Shenzhen Yuanxin Energy Storage Technology Co., Ltd. (hereinafter referred to as "Yuanxin Energy Storage" or the "Company") submitted a listing application to the Main Board of the Hong Kong Stock Exchange on January 9, 2026, with CMB International as the sole sponsor.
In recent years, Yuanxin Energy Storage has experienced rapid revenue growth; however, affected by industry price wars, the prices of its products and services have continued to decline, putting pressure on gross margins. Although Yuanxin Energy Storage ranked first among "global energy storage asset full-lifecycle solution providers" in the first three quarters of 2025, this ranking is limited to this narrow category and is not comparable to comprehensive leaders like Sungrow Power Supply Co., Ltd.
Furthermore, in 2024 and the first three quarters of 2025, Yuanxin Energy Storage's customer concentration exceeded 80%. Among these, three major clients began cooperation shortly after their establishment, had registered capital far lower than the transaction scale, exhibited low or no paid-in capital ratios, and shared significant interconnections. Questions arise regarding the authenticity of transactions between Yuanxin Energy Storage and these related clients.
Two directors were previously employed at Cedar Holdings Group.
Founded in 2019, Yuanxin Energy Storage focuses on the development of new power systems and integrated energy solutions, alongside the R&D and promotion of sustainable new energy solutions and reliable energy storage products. Its business covers diverse application scenarios including new energy power generation, integrated wind-solar-diesel-storage systems, microgrids, power storage, as well as commercial, industrial, and residential energy storage. Its solutions encompass large-scale energy storage, commercial & industrial energy storage, and grid-forming energy storage.
According to Frost & Sullivan data, Yuanxin Energy Storage's newly added independent energy storage installed capacity reached 1.3 GWh in the first nine months of 2025, ranking first among "global energy storage asset full-lifecycle solution providers." Its full-year 2024 shipment volume was 3.7 GWh, ranking fifth globally. To date, the company has provided energy storage system solutions and products with a total capacity exceeding 10 GWh to approximately 100 clients.
It is crucial to note that this ranking is confined to the narrow category of "third-party full-lifecycle solution providers" and is not directly comparable in scale or business model to comprehensive leaders like Sungrow (projected 2025 energy storage shipments of 40-50 GWh).
According to the global cumulative installed capacity ranking for energy storage systems released by the authoritative data consultancy S&P Global in 2024, Sungrow ranked first globally. Additionally, in the 2024 Global Bankability Report published by the authoritative research firm BloombergNEF in 2024, Sungrow's energy storage system and PCS both ranked first globally.
On January 9, 2026, Yuanxin Energy Storage formally submitted its listing application to the HKEX Main Board, with CMB International acting as the sole sponsor. On the same day, the company announced the completion of a RMB 200 million equity financing round led by Co-Win Venture Capital, with participation from institutions like Zhenghai Capital and Zhuoyuan Lantu. Pre-IPO, Wang Yu, Zhang Jiajing, Zhixin Boyan, Pingxiang Qianlin, Cheng Yi Zhixin, and Shenzhen Zuimu constituted a group of controlling shareholders of Yuanxin Energy Storage, holding a combined 72.88% stake.
Notably, two executive directors of Yuanxin Energy Storage were previously employed at Cedar Holdings Group Co., Ltd. (Cedar Holdings), a company involved in a suspected fundraising fraud case that has been legally investigated and dealt with.
On May 7, 2023, the Huangpu District Branch of the Guangzhou Public Security Bureau issued a notice stating that subsidiaries of Cedar Holdings, including Yuanfang Investment, had been filed for investigation and dealt with due to suspected illegal absorption of public deposits. From October 28 to November 2, 2024, the Guangzhou Intermediate People's Court publicly heard the case involving Cedar Holdings, its actual controller Zhang Jin, and 17 others on charges including fundraising fraud, illegal absorption of public deposits, breach of trust in using entrusted property, and obstruction of testimony. As of now, the judgment result of this case has not been announced.
Yuanxin Energy Storage's prospectus shows that Executive Director, Board Secretary, and Co-Company Secretary Dong Wei served as Investment Director of the Board Office at Cedar Holdings from June 2017 to April 2020. Executive Director and Chief Financial Officer Liu Zejian served as Senior Investment Banking Manager at Cedar Holdings from July 2017 to September 2020.
Prices for energy storage system products and solutions continue to decline.
Financial data shows that in 2023, 2024, and the first three quarters of 2025, Yuanxin Energy Storage achieved revenues of RMB 435 million, RMB 1.144 billion, and RMB 881 million, respectively, recording net profits of RMB 41 million, RMB 96 million, and RMB 71 million, maintaining rapid growth.
Analyzing the revenue structure, Yuanxin Energy Storage's reliance on large-scale energy storage system solutions has deepened continuously. Revenue from this segment was RMB 0.7 million, RMB 477 million, and RMB 817 million in the respective reporting periods, accounting for 1.6%, 41.7%, and 92.7% of the total revenue for the period, showing signs of relying on a single business line by the first three quarters of 2025.
Energy storage system products were originally the primary revenue source for Yuanxin Energy Storage, contributing 86.5% of revenue in 2023. However, by the first three quarters of 2025, revenue from this product plummeted by 55.88% year-on-year, and its contribution shrank from 95.6% in the same period of 2024 to just 6%. Furthermore, the commercial and industrial energy storage system solution generated no revenue during this period.
It is noteworthy that although the sales volume of Yuanxin Energy Storage's energy storage system products and solutions grew rapidly, the average selling price continued to decline. During the reporting periods, the average selling price of integrated energy storage system solutions was RMB 1.26/Wh, RMB 0.77/Wh, and RMB 0.44/Wh, decreasing by 38.89% and 45.68% year-on-year in the recent two periods, respectively. The average selling price of energy storage system products was RMB 0.66/Wh, RMB 0.42/Wh, and RMB 0.38/Wh, decreasing by 36.36% and 29.63% year-on-year in the recent two periods, respectively.
This is related to the "involution-style" competition within the energy storage industry, characterized primarily by product homogenization and disorderly "price wars." Data released by the National Energy Administration showed that in the first half of 2025, the installed capacity of new energy storage nationwide reached 94.91 GW / 222 GWh, an increase of approximately 29% compared to the end of 2024. However, behind this rapid growth lies a nearly 80% plunge in the price of lithium battery energy storage systems over three years.
According to incomplete statistics from the industry database of the CESA Energy Storage Application Branch, the average winning bid price for lithium battery energy storage EPC in 2024 was RMB 1.175/Wh, down 16.07% year-on-year; the average winning bid price for lithium battery energy storage systems was RMB 0.574/Wh, down 47.82% year-on-year. From January to June 2025, the average winning bid price for lithium battery energy storage EPC/PC was RMB 0.9618/Wh, down 24.09% year-on-year; the average winning bid price for lithium battery energy storage systems was RMB 0.4848/Wh, down 29.94% year-on-year.
Yuanxin Energy Storage also stated that the declining price of battery cells, a key raw material for energy storage systems, has reduced the company's raw material costs, and this cost reduction is reflected in product pricing. Simultaneously, fierce price competition in the industry has forced the company to lower the selling prices of its energy storage system solutions and products to gain more market share.
Compared to comprehensive leaders like Sungrow, Yuanxin Energy Storage's gross margin remains at a relatively low level. During the reporting periods, its gross margins were 21.6%, 17.8%, and 18.3%, respectively. In 2023, 2024, and the first half of 2025, Sungrow's gross margin for energy storage systems was 37.47%, 36.69%, and 39.92%, respectively, approximately double that of Yuanxin Energy Storage in the same periods. Additionally, Contemporary Amperex Technology Co., Limited's (CATL) gross margins for energy storage systems were 23.79%, 26.84%, 25.52%, and 20.02% respectively.
Major clients started cooperation shortly after establishment and have deep connections.
As the contribution of large-scale energy storage system solutions to revenue growth increased, Yuanxin Energy Storage's customer concentration rose correspondingly.
During the reporting periods, revenue from the top five clients accounted for approximately 53.6%, 81.6%, and 80.8% of total revenue, respectively. Revenue from the largest client accounted for approximately 11.8%, 40.7%, and 30.7% of total revenue, respectively. Among these, several major clients began cooperation in the same year they were established, and their paid-in capital was mismatched with the transaction scale.
Anhui Haode Energy Co., Ltd. (Haode Energy) was established in March 2022 and began cooperation in the same year, becoming Yuanxin Energy Storage's largest client in 2023. Tianyancha data shows that Haode Energy has a registered capital of RMB 50 million, but a paid-in capital of RMB 0. The number of social insurance contributors was 1 person for each year from 2022 to 2024 (and it has no external investments).
In April 2023, Haode Energy's original actual controller, Yang Yaojun, transferred 98% of the company's shares to Pan Deng. The following month, Pan Deng transferred 67% and 31% of Haode Energy's shares to Panniu Energy Technology (Anhui) Co., Ltd. and Xiaoji Technology (Anhui) Co., Ltd., respectively. The former is 100% owned by Pan Deng. On September 11 of the same year, the three shareholders of Haode Energy pledged all their shares to Jiangsu Financial Leasing Co., Ltd., and this equity pledge remains effective to date.
Hebei Junhe Tongchuang New Energy Co., Ltd. (Hebei Junhe) was established in March 2023, began cooperation the following year, and became the company's fourth-largest client. Tianyancha data shows that Hebei Junhe has a registered capital of RMB 20 million and a paid-in capital of RMB 8 million. Its procurement amount from Yuanxin Energy Storage in 2024 was approximately RMB 89.5 million.
In May 2024, Hebei Junhe and Yuanxin Energy Storage established a joint venture, Hebei Junhe Yuanxin Energy Storage Technology Co., Ltd. (Junhe Yuanxin), holding 90% and 10% stakes, respectively. In August 2025, Junhe Yuanxin established Hebei Province Junhe Hengli Energy Storage Technology Co., Ltd. In November of the same year, Junhe Yuanxin, along with this subsidiary, was deregistered.
Tianyancha data shows that Junhe Yuanxin had 0 social insurance contributors in 2024, with a registered capital of RMB 5 million and a paid-in capital of RMB 0.
Yuanxin Energy Storage describes itself as an "energy storage asset full-lifecycle solution provider," offering solutions covering development, integration, operation & maintenance, power trading, and asset optimization throughout the lifecycle. However, Junhe Yuansin existed for only a year and a half from establishment to deregistration, making it evidently difficult to complete the full lifecycle of a large-scale energy storage project from acquisition and construction to operation. Did Junhe Yuanxin have any actual business activities, personnel allocation, or capital investment during its existence?
Even more peculiarly, Junhe Yuanxin invested to establish Yunnan Junhe Yuanxin New Energy Co., Ltd. in May 2025, and just four months later transferred all its shares in this company to Yao'an Xinrui Energy Storage Co., Ltd. (Yao'an Xinrui), which happens to be Yuanxin Energy Storage's largest client in the first three quarters of 2025.
Yao'an Xinrui was established in January 2025, began cooperation in the same year, and became Yuanxin Energy Storage's largest client. Tianyancha data shows that Yao'an Xinrui has a registered capital of RMB 10 million and a paid-in capital of RMB 0. However, its procurement amount from Yuanxin Energy Storage in the first three quarters of 2025 was as high as RMB 271 million. Yao'an Xinrui is 100% owned by Pan Sili, who only has this single company under his name.
Additionally, Jilin Junhe Tongchuang New Energy Co., Ltd. (Jilin Junhe) was the fourth-largest client of Yuanxin Energy Storage in the first three quarters of 2025 and was formerly a wholly-owned subsidiary of Hebei Junhe. Currently, Wang Song serves as the supervisor in both companies.
Tianyancha data shows that Hebei Junhe established Jilin Junhe in September 2024 and transferred 20% of its shares to Xu Gai and Zhang Yingli three months later. In August 2025, Hebei Junhe transferred the remaining 80% shares to Wan Xianrui. Jilin Junhe has a registered capital of RMB 10 million, a paid-in capital of RMB 0, and had 0 social insurance contributors in 2024 (with no external investments).
In short, there are significant connections among Yuanxin Energy Storage's major clients Yao'an Xinrui, Hebei Junhe, and Jilin Junhe, raising questions about the commercial substance of the related transactions.
