Guoxia Technology’s Ambitious IPO in Hong Kong: Aiming for the AI and Energy Storage Frontier

Ambition on a Global Scale: New Energy Innovator Guoxia Technology Aims for Hong Kong Listing, Targeting the “AI + Energy Storage” High Ground

As the world accelerates its transition to renewable energy, the energy storage industry is rapidly reshaping the future of power systems. According to data from Zhuoshi Consulting, the global installed energy storage capacity is projected to surge from 7.1 GWh in 2019 to 174.9 GWh by 2024, reflecting a compound annual growth rate of nearly 90%. By 2030, this figure is expected to exceed 974 GWh. In this competitive landscape, Chinese companies have become increasingly prominent, with half of the world’s top ten energy storage system suppliers originating from China. Among them, Guoxia Technology stands out as a rising star.

Recently, this Jiangsu-based company, founded just six years ago, officially submitted its application to the Hong Kong Stock Exchange, aiming to raise capital to accelerate its “AI + Energy Storage” strategy and enhance its global competitiveness. From its inception, Guoxia Technology has focused on digital and artificial intelligence solutions for renewable energy. The upcoming IPO is seen as a strategic move to leverage capital from Hong Kong to strengthen its AI-driven competitive edge and capitalize on the industry’s growth opportunities.

Guoxia Technology’s Rapid Growth: From 14.2 million to over 1 billion in Three Years

The rise of Guoxia Technology is attributed not only to the explosive growth of the global energy storage market but also to its agile market strategy. Established in 2019, the company initially targeted the European residential energy storage market, with over 70% of its revenue coming from Europe in 2022. However, with the implementation of China’s dual-carbon policy and a surge in demand for large-scale energy storage projects, Guoxia quickly shifted its focus to the domestic market. By 2024, its revenue from China had risen to 79.9%, with 77 of its 94 clients located in China. While its overseas revenue share has decreased, it remains stable. To solidify its international presence, Guoxia launched the overseas brand HANCHU ESS in 2022 and completed its first overseas commercial energy storage project in 2024.

Notably, by 2024, revenue from Europe had dropped to 10%, while revenue from emerging markets in Africa and elsewhere reached 9.9%, with an overall revenue of 102 million yuan. Guoxia Technology’s financial performance has soared in response to the booming demand in the energy storage market. The company’s revenue skyrocketed from 142 million yuan in 2022 to 1.026 billion yuan in 2024, achieving a compound annual growth rate of 168.9%. Over the same period, its gross profit rose from 35.6 million yuan to 155 million yuan, with a compound growth rate of 108.6%.

The company’s operations are primarily divided into three business segments: intelligent energy storage system solutions (addressing diverse needs in large-scale, commercial, and residential scenarios globally), EPC services (for commercial energy storage projects and photovoltaic plant development), and miscellaneous sales (including forklifts, testing equipment, and discarded battery cells). In 2024, intelligent energy storage system solutions contributed 97.8% of total revenue, serving as the core growth driver and performance pillar for the company. Benefiting from the release of demand for large energy storage systems due to domestic grid peak shaving projects and commercial energy storage needs, this segment recorded a year-on-year revenue increase of 601.9%. Although residential energy storage systems accounted for 20.3% of the total, they maintained a 50% annual growth rate through capacity expansion and efforts to penetrate new markets like Africa and South America. In contrast, EPC services and miscellaneous sales made up a mere 2.2% of total revenue.

The Challenge of Balancing High Growth with Low Profitability

Guoxia Technology has emerged as a leading provider of platform technology and AI-driven renewable energy solutions in China. According to Zhuoshi Consulting, the company ranks as the eighth-largest energy storage system supplier globally by 2024, based on newly installed multi-purpose energy storage system capacity, and is the tenth-largest supplier based on global residential energy storage system shipments. To support its business expansion, Guoxia has been accelerating its capacity growth and enhancing supply chain resilience. The company has established a new headquarters and production base spanning 32,000 square meters in the Huishan Economic Development Zone of Wuxi and has partnered with Shanghai Jiao Tong University to create a “Joint R&D Center for Energy Storage Thermal Management” to drive product innovation.

However, like many expanding manufacturing enterprises, profitability has become a pressing concern. From 2022 to 2024, the company’s net profit only increased from 24.27 million yuan to 49.11 million yuan, with gross margins dropping from 25.1% to 15.1%. This discrepancy between high growth and low profitability is attributed to intensified market competition and fluctuating raw material prices, particularly the significant drop in battery cell prices and the ongoing expansion of lithium-ion battery production, which have had a profound impact on the entire industry and its players.

Strategies for Overcoming Industry Challenges

To break through industry constraints and distinguish itself in a crowded energy storage market, Guoxia Technology aims to leverage capital to enhance its technological capabilities, product quality, and brand recognition. The company’s prospectus indicates that it plans to utilize the raised funds primarily to bolster R&D capabilities to enhance its technological leadership in energy storage and to establish an overseas operational and service network to support its international growth strategy. This includes investments in AI hardware and software, third-party supplier support services, recruitment of R&D personnel, and securing intellectual property for AI commercialization and compliance.

Guoxia Technology, being one of the first companies to achieve seamless cloud integration of energy storage system solutions and products while developing a panoramic cloud platform, established a digital and AI energy R&D team in its founding year. The company remains optimistic about the potential of AI and digital technologies to empower the energy sector. The consulting report highlights Guoxia as the first provider of IoT platforms tailored for the energy sector and the first to develop a seamless energy storage industrial model based on AI technology. Currently, Guoxia has developed AI-optimized systems and tools, such as Safe ESS and Hanchu iESS, to enhance real-time energy optimization, predictive maintenance, and decision-making processes. The ability to provide AI-optimized energy storage system solutions across all energy usage scenarios is viewed as central to maintaining its competitive edge and differentiated advantages.

By 2024, there will be over 300 energy storage system suppliers globally, with the top 30 accounting for more than 90% of the market’s newly installed capacity, indicating a highly competitive environment. Unlike the battery cell sector, where Chinese companies dominate the global shipment rankings, the energy storage system market remains fiercely competitive, with American firms holding significant market power, and Chinese companies have yet to fully establish dominance. The energy storage industry is set to be a hot sector characterized by both high demand and intense competition, with limited time for newcomers like Guoxia Technology to catch up.

According to forecasts, by 2030, global newly installed energy storage system capacity will increase from 174.9 GWh to 974 GWh, with an expected compound annual growth rate of 33.1%. In light of current global technological shifts, competitors in the tech field must strive to close the gap. Guoxia Technology has established a research center in Wuxi, Jiangsu Province, focusing on IoT and AI optimization platforms, battery development, energy management system modules, unattended operation modules, and integrated control inverter systems. However, given its current R&D expenditure, Guoxia needs to significantly increase its investment to keep pace. Financial reports show that R&D expenditures from 2022 to 2024 were approximately 3.79 million, 16.81 million, and 31.58 million yuan respectively, accounting for only 2.7%, 5.3%, and 3.1% of total revenue for those years. Comparing this to its cash and cash equivalents of approximately 50.26 million yuan, raising funds has become essential for Guoxia’s further development.

On a positive note, the current investment market seems to recognize Guoxia Technology’s growth potential. Before announcing its application for listing on the Hong Kong Stock Exchange, Guoxia secured an investment of 30 million yuan from Shenzhen Ningqian for 0.50% equity. Additionally, in March 2024 and March 2025, Kaibo Capital invested 30 million and 70 million yuan respectively, becoming the largest external institutional shareholder. To date, the company’s latest valuation has reached 6 billion yuan.