Zhejiang Laneng Voluntarily Halts A-Share IPO Process

Zhejiang Laneng Hydrogen Energy Technology Co., Ltd. voluntarily suspended its A-share listing process in April 2024. On April 3, Guotai Haitong Securities announced that, by mutual agreement with Zhejiang Laneng, it had terminated the sponsorship for the company’s initial public offering (IPO). Orient Securities, the co-sponsor, simultaneously ceased its related work. As of the announcement date, both parties had completed eight rounds of IPO counseling. Founded in 2009 with registered capital exceeding RMB 4 billion, Zhejiang Laneng is a subsidiary of Shenergy Group. The company specializes in high-pressure hydrogen storage cylinders, hydrogen refueling station equipment, and hydrogen storage and transportation systems, and has been designated as a national “Little Giant” enterprise under China’s specialized, sophisticated, and innovative SME program. Its hydrogen storage cylinder systems for refueling stations serve over 80% of the domestic market, and its hydrogen tube trailers hold a market share exceeding 75%. In 2023, the company closed its Series B financing round, attracting strategic investors including SAIC Motor and Sinopec Capital. In December of the same year, Zhejiang Laneng filed its IPO counseling registration with the Zhejiang branch of the China Securities Regulatory Commission (CSRC), with Guotai Haitong Securities and Orient Securities jointly serving as counseling institutions. The current decision to terminate the IPO process stems from the company’s own strategic considerations and capital planning. The hydrogen energy industry remains in the early stages of commercialization, with companies commonly grappling with unstable profitability and substantial R&D investment pressures. Coupled with increasingly stringent A-share IPO review standards, several hydrogen energy firms have adjusted their listing plans. Backed by state-owned capital and diversified industrial investors, Zhejiang Laneng’s termination of the counseling process is widely viewed as a temporary pause in its A-share listing timeline, allowing the company to focus on technology implementation and business expansion.