Increased Market Value of 217.3 Billion: Energy Storage Leader Huichuan Technology Announces Hong Kong IPO Plans

Market Value Exceeds 217.3 Billion! Leading Energy Storage Company Officially Initiates Hong Kong Listing

On January 19, 2026, Inovance Technology, a leader in industrial automation and a prominent player in the energy storage converter (PCS) sector, announced its plans to issue H-shares and list on the main board of the Hong Kong Stock Exchange. This move is clearly defined as part of the company’s strategy to enhance its international presence, brand image, and overall competitiveness in the global market.

Strategic Move

Inovance Technology has firmly established itself as a leader in the domestic industrial automation sector, maintaining a significant market share and steadily consolidating its influence in core products. According to authoritative statistics from MIR Consulting, by the first half of 2025, Inovance held a 32% market share in servo systems and 22% in low-voltage frequency converters, both ranking first in the industry. These shares have continued to increase, further solidifying the advantage of domestic substitution.

In stark contrast to its strong domestic business, the company faces challenges with its international operations. The latest data for the first half of 2025 revealed that Inovance’s total overseas revenue was approximately 1.32 billion yuan, marking a 39% increase year-on-year; however, this only accounted for 6.4% of total revenue, a slight uptick from 6% in 2024 but still at a very low level. Internationalization has been elevated to a strategic priority for Inovance, as Chairman Zhu Xingming designated it as the “most important first strategy” for the company’s growth. Unlike many industry peers that focus solely on product exports, Inovance advocates a “Global for Local” approach, aiming to integrate global intelligence, production capacity, and supply chain resources to meet local customer needs.

This strategy requires establishing research and development centers overseas, building localized supply chains, and creating sales and service networks, all of which demand substantial capital investment. The international financing channels offered by the Hong Kong stock market will be crucial for supporting this strategic implementation.

In addition to addressing its international business shortcomings, Inovance has also strategically positioned itself in high-potential new sectors. Chairman Zhu has identified three “new growth engines”: digital energy, intelligent robotics, and low-altitude economy, with all three sectors working in tandem to build long-term growth barriers. Among them, digital energy is prioritized, with energy storage being its core pillar and expected to drive the company’s globalization efforts in 2025.

With years of expertise in power electronics technology, Inovance’s energy storage segment is poised for significant growth in 2025. The company’s core product, grid-connected PCS, is industry-leading, having successfully implemented the 100MW/200MWh shared energy storage project in Yunnan, which demonstrated outstanding performance metrics including voltage fault support response time of <10ms and frequency modulation power response of <300ms, showcasing its technological and engineering capabilities.

Concerns Amid High Growth

However, behind the ambitious vision laid out by Inovance, the company is undergoing a profound transformation in its growth model. For the first three quarters of 2025, Inovance reported revenue of 31.663 billion yuan, a year-on-year increase of 24.67%, and a net profit attributable to shareholders of 4.254 billion yuan, up 26.84% year-on-year, with both revenue and profit maintaining double-digit growth. The core growth drivers are the new energy vehicles and rail transit sectors, which generated approximately 14.8 billion yuan in sales, a remarkable increase of 38%, accounting for 46.7% of total revenue.

As a crucial pillar of digital energy, the energy storage segment has seen even greater growth, with shipment volumes increasing by 70% year-on-year and revenue reaching 6.52 billion yuan, up 122%, making it the second growth engine. Notably, overseas shipments accounted for 83% of this revenue, significantly bolstered by high-margin international orders.

Despite the impressive double-digit growth in revenue and net profit for the first three quarters of 2025, a downturn is evident in the third quarter, where revenue fell to 11.153 billion yuan, a decrease of 3.28% quarter-on-quarter, and net profit dropped by 21.87% to 1.286 billion yuan, with a year-on-year growth rate of only 4.04%. This significant decline points to the underlying issues affecting profitability in the two main growth areas, particularly the new energy vehicles and rail transit sectors, which have continued to struggle with low profitability.

For the first half of 2025, the gross margin for these sectors was 17.45%, and in the third quarter, gross margins fell further due to increased competition within the vehicle industry, adversely impacting the overall profitability of the company. Additionally, the issue of capital occupation remains prominent, with accounts receivable reaching 10.185 billion yuan4.94% year-on-year, but still representing a significant long-term capital commitment. Coupled with ongoing competitive pressures in the downstream vehicle industry, the potential risk of bad debts continues to accumulate. Even though some high-credit accounts receivable have not been provisioned for bad debts, the substantial accounts receivable have seriously affected asset turnover efficiency, further straining cash flow.

Conclusion

The planned H-share listing is a crucial step for Inovance Technology in overcoming its challenges. However, the effectiveness of this initiative remains uncertain. The key factor will be whether the funds raised can be efficiently transformed into energy storage capacity building, establishing international research and development centers, and achieving effective integration within the industry chain, thereby truly enhancing the global competitiveness of the energy storage sector. This will serve as the main benchmark for evaluating the success of the upcoming listing.