Yuánxìn Energy Storage is preparing for an IPO, focusing on energy storage system solutions, facing pressure from accounts receivable.

In recent years, the increasing demand for computing power brought by AI has triggered long-term growth in electricity consumption, leading to a new wave of opportunities in renewable energy power; energy storage solutions, with their peak shaving and valley filling functions, have effectively improved the utilization rate of renewable energy and have become one of the rapidly growing industries alongside them.

Recently, a company focused on energy storage system solutions is seeking an IPO in Hong Kong stocks.

According to Gelonghui, on April 3, the China Securities Regulatory Commission announced a public notice of supplementary materials required for overseas issuance and listing filing, requiring Shenzhen Yuanxin Energy Storage Technology Co., Ltd. (referred to as “Yuanxin Energy Storage”) to provide supplementary materials for overseas listing filing, clarifying inconsistent results in controlling shareholder recognition and involving external advisors in incentive plans.

Yuanxin Energy Storage previously submitted its application to the Hong Kong Stock Exchange on January 12, with China Merchants Securities International acting as 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. It was restructured into a joint-stock company in December 2025, with its headquarters located in Nanshan District, 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 holds 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 Shantou Airlines and Mengshi New Energy.

Zhang Jiajing is 42 years old and currently serves as Executive Director and CEO. She holds 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 DuPont Solar, GF Bank, Shengkang Securities, and Yongxing Securities.

Details of Executive Directors, source: Prospectus

Yuanxin Energy Storage is a global provider of integrated energy storage system solutions, focusing on research, development, manufacturing, and sales of energy storage systems, serving both Chinese and overseas clients, covering large-scale and industrial-commercial energy storage applications.

The integrated energy storage system solutions offered by Yuanxin include high-quality hardware products and intelligent software systems, as well as a comprehensive platform product portfolio. Specifically, the main business includes:

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

2. Selling standalone energy storage system hardware to customers;

3. Providing operation and maintenance (O&M) and power trading services to customers.

The full lifecycle of energy storage projects using integrated solutions, source: Prospectus

Hardware Products

For providing integrated energy storage system solutions, Yuanxin Energy Storage offers various hardware products, mainly including the GridUltra series, VenturePro series, and key components such as battery modules and battery clusters.

VenturePro series industrial and commercial energy storage integrated cabinet, source: Prospectus

Intelligent Software Systems

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

The software ecosystem acts as a core intelligent hub, working in concert with hardware products, enabling multi-dimensional revenue streams from capacity payments, ancillary services, and spot arbitrage in large-scale and industrial-commercial energy storage projects.

02

Gross profit margins fluctuate, facing accounts receivable pressure

In recent years, benefiting from the global increase in demand for energy storage systems, Yuanxin Energy Storage’s revenue has grown.

In 2023, 2024, and the first nine months of 2025 (reporting period), the company’s revenue was 435 million yuan, 1.14B yuan, and 881 million yuan, respectively, with net profits of 40.74 million yuan, 96.26 million yuan, and 70.89 million yuan.

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

Key financial data, source: Prospectus

By revenue source, the proportion of revenue from integrated energy storage system solutions has steadily increased, accounting for only 13.5% in 2023 and rising to 92.7% in the first nine months of 2025.

Correspondingly, revenue from sales of energy storage system products has decreased, accounting for about 86.5% in 2023 and dropping to 6% in the first nine months of 2025.

Revenue breakdown by product and service type, source: Prospectus

Due to changes in revenue structure, Yuanxin Energy Storage’s gross profit margin has fluctuated, with margins of 21.6%, 17.8%, and 18.3% during the reporting periods.

Notably, the gross profit margin of energy storage system products declined from 21.3% in 2023 to 5.4% in the first nine months of 2025.

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

As of September 30, 2025, the company’s R&D personnel totaled 103, accounting for 35.3% of total 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, showing a downward trend.

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

In 2023 and 2024, all revenue came from the domestic market; starting in 2025, some overseas revenue has been generated. The company has signed sales contracts or purchase orders with multiple clients in China, the US, Japan, Hungary, Poland, Spain, Mexico, Kenya, and Burkina Faso.

Revenue from the top five customers during the reporting periods accounted for 53.6%, 81.6%, and 80.8%, indicating high customer concentration.

It is also noteworthy that Yuanxin Energy Storage faces pressure from accounts receivable. As of the end of each reporting period, the company’s trade receivables and notes receivable, as well as contract assets (net of impairment provisions), were 177 million yuan, 775 million yuan, and 845 million yuan, respectively, accounting for 40.69%, 67.74%, and 95.91% of revenue.

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 stood at 93.9 million yuan.

Cash flow statement, source: Prospectus

03

Industry competition is intense, facing competition from CATL, Sungrow, and others

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

With rapid growth in total installed capacity and renewable energy supply, the energy structure is accelerating toward decarbonization. However, renewable energy sources are intermittent and variable, posing significant challenges to grid stability and efficiency.

Traditional power systems are increasingly unable to meet real-time load balancing needs, urgently requiring upgrades to smarter, more flexible grids. In this context, energy storage system solutions have become a key necessity to ensure the safe, stable, and economical operation of modern power systems.

By implementing peak shaving, valley filling, output smoothing, and frequency regulation functions, energy storage solutions effectively enhance renewable energy utilization. As demand becomes clearer and technology matures, energy storage applications have expanded from generation-side to grid-side, as well as to industrial, commercial, and residential sectors, forming a diversified ecosystem involving sources, grids, loads, and storage.

Energy storage systems serve as critical devices for converting and storing electrical energy, integrating key hardware and software modules, including storage batteries, power conversion systems (PCS), energy management systems (EMS), and battery management systems (BMS).

Based on storage media, energy storage systems can be classified into lithium-ion, sodium-ion, lead-acid, and flow batteries, with lithium-ion energy storage systems representing the mainstream technology route.

The upstream of the value chain for energy storage system solutions mainly includes manufacturers of core components such as storage batteries, PCS, and thermal management systems, as well as software providers for EMS and BMS.

The midstream is dominated by energy storage system solution providers responsible for system design, integration, installation, and commissioning; Yuanxin Energy Storage is positioned in this segment.

The downstream mainly consists of service providers offering operation and maintenance (O&M) services for energy storage systems across various application scenarios, responsible for system operation and energy management.

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

Globally, the market size of energy storage systems was 15.5 billion yuan in 2020, projected to grow to 202.4 billion yuan in 2024; it is expected to reach 1,530.5 billion yuan by 2030, with a compound annual growth rate (CAGR) of approximately 40.1% from 2024.

Focusing on China, the domestic energy storage system market was about 73.8 billion yuan in 2024, expected to expand further to 657 billion yuan by 2030, with a CAGR of 44.0% from 2024 to 2030.

Global market size of energy storage systems, source: Prospectus

The global market for energy storage system solutions is expanding rapidly in line with the decarbonization trend. According to Sullivan, the new installed capacity increased from 11.5 GWh in 2020 to 187.2 GWh in 2024, with a CAGR of 100.7%. This growth is expected to continue, reaching 1,969.6 GWh by 2030, with a CAGR of 48.0% from 2024 to 2030.

In terms of competition, the global energy storage system solutions market is highly competitive, with over 30 participants worldwide.

In 2024, global energy storage system shipments reached 235.8 GWh, with the top fifteen companies accounting for over 80% of total shipments. Yuanxin Energy Storage’s shipments in 2024 were 3.7 GWh, ranking fifteenth.

Major industry players include Tesla, Sungrow, BYD, JinkoSolar, CATL, Envision Energy, Haisibo, Zhongtian Energy Storage, Haichen Energy Storage, and others.

Overall, benefiting from energy structure transformation and increased electricity demand driven by the AI industry, the energy storage market has promising prospects. However, the market is highly competitive, with industry giants like CATL, and Yuanxin Energy Storage faces challenges such as large investment requirements, significant accounts receivable pressure, negative operating cash flow in 2024, and the need for sustained market expansion.

Whether the company can continue to expand its market share and improve its financial situation in the future remains a focus for ongoing observation.