Prospects for New Stocks | Energy Storage "Number Nine" breaks into Hong Kong stock market, Guangzhou Great Power Energy and Technology seeks increase in volume and quality.

Against the backdrop of the global energy structure transitioning towards green, the energy storage battery industry is experiencing unprecedented explosive growth. As a veteran player in the lithium battery industry, Guangzhou Great Power Energy and Technology is attempting to complete the final piece of its international capital map on the Hong Kong stock market. Recently, this battery giant, which has already established itself in the A-share market, officially submitted an application to the Hong Kong Stock Exchange, aiming to achieve a "A+H" dual financing platform crossover. According to Frost & Sullivan data, Guangzhou Great Power Energy and Technology ranked ninth globally in energy storage battery shipments in 2024, and respectively secured the first and third place in the fields of portable energy storage batteries and household energy storage batteries, demonstrating a significant market leadership position. However, amidst the current industry capacity structural oversupply and technological paradigm shift, Guangzhou Great Power Energy and Technology is at a crucial juncture for profit restoration and strategic elevation after experiencing performance fluctuations in 2024 due to raw material price fluctuations. At the crossroads of capacity competition and technological iteration, can this veteran battery giant leverage the "A+H" dual capital platform to achieve the ultimate leap from "quantity" to "quality" in the challenging global energy storage landscape? Emerging from a performance trough, increasing energy storage ratio drives gross profit recovery It is understood that, in terms of business layout, Guangzhou Great Power Energy and Technology currently mainly covers two core business areas: energy storage batteries, consumer, and power batteries. From a financial performance perspective, the company achieved revenues of approximately RMB 6.932 billion, RMB 7.961 billion, and RMB 7.581 billion in the first nine months of 2023, 2024, and 2025 respectively. Of note, the revenue scale for the first nine months of 2025 was close to the full-year level of 2024, showing a significant year-on-year growth compared to the revenue of approximately RMB 5.648 billion for the same period in 2024, indicating that the company's business volume is entering a growth trajectory following the industry trough. Since 2023, global battery companies have generally faced profit pressure due to significant reductions in lithium carbonate and other raw material prices and market price wars. The gross profit performance of Guangzhou Great Power Energy and Technology also reflects this trend. In 2023, the company's gross profit was RMB 880 million, with a gross profit margin of 12.7%. However, in 2024, due to destocking and intensified industry competition, gross profit fell to RMB 600 million, and the gross profit margin was adjusted to 7.5%. A turning point occurred in 2025, with the company's gross profit rebounding strongly to RMB 955 million in the first nine months, and the gross profit margin rising to 12.6%, essentially returning to the industry's cyclical prosperity level. According to the prospectus, Guangzhou Great Power Energy and Technology has significantly increased the proportion of high-margin energy storage products, especially with the introduction of 590Ah and 600Ah+ high-capacity energy storage cells, effectively boosting the unit product value. However, despite the gross profit recovering to RMB 955 million, the company's net profit margin remains at a relatively low level due to the hard increase in R&D investment, rising financial expenses, and the sharp increase in management costs brought about by globalization. In addition, with the rapid expansion of the business scale, the company's trade receivables and notes receivable increased from approximately RMB 2.289 billion at the end of 2023 to RMB 4.85 billion at the end of September 2025. Although this is consistent with the trend of revenue growth, it also poses higher requirements for the company's working capital management, especially in the industry characterised by longer settlement periods for energy storage projects. In terms of production capacity layout, the company currently has nine main production bases globally. Faced with the explosive demand for long-life, high-safety battery cells in large-scale energy storage projects in the future, Guangzhou Great Power Energy and Technology plans to use a significant portion of the funds raised through this Hong Kong stock offering for the implementation of its capacity roadmap, especially to meet the mass production demand for the next generation of high-capacity energy storage cells. Different from blind pursuit of production capacity, Guangzhou Great Power Energy and Technology emphasizes the role of MES (Manufacturing Execution System) in process improvement, improving yield rates and reducing unit manufacturing costs through data-driven methods. This transition from quantity to quality in production capacity advancement is the core moat for the company to address industry price competition. Transitioning from a battery manufacturer to a global energy solutions provider In the battery industry, technological innovation has always been the core lifeline for companies to survive. In terms of R&D deployment, Guangzhou Great Power Energy and Technology has established a research and development architecture of "Five Research Institutes, Four Central Testing Centers, and One Manufacturing Process Center" to ensure synergy from material basic research to mass production process development. In terms of technology selection, it is understood that, on the one hand, the company deeply cultivates Lithium Iron Phosphate (LFP) technology, establishing the market benchmark for existing products through high safety performance, long cycle life, and high energy efficiency, and has achieved charge-discharge rates of up to 2C, 3C, and even as high as 12C. On the other hand, for next-generation battery technologies, Guangzhou Great Power Energy and Technology has strategically positioned itself in advanced fields such as solid-state batteries, sodium-ion batteries, Lithium Manganese Iron Phosphate (LMFP), and lithium-rich manganese-based technologies. On the manufacturing side, Guangzhou Great Power Energy and Technology advocates the concept of "ultimate manufacturing." Its nine global digital production bases are located in Guangzhou, Zhuhai, Zhumadian, Changzhou, Liuzhou, Foshan, Quzhou, Qingdao, and Vietnam, with an annual production capacity reaching 28.7 gigawatt-hours (GWh) as of September 30, 2025. In addition, to support technology implementation, Guangzhou Great Power Energy and Technology has established an efficient supply chain management system. The company has established solid partnerships with leading suppliers of cathodes, anodes, separators, and electrolytes, and effectively mitigated the risks of raw material price fluctuations through efficient procurement strategies, transforming Guangzhou Great Power Energy and Technology from a mere battery manufacturer into a comprehensive energy solution provider that can provide reliable solutions throughout the lifecycle. From an industry perspective, the global energy storage battery market is currently in a strong expansion phase, with global shipments expected to reach 1,461.9 gigawatt-hours by 2029. Guangzhou Great Power Energy and Technology currently serves over 50 countries and regions worldwide, with overseas revenue achieving a significant growth of 47.5% in the first nine months of 2025, reaching RMB 1.136 billion. While global expansion provides broader profit space, it also brings risks and challenges. In the process of internationalization, the systemic risks of legal compliance in different jurisdictions, exchange rate fluctuations, and potential tariff restrictions cannot be ignored in the company's overseas expansion. To address this, Guangzhou Great Power Energy and Technology is actively advancing the localization of its overseas service network, establishing offices in Singapore, Germany, Japan, the United States, and other locations, not only to secure orders but also to provide real-time responses in after-sales and technical support to combat price competition with service premiums. Additionally, the continuous expansion of global battery production capacity has raised concerns about price wars. If the company cannot sustain product premiums through continuous technological innovation, the sustainability of its gross profit margin recovery will face challenges. Standing at the doorstep of the Hong Kong Stock Exchange, Guangzhou Great Power Energy and Technology faces a market environment that is both tempting and filled with thorns. Against the backdrop of global macroeconomic fluctuations, volatile raw material prices, and rapid industry technological iterations, how Guangzhou Great Power Energy and Technology can achieve more qualitative profitability while expanding internationally will be the core issue that investors focus on after its listing.