Ranked second globally, Hycen Energy Storage opens the doors to the capital market with triple advantages

The energy storage industry is undergoing a major transformation. $Xiamen Hithium Energy Storage Technology Co., Ltd. (810718.HK)$

Recently, authoritative institutions such as InfoLink, GGII, SMM Shanghai Metals Market, and Xin Luo Information released reports including '2025 Global and Overseas Market Rankings for Energy Storage Cell Shipments,' '2025 China Energy Storage Lithium Battery Shipment Rankings,' '2025 Energy Storage Cell Shipment Rankings,' and 'Top 10 Global Front-of-Meter Energy Storage Shipment Rankings for 2025,' shaking up the energy storage market.

The triad dominance led by 'CATL, BYD, and EVE' has been disrupted by an emerging energy storage powerhouse founded in December 2019: Hycen Energy Storage. According to these rankings, this six-year-old company has aggressively claimed second place on the list and officially entered the hundred-GWh production capacity club.

A review of its development shows that Hycen Energy Storage’s growth story is one of catching up and then leading the industry. Meanwhile, the company’s IPO process in Hong Kong is proceeding steadily, creating a two-way synergy between capital and industry, which has left the market highly optimistic about its future.

I. Scale-driven foundation: Explosive growth in both capacity and performance

In today's increasingly competitive energy storage industry, without a certain scale, companies don’t even have a seat at the table.

As a capital-intensive industry, production capacity directly determines a company’s order-taking ability and cost control. Without sufficient scale, it is difficult to gain an advantage in global large-scale project bidding.

Hycen Energy Storage’s capacity expansion precisely meets the core demands of the global energy transition, achieving leapfrog growth. The prospectus shows that the company’s annual capacity skyrocketed from 5.4GWh in 2022 to 49.7GWh in 2024, with total designed capacity exceeding 64.4GWh in the first half of 2025. Now, with rapid production launches at bases in Xiamen, Chongqing, and elsewhere, its capacity has surpassed the hundred-GWh mark.

The rapid ramp-up in capacity directly drove qualitative leaps in revenue and profitability. From 2022 to 2024, the company’s revenue soared from 3.615 billion yuan to 12.917 billion yuan, with a compound annual growth rate of 89.0%; gross margin increased from 11.3% to 17.9%, achieving profitability in 2024 with a net profit of 288 million yuan. In the first half of 2025, net profit further rose to 213 million yuan, with net margin improving to 3.1%, reflecting steady enhancement in profitability.

Continuous scale expansion reduced unit costs, giving the company a price advantage in global project bids and providing solid performance support for its IPO fundraising and capacity expansion.

Second, technological innovation breakthrough to build a differentiated competitive moat

As competition in the energy storage industry intensifies, technological innovation has become the core factor for companies to break out of low-price competition and establish long-term barriers.

Hycen Energy Storage builds differentiated barriers through technological innovation, efficiently converting R&D investment into commercial value. Its key breakthroughs in long-duration energy storage technology are not confined to laboratory levels but instead address market pain points.

Recently, Hycen Energy Storage unveiled the world’s first lithium-sodium collaborative AIDC full-duration energy storage solution on its third Ecology Day. This solution precisely addresses core issues such as long construction cycles for data center power, high carbon emissions, and grid load shocks amid surging computational demands.

This solution constructs a collaborative system covering 'source-grid-load' through an innovative architecture that combines lithium battery backup with high-rate sodium batteries, and it has now entered the commercial implementation phase.

This would not have been possible without the company's long-term commitment to technological investment.

According to the prospectus, from 2022 to the first half of 2025, the company's cumulative R&D expenditure exceeded 1.5 billion yuan. To date, the company has filed over 4,300 global patent applications and has more than 1,000 R&D personnel. The industrialization achievements of core technologies are remarkable, such as launching the world's first sodium-ion battery specifically designed for power storage with a cycle life exceeding 20,000 cycles, suitable for extreme scenarios like high temperatures and extreme cold; the ∞Power 6.25MWh long-duration energy storage system has become an industry benchmark due to its high safety and low cost advantages.

These technological innovations not only enhance product value but also help the company escape low-price competition, construct a differentiated profit model, and provide sustainable technical support for long-term growth.

Third, service expansion, global order surge validates market recognition

As the global energy transition advances, establishing a global presence has become a core strategic choice for energy storage companies to capture market share and hedge against risks in a single region.

However, market demands vary across different regions: parts of Europe have weak bridge and port lifting capabilities, requiring products with smaller weight and dimensions; the Middle East faces high temperatures, intense sunlight, and high corrosion in some areas, necessitating products adapted to extreme environments. A one-size-fits-all approach is inadequate for global adaptation; enterprises can only precisely meet diverse needs through a globally integrated R&D, production, sales, and service system.

Hycan Storage's global expansion represents a proactive strategy aligned with this industry trend, and its solid order data verifies the international competitiveness of its products and solutions.

In 2025, the company's publicly disclosed overseas orders will exceed 33GWh, with operations spanning key regions including Europe, the Middle East, and Australia. Notably, the 1.5GWh long-duration energy storage project developed in Israel has become a classic case of commercializing the company's long-duration energy storage technology, filling an important gap in the Middle Eastern market.

Recently, the meeting between UK Prime Minister Starmer and Hycan Storage Chairman Wu Zuyu marked a significant event where the company’s global influence gained recognition at the international political level. Reportedly, Hycan Storage will invest 200 million pounds in the UK, further strengthening its image as a global enterprise.

The explosive growth of overseas business has injected strong resilience into the company's financial performance. From 2022 to 2024, the company's overseas revenue increased from 33,000 yuan to 3.7 billion yuan, contributing 28.6% of total revenue and becoming a new growth curve for the company.

The breakthrough in overseas markets holds dual value: on one hand, it diversifies policy and trade risks associated with a single market, especially amid increasing global trade uncertainties, ensuring revenue stability; on the other hand, the high gross margins in markets like Europe and the US help improve profitability, continuously enhancing the company’s overall profit potential.

This 'global order-taking, global delivery' capability not only validates the international competitiveness of the company's products and solutions but also helps secure higher market premiums during an IPO.

IV. Conclusion

It is evident that Hycan Storage has clearly established a core competitive edge built on three pillars: production capacity support, technological leadership, and market validation.

The continuous expansion of production capacity has earned it an entry ticket into market competition; the commercialization of cutting-edge technologies has fortified its differentiated barriers; and the sustained growth of global orders has validated the feasibility and sustainability of its business model.

Today, Hycan Storage is no longer just an industry innovator but has grown into a core enabler capable of defining the long-duration energy storage sector, delivering core value to customers, and supporting global energy transition and digital economic development.

The golden age of the energy storage industry has arrived. Haein Energy Storage has completed its transformation from breaking through barriers to becoming a leader in just six years. With its core competitiveness based on a tripartite integration strategy, combined with the capital boost from its IPO, Haein Energy Storage is well-positioned to create greater value amid the global energy transition.

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