This year marks the first A-share IPO in the solar and storage sector exceeding 10 billion yuan: The issue price is 11.80 yuan/share, raising 486 million yuan.
After nearly three years, Shenzhen Shouhang New Energy Co., Ltd. (referred to as “Shouhang New Energy”) is set to debut on the ChiNext board. On March 20, Shouhang New Energy announced that its application for an initial public offering (IPO) of 41,237,114 shares of ordinary RMB shares (A shares) has been approved by the Shenzhen Stock Exchange’s ChiNext Listing Committee and has received registration approval from the China Securities Regulatory Commission (CSRC) (Certificate No. [2025] 273).
This IPO aims to raise approximately 486.59 million yuan, with an issue price of 11.80 yuan/share. After deducting expected issuance expenses of about 74.08 million yuan (excluding value-added tax), the net proceeds are estimated to be 412.52 million yuan. The stock will be listed under the name “Shouhang New Energy” and the code “301658.” Online and offline subscriptions will close at 15:00 on March 24, 2025 (T-day).
Timeline of Shouhang New Energy’s IPO:
- June 16, 2022: Shouhang New Energy first published its prospectus.
- March 2023: The IPO passed the review, intending to raise 3.512 billion yuan, with 2 billion yuan allocated to the “Shouhang Energy Storage System Construction Project” and 772 million yuan for the “Renewable Energy Product R&D and Manufacturing Project.”
- October 2024: The IPO process was halted for supplementary financial information.
- January 23, 2025: The company officially submitted its registration to the Shenzhen Stock Exchange ChiNext board.
- February 11, 2025: The CSRC approved Shouhang New Energy’s application for public share issuance.
- March 20, 2025: Shouhang New Energy’s IPO and listing on the ChiNext board were completed, marking nearly three years since the initial application.
If the listing is successful, Shouhang New Energy will become the first leading company in the solar and storage sector to be listed on the A-share market this year, with an estimated valuation exceeding 12 billion yuan.
Global Expansion to Mitigate Industry Cycles
Founded in 2013, Shouhang New Energy is a high-tech enterprise specializing in the R&D, production, sales, and service of new energy power equipment, focusing on solar energy conversion, storage, and management. Its core products include photovoltaic grid-connected inverters, photovoltaic energy storage inverters, and energy storage batteries. The prospectus highlights Shouhang New Energy’s rapid growth over the past few years.
Since 2019, the company’s revenue has achieved remarkable growth, particularly in 2022 when revenue surpassed 4.5 billion yuan. Despite facing market challenges in 2023, which led to some revenue adjustments, the company remains stable and optimistic about the future. In terms of net profit, Shouhang New Energy has demonstrated resilient performance, showcasing its effective operational management and profitability. Even in the first half of 2024, amid a complex market environment, the company is expected to maintain stable net profit levels.
In 2023, both revenue and net profit for Shouhang New Energy saw a significant decline. The primary reasons for this downturn can be attributed to a generally unfavorable market environment that has affected the entire industry. In 2022, the Ukraine crisis heightened energy tensions in Europe, coupled with global inflation, which increased electricity prices and led European clients to prioritize electricity costs and supply stability, thereby boosting exports of Chinese photovoltaic and energy storage products. From the second half of 2023, as the impact of the crisis diminished and European natural gas supply stabilized, electricity prices fell, resulting in a slowdown in the energy storage market demand. Consequently, both revenue and net profit for Shouhang New Energy in 2023 and 2024 are projected to decline compared to 2022.
Shouhang New Energy has maintained a good gross profit margin, with its main business gross profit margin remaining in the range of 31% to 35% from 2021 to the first half of 2024. This demonstrates the strong risk-resilience built through its global distribution network. The prospectus also discloses the company’s global strategy of “localized service + regional warehousing,” covering key photovoltaic markets in Europe and the Asia-Pacific region while continuously expanding into emerging markets in Latin America, the Middle East, and Africa. The products are now distributed in over 100 countries, with localized service platforms established in more than 20 countries, earning recognition as a top 5 global energy storage inverter brand, and receiving accolades as a leading photovoltaic inverter brand in Brazil, India, and the UK. In recent years, overseas revenue has consistently accounted for about 80% of total revenue, showcasing the company’s strong global market positioning.
Shouhang New Energy is currently in a stable expansion phase, with its asset-liability ratio showing a consistent decline over the years. From 2021 to the first half of 2024, the company’s consolidated asset-liability ratios were 53.99%, 60.09%, 52.10%, and 47.14%, respectively.
Comprehensive R&D Capabilities Build Distinct Competitive Edge
Since its establishment, Shouhang New Energy has endured several cyclical fluctuations in the photovoltaic industry, consistently focusing on solar energy equipment and making technological innovation the core driver of business development. The company adheres to a market-oriented approach, emphasizing independent R&D and technological advancements, and has steadily built a comprehensive R&D system and ongoing innovation mechanism. From 2021 to the first half of 2024, the company’s R&D expenses have significantly increased from 94.22 million yuan to 154 million yuan, with the R&D expense ratio rising from 5.16% to 10.47%. This sustained and efficient R&D investment ensures that the company’s key products and technologies align with market demands, effectively safeguarding its competitive edge.
Specifically, the company and its subsidiaries hold 28 core technologies, 102 invention patents, 94 utility model patents, 51 design patents, and 80 software copyrights. Key technical indicators such as conversion efficiency (the 320kW photovoltaic inverter has a high efficiency of 98.55% in China) and MPPT accuracy (99.05%) reach leading global standards. Currently, Shouhang New Energy’s core technological competitiveness positions it at the forefront of the industry, particularly in areas such as efficient and reliable DC-DC and DC-AC power conversion technologies, grid suitability and support technologies, and rapid fault diagnosis technologies.
The efficient and reliable power conversion technology involves leveraging the advantages of third-generation power semiconductor devices, exploring innovations in topology and control technologies, and integrating multi-level and magnetic integration technologies, leading to superior peak efficiency in inverter products. For instance, the SOFAR 6KTLM-G3 photovoltaic grid-connected inverter achieves a maximum power of 98.4%, demonstrating strong competitiveness.
In terms of grid interaction technology, Shouhang New Energy has developed adaptive algorithms for grid-connected inverters, enabling products to handle over 30 types of grid voltage harmonics, supporting weak grid connections, with active regulation response times of under 60 milliseconds, reactive support under 30 milliseconds, and harmonic distortion rates below 1%, ensuring stable grid-connected power generation and enhancing grid stability.
For fault diagnosis technology, the company targets common failure points in photovoltaic inverters and energy storage batteries. It employs high-performance digital signal processors to accurately collect power information (voltage accuracy of 100mV, current accuracy of 10mA) and utilizes onboard MCUs for real-time monitoring and protection of key components, recording pre- and post-fault information with a time precision of 100 microseconds. Coupled with failure mode analysis, the diagnostic coverage for key components exceeds 90%.
In addition to these core technologies, Shouhang New Energy has advanced capabilities in energy storage inverters, off-grid control, battery energy management and balancing, IoT monitoring platforms, pre-charging for flying capacitor-type three-level converters, and hybrid magnetic circuit multi-path inductance integration.
Moreover, in terms of innovative business models and operational practices, Shouhang New Energy has implemented information management systems such as MES to achieve fully integrated, refined management across the entire production process. By investing in automated production lines and attracting strategic investors, the company has extended its industrial chain, forming an integrated service capability focused on R&D design innovation, integrated manufacturing, and after-sales maintenance.
Through the strategic layout of core technologies, Shouhang New Energy has built a technological moat, enhancing product performance, redefining industry standards, and providing comprehensive lifecycle system-level solutions. These technological innovations not only drive market share growth but also offer a technical blueprint for global energy transition.
Structural Opportunities Amidst Energy Storage Sector Growth
The burgeoning household energy storage sector is revealing rich structural opportunities, paving the way for forward-looking and innovative companies to achieve rapid growth. Shouhang New Energy, with its profound technological foundation and exceptional market insights, has accurately entered this high-growth niche market, seizing the vast opportunities presented by household energy storage. It is also proactively positioning itself in industrial and commercial storage, centralized storage products, and high-quality global markets, demonstrating strong competitiveness and development potential in this area.
According to authoritative forecasts from BNEF (Bloomberg New Energy Finance), the global household energy storage market is expected to expand significantly to 100 GWh by 2025, compared to 24 GWh in 2022, achieving nearly a fourfold increase with a compound annual growth rate of 62%. SolarPower Europe predicts that by 2028, the new installed capacity of household energy storage in Europe will reach 22.6 GWh, indicating a sustained growth trend in this sector. This data underscores the rapid development of the global photovoltaic energy storage market, with strong downstream demand.
The enormous potential and vitality of the household energy storage market will serve as a significant engine for Shouhang New Energy’s rapid development in the future. In the industrial and commercial energy storage field, Shouhang New Energy’s PowerMagic system has gained extensive recognition in both domestic and international markets due to its efficiency, flexibility, extreme safety, and lower LCOS (Levelized Cost of Storage).
The system employs AC coupling technology and consists of a grid-connected/off-grid cabinet, a combiner boost cabinet, an energy storage cabinet, and a battery cabinet. It can serve as an emergency power supply and allows for efficient peak-valley arbitrage, accelerating the transition to green energy and the digital assetization of new energy equipment. The modular design of the PowerMagic system supports flexible expansion for both AC and DC applications, meeting diverse industrial and commercial needs. Its efficient liquid cooling and intelligent humidity control system significantly extend system life cycles and reduce costs per kilowatt-hour. Furthermore, with its “static energy storage” feature, PowerMagic can adapt to complex environments in commercial complexes, creating a safe and quiet electricity usage environment that enhances the quality of life for the public.
In the centralized energy storage sector, Shouhang New Energy has also demonstrated strong technical capabilities and market insights. PowerMaster is an integrated solution developed by Shouhang New Energy, based on its extensive technical foundation in the solar and storage field. It incorporates power electronics, electrochemistry, and grid technology, boasting lower LCOS, high efficiency, extreme safety, and intelligent stability.
Additionally, Shouhang New Energy has achieved significant accomplishments in integrated hardware and software design, aimed at enhancing product functionality and performance. For example, its rapid islanding detection technology, integrated through software and hardware, is applied to grid-connected and energy storage inverter products, enabling quick islanding detection for photovoltaic grid-connected power generation systems. This technology automatically adjusts islanding detection parameters to adapt to different grid environments, effectively improving detection accuracy and minimizing system maintenance workload. This innovation not only enhances customer loyalty to the Shouhang New Energy brand but also establishes a solid market reputation and brand image.
In terms of global market expansion, Shouhang New Energy is actively venturing into overseas markets, successfully entering regions in Asia, Europe, the Americas, and the Middle East, and establishing strategic partnerships with several internationally renowned companies. The company’s prospectus outlines a “leading enterprise” growth strategy, establishing vertical capabilities in household energy storage from chip algorithms to system integration and smoothing regional risks through global layout.
Short-term performance fluctuations are a natural outcome of the energy storage industry’s capacity rectification process. However, Shouhang New Energy’s advantages in R&D intensity, customer structure, and scenario innovation have secured it a crucial position for the next energy revolution. As the global photovoltaic installation market is expected to recover and the energy storage economic tipping point approaches in 2025, the upcoming IPO of Shouhang New Energy is poised to usher in a new growth cycle, presenting broader market prospects.
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