Kesheng Technology files again on the Hong Kong Stock Exchange! The dependency on major clients remains unresolved

（Source: Beijing Business Daily）

On March 24, Zhejiang Kesheng Technology Co., Ltd., a giant in solar thermal power generation and solar power heat collection (hereinafter referred to as “Kesheng Technology”), once again submitted listing application materials to the Hong Kong Stock Exchange, aiming to pursue a listing in Hong Kong. Before this, the company had submitted a listing application to the Hong Kong Stock Exchange on September 24, 2025. From a fundamentals perspective, Kesheng Technology’s revenue and net profit both recorded steady growth in 2024 and 2025. However, with this renewed filing, the company’s situation of high customer concentration has once again been brought to the forefront.

2025 revenue of 2.193 billion yuan

The official website of the Hong Kong Stock Exchange shows that on March 24, Kesheng Technology, a supplier of concentrating solar thermal collection systems, once again re-filed for listing.

It is understood that Kesheng Technology is one of the providers of tower-type solar thermal power generation and molten salt energy storage solutions. From 2021 to 2024, across China, a total of 20 tower-type solar thermal projects had commenced substantial construction and had confirmed suppliers for concentrating solar thermal collection systems, with total designed capacity of 2160MW. The company provided concentrating solar thermal collection systems for 11 of these 20 power stations in China—this system is the most critical subsystem for such power stations, with total designed capacity of 1250MW.

Therefore, according to a Frost & Sullivan report, from 2021 to 2024, Kesheng Technology became the leading supplier of concentrating solar thermal collection systems in China, accounting for 57.9% and 55% of market share, respectively, in terms of total project designed capacity and project count. In addition, according to the Frost & Sullivan report, as of the latest practicable date, Kesheng Technology is also the world’s only supplier of concentrating solar thermal collection systems for molten salt tower-type solar thermal power stations with cumulative service performance exceeding 1GW.

Behind this push to list in Hong Kong, Kesheng Technology’s performance in the reporting period increased consecutively. Financial data shows that from 2023 to 2025, the company recorded revenue of approximately 0.858 billion yuan, 2.189 billion yuan and 2.193 billion yuan, respectively; and corresponding annual profits were approximately 0.248 billion yuan, 0.54 billion yuan and 0.568 billion yuan, respectively.

However, it is worth noting that in 2025, Kesheng Technology’s net cash used in operating activities was 0.252 billion yuan; whereas in 2023 and 2024, its net cash generated from operating activities was 0.931 billion yuan and 0.329 billion yuan, respectively. In its prospectus, Kesheng Technology also plainly stated that if the company continues to record net cash outflows from operating activities in the future, its working capital may be constrained, which may adversely affect its financial performance. If the company encounters long-term and sustained net operating cash outflows in the future, it may not have sufficient working capital to cover operating costs, and the company’s business, financial condition, operating performance and outlook may face material adverse impact.

While its performance is impressive, it is also quite striking that Kesheng Technology’s revenue comes from a single product (service). The prospectus shows that during the periods in the reporting timeframe, the share of revenue from molten salt tower-type solar thermal power station solution(s) was 99.6%, 95% and 98.4%, respectively; among them, the revenue from sales of heat collection systems and other core subsystems accounted for approximately 98.5%, 94.7% and 97%, respectively, while the shares of revenue from construction consulting, operation and maintenance technical guidance, and other technical services were 1.1%, 0.3% and 1.4%, respectively.

Top five customers account for 98.5% of revenue

For this re-filing with the Hong Kong Stock Exchange, the company’s high customer concentration has also become a focus of market attention.

The prospectus shows that from 2023 to 2025, the company’s revenue from its top five customers was 0.858 billion yuan, 1.937 billion yuan and 2.159 billion yuan, respectively, accounting for 99.9%, 88.5% and 98.5% of total revenue, respectively; during the period, the revenue from the largest customer was approximately 0.727 billion yuan, 0.488 billion yuan and 0.675 billion yuan, accounting for 84.8%, 22.3% and 30.8% of the company’s total revenue, respectively.

In addition, it is worth mentioning that during the reporting period, Kesheng Technology distributed dividends on a significant scale. Specifically, at the special general meeting held in December 2024, shareholders approved a dividend of 0.43 yuan per share, with a total amount of 0.155 billion yuan; this dividend was then distributed to shareholders. At the special general meeting held in September 2025, shareholders approved a dividend of 0.4 yuan per share, with a total amount of 0.144 billion yuan; this dividend was then distributed to shareholders using internal resources.

Regarding equity relationships, as of the latest practicable date, Jin Jianxiang directly held approximately 3.33% of the total number of the company’s issued shares. At the same time, because Jin Jianxiang holds 99% of Hangzhou Jingjiu (a general partner of Huzhou Yueri), and Jin Jianxiang, as a limited partner, holds about 93.34% of Huzhou Yueri, he is therefore deemed to hold about 21.77% of the company’s issued shares through Huzhou Yueri. As of the latest practicable date, Jin Jianxiang, Huzhou Yueri and Hangzhou Jingjiu are entitled to exercise 25.1% of the voting rights in the company.

“If the company’s cash flow is sufficient and the major shareholder has the need to cash out or optimize the tax structure, dividend distribution is a legitimate exercise of shareholders’ rights.” Yuan Shuai, Deputy Director of the Investment Department of the China Urban Development Research Institute, further said: “However, in the technology-intensive and expansion-stage solar thermal energy storage sector, funds are often supposed to be prioritized for R&D and capacity construction; excessive cash outflows may weaken its ability to withstand risks.”

By Wang Lei, a reporter from Beijing Business Daily

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