On May 7th, the Hong Kong stock market witnessed an under-the-radar small-cap company claiming the title of the day's top performer. GOLDENPOWER (03919.HK) saw its share price surge by up to 120% during the afternoon session, successfully doubling within a single trading day and sparking a frenzy among investors.

The powerful rally was linked to the company's discounted placement of shares and its annual report, which showed a return to profitability year-on-year.

The dramatic surge was directly triggered by an announcement on May 6th regarding a discounted share placement. The announcement indicated that the company conditionally agreed to allot and issue a total of 6.48 million shares at a subscription price of HK$1.20 per share. This subscription price represented a discount of approximately 14.29% to the closing price of HK$1.40 per share quoted on the Stock Exchange. The gross and net proceeds from the subscription are expected to be approximately HK$7.78 million and HK$7.70 million, respectively.

According to the announcement, the proceeds will be used primarily for three purposes: first, research and development for medical/healthcare specialty batteries and AI-integrated intelligent production lines; second, repaying bank loans maturing within the next six months; and third, supplementing daily operational cash flow. Considering the company's plans for 2026 outlined in its annual report, the allocation of 40% of the placement proceeds to medical/healthcare specialty battery R&D has expanded market expectations.

On April 23rd, GOLDENPOWER officially released its 2025 annual report, with the key highlight being a return to profit attributable to owners after three consecutive years of losses. The report showed that the company's 2025 revenue reached a historical high of RMB 301.3 million, a year-on-year increase of 4.96% compared to 2024. The gross profit for 2025 was RMB 64.42 million, a decrease of 12.44% compared to the previous year.

However, profit attributable to owners reached RMB 294,400 in 2025. Although the absolute amount is modest, it more than doubled compared to 2024, surging by 105.12% and reversing the trend of losses from the previous three years.

GOLDENPOWER's products are divided into two categories: primary batteries and rechargeable batteries. Primary batteries are further categorized into cylindrical batteries and miniature button cells. The company stated in its annual report that revenue from cylindrical batteries showed significant growth in 2025, increasing by 7.68% compared to 2024 due to rising demand in North American and European markets. Revenue from miniature button cells and rechargeable batteries saw slight decreases compared to 2024.

Geographically, revenue from Europe surged by 44% year-on-year, North America increased by 21.8%, and Hong Kong rose by 17.9%. Conversely, revenue from Mainland China decreased by 7.7% year-on-year. The company's gross profit margin for 5 fell to 21.39% from 25% in 2024, a decrease of approximately 3.61 percentage points, primarily due to RMB appreciation and commodity price fluctuations leading to increased costs for raw materials and packaging materials.

For its 2026 plans, GOLDENPOWER indicated it will advance the integration of production facilities (targeted for completion between late 2026 and early 2027), increase investment in the medical and healthcare battery markets, raise the proportion of B2B business, and continue automation and energy-saving/decarbonization efforts. The recent discounted share placement is a key project for implementing these 2026 plans, aiming to position the company in higher value-added market segments.

GOLDENPOWER is a family-controlled enterprise, managed by a "iron triangle" from the Zhu family. Seventy-one-year-old Zhu Jingdian serves as the company's Board Chairman and Executive Director. With 48 years of experience in the battery industry, he is the core figure responsible for overall strategy and major decisions. Sixty-three-year-old Zhu Shuqing holds the positions of CEO and Executive Director. With 36 years in the battery industry, she is primarily responsible for the company's daily operations management and policy execution. Zhu Shuqing is also the sister of Zhu Shuwen, the 66-year-old Deputy General Manager of Golden Power Enterprises. The specific relationships between Zhu Jingdian, Zhu Shuqing, and Zhu Shuwen are not explicitly detailed in the annual report.

Zhu Jingdian's son, 41-year-old Zhu Haohua, serves as an Executive Director and Chairman of the ESG Committee, responsible for business development, strategic planning, and ESG strategy. Together, Zhu Jingdian and Zhu Shuqing hold approximately 48% of the shares, giving them absolute control over the company.

Zhu Jingdian's entrepreneurial journey is a story of rising from an employee to the controlling shareholder of a Hong Kong-listed company. With only a high school education, he joined Golden Power Industrial in the mid-1970s before he was 20, starting as an assistant to the general manager. In the 1980s, he successfully entered the company's management as a director. From the 1990s to the early 2000s, Zhu served as an Executive Director of China Oil and Gas Group, the parent company of Golden Power Industrial. In 2003, he partnered with others to acquire the main battery business of Golden Power Industrial, officially becoming the owner, and assumed the role of Chairman and Managing Director of Golden Power Industrial in 2005. GOLDENPOWER Group Holdings was established in 2012. In 2015, Zhu led the company to its listing on the Hong Kong stock exchange and has served as Board Chairman and Executive Director continuously from 2013 to the present.