After its initial filing on January 9, 2026, lapsed, Shenzhen Yuanxin Energy Storage Technology Co., Ltd. ("Yuanxin Energy Storage") has filed a listing application with the Hong Kong Stock Exchange main board again, with CMB International acting as the sole sponsor. This energy storage system integrator has achieved leapfrog growth in performance through large-scale energy storage projects, but its operational data also reveals multiple real-world challenges, including a continuous decline in gross margin, highly concentrated customers, volatile cash flow, and differentiated capacity utilization despite plans to raise funds for expansion.

Founded in 2019, Yuanxin Energy Storage positions itself as a global integrated energy storage system (ESS) solution provider. Its business covers the entire lifecycle of energy storage projects, focusing on the R&D, manufacturing, and sales of energy storage system solutions. Products are aimed at both domestic and overseas markets, primarily targeting large-scale energy storage and commercial and industrial energy storage scenarios. According to data from consulting firm Frost & Sullivan, in the first nine months of 2025, the company's newly added independent energy storage installed capacity was 1.3 GWh, ranking first globally among full lifecycle energy storage asset solution providers. In 2024, with a 3.7 GWh energy storage system shipment volume, it ranked fifth globally in the same category. By 2025, total shipments reached 5.4 GWh, placing it tenth in China's energy storage system solutions industry, with a corresponding market share of 2.1%.

In terms of technology, the company holds two core technologies: immersed liquid cooling and grid-forming energy storage systems, while simultaneously advancing its presence in overseas markets. From a financial perspective, the company's revenue and profit have grown rapidly in recent years. From 2023 to 2025, Yuanxin Energy Storage's revenue was 435 million yuan, 1.144 billion yuan, and 1.868 billion yuan, respectively, with revenue maintaining high growth for two consecutive years, though the growth rate clearly slowed from 163% to 63.3%. Profits during the period were 40.74 million yuan, 96.27 million yuan, and 154 million yuan, respectively, maintaining positive growth. Profit elasticity was greatest in 2024, but the profit growth rate also slowed significantly in 2025. In the first four months of 2026, revenue was 280 million yuan, a significant year-on-year increase of 229.41%, and a profit of 21.524 million yuan was recorded, turning a year-on-year loss into profit, indicating strong short-term growth momentum.

Behind this impressive growth lies a fundamental restructuring of the company's business. Yuanxin Energy Storage's revenue growth is highly tied to the delivery of large-scale energy storage projects. Revenue from large-scale energy storage system solutions surged from 7.168 million yuan in 2023 to 477 million yuan in 2024, further climbing to 1.669 billion yuan in 2025. The proportion of this business segment jumped from 13.5% in 2023 to 89.4% in 2025, and remained high at 76.4% in the first four months of 2026. In contrast, the revenue share of the energy storage battery business continued to shrink, falling from 86.5% in 2023 to 9.2% in 2025, and 13% in the first four months of 2026. The full tilt of the business towards large-scale energy storage integration has also deeply tied the company's operations to the order rhythm of major projects.

However, scale expansion has not led to a parallel improvement in profitability quality, as the overall gross margin has shown a continuous decline. The prospectus shows that from 2023 to 2025, the company's overall gross margin was 21.6%, 17.8%, and 16.1%, respectively, declining year by year. The gross margin for its core pillar, large-scale energy storage system solutions, also fell from 19.8% in 2024 to 16% in 2025, with industry price competition pressures directly transmitting to the company's profit margins. On the cash flow front, the company's main business lacks stable cash generation capability, with net operating cash flow swinging wildly. Net operating cash inflow was 61.8 million yuan in 2023, turning into a net outflow of 40.9 million yuan in 2024. In 2025, benefiting from large project collections, net operating cash inflow reached 803.3 million yuan, but in the first four months of 2026, a significant net outflow of 449.8 million yuan reappeared. Cash flow fluctuates dramatically with the pace of project collections, presenting a high test for the company's capital management, supply chain payments, and project advance funding capabilities.

Customer structure is another significant risk point for Yuanxin Energy Storage, with customer concentration continuously increasing. During the reporting period from 2023 to 2025 and the first four months of 2026, the proportion of revenue from the company's top five customers was 53.7%, 81.6%, 80.2%, and 94.3%, respectively. In the first four months of 2026, nearly all revenue came from a few partners, with the largest single customer accounting for over 40% of revenue. The termination of a single customer's cooperation could halve the company's revenue. The prospectus indicates that if core customers experience project delays, slowed collections, or termination of cooperation, the company's performance will suffer a significant impact. The loss of a single major customer could potentially lead to a substantial contraction in revenue.

Accounts receivable are also concentrated among top customers. At the end of each reporting period, the combined share of trade receivables from the top five customers exceeded 86%, concentrating the risk of receivable collection. Additionally, as of April 30, 2026, Yuanxin Energy Storage owned three factories in Jiangsu and Yunnan provinces: the Zhenjiang, Yao'an, and Dali factories, all of which are in commercial operation for producing and integrating energy storage system products. Total capacity in 2025 was approximately 6.8 GWh. Specifically, the capacity utilization rates of Yuanxin Energy Storage's factories varied significantly. During the reporting period, the capacity utilization rate of the Zhenjiang factory was 56.83%, 65.75%, 95.53%, and 56.52%, reflecting relatively mature operations and reaching a peak of 95.53% in 2025. The Dali factory, which commenced production in 2024, had low capacity utilization rates of just 11.53% in 2024 and 6.22% in 2025. The Yao'an factory, which started production in 2025, had a low utilization rate of 16.9% for that year. Overall, the company's comprehensive capacity utilization rate in 2025 was 74.09%, with capacity release at some new bases falling short of expectations. The company is also planning a new Wuzhen factory, scheduled to start construction in September 2026 and begin production in May 2028, with a designed annual capacity of 10 GWh, representing a 147% expansion from current capacity. Amid continuous capital expenditure for expansion, if downstream demand for energy storage falls short of expectations, the company could face potential pressures from idle fixed assets and impairment of inventory.

From an industry cycle perspective, the domestic large-scale energy storage track is in a phase of rapid expansion alongside intense competition. System integrators generally face industry-wide challenges such as price wars, project advance funding, and lengthened collection cycles. Yuanxin Energy Storage has achieved scale breakthroughs by relying on the large-scale independent energy storage track, but its profitability quality is concerning. Issues such as heavy reliance on large projects, concentrated customer base, declining gross margin, volatile cash flow, and capacity digestion at new bases have become core points of scrutiny for the capital market regarding its IPO.