Cooper Energy files for Hong Kong listing: nearly 90% of its revenue in 2025 came from overseas markets, with rising raw material costs and adjustments to export tax rebate policies clouding earnings outlook

Shenzhen Cooper Energy Co., Ltd. (hereinafter referred to as 'Cooper Energy'), an energy storage system integrator, recently filed for a listing on the Hong Kong Stock Exchange.

According to the prospectus (application version), Cooper Energy’s financial performance during the reporting period (2023–2025) benefited from declining prices of upstream raw materials such as battery cells. However, cell prices have risen sharply since October 2025. Meanwhile, the export tax rebate rate for battery products will be reduced to 6% starting April 2026 and fully eliminated from January 2027, which is expected to significantly impact Cooper Energy’s financial performance.

Reporters from The Daily Economic News (hereinafter referred to as 'Daily Economic reporters') noted that in 2025, nearly 90% of Cooper Energy’s revenue came from overseas markets, while revenue from mainland China declined substantially year-over-year. In fact, especially in 2025, Cooper Energy experienced significant changes among its key customers—contradicting its prospectus statement that it 'maintained stable cooperation with major clients during the reporting period and achieved a high customer repurchase rate.'

According to the prospectus, Cubenergy is a leading provider of distributed BESS (battery energy storage system) solutions focused on the utility sector. The company offers three product lines: PowerCombo, FlexCombo, and FlexCube.

In terms of financial performance, Cubenergy reported revenues of RMB 451 million, RMB 494 million, and RMB 703 million during the reporting periods, with net profits of RMB 123.31 million, RMB 331.70 million, and RMB 538.12 million, respectively.

Source: Cubenergy prospectus

Per the prospectus, global BESS shipments are projected to grow at a compound annual growth rate (CAGR) of approximately 29.8% from 2025 to 2030, with China—the largest market—expected to achieve a CAGR of about 162.7%.

However, as product sales volumes increased, Cubenergy’s average selling price (ASP) for PowerCombo during the reporting periods was RMB 1.6 per Wh (watt-hour), RMB 1.2 per Wh, and RMB 1.1 per Wh, respectively, while the ASP for FlexCombo was RMB 3.2 per Wh, RMB 3.0 per Wh, and RMB 0.9 per Wh, respectively—all showing a year-over-year decline. Cubenergy stated that the decline in PowerCombo ASP was primarily due to falling prices of battery cells and other raw materials, while the drop in FlexCombo ASP resulted from large-scale production and commercialization starting in 2024.

Source: Cubenergy prospectus

Despite declining product prices, Cubenergy’s gross margin rose counter-cyclically from 22.9% in 2023 to 26.7% in 2024 and 25.7% in 2025. The company attributed this improvement primarily to the decline in cell prices.

Source: Kubo Energy prospectus

Specifically, the price of energy storage lithium-ion cells declined from RMB 0.85/Wh in 2022 to RMB 0.33/Wh in 2025. However, from October 2025 to May 2026, amid a sharp rise in lithium carbonate prices, the average monthly price of energy storage lithium-ion cells increased by a cumulative 32.4%. The average annual price in 2026 is expected to rise to RMB 0.46/Wh, marking a significant rebound compared to 2025.

Accordingly, Kubo Energy stated in its prospectus that the company expects its net profit in 2026 to decline compared to 2025.

Meanwhile, as Kubo Energy’s business primarily originates from overseas markets, its financial performance is also subject to policy-related factors. In 2025, the company generated RMB 618 million in revenue from overseas markets, accounting for 87.9% of its total revenue.

According to the prospectus, while cell prices further declined in 2025, the export tax rebate rate was reduced from 13% to 9%, undoubtedly exerting downward pressure on Kubo Energy’s gross margin.

Publicly available information indicates that China’s Ministry of Finance and State Administration of Taxation have gradually adjusted export tax rebate rates for certain photovoltaic products and batteries. The export tax rebate rate for battery products was lowered to 6% starting April 2026 and will be fully eliminated from January 2027.

Kubo Energy also noted in its prospectus that the aforementioned changes to China’s export tax rebate policy have previously adversely affected the company’s pricing strategy and profitability and are expected to continue exerting negative impacts, particularly in 2026.

Everyday Economic News reporters observed that Kubo Energy’s substantial revenue growth in 2025 was primarily driven by a significant increase in sales to overseas markets.

Specifically, revenue from the Chinese mainland market as a share of Kubo Energy’s total revenue dropped sharply from 46.6% in 2024 to 12.1% in 2025. Meanwhile, revenue from the European market rose steadily from 24.5% in 2023 to 86.7% in 2025.

Source: Cubenergy's prospectus

Cubenergy stated that its overseas revenue growth benefited from favorable policies in key international markets and rising demand for grid infrastructure upgrades. The significant decline in revenue from the Chinese mainland market in 2025 aligns with the company’s strategic focus on overseas markets and its more cautious and selective approach toward domestic projects.

However, according to the prospectus, Cubenergy’s capacity utilization rates during the reporting periods were 38.4%, 50.4%, and 56.5%, respectively—far below full production capacity.

Source: Cubenergy's prospectus

Cubenergy is currently constructing a new production facility in Changzhou, which will further expand capacity for its PowerCombo product line, primarily targeting overseas markets.

Meanwhile, Cubenergy noted in its prospectus that it maintained stable cooperation with major customers during the reporting periods and achieved a high customer repurchase rate. However, National Business Daily reporters observed significant changes among the company’s top five customers during the reporting periods, particularly in 2025.

The prospectus shows that Cubenergy began business relationships in 2023 with its third- and fifth-largest customers of that year, and similarly initiated partnerships in 2025 with its third-, fourth-, and fifth-largest customers of that year. Does this contradict the prospectus statement that 'the company maintained stable cooperation with major customers during the reporting periods and achieved a high customer repurchase rate'?

In response, on June 22, National Business Daily sent an interview request to Cubenergy, but had not received a reply as of publication. On June 23, National Business Daily called Cubenergy multiple times, but the calls could not be connected.

Aside from its third-, fourth-, and fifth-largest customers, Cubenergy’s largest customer in 2025, Customer G, was established in Finland in 2023, and their partnership began in that same year. The second-largest customer in 2025, Paneco Energie, was incorporated in April 2024, and collaboration between the two parties also commenced in 2024—the year of Paneco Energie’s founding.

Notably, Paneco Energie is also a major shareholder of Paneco Cubenergy. According to the prospectus, Paneco Cubenergy—which was also incorporated in April 2024—was formerly a wholly owned subsidiary of Cubenergy Hong Kong, itself a wholly owned subsidiary of Cubenergy. In May 2024, Cubenergy Hong Kong transferred a 40% stake in Paneco Cubenergy to Paneco Energie for HK$4,000.

Source: Koober Energy IPO prospectus

Customers G and Paneco Energie both entered Koober Energy's top five customers list for the first time in 2025, accounting for 22.8% and 9.3% of the company's revenue in 2025, respectively.

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