Shenzhen Nanshan energy storage giant pushes for IPO, valuation around 2.2 billion yuan, Tongchuang Weiye bets on it

In recent years, the computing power demand brought by AI has triggered long-term growth in electricity consumption demand, and the renewable energy power sector is entering a new round of opportunities. With its peak shaving and valley filling functions, energy storage solutions have effectively improved the utilization rate of renewable energy, becoming one of the industries experiencing rapid growth alongside them.

Recently, a company focusing on energy storage system solutions is seeking an IPO on the Hong Kong stock market.

Guangzhou Finance (Gelonghui) learned that on April 3, the China Securities Regulatory Commission announced the publication of supplementary materials requirements for overseas issuance and listing filings, requiring Shenzhen Yuanxin Energy Storage Technology Co., Ltd. (abbreviated as “Yuanxin Energy Storage”) to provide supplementary filing materials for overseas listing, clarifying issues such as inconsistent controlling shareholder recognition results and external consultants involved in the incentive plan.

Yuanxin Energy Storage previously submitted its application to the Hong Kong Stock Exchange on January 12, with China International Capital Corporation (CICC) (International) acting as the sponsor.

01

Focused on energy storage system solutions, founded by Sun Yat-sen University alumni

Yuanxin Energy Storage was established in July 2019 by Mr. Wang Yu and Ms. Zhang Jiajing. In December 2025, it was restructured into a joint-stock company. Its headquarters are located in the Nanshan District of Shenzhen, Guangdong Province.

The company’s main institutional investors include Yuecai Investment, Tongchuang Weiye, Yaxiang Electronics, Zhongke Venture Capital, and Tongxiang Wuzhen Zhenghai, among others.

In the capital increase in December 2025, the company’s post-investment valuation was approximately 2.2 billion yuan.

Wang Yu is 37 years old and currently serves as Chairman and Executive Director. He previously obtained a Bachelor’s degree in Theoretical and Applied Mechanics and a Master’s degree in Engineering Mechanics from Sun Yat-sen University. Before founding Yuanxin Energy Storage, he worked at companies including Shantou Airlines and MENGSHI New Energy.

Zhang Jiajing is 42 years old and currently serves as Executive Director and Chief Executive Officer. She previously obtained a Bachelor’s degree in English from Harbin Engineering University and a Master’s degree in New Media Science from The Chinese University of Hong Kong. Previously, she worked at companies including DuPont Solar Company, Guangfa Bank, Shingang Securities, and Yongxing Securities.

Executive Director profile, source: prospectus

Yuanxin Energy Storage is a global provider of integrated energy storage system (ESS) solutions. It focuses on research and development of integrated energy storage system solutions, as well as manufacturing and sales, serving customers in China and overseas, and covering large-scale and industrial and commercial energy storage application scenarios.

Yuanxin Energy Storage’s integrated energy storage system solutions cover high-quality energy storage hardware products and intelligent software systems, as well as the company’s comprehensive product lineup on the platform. Specifically, the company’s main businesses include:

1. Deploying the company’s integrated energy storage system solutions in customers’ energy storage projects, mainly involving a coordinated combination of hardware products and proprietary intelligent software products, or a combination of hardware products and supporting services;

2. Selling standalone energy storage system hardware to customers;

3. Providing customers with operation and maintenance and power entrusted trading services.

Lifecycle of integrated energy storage system solutions, source: prospectus

Hardware products

In terms of providing integrated energy storage system solutions, Yuanxin Energy Storage provides customers with various hardware products, mainly including several key energy storage system components such as the GridUltra series, the VenturePro series, and battery modules and battery clusters, among others.

VenturePro series industrial and commercial energy storage all-in-one cabinets, source: prospectus

Intelligent software systems

The company’s integrated software system suite includes EnergyEMS (for large-scale energy storage system solutions), EnergyHub (for industrial and commercial energy storage system solutions), EnergyMarket+, EnergyOMS, EnergyNexusAI, and EnergyCloud, providing core intelligent support for advanced data analytics, energy management, predictive operation and maintenance, and power entrusted trading.

The software ecosystem serves as the core intelligent hub. In combination with hardware products, it enables multi-dimensional revenue streams in large-scale and industrial and commercial energy storage projects, including capacity payments, ancillary services, and spot arbitrage.

02

Gross margin has fluctuated, facing pressure from accounts receivable

In recent years, benefiting from the global increase in demand for energy storage system solutions, Yuanxin Energy Storage’s revenue has grown to some extent.

In 2023, 2024, and the period of January to September 2025 (the reporting period), Yuanxin Energy Storage’s revenue was 435 million yuan, 1.144 billion yuan, and 881 million yuan, respectively, while net profits were 40.741 million yuan, 96.265 million yuan, and 70.892 million yuan, respectively.

In the first nine months of 2024, the company recorded a net loss of 49.27 million yuan, mainly because most of the company’s revenue for that year was recognized only in the fourth quarter.

Key financial data, source: prospectus

By revenue source, the proportion of Yuanxin Energy Storage’s revenue from integrated energy storage system solutions has steadily increased. In 2023, the proportion of that segment’s revenue was only 13.5%, and it increased to 92.7% in January to September 2025.

Accordingly, the proportion of revenue from energy storage system product sales decreased to a certain extent. In 2023, the proportion of that segment’s revenue was approximately 86.5%, and it fell to 6% in January to September 2025.

Revenue breakdown by product and service type (organized by product and service type), source: prospectus

Affected by changes in revenue structure, Yuanxin Energy Storage’s gross margin has fluctuated. In the reporting period, the gross margin was 21.6%, 17.8%, and 18.3%, respectively.

Notably, the gross margin of energy storage system products declined from 21.3% in 2023 to 5.4% in January to September 2025.

Gross profit and gross margin by product and service type, source: prospectus

As of September 30, 2025, the company had 103 R&D personnel, accounting for 35.3% of the total number of employees. During the reporting period, the company’s R&D expenses were 18.98 million yuan, 34.10 million yuan, and 21.59 million yuan, respectively, accounting for 4.4%, 3.0%, and 2.5% of total revenue in the same periods, respectively, showing a decline.

Yuanxin Energy Storage’s customers mainly include engineering EPC contractors, EPC subcontractors, and energy storage project owners. The company currently serves about 100 customers.

In 2023 and 2024, all of the company’s revenue came from the domestic market. Starting in 2025, some overseas revenue began to be recorded. At present, the company has signed sales contracts or purchase orders with multiple customers in China, the United States, Japan, Hungary, Poland, Spain, Mexico, Kenya, and Burkina Faso.

During the reporting period, the revenue contribution from the company’s top five customers was 53.6%, 81.6%, and 80.8%, respectively, indicating a relatively high customer concentration.

It is worth noting that Yuanxin Energy Storage is also facing pressure from accounts receivable. As of the end of each reporting period, the company’s trade receivables and notes receivable and contract assets (after deducting impairment loss allowances) were 177 million yuan, 775 million yuan, and 845 million yuan, respectively, accounting for 40.69%, 67.74%, and 95.91% of revenue, respectively.

In 2024, Yuanxin Energy Storage recorded a net cash outflow from operating activities of 40.88 million yuan. As of the end of September 2025, the company’s cash and cash equivalents on hand were 93.9 million yuan.

Cash flow statement, source: prospectus

03

Industry competition is relatively intense; facing competition from CATL, Sungrow, etc.

The global power system is undergoing a market-oriented transformation, driven by the electrification process and surging energy demand.

With the rapid growth of total installed capacity and the supply of renewable energy, the energy structure is accelerating toward decarbonization. However, renewable energy power sources have characteristics of intermittency and volatility, posing major challenges to the stable operation and efficiency of power grids.

Traditional power systems can no longer meet the real-time load balancing needs, and there is an urgent need to upgrade power grids with intelligent and flexible regulation capabilities. Against this backdrop, energy storage system solutions have developed into a key necessary condition for ensuring the safe, stable, and economical operation of modern power systems.

By implementing functions such as peak shaving, load leveling, and participating in frequency regulation, energy storage solutions effectively improve the utilization rate of renewable energy. As demand becomes clearer and technology becomes increasingly mature, energy storage application scenarios have expanded from the generation side to the grid side, as well as to the industrial and commercial and residential sectors, forming a diversified coordinated pattern involving sources, grids, loads, and storage.

Energy storage systems undertake key devices for converting and storing electrical energy. Its integration of key hardware and software modules includes energy storage cells, PCS, EMS, and BMS.

Classified by storage media, energy storage systems can be divided into lithium-ion, sodium-ion, lead-acid, and flow batteries, among which lithium-ion energy storage systems represent the mainstream technology route.

In the upstream of the value chain of energy storage system solutions, the main players are manufacturers of core components such as energy storage cells, PCS, and thermal management systems, as well as software suppliers such as EMS and BMS.

The midstream is led by energy storage system solution providers, responsible for system design, integration, installation, and commissioning. Yuanxin Energy Storage is located in the midstream of the industrial chain.

The downstream segment is mainly composed of energy storage system operation and maintenance service providers for different application scenarios, shouldering responsibilities related to system operation and energy management.

Industry value chain analysis of energy storage system solutions, source: prospectus

From the perspective of the global market, in 2020, the market size of energy storage systems was 15.5 billion yuan, and it increased to 202.4 billion yuan in 2024. It is expected to reach 1,530.5 billion yuan by 2030. From 2024 onward, the compound annual growth rate is approximately 40.1%.

Looking only at the China market, the domestic energy storage system market size was approximately 73.8 billion yuan in 2024. It is expected to further expand to 657 billion yuan by 2030. The compound annual growth rate from 2024 to 2030 is 44.0%.

Global energy storage system market size, source: prospectus

The global market for energy storage system solutions is expanding rapidly in line with the decarbonization trend mentioned above. According to Sullivan’s materials, global new installed capacity increased from 11.5 GWh in 2020 to 187.2 GWh in 2024, with a compound annual growth rate of 100.7%. This growth momentum is expected to continue; by 2030, it is expected to reach 1969.6 GWh, and the compound annual growth rate between 2024 and 2030 is 48.0%.

From the competitive landscape, the global energy storage system solutions market is highly competitive, with more than 30 participants worldwide.

In 2024, global energy storage system shipments reached 235.8 GWh. Among them, the top fifteen companies accounted for over 80% of total shipments. Yuanxin Energy Storage’s 2024 shipment volume was 3.7 GWh, ranking fifteenth.

Major industry participants include Tesla, Sungrow, BYD, JinkoSolar, CATL, Envision Energy, Haisibos Chuang, Zhongtian Energy Storage, Haichen Energy Storage, and so on.

Overall, driven by changes in the energy structure and the increase in electricity demand from the AI industry, the energy storage market has certain development prospects. However, because there are many participants in this market, Yuanxin Energy Storage faces competition from industry giants represented by CATL. In recent years, the company’s revenue has grown, but it faces relatively large pressure from accounts receivable, negative operating cash flow in 2024, and a relatively large investment scale required.

Whether the company can continue to expand its market share in the future and improve its financial situation—Gelonghui will remain attentive.

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