New Stock Outlook | Daqin Energy Plans to Go Public in Hong Kong: Performance Shows V-shaped Reversal, Will Overseas Markets Become a "Cure" for Storage Energy Dark Horses?

When the traditional large-scale, household energy storage price war had already reached its peak, the energy storage industry began to visibly succumb to internal turmoil. Severe homogenization, overcapacity, continuous price erosion, and other scenes have gradually become the most common current situation in the energy storage industry. Whether it is large-scale grid energy storage, industrial and commercial energy storage, or the overseas household energy storage market, mainstream domestic battery manufacturers offer highly similar products, with the core competition focusing on cost and production capacity. Nevertheless, there are still "brave" companies reaching out to the capital market in search of expansion opportunities. Recently, Daqin Digital Energy Technology Co., Ltd. submitted its prospectus to the Hong Kong Stock Exchange, with GUOTAI JUNAN I serving as the sole sponsor. Gross profit margin fluctuates significantly, performance recovery expected by 2025 It is understood that Daqin Numerical Energy was established in 2017, and within less than 10 years of operation, it is one of the earliest companies in the Chinese distributed energy storage system (ESS) industry to focus on overseas markets. Its business covers two major product lines: household ESS and industrial ESS, with household ESS products including ESS batteries and integrated ESS, while industrial ESS products target industrial parks, commercial complexes, and other scenarios. By the end of 2025, the company's products had been deployed in over 100 countries and regions, with ESS battery shipments exceeding 1 million units. According to Frost & Sullivan data, based on the 2025 shipment volume, Daqin is the fifth largest provider of household energy storage systems globally, with a shipment volume of 2.5GWh and a market share of 6.5%. In terms of shipment volume, Daqin Numerical Energy has firmly established its footing in the global household energy storage race. However, the company's financial data shows a dramatic reversal. Over the past three years, the company's profitability trajectory has shown a V-shaped curve. Its revenue increased from 723 million yuan in 2023 to 7.34 billion yuan in 2024, and then jumped to 25.25 billion yuan in 2025, a year-on-year growth of 244.3%; however, the gross profit margin exhibited extreme fluctuations of 2.7%, -19.9%, and 23.2%. Further analysis reveals that the 2024 loss was mainly due to the one-time clearance of old inventory: to clear out the old inventory from 2023 and 2024, the company offered price discounts, resulting in a revenue decrease of approximately 50.5 million yuan and a provision for inventory write-downs on unsold inventory. The high-voltage battery alone incurred a gross loss of 95.56 million yuan, with a gross margin of 80.6%. This was heavily influenced by industry fluctuations at that time: in early 2023, lithium carbonate prices were at historic highs, with battery-grade lithium carbonate costing over 50,000 yuan per ton. The company made large purchases of battery cells at this price level for the production of household ESS batteries, producing approximately 284,000 units. However, the market underwent a drastic change in 2023, with lithium carbonate prices plummeting from 500,000 yuan per ton to 100,000 yuan per ton by the end of the year. LFP battery cells experienced consecutive year-on-year declines of around 40%-50% in 2023 and 2024, leading to these high-cost products being sold at low prices as a last resort. However, once this "burden" was cleared in 2025, Daqin's profitabi...