{"text":[[{"start":8.1,"text":"As the current generation of lithium-ion batteries pushes the boundaries of their performance and safety, newer solid-state products are seen as a next-generation solution to power the electric vehicles appearing on streets in growing numbers. Solid-state batteries’ higher energy density and lower thermal runaway risk could radically reshape the industry – if they can complete the long and difficult journey from concept to mass production."}],[{"start":33.55,"text":"Qingtao (Kunshan) Energy Development Group Co. Ltd., which started out in the material sciences lab of the prestigious Tsinghua University, China’s equivalent of MIT, is among the few companies bringing solid-state batteries to the practical realm. The company submitted an application for a Hong Kong IPO earlier this month, publicly revealing its technological roadmap and commercialization progress for the first time."}],[{"start":59.4,"text":"Qingtao Energy exemplifies a type of company hatched in academia now making a transition to commercial entity. Spun off by the Tsinghua material science team, the company has been transforming from a maker of solid-liquid hybrid batteries to all-solid-state batteries since its founding in 2016."}],[{"start":78.35,"text":"It adopted its current semi-solid-state battery technological focus with the construction of a mass production line in 2018, becoming one of China's few companies to achieve commercial deployment for the technology."}],[{"start":92.25,"text":"Mass production milestone"}],[{"start":94.6,"text":"Qingtao Energy's products power over 30 vehicle models, including ones from IM Motors, Morris Garages (MG), and Foton, with cumulative deliveries of more than 16,800 batteries. The company’s products are also being used in an 800 MWh energy storage project in Wuhai, of China’s Inner Mongolia region. That combination of customers has driven the company’s rapid revenue growth, nearly doubling from 248 million yuan ($36.4 million) in 2023 to 405 million yuan in 2024, and then more than doubling to 943 million yuan in 2025 — representing a near quadrupling over the three-year period."}],[{"start":140.05,"text":"Globally, U.S.-based QuantumScape (QS.US) and Solid Power (SLDP.US), though listed, remain in the prototype and pilot production stages, generating only tens of millions of dollars in 2025 without consistent shipments. Chinese players, by contrast, have largely embraced a “deploy first” strategy. Qingtao Energy, WeLion New Energy and Ganfeng Lithium (1772.HK; 002460.SZ) are all using solid-liquid hybrids as a transitional step to get their products into vehicles or demonstration projects."}],[{"start":176.45000000000002,"text":"While China’s players appear to be in a pole position for the emerging technology, many of their products remain in small-batch vehicle trials rather than steady use. Qingtao Energy stands out because its products have achieved sustained deliveries, resulting in its impressive revenue growth. Its power battery revenue surged from just 6.34 million yuan in 2023 to 237 million yuan in 2025, growing from under 3% of its pie to 25.1% over that time. That signals its automotive batteries may be entering a rapid commercialization phase, edging closer to true industrial-scale mass production."}],[{"start":218.15000000000003,"text":"That said, its commercial progress remains heavily reliant on a handful of key customers. In 2025, its top five clients supplied 74.9% of its revenue, with the largest alone accounting for 41.8%. While unnamed, industry sources suggest that major client is likely part of Shanghai-based auto giant SAIC, given Qingtao Energy's automaker partnerships. Whoever the customer is, such heavy reliance ties Qingtao Energy’s near-term tightly to a single automaker's rollout schedule and could constrain its ability to penetrate the broader market."}],[{"start":255.30000000000004,"text":"Furthermore, Qingtao's current mass-produced batteries are primarily semi-solid-state, not true all-solid-state cells. While offering better safety and performance over traditional lithium-ion batteries that are the current industry standard, this transitional solution has yet to create a truly generational leap and is unlikely to reshape the industry landscape in the near term. Concurrently, high costs for solid electrolyte materials, complex manufacturing processes, and unstable yield rates are keeping the company’s unit costs stubbornly high."}],[{"start":288.70000000000005,"text":"Widening gross loss"}],[{"start":291.30000000000007,"text":"Qingtao's gross loss widened from 59 million yuan to 250 million yuan between 2023 and 2025, with its gross loss margin rising from 23.8% to 26.5% over that time. Its net losses ballooned from 853 million yuan to 1.3 billion yuan over the same period. Even after excluding one-off items, its adjusted net losses expanded from 278 million yuan in 2023 to 766 million yuan last year. All this shows that despite its strong revenue growth, its business model remains in an early, unprofitable phase."}],[{"start":332.50000000000006,"text":"Meanwhile, established battery giants using more mature technology aren’t just sitting still. Industry leader CATL (3750.HK; 300750.SH) continues refining its lithium-ion systems and has introduced quasi-semi-solid solutions, while Japan's Toyota (7203.T) is aiming to mass produce all-solid-state batteries between 2027 and 2030. For Qingtao Energy, the true competition isn't coming only from other solid-state startups, but also the continuous advances being made by lithium-ion battery leaders. Until solid-state batteries can achieve clear performance and cost advantages, these incumbents are likely to keep steering the new energy battery market."}],[{"start":369.95000000000005,"text":"While Hong Kong investors have shown strong appetite for new energy and hard tech firms, valuations for unprofitable companies are more tenuous. Investors are increasingly prioritizing revenue quality, customer diversification and clear paths to profitability. Qingtao Energy's current state — generating revenue but far from profits — places it in an uncomfortable middle ground between growth and concept stock. Against this backdrop, the fate of its IPO will hinge on whether investors believe it can transition from project- and trial-based based income to a steadier income stream from mass-produced EV models."}],[{"start":407.40000000000003,"text":"Ultimately, Qingtao Energy represents an emerging industry still awaiting validation of its long-term commercial viability. It has proven that semi-solid-state batteries can be mass produced, and that buyers exist for such technology. But it has yet to demonstrate that path can be scaled up profitably and sustainably. For investors, this translates to a technology bet with good momentum, but also one that has yet to fully prove itself."}],[{"start":442.40000000000003,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1776449932_1461.mp3"}