Core Viewpoint - Shenzhen Yuanxin Energy Storage Technology Co., Ltd. has submitted its IPO application to the Hong Kong Stock Exchange, showing steady profit growth but facing declining average prices for its core products due to industry conditions [1][2]. Financial Performance - Yuanxin Energy Storage's revenue is projected to reach approximately 435 million yuan in 2023 and 1.144 billion yuan in 2024, with profits of about 40.74 million yuan and 96.27 million yuan respectively. By the first three quarters of 2025, revenue is expected to be around 881 million yuan, with profits turning positive at approximately 70.89 million yuan [2]. - The company's revenue sources have shifted significantly, with integrated energy storage system solutions accounting for 13.5% of revenue in 2023, increasing to 92.7% by the first three quarters of 2025, while sales of energy storage system products decreased from 86.5% to 6% in the same period [2]. Pricing Trends - The average selling prices for both integrated energy storage system solutions and energy storage system products have nearly halved during the reporting period. The average prices were 1.26 yuan/Wh in 2023, dropping to 0.44 yuan/Wh by the first three quarters of 2025 for solutions, and from 0.66 yuan/Wh to 0.38 yuan/Wh for products [3]. - The price reductions are attributed to lower costs of key raw materials, particularly battery cells, and increased competition in the industry, prompting the company to lower prices to gain market share [3]. International Market Expansion - Yuanxin Energy Storage plans to begin expanding into overseas markets in 2024, with the first overseas revenue expected in 2025. By the first three quarters of 2025, overseas revenue is projected to be 8.597 million yuan, accounting for only 1% of total revenue [4]. - The company has already established sales contracts or purchase orders with clients in the U.S., Hungary, Japan, and Spain, indicating a strategic move towards international markets [4]. Customer Concentration - The customer concentration for Yuanxin Energy Storage has increased significantly, with sales to the top five customers accounting for 53.6% in 2023, rising to 80.9% by the first three quarters of 2025. The largest customer has changed frequently during the reporting period [5].

Core Viewpoint - Shenzhen Yuanxin Energy Storage Technology Co., Ltd. has submitted its IPO application to the Hong Kong Stock Exchange, showing steady profit growth but facing significant price declines in its core products due to industry conditions [1][4]. Financial Performance - The company reported revenues of approximately RMB 434.61 million in 2023 and RMB 1.14 billion in 2024, with corresponding profits of about RMB 40.74 million and RMB 96.27 million [3][4]. - For the first three quarters of 2025, the company achieved revenues of approximately RMB 881 million, a significant increase from RMB 124.4 million in the same period last year, resulting in a profit of about RMB 70.89 million, marking a turnaround from losses [4]. Revenue Composition - Revenue primarily comes from integrated energy storage system solutions, energy storage product sales, and operation and maintenance services. The revenue share from integrated solutions increased significantly from 13.5% in 2023 to 92.7% in the first three quarters of 2025 [5]. - The average selling prices for integrated energy storage solutions and energy storage products have nearly halved during the reporting period, reflecting a competitive pricing strategy [5][6]. Market Expansion - The company plans to begin its overseas market expansion in 2024, with only 1% of its revenue coming from international markets in the first three quarters of 2025 [1][8]. - Contracts have been established with clients in various countries, including the USA, Hungary, Japan, and others, indicating a strategic move towards global market penetration [8]. Customer Concentration - There has been a noticeable increase in customer concentration, with the top five customers accounting for 53.6%, 81.6%, and 80.9% of sales revenue in the respective reporting periods [9]. - The company's largest customer has changed frequently, indicating potential volatility in customer relationships [9].