Sunshine Power Launches IPO in Hong Kong with Impressive 39.9% Gross Margin in Energy Storage Systems

Sunshine Power officially commenced its IPO on the Hong Kong Stock Exchange! As of October 5, Sunshine Power has submitted its prospectus, marking the beginning of its IPO process. By the close of trading on September 30, the company’s A-share price was reported at 161.98 CNY per share, with a total market capitalization of 335.8 billion CNY. The launch of both A and H shares indicates that Sunshine Power aims to attract international capital through the Hong Kong market, which will support the research and development of its storage and hydrogen energy businesses, as well as facilitate overseas production expansion. The A+H share premium effect is expected to help push its market value towards the 1 trillion CNY mark!

Rapid Growth of Energy Storage

According to the prospectus, Sunshine Power’s primary business covers five major sectors: solar, wind, storage, electricity, and hydrogen. Its main products and services include photovoltaic inverters, energy storage systems, new energy investment and development, wind power conversion products, electric control power supplies for electric vehicles, smart energy operation and maintenance services, and floating photovoltaic systems. The company is also strategically expanding into hydrogen energy and AIDC power supply.

In the first half of 2025, Sunshine Power reported revenues of 43.4 billion CNY with a gross margin of 32.9%. Notably, energy storage has emerged as the largest revenue contributor for the company this year. Data indicates that revenue from energy storage systems grew by over 127.78% year-on-year, reaching 17.8 billion CNY, which accounted for 41% of total revenue, surpassing the photovoltaic inverter business for the first time in history.

From 2022 to 2024, the growth of Sunshine Power’s energy storage business has been particularly remarkable, with shipments increasing from 7.7 GWh to 28.0 GWh. In the first half of 2025, shipments reached an impressive 19.5 GWh, a 150% year-on-year increase, approaching 70% of the total shipments for 2024. As of June 30, 2025, the cumulative shipments of Sunshine Power’s energy storage systems reached 70 GWh. It is important to note that the company’s current designed production capacity for energy storage systems is only 28 GWh, equivalent to its total shipments for 2024, indicating that the company is operating at full capacity, which could serve as a bottleneck for its current growth.

Furthermore, the gross margin for Sunshine Power’s energy storage systems has been steadily increasing, rising from 21.3% in 2022 to 39.9% in the first half of 2025, marking an 18.6 percentage point increase over four years. This figure is significantly higher than the company’s overall gross margin of 32.9% and the photovoltaic inverter gross margin of 35.7%, as well as well above the industry average of around 20%.

The pricing of Sunshine Power’s energy storage systems can be estimated from the revenue and shipment volume. In 2024, the price was approximately 0.89 CNY/Wh, while in the first half of 2025, it averaged around 0.913 CNY/Wh.

Product Design and Market Position

Sunshine Power’s cutting-edge design of its energy storage systems has garnered high recognition from domestic and international customers, driving its continuous revenue growth. According to a report by Frost & Sullivan, Sunshine Power is projected to achieve a global market share of 11.9% in energy storage systems by 2024, while Wood Mackenzie estimates its market share at 14%, placing it second globally, just behind Tesla at 15%, with the gap narrowing each year.

By June 30, 2025, the PowerTitan series had cumulatively shipped over 50 GWh. In late May of this year, Sunshine Power launched version 3.0 of the PowerTitan series, featuring the world’s first mass-produced 684Ah large cell. The Plus version is touted as the largest and most energy-dense lithium battery storage system globally, and it is the first to scale up the application of silicon carbide PCS, with a single cabinet capacity of up to 12.5 MWh, significantly reducing investment costs for owners.

Additionally, Sunshine Power places great emphasis on the safety of its energy storage systems. In 2024, it completed the world’s first large-scale combustion test for an energy storage system with the PowerTitan 1.0, and conducted the longest duration fire test for the 20MWh PowerTitan 2.0, receiving certification from DNV GL.

Sunshine Power’s grid technology has been widely applied worldwide, helping the UK electricity grid recover frequency rapidly to prevent widespread blackouts, and has been successfully applied in numerous projects, including the Saudi NEOM project, the largest multi-energy complementary project globally.

Looking ahead, Sunshine Power is focusing on AIDC (Artificial Intelligence Data Center) business, aiming to provide high-efficiency and high-power density full-stack power solutions for the next generation of AI data centers. During the financial report meeting held in August, Sunshine Power revealed that as AI and data centers are rapidly constructed, the demand for green electricity is tightening globally. The company highlighted its advantage in providing comprehensive green electricity solutions. Although there are currently no related customers, the AIDC division has been established, and product development is underway with plans to launch some products by 2026.

Fundraising Plans

In conjunction with its IPO on the Hong Kong Stock Exchange, Sunshine Power has disclosed its fundraising plans, which will primarily focus on three core areas: research and development, construction of overseas production bases, and digitalization initiatives. A portion of the net proceeds will be allocated to R&D, including investments in next-generation photovoltaic and energy storage products, as well as the construction and upgrading of R&D centers. Specific product innovations will cover various core products and technologies, including but not limited to small-scale energy storage product platforms, residential storage product platforms, commercial and industrial photovoltaic inverters, next-generation efficient and intelligent photovoltaic inverters, as well as new energy storage systems, PCS, and modular solutions.

Additionally, Sunshine Power plans to expand and upgrade its R&D centers in Hangzhou and Nanjing, focusing on advanced power electronics technology, energy digitalization technology, and future grid technological innovation, aiming to build a world-class research center for new energy power electronics.

Furthermore, part of the funding will be used to establish overseas production bases, primarily focusing on the production of inverter devices and energy storage products. Key factors like proximity to core customer groups and labor costs will be considered in site selection to ensure efficient production and market demand alignment. The planned overseas production bases are expected to have a total annual capacity of 18 GWh for energy storage products and 30 GW for inverter devices, significantly improving the company’s service efficiency and enhancing local supply capabilities.

Lastly, part of the net proceeds will accelerate digitalization initiatives, empowering the entire business process with digital and intelligent technologies, further enhancing operational efficiency, and market responsiveness to support continuous expansion in the photovoltaic and energy storage sectors.