Industry Prospect

By the end of 2020, China aims at increasing the domestic productivity of Electric Vehicles (EV) and Hybrid Electric Vehicles (HEV) to 2 million a year with the sales volume of  over 5 million, and plans to set up 4.6 million charging points. To achieve these goals, Chinese government is expected to invest 100 billion RMB, close to $15.5 billion investment.

The lithium battery materials needed for producing 1 million electric bus would be 10 times more than the current global demand. It is expected that the popularization of EV would stimulate the explosive growth of the demand for lithium battery.

Key Growth Drivers

Intellectual Property: Sinuo owns 31 patents including 22 inventions and has legal right to use 18 authorized patents.

Productivity: Sinuo's productivity of negative electrode materials in 2014 is 10,000 tons, ranked No.4 nationwide.

Customer Relationship: Sinuo maintains strong customer relationship with top domestic battery and automobile manufacturers such as Qptimum Nano, DiKTE, BYD Auto and Wido.

Financial Management: At current, Sinuo processes effective cash flows management skills without issuing debt obligations.

Industry: Negative Electrode Materials, New Energy
Region: Shenzhen, Guangdong
Status: Pre-IPO


Shenzhen Sinou Industrial Development Co., Ltd.

Return Projection

Net Income Projection
: Sinuo expects to generate revenue of 500 million RMB (close to $77.6 million) and net income of 80 million RMB (close to $12.4 million) in 2016, growing at 19% annually on average.

Valuation: In 2014, the enterprise value of Sinou is valued at 400 million in RMB (close to $62 million) with 100 million equity shares outstanding. Sinuo is under the process to IPO on NEEQ in April 2016 expected to generate a 30x return in three years.

Company Overview

Founded in 2002 and headquartered in Shenzhen Nanshan Technology and Science Park, Sinuo Industrial Development Company is a national high-tech enterprise that specializes in the research, development, production and service of negative electrode materials for lithium-ion batteries.

Sinuo processes multiple leading-edge technologies, core intellectual properties and three well-equipped laboratories including Material Testing Lab, Battery Manufacturing Lab and Modified Carbon Lab that collaborates with the research institutes of Central South University, Hunan University and Wuhan University of Science and Technology.

By the active and successful cooperation between universities and Sinuo's professional technicians, Sinuo further improves its ability of capitalizing on the core technologies to productive and profitable business, and secures the foundation for future development.