[IPO Outlook] With continuous performance growth, what are the listing prospects for Yuanxin Energy Storage?

As a popular investment track, many energy storage companies, including $CATL (03750.HK)$ 、 $SHUANGDENG (06960.HK)$ 、$GUOXIA TECH (02655.HK)$ , have already gone public on the Hong Kong Stock Exchange.

The Hong Kong Exchanges and Clearing Limited recently disclosed that Shenzhen Yuanxin Energy Storage Technology Co., Ltd. (hereinafter referred to as 'Yuanxin Energy Storage') has also submitted its listing application, planning to list on the Main Board of the Hong Kong Stock Exchange, with CMB International acting as its sole sponsor.

In this push to enter the Hong Kong stock market,Yuanxin Energy Storage plans to use the proceeds from the offering to enhance technical capabilities, expand overseas business, upgrade existing production facilities and production lines, and supplement working capital, among other areas.

Core Business: Energy Storage System Solutions

According to available information, Yuanxin Energy Storage was established in July 2019 and is a global integrated energy storage system (ESS) solutions provider. Its integrated energy storage system solutions encompass a comprehensive product portfolio of high-quality energy storage hardware products and intelligent software systems and platforms, covering large-scale and commercial and industrial energy storage application scenarios.

Specifically, Yuanxin Energy Storage primarily (i) deploys its integrated energy storage system solutions in customers' energy storage projects, mainly involving a synergistic combination of hardware products (such as the GridUltra series and VenturePro series) and proprietary intelligent software products (such as Energy EMS/EnergyHub and EnergyCloud), or a combination of the company’s hardware products and supporting services (including, among others, project auxiliary development and energy storage system solution design); (ii) sells energy storage system hardware (as standalone products) to customers; and (iii) provides operation and maintenance and power trading services to customers.

Geographically, Yuanxin Energy Storage is based in the domestic market but began expanding into overseas markets in the second half of 2024 and generated some revenue from overseas markets in 2025.

As of January 2, 2026, Yuanxin Energy Storage served approximately 100 customers, providing energy storage system solutions and products with a total capacity exceeding 10GWh. As of the same date, the company had signed sales contracts or purchase orders with multiple customers in China, the United States, Japan, Hungary, Poland, Spain, Mexico, Kenya, and Burkina Faso.

According to Frost & Sullivan, Yuanxin Energy Storage ranked first among global full lifecycle solution providers for energy storage assets with an additional installed capacity of 1.3GWh in standalone energy storage in the first nine months of 2025. In 2024, the company ranked fifth with a shipment volume of 3.7GWh based on energy storage system shipments.

It is worth mentioning that Yuanxin Energy Storage has completed multiple rounds of capital operations during its development. The prospectus disclosed thatIn early 2026, the company announced the completion of a new round of financing, receiving investments from institutions such as TC Capital, ZH Capital, and JoyOrigin Blueprint.

However,Prior to the IPO, Wang Yu and Zhang Jiajing were acting in concert as controlling shareholders, holding a relatively high proportion of shares, resulting in a concentrated equity structure.

Rapid growth in revenue and profit

In terms of performance, Yuanxin Energy Storage's revenues for 2023, 2024, and the first nine months of 2025 were RMB 435 million, RMB 1.144 billion, and RMB 881 million, respectively.The corresponding profits were RMB 40.741 million, RMB 96.265 million, and RMB 70.892 million, respectively, with both revenue and profit experiencing continuous growth.

The company’s revenue mainly includes amounts received and receivable (net of related sales taxes) from (i) providing integrated energy storage system solutions; (ii) sales of energy storage system products; and (iii) operation and maintenance services and power trading delegation services.

Data shows that in 2023, sales of energy storage system products contributed 86.5% of revenue; in 2024, energy storage system solutions contributed 42.2% of revenue, while sales of energy storage system products accounted for 57.8% of revenue.By the first three quarters of 2025, energy storage system solutions contributed 92.7% of revenue.

This shows that although performance has been growing steadily,the company's business structure has undergone significant changes. By the first three quarters of 2025, the revenue contribution from a single business exceeded 90%, indicating a relatively high dependence, which is not conducive to the stability of the company’s performance.

Another issue lies inthe continuous decline in the average selling price (ASP) of integrated energy storage system solutions, which stood at RMB 1.26/Wh, RMB 0.77/Wh, and RMB 0.44/Wh for 2023, 2024, and the first three quarters of 2025, respectively.

The prospectus also disclosed that the global energy storage systems solutions market is highly competitive, with over 30 participants globally. In 2024, global energy storage system shipments reached 235.8GWh.The top 15 companies accounted for more than 80% of total energy storage system shipments. Yuanxin Energy Storage ranked fifteenth, with shipments of 3.7GWh in 2024.

Against the backdrop of fierce market competition, the continuous decline in the ASP of Yuanxin Energy Storage’s core products is particularly noteworthy for investors.

High customer and supplier concentration

The prospectus further disclosed several areas about Yuanxin Energy Storage worth paying attention to.

On one hand, the company has a relatively high reliance on a small number of large customers.The data shows that for the first three quarters of 2023, 2024, and 2025, revenue contributed by the top five clients accounted for 53.6%, 81.6%, and 80.8% of total revenue during the period, respectively; the revenue contribution from the largest client was 11.8%, 40.7%, and 30.7%, respectively.

On the other hand, the company also has a high dependency on a small number of suppliers.For the first three quarters of 2023, 2024, and 2025, purchases from the top five suppliers accounted for 61.9%, 70.9%, and 63.7% of the total procurement amount during the same period, respectively; the proportion of purchases from the largest supplier was 42.8%, 56.6%, and 44.3%, respectively.

Generally speaking, over-reliance on a few major clients and suppliers is also detrimental to earnings stability. Yuanxin Energy Storage pointed out related risks in its prospectus.

Conclusion

Currently, the global power system is experiencing a market-driven revolution! The dual drivers of electrification and surging energy demand have caused renewable energy installations and supply to skyrocket, with the energy structure rapidly transitioning towards decarbonization.

But here comes the problem—new energy sources like wind and solar are inherently 'weather-dependent,' with intermittent and fluctuating output, posing significant challenges to the stable operation of the grid. Traditional power systems simply cannot handle the demands of real-time load balancing, whereas energy storage systems can achieve 'time-space energy transfer' and precise power regulation. Through operations such as peak shaving, valley filling, stabilizing fluctuations, and participating in frequency regulation, they can greatly improve the utilization rate of renewable energy.

From an institutional perspective, many institutions believe that the prospects for the energy storage sector are relatively bright. As a leading player in the market, Yuanxin Energy Storage’s performance has been favorable. Whether it can successfully go public on the Hong Kong stock market this time is worth tracking.

Author: Yun Zhifengqi

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