According to a filing with the Hong Kong Stock Exchange on June 26, Daqin Digital Energy Technology Co., Ltd. (referred to as Daqin Digital Energy) has submitted an application for a main board listing, with Guotai Junan International acting as its sole sponsor. According to data from Frost & Sullivan, based on projected shipments for 2025, the company is the world's fifth-largest provider of residential energy storage systems (ESS), with shipments of approximately 2.5 gigawatt-hours.
Company Overview
As detailed in the prospectus, Daqin Digital Energy is a pioneer among Chinese companies in the energy storage system (ESS) industry, focusing on the research and development, manufacturing, and sales of residential, commercial, and industrial ESS products. According to Frost & Sullivan, the company's projected commercial and industrial (C&I) ESS shipments for 2025 are approximately 0.6 gigawatt-hours, bringing its total ESS shipments to about 3.1 gigawatt-hours. Among Chinese ESS enterprises, the company is one of those with the most extensive global business footprint. Leveraging years of practical experience from serving a diverse range of clients across different markets and energy environments, Daqin Digital Energy offers a comprehensive product portfolio. The company's products feature standardized, modular designs that can be flexibly configured according to varying customer needs and market conditions, supporting a wide range of energy storage applications, including self-consumption of solar photovoltaic power, peak shaving and valley filling, electricity price arbitrage, emergency backup power, and microgrid construction, serving households and commercial clients worldwide.
Daqin Digital Energy was among the first Chinese companies to focus on overseas ESS markets. Since its early establishment, the company has adopted a global operational model underpinned by localized services, entering various markets with products tailored to local demands. Over the years, it has established a distribution network covering Europe, Asia-Pacific, the Americas, Africa, and the Middle East, accumulating localized knowledge regarding grid conditions, energy consumption patterns, and end-user behavior in dozens of markets. This market insight enables the company to quickly adapt to different market requirements and provide products suitable for local application scenarios. In 2025, 95.1% of the company's revenue was generated from outside Mainland China, with sales of residential ESS products accounting for 75.7% of total revenue. The company's commercial and industrial business is also experiencing rapid growth, as more commercial and industrial operators seek cost-effective and reliable energy management solutions due to rising electricity prices and increasing grid instability.
As of December 31, 2025, the company's products have been deployed in over 100 countries and regions, with cumulative shipments of ESS batteries exceeding 1 million units.
Primary Product Lines
Daqin Digital Energy's business comprises two main product lines. The first is residential ESS. The company develops and sells small-scale ESS products for household end-users, including residential ESS batteries and integrated ESS units. These products are designed to address challenges faced by households in different regions, such as high electricity prices, unstable grid conditions, and a higher desire for solar self-consumption. By storing energy during periods of lower cost or abundant supply and dispatching it when needed, the company's systems help household users manage energy usage more effectively and potentially benefit from dynamic electricity pricing.
The second line is commercial and industrial ESS. The company provides C&I ESS batteries and integrated ESS products to commercial and industrial clients. These systems enable large-scale electrical energy storage, conversion, and dispatch and are widely used in scenarios such as industrial parks and commercial complexes. By optimizing energy management strategies, the company's C&I ESS products can assist users in reducing electricity costs, managing peak demand, and ensuring continuous power supply.
Financial Performance
Regarding revenue, for the fiscal years 2023, 2024, and 2025, the company achieved revenues of approximately RMB 723 million, RMB 734 million, and RMB 2.525 billion, respectively. For gross profit and gross margin, the company recorded gross profits of approximately RMB 19.365 million, -RMB 146 million, and RMB 585 million for 2023, 2024, and 2025, respectively, corresponding to gross margins of 2.7%, -19.9%, and 23.2%. For annual profit, the company recorded annual profits of approximately -RMB 182 million, -RMB 378 million, and RMB 125 million for 2023, 2024, and 2025, respectively.
Industry Overview
In recent years, driven by the expansion of renewable energy and growing energy management needs, global ESS shipments have experienced rapid growth. Centralized ESS dominates the market, while distributed ESS is gradually accelerating its penetration in commercial, industrial, and residential sectors. With increasing renewable energy penetration and the refinement of electricity market mechanisms, global ESS shipments are expected to continue a steady climb through 2030. As renewable energy penetration increases, electricity price volatility intensifies, and demand for grid flexibility grows, demand for distributed energy storage continues to rise. Between 2021 and 2025, residential ESS showed significant growth due to ongoing power market reforms and increasing residential demand for energy autonomy. Concurrently, policy support and rising electricity tariffs have enhanced the economic feasibility of energy storage in distributed solar photovoltaic applications. Looking ahead, widening peak-to-valley electricity price differentials, continued growth in photovoltaic installed capacity, and declining system costs are expected to further propel the residential ESS market.
Commercial and industrial ESS is also experiencing rapid growth, primarily driven by falling energy storage costs and widening peak-to-valley electricity price differentials. Furthermore, the increasing demand for highly reliable power supply from high-computing infrastructure, such as AIDC, provides new momentum for C&I energy storage applications. By 2030, as these demands intensify, the global distributed ESS market is expected to continue expanding, with shipments increasing significantly. Driven by high global electricity prices, widening peak-to-valley price differentials, and increasing renewable energy penetration, the global residential ESS market is growing rapidly. In Europe and the Americas, particularly in regions with high electricity tariffs, demand for residential ESS continues to expand. Time-of-use electricity pricing mechanisms and virtual power plant models enable consumers to reduce costs through peak-valley arbitrage and participate in demand response programs for additional benefits. By 2025, Europe and the Americas accounted for over 63% of total global residential ESS shipments. In emerging markets, demand is primarily concentrated in regions with lower grid stability, where households urgently need reliable power and emergency backup solutions.
The rapid development of generative AI and large language models is driving the global expansion of data centers, with data center capital expenditure projected to reach $3 trillion by 2030. High-power, concentrated electricity demand increases the need for reliable, high-density power supply solutions, thereby boosting demand for C&I ESS. The rise of new energy vehicles and increasing demand from large-scale commercial and industrial users further expand the application of ESS in peak load management and energy optimization.
Board Composition
The board of directors will consist of nine members, including five executive directors, one non-executive director, and three independent non-executive directors. Directors serve three-year terms and are eligible for re-election upon expiry.
Shareholding Structure
Mr. Liu Yang directly holds 41.10% of the shares. Through Suzhou Qinhu Pan, Hehan Jiangze, and Nanzhang Zichou, he holds an additional 17.94%, resulting in a total holding of 59.04%. Yuanjian Daotong holds 1.12%. Other pre-IPO investors collectively hold 39.84%. Nanzhang Zichou and Yuanjian Daotong are the company's employee shareholding platforms. As of the last practicable date, Mr. Liu is the general partner of Suzhou Qinhu Pan, Hehan Jiangze, and Nanzhang Zichou. Therefore, under the Securities and Futures Ordinance, Mr. Liu is deemed to have an interest in the shares held by these entities. As of the last practicable date, the general partner of Huaye Zhiyuan is Hengxin Huaye, which is 45% owned by Wu Hao and 35% owned by Chen Ying. Therefore, under the Securities and Futures Ordinance, Wu Hao and Chen Ying are each deemed to have an interest in the shares held by Huaye Zhiyuan.
Professional Team
The sole sponsor is Guotai Junan Capital Limited. The company's legal advisors are: for Hong Kong and U.S. law, Freshfields Bruckhaus Deringer; for Chinese law, Llinks Law Offices; for Dutch law, Houthoff. The sole sponsor's legal advisors are: for Hong Kong law, Jingtian & Gongcheng; for Chinese law, Tian Yuan Law Firm. The auditor and reporting accountant is KPMG. The industry consultant is Frost & Sullivan (Beijing) Consulting Co., Ltd. Shanghai Branch. The compliance advisor is Max Capital Limited.
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