Can Hithium Shine Without Government Help?

Reliance on Government Subsidies

Hithium, a major player in the battery storage industry, is under scrutiny as it prepares to go public in Hong Kong. The company has experienced rapid growth, but not without significant financial assistance from the Chinese government.

• Subsidies Between 2022 and 2025: Hithium received substantial subsidies, raising concerns about its financial independence.
• Annual Losses Without Subsidies: Without government support, the company would have reported losses every year.

Investor and Regulatory Concerns

The heavy reliance on subsidies has sparked serious questions:

• Sustainability: Can Hithium operate profitably without government handouts?
• Investor Confidence: Investors and regulators are wary of the company's long-term viability.

Global Expansion and Challenges

Hithium is aiming to expand globally, with a plant in Texas. However, there are significant challenges:

• Assembly, Not Manufacturing: The Texas plant assembles parts from China, meaning products are still subject to high tariffs.
• Texas Laws: New regulations may further complicate Hithium's operations in the state.

U.S. Blacklisting and Risks

• Blacklisted by the U.S. Government: Hithium is barred from doing business with certain American companies and accessing government incentives.
• Disclosure Issues: The company's public filings do not clearly outline these risks, potentially posing problems for the Hong Kong Stock Exchange.

Conclusion

Hithium has significant hurdles to overcome to convince investors of its viability. The market will ultimately decide if the company is a sound investment.