbang’s competitor Jiangsu Lianyin in 2023 and invested 1.2 billion yuan to build a new silver powder production facility, directly competing with Jianbang.
4. The Photovoltaic Industry’s “De-Silverization” Trend: A Threat to Jianbang Metal’s Business?
The photovoltaic industry is moving towards a “de-silverization” trend as the cost of silver has risen, making it the highest-cost component in photovoltaic modules (even exceeding that of silicon materials). Leading companies are exploring alternative solutions:
- Longi Green Energy has already launched production lines for silver-free batteries.
- Jinko Solar is working on converting to copper-clad silver technology.
- Aixu Co., Ltd. is operating copper plating production lines.
- Tongwei Energy aims to minimize its silver usage.
Competitors are also making progress: Boqian New Materials’ sales of copper-clad silver powder have increased by 33%, and Suzhou Yinfeng has introduced a type of copper-clad silver powder that is half the price of pure silver powder. Given that 97% of Jianbang Metal’s revenue comes from silver powder, its transformation to non-silver materials may be too late to catch up with industry trends. By the time it completes this transition, the market may have already been taken over by competitors.
5. Are the IPO Prospects Bright?
Whether Jianbang Metal’s IPO will be successful is uncertain:
- Industry Challenges: The photovoltaic industry is still in a downturn, putting significant pressure on the company’s operations.
- Internal Issues: Low profit margins, supply chain and customer dependencies, and competitors acquiring key assets.
- Irreversible Trend: The de-silverization trend is irreversible, and Jianbang Metal’s transformation is slow.
If this application fails again, it may miss the last opportunity to thrive in the silver powder market. Once the industry fully adopts non-silver technologies, Jianbang Metal’s core business will be eliminated.
Conclusion
Jianbang Metal’s third attempt at listing faces a series of challenging issues: meager profits, vulnerable supply chains and customers, and a competitive landscape where its core products are being replaced by alternatives. Even if it succeeds in listing, the future is uncertain. Whether it can seize this final opportunity depends on the Hong Kong Stock Exchange’s approval and its ability to transform quickly. Time is running out for the company to make a difference.