Cooper Energy races toward Hong Kong listing: net profit surges 336% over three years, with 80% of revenue dependent on European markets

On June 16, 2026, Shenzhen Cooper Energy Co., Ltd. (hereinafter referred to as 'Cooper Energy') officially submitted its application for a main board listing on the Hong Kong Stock Exchange, with Guotai Junan International acting as sole sponsor. Founded in 2014, this energy storage system integrator had previously initiated A-share IPO counseling in 2023 but ultimately pivoted to the Hong Kong capital market.

According to the prospectus, Cooper Energy is a provider of utility-scale distributed BESS (battery energy storage system) solutions, specializing in the research and development, manufacturing, and sales of integrated AC/DC distributed energy storage systems. Its BESS solutions are widely deployed on the distribution grid side, in commercial and industrial applications, and in microgrids. The company’s product portfolio comprises three primary series: PowerCombo, FlexCombo, and FlexCube.

Per Frost & Sullivan data, by shipment volume, Cooper Energy held approximately a 5.5% market share in Europe’s distributed utility-scale BESS market in 2025, ranking fifth among Chinese solution providers and eighth overall. In the Nordic distributed utility-scale BESS market, Cooper Energy commanded a substantial 22.3% market share, placing it first among Chinese suppliers and second overall. The company has obtained international safety certifications including UL9540, UL9540A, and LSFT, and holds medium- and high-voltage grid interconnection certifications in 16 European countries.

Financially, Cooper Energy has delivered robust performance in recent years. From 2023 to 2025, the company reported revenues of RMB 451 million, RMB 494 million, and RMB 703 million, respectively, representing a compound annual growth rate (CAGR) of 22.8%, with year-over-year growth of 42.2% in 2025. Net profit rose from RMB 123.31 million to RMB 331.7 million and further to RMB 538.12 million, marking a cumulative increase of over 336% over three years. Gross margin improved from 22.9% in 2023 to 26.7% in 2024, primarily driven by declining cell prices, and remained stable at 25.7% in 2025.

The core driver of earnings growth comes from a surge in orders from the European market. In 2025, Kubu Energy generated RMB 609 million in revenue from Europe, accounting for 86.7% of total revenue; revenue from mainland China amounted to only RMB 85.04 million, or 12.1%. The company’s BESS (Battery Energy Storage System) business revenue grew from approximately RMB 440 million in 2023 to around RMB 640 million in 2025, with global BESS shipments exceeding 2.5 GWh.

Behind this high-growth performance, however, lie significant risks that cannot be ignored. Data shows that Kubu Energy has a high degree of customer concentration. From 2023 to 2025, revenue from its top five customers accounted for 70.9%, 55.2%, and 50.6% of total revenue, respectively; revenue from its largest single customer represented 46.4%, 15.6%, and 22.8% during the same periods. In response, Kubu Energy candidly stated that it 'will continue to rely on a limited number of customers in the foreseeable future.'

Moreover, Kubu Energy is heavily dependent on overseas markets. From 2023 to 2025, the proportion of its overseas revenue stood at 81.3%, 53.4%, and 87.9%, respectively. Kubu Energy warned that if conditions in the European market deteriorate, its operating results would suffer a material adverse impact.

Furthermore, Kubu Energy’s trade receivables have risen rapidly. As of the end of 2023, 2024, and 2025, the net book value of its trade receivables and notes receivable stood at RMB 31.6 million, RMB 131 million, and RMB 158 million, respectively, with receivables turnover days extending from 55 to 83 days. The continued expansion of receivables poses potential pressure on the company’s cash flow.

On the equity side, Dr. Men Kun, Dr. Wu Junyang, Mr. Xu Bin, and Mr. Qian Cheng are acting in concert. Together with the employee incentive platform, Kubu Energy Investment, they collectively held voting rights of approximately 47.85% prior to the listing, forming a controlling shareholder group. Among them, Men Kun is co-founder and Chairman of the Board, while Wu Junyang is co-founder and General Manager.

Among institutional shareholders, Qiming Venture Capital holds 10.45% through QM102, Shenzhen Capital Group holds a combined 7.55%, and Songhe Capital holds a combined 5.26%. Notably, as early as 2023, when Kubu Energy initiated its A-share IPO counseling process, Qiming Venture Capital and Songhe Capital were already key investors.

The proceeds from Kubu Energy’s IPO will primarily be allocated toward building and upgrading production lines, establishing and enhancing marketing and after-sales service networks, and funding working capital. The company’s Dongguan factory is expected to reach a total module capacity of 3 GWh by Q3 2026, while its Changzhou production base is scheduled to commence commercial production in Q4 2026, with a long-term designed total capacity of 15 GWh.

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