Enjie Shares Terminates 1.6 Billion Yuan Aluminum-Plastic Film Project

Image source: Enjie Co., Ltd.

Regarding the reasons for project termination, Enjie Co., Ltd. stated that the main cause is the intensified competition in the industrial chain in recent years, leading to a decline in product prices across various segments. The company believes that continuing with the project may face the risk of investment returns not meeting expectations.

Enjie Co., Ltd.'s semi-annual performance report shows that the company's operating revenue for the first half of 2025 was 5.763 billion yuan, a 20.48% increase compared to the same period last year. The gross profit margin was 15.53%, down 5.49 percentage points from the same period last year. The net profit was -132 million yuan, a decrease of 423 million yuan compared to the same period last year. The net cash flow from operating activities was 210 million yuan, a decrease of 86.46% compared to the same period last year.

As of the end of June 2025, Enjie Co., Ltd.'s asset-liability ratio was 45.04%, an increase of 0.56 percentage points compared to the end of the previous year; rigid debt amounted to 16.738 billion yuan, an increase of 5.72% compared to the end of the previous year; the balance of monetary funds excluding restricted and raised funds was 1.551 billion yuan, an increase of 17.67% compared to the end of the previous year.

As of the date of this announcement, the remaining balance of Enjie convertible bonds is 453 million yuan, which will mature on February 11, 2026, with the latest conversion price at 32.01 yuan per share. As of the end of June 2025, the fundraising projects for Enjie convertible bonds have been completed and put into production, and the raised funds have been fully utilized.

Aluminum-plastic film industry: coexistence of growth potential and challenges for domestic products

As the core packaging material for pouch lithium batteries, the aluminum-plastic film market exhibits a distinct pattern of "global growth and domestic catch-up." According to QYResearch data, the global aluminum-plastic film market size was approximately USD 1.556 billion in 2024 and is expected to reach USD 3.366 billion by 2031, with a compound annual growth rate of 11.8% from 2025 to 2031. As the world's largest lithium battery producer, China accounted for over 40% of the global aluminum-plastic film shipment volume of approximately 450 million square meters in 2024. However, the market structure is highly imbalanced—Japanese and Korean companies hold 73% of the global market share, with Japan's DNP alone occupying 50%, while domestic companies collectively have only a 25% market share.

Technical barriers are the biggest obstacle to domestic substitution. Aluminum-plastic films must simultaneously meet contradictory performance requirements such as barrier properties, puncture resistance, and cold-forming, with their multi-layer composite material formulas and lamination processes involving a large amount of implicit knowledge. Currently, the localization rate of aluminum-plastic films in China is about 40%, but mainly concentrated in the lower-tech 3C consumer electronics sector. In the power battery field, the localization rate is less than 5%, and the high-end market is almost completely monopolized by Japanese companies such as Showa Denko and DNP. The average price of imported products is 34.9% higher than that of domestic products. This technological gap has led to a dilemma for domestic companies of "high investment, slow returns," echoing Enjie Co., Ltd.'s assessment that "investment returns do not meet expectations."

In the long run, the growth momentum of the aluminum-plastic film market has not disappeared. The increased penetration of pouch batteries in the electric vehicle and energy storage sectors constitutes core support. According to conservative forecasts by institutions such as GGII, the penetration rate of pouch batteries in the power battery market will reach 45%-50% by 2030, driving the demand for aluminum-plastic films to grow from 1.25-1.67 billion square meters in 2025 to 3.24-4.32 billion square meters. On the policy front, China continues to introduce supportive policies for new energy battery materials. For example, the aluminum industry chain plans in the Sichuan-Chongqing region have clearly identified power battery aluminum-plastic films as a key development direction, providing policy benefits for domestic substitution.

However, short-term competitive pressures cannot be ignored. In 2024, the global shipment share of pouch lithium batteries has dropped from 19.2% in 2023 to 15.6%, and shipments from medium and large pouch battery companies have generally fallen short of expectations. This fluctuation on the demand side conflicts with capacity expansion—leading domestic companies such as Zijiang Enterprise will have an aluminum plastic film production capacity of 107.6 million square meters in 2024, and other companies like Selen Science & Technology are still expanding capacity. Coupled with price suppression from Japanese and Korean companies, the industry has fallen into a vicious cycle of “increasing volume but falling prices.” What is even more concerning is the potentially disruptive impact of solid-state battery technology: if its penetration rate reaches 15%-20% by 2030 and it adopts a hard shell packaging route, it will directly undermine the growth potential of demand for aluminum plastic film.

The termination decision of Enjie Co., Ltd.'s project is essentially a rational choice made amidst the cyclical fluctuations of the industry. For the aluminum-plastic film sector, a subfield of lithium battery materials that has not yet been fully localized in China, companies need to find a balance between technological breakthroughs, capacity expansion, and financial security. With the optimistic expectation that the global market size will soon double, overcoming the technical barriers established by Japanese and Korean companies and avoiding low-level price competition will be crucial for Chinese aluminum-plastic film enterprises to achieve true rise.