Delanming Hai's Attempt to List on HKEX: Heavy Losses and High Debt, Emergency Dividends Stacked with Overseas Dependency

AI Question · Will a sudden dividend payout under high debt undermine market confidence?

In February 2026, Shenzhen Delan Minghai New Energy Co., Ltd. (hereinafter “Delan Minghai”) officially submitted an application for listing on the Main Board of the Hong Kong Stock Exchange. This leading company in portable energy storage and a Shenzhen unicorn that previously attempted an A-share listing but failed, is now seeking a breakthrough in the capital market through Hong Kong stocks.

The two main concerns from outside observers regarding this IPO are: Why are high debts and consecutive losses leading to a sudden dividend payout? Is there any benefit transfer to shareholders? Relying heavily on the European and American markets, how will management achieve a full turnaround and ease high debt pressures?

As of press time, no response has been received regarding these questions. Based on detailed data disclosed in the prospectus, this IPO route for Delan Minghai is fraught with hidden risks. Its ongoing operational capacity and corporate governance levels face severe market challenges. The specific operational and financial status is as follows.

From OEM to a Global Leading Energy Storage Brand

Headquartered in Shenzhen, Delan Minghai was officially established in June 2013. It was one of the earliest companies in China to develop portable energy storage. Its application to the Hong Kong Stock Exchange marks a key step in its capital market strategy.

Initially, the company started with ODM OEM services, providing energy storage products for well-known brands in the industry. Simultaneously, it focused on core lithium battery energy storage technology R&D, gradually building solid supply chain management and manufacturing capabilities. It also expanded into niche overseas energy storage markets, establishing a preliminary global distribution network, laying the foundation for future brand transformation.

2020 was a pivotal year for the company, as it launched its own brand BLUETTI, shifting to a DTC direct-to-consumer model. Its first popular energy storage product set industry crowdfunding records, quickly penetrating mainstream markets in Europe, America, and Japan, transforming from a traditional OEM factory into a global professional energy storage brand.

In 2023, the company completed significant financing and became a Shenzhen unicorn. The same year, it began A-share IPO guidance, which was later terminated for unspecified reasons. By 2024, its global portable energy storage market share ranked fourth worldwide, with operations covering over 100 countries and regions. Overseas revenue accounted for nearly 98%, securing its leading position in the sector. In February 2026, it shifted to Hong Kong to seek new capital market breakthroughs.

Revenue Growth but Persistent Losses, High Marketing Expenses Erode Profits

Despite steady revenue growth, Delan Minghai has not escaped continuous losses, with no clear profit turning point in sight. The prospectus shows that in 2023, revenue reached 1.777 billion yuan, rising to 2.174 billion yuan in 2024, a 22.4% increase. In the first three quarters of 2025, revenue was 1.572 billion yuan, with a significant slowdown to 3.3% growth, indicating weakened growth momentum.

Profitability remains under pressure. In 2023, net loss was 184 million yuan; in 2024, loss narrowed to 46.62 million yuan; in the first three quarters of 2025, net loss was 29.85 million yuan. The company has yet to turn profitable for multiple years. As a DTC energy storage company, its overall gross profit margin reached 42.3%, higher than traditional B2B energy storage giants. However, high sales expenses have become a core profit drain. In the first three quarters of 2025, sales expenses totaled 480 million yuan, accounting for 30.5% of revenue, continuously squeezing profit margins and being a key reason for ongoing losses.

Asset-Liability Ratio at 106.6%, Overseas Revenue Nearly 98% Under Pressure

Financially, Delan Minghai faces significant debt repayment pressures. As of September 30, 2025, its asset-liability ratio was as high as 106.6%. As of January 15, 2026, cash and cash equivalents were about 547.8 million yuan, while trade and other payables reached 1.158 billion yuan, with bank loans of 232 million yuan. The cash flow gap and debt levels are evident, putting pressure on the capital chain.

The revenue structure shows extreme dependence on overseas markets, with regional concentration risk prominent. The prospectus indicates that in 2023, 2024, and the first three quarters of 2025, overseas revenue accounted for 98.8%, 99.4%, and 97.9%, respectively. The core markets are in the Americas and Europe. Due to easing European energy crises and weakening demand for emergency backup power, European revenue in the first three quarters of 2025 was 451 million yuan, down year-on-year, significantly impacting overall revenue growth.

Meanwhile, the stability of distribution channels continues to decline. In the first three quarters of 2025, 619 new distributors were added, but 668 partnerships were terminated, leading to net channel losses. This weakens bargaining power, and the costs of managing and integrating distribution networks continue to rise.

Two Sudden Dividends Before Listing

During the critical IPO phase, amid ongoing losses and cash flow shortages, Delan Minghai implemented two consecutive sudden dividends, raising strong market doubts.

The prospectus shows that the total dividends amounted to about 124 million yuan. On September 30, 2025, the company declared and paid dividends of 37.1 million yuan; just before submitting the listing application on January 15, 2026, it declared dividends of 87.4 million yuan to certain shareholders, which were fully paid by February 10, 2026. The company recorded this dividend as “interest expenses for grants to common shareholders,” a treatment seen by the market as suspicious of benefit transfer, raising concerns among secondary market investors about their rights.

In terms of compliance and internal control, in April 2024, Delan Minghai was fined 229,000 yuan by the Shenzhen branch of the State Administration of Foreign Exchange for foreign exchange violations. Although the fine was small, it exposed gaps in internal management and compliance.

Overall, while Delan Minghai boasts the fourth-largest global market share in portable energy storage, DTC model, and high gross margins, its ongoing losses, high debt levels, overseas market fluctuations, channel instability, and issues like pre-listing dividends and regulatory penalties pose significant challenges to its Hong Kong IPO process. The company’s subsequent responses to the two core questions will directly influence market valuation and confidence. Whether it can successfully list on the Hong Kong stock market remains to be seen.

Reporting by Nandu·Wancai She, Chen Ying Shan