Shouhang New Energy Poised for IPO: Driven by Technological Innovation and a Bright Future in the Energy Storage Market
On February 13, 2025, Shenzhen Shouhang New Energy Co., Ltd. received approval from the China Securities Regulatory Commission for its listing application on the Growth Enterprise Market, bringing it one step closer to its official IPO. According to its prospectus, Shouhang New Energy is primarily engaged in the research, development, production, sales, and service of new energy power equipment, with its core products being photovoltaic grid-connected inverters, photovoltaic energy storage inverters, and energy storage batteries. Its downstream applications include commercial users, residential users, and ground power plants.
As a company that spans both the “photovoltaic” and “energy storage” sectors, Shouhang New Energy has shown impressive performance growth in recent years, with an overall increase in overseas revenue, demonstrating strong global competitiveness. In its upcoming IPO, Shouhang New Energy plans to raise 1.211 billion yuan, which will be primarily allocated towards the construction of energy storage systems and upgrading research and development, aiming to solidify its technological advantages and expand its market footprint.
Deep Dive into the “Photovoltaic and Energy Storage” Sector
Photovoltaic inverters are critical devices within solar power generation systems. In recent years, as photovoltaic systems have become increasingly common in residential and commercial applications, the demand for photovoltaic inverters has surged. According to data from the renowned research firm Wood Mackenzie, the global shipment of photovoltaic inverters rose from 81.3 GW in 2016 to 536.0 GW in 2023, achieving a compound annual growth rate of 30.92%. With the acceleration of global energy transition, issues related to the intermittency and volatility of new energy generation are becoming increasingly prominent. New energy storage technologies are key to addressing these challenges, leading to significant market demand and accelerating growth in the energy storage inverter segment.
Data from Qidian Research Institute (SPIR) estimates that global shipments of energy storage inverters will reach 151 GW in 2024, marking a year-on-year increase of 79.8%. By 2030, shipments are expected to soar to 1,773 GW, with a compound annual growth rate of 53.3% from 2023 to 2030. Shouhang New Energy is well-positioned to capitalize on these industry trends.
Company Growth and Market Strategy
Since its establishment in 2013, Shouhang New Energy entered the market with low-power grid-connected inverters and strategically expanded into the energy storage sector in 2016, gradually developing a product line that includes photovoltaic grid-connected inverters, photovoltaic energy storage inverters, and energy storage batteries. In the field of distributed high-power photovoltaic inverters, the company has mastered relevant technologies for 255 kW and 320-350 kW three-phase inverters, achieving sales in this segment. For energy storage inverters, its photovoltaic energy storage inverters cover power ranges from 3 kW to 20 kW, suitable for various scenarios including residential and small commercial off-grid storage. In terms of energy storage batteries, during the reporting period, the company transitioned from purchasing 2,000 Wh finished batteries to producing its own high-voltage lithium battery packs ranging from 3,000 Wh to 5,000 Wh.
In recent years, the trend of Chinese companies expanding internationally has become increasingly pronounced, and Shouhang New Energy has been proactive in looking overseas. Its prospectus reveals that its major clients include ZCS, CORAB, EnergyNAT, ILUMISOL, SOLTEC, MV Technology, Trina Solar, Xiangtai New Energy, Havells, and Skyworth Solar. The company’s operations extend beyond major photovoltaic markets in Europe and Asia-Pacific, reaching emerging markets in Latin America, the Middle East, and Africa, which enhances its resilience against local market fluctuations and supports long-term sustainable development.
Impressive Financial Performance
Shouhang New Energy’s growth trajectory can be clearly seen in its performance data. From 2020 to 2022, the company’s revenue increased from 1.023 billion yuan to 4.457 billion yuan, achieving a compound annual growth rate of 103.87%. Its net profit attributable to shareholders rose from 196 million yuan to 849 million yuan, with a compound growth rate of 152.03%. In 2023, Shouhang New Energy reported revenues and net profits of 3.743 billion yuan and 341 million yuan, respectively, experiencing a decline primarily due to industry environmental impacts affecting comparable company performance. Nevertheless, the company’s overseas revenue has shown a consistent upward trend, with foreign sales revenue from 2021 to the first half of 2024 recorded at 1.599 billion yuan, 3.993 billion yuan, 2.829 billion yuan, and estimated at 1.22 billion yuan, constituting around 80% of total revenue. This reflects a sustained increase in international market demand for inverter products and signifies the company’s strengthening position in this sector.
Investment in Research and Development
Shouhang New Energy has been steadily increasing its investment in research and development, with nearly 30% of its workforce dedicated to R&D roles. Although photovoltaic inverters account for less than 8% of the overall cost of photovoltaic systems, they perform critical functions such as converting direct current to alternating current, maximum power point tracking (MPPT), grid connection protection, and efficiency optimization, often referred to as the “brain” or “heart” of the photovoltaic system. With the growing trend of “integrated photovoltaic and energy storage” solutions, the technical requirements for inverters are becoming increasingly stringent. In this context, inverter companies like Shouhang New Energy are ramping up their R&D investments. The prospectus indicates that from 2021 to 2023, Shouhang New Energy’s R&D expenses were 94 million yuan, 193 million yuan, and 308 million yuan, with R&D expense ratios of 5.16%, 4.32%, and 8.24%, respectively. As of the first half of 2024, the company employed 525 R&D personnel, representing 27.88% of its total workforce, underscoring its commitment to technological innovation.
Since 2017, Shouhang New Energy has been recognized as a national high-tech enterprise, holding multiple patents and core technologies developed in-house. Currently, the company possesses 247 authorized patents, including 102 invention patents, 94 utility model patents, and 51 design patents. Additionally, Shouhang New Energy actively collaborates with research institutions and universities to foster industry-academia-research partnerships. In 2017, it established the “Energy Storage Conversion and System Integration Technology Center” in collaboration with Huazhong University of Science and Technology to engage in scientific research and partnerships in energy storage, photovoltaics, and electric vehicle applications. In 2021, Shouhang New Energy was recognized by the Guangdong Provincial Department of Science and Technology as the “Guangdong Provincial Engineering Technology Research Center for Photovoltaic and Energy Storage Inverters,” enhancing its influence and technological innovation capabilities in the industry.
Global Competitiveness and Market Outlook
Data indicates that Shouhang New Energy exhibits strong competitiveness in both the global photovoltaic and energy storage markets. According to a Wood Mackenzie research report, in 2023, Shouhang New Energy ranked among the top ten in global photovoltaic inverter shipments. A survey by IHS Markit showed that in 2021, its shipments of residential inverters ranked ninth globally. The industry’s growth outlook remains positive, with expectations for the photovoltaic and energy storage sectors to maintain a long-term upward trend. During a recent seminar on the photovoltaic industry’s development outlook for 2024 and beyond, Wang Bo Hua, honorary president of the China Photovoltaic Industry Association, projected that, in an optimistic scenario, global new photovoltaic installations could grow by 10% year-on-year in 2025. He anticipates continued growth in global photovoltaic installations, driven by emerging market demand, particularly in regions like the Middle East.
Several prominent energy institutions are optimistic about global energy storage installation demand. According to TrendForce, it is expected that by 2025, global energy storage installations could reach 221 GWh, marking a year-on-year increase of 36%. Key market dynamics are expected to remain unchanged, with China, Europe, and America continuing to dominate, accounting for 85% of global new energy storage installations. Bloomberg New Energy Finance (BNEF) predicts that the global residential energy storage market will expand significantly to 100 GWh by 2025, nearly quadrupling from 24 GWh in 2022, with a remarkable compound annual growth rate of 62%. SolarPower Europe expects that by 2028, Europe’s residential energy storage installations will reach 22.6 GWh, indicating a sustained growth trend.
In the domestic market, the energy storage industry is also experiencing a favorable policy environment. The Ministry of Industry and Information Technology and seven other departments jointly issued the “Action Plan for High-Quality Development of New Energy Storage Manufacturing Industry” on February 17, which promotes the integration of “photovoltaic + energy storage” systems into urban lighting, traffic signals, and rural public facilities, and encourages the development of residential energy storage products. The policy explicitly supports micro off-grid energy storage systems, which is expected to further unleash the potential of distributed photovoltaics and expand the commercial and residential markets.
Future Development Plans
In light of the vast market opportunities ahead, Shouhang New Energy has formulated clear development plans. Through its IPO, the company aims to raise 1.223 billion yuan, which will be allocated to the construction of energy storage systems, new energy product R&D and manufacturing projects, upgrades to its R&D center, marketing network construction, and supplementary working capital. Shouhang New Energy states that the implementation of the energy storage system construction project and new energy product R&D and manufacturing project will effectively enhance the production capacity and efficiency of its distributed high-power inverters, energy storage inverters, and energy storage batteries. This will meet downstream market demand while improving the product structure, with these product series becoming new profit growth points and further enhancing the company’s market competitiveness and profitability.
In addition to expanding production capacity and increasing R&D investment, Shouhang New Energy intends to strengthen its market share domestically. “The demand for photovoltaic inverters and energy storage systems in the domestic market is expected to grow rapidly. The company urgently needs to establish local marketing outlets in major business areas across the country to gather market information and feedback in real-time, ensuring localized technical support and spare parts supply.”
The approval of Shouhang New Energy’s IPO registration not only marks a new beginning for the company in the capital market but also reflects the market’s support for technology-driven enterprises. This development is expected to inject vitality into the industry, encouraging more companies to increase R&D efforts and expand market reach as they contribute to the global energy transition.
