New Stock News | Sieyuan Electric (002028.SZ) submits application to Hong Kong Stock Exchange, representing China's private backbone enterprise in the power equipment industry.

According to the disclosure by the Hong Kong Stock Exchange on February 11th, Sieyuan Electric Co., Ltd. (referred to as Sieyuan Electric, 002028.SZ) has submitted an application for listing on the main board of the Hong Kong Stock Exchange, with CITIC SEC as its exclusive sponsor. As a backbone enterprise in China's private power equipment industry, Sieyuan Electric adheres to long-termism, has been deeply involved in the energy field for over thirty years, focusing on the research and development, design, manufacturing, and sales of power transmission and distribution equipment and its core components, as well as providing related engineering turnkey contracts and full-lifecycle services. Company Profile The prospectus shows that Sieyuan Electric is a global manufacturer of power transmission and distribution equipment and a comprehensive provider of electrical energy solutions. According to Frost & Sullivan data, based on the revenue of the Chinese power transmission and control equipment market in 2024, Sieyuan Electric ranks eighth among international companies, fifth among domestic companies, and third among domestic private companies, with a market share of 3.5%. As one of the few enterprises in the industry with the capability to develop and manufacture primary equipment, secondary equipment, and storage-related equipment for power systems, Sieyuan Electric has built an industrial chain layout covering six core business lines, including switchgear, transformer, protection and automation, power electronics, energy storage systems and components, and EPC business, forming a business ecosystem of "products + solutions + services" and a rich product matrix widely used in various industries such as power grids, new energy (photovoltaic, wind power), metallurgy, petrochemicals, transportation, data centers, and other diverse applications. The company's business consists of six business lines: (i) switchgear business; (ii) transformer business; (iii) protection and automation business; (iv) power electronics business; (v) energy storage systems and components business; and (vi) EPC business. The company's business strategy is to continue to strengthen its grid business while expanding into the new energy sector. Sieyuan Electric actively seizes the opportunities in the industry brought about by the transformation of renewable energy and industrial upgrading, strategically deploying emerging areas such as energy storage systems and components, distribution electrical systems, automotive electronic appliances, etc., to create a business growth curve. In the field of energy storage systems, the company has developed supercapacitor and lithium battery hybrid technology and an all-domain energy storage system that can operate at a scale of seconds, minutes, and hours. In the field of energy storage components, relying on core supercapacitor technology, breakthrough progress has been made in applications such as smart grids and data centers. In the field of distribution electrical systems, the company has launched environmentally friendly switchgear, ring network cabinets, and other product series, achieving high-speed growth in domestic and international markets. In the field of automotive electronic appliances, the company has obtained multiple OEM designations. At the same time, the company is proactively laying out cutting-edge technologies in the energy sector, actively participating in the research and industrialization of IGCT device technology, laying a solid foundation for the company to further expand into ultra-high voltage, new energy grid integration, and DC grid markets. Sieyuan Electric continues to advance its globalization strategy and has established an efficient and coordinated domestic and international market network. In the domestic market of China, the company provides deep services to major power grid groups and large generating groups in China, actively participates in ultra-high voltage engineering construction, and according to Frost & Sullivan data, in the previous period, the company ranked in the top tier in terms of bid amount and share in the bidding for core customer transmission and transformation equipment, with its core product market position steadily ranking at the forefront of the industry. In the overseas market, as of September 30, 2025, the company's business has covered more than 100 countries and regions worldwide, with its overseas revenue proportion continuously increasing and becoming one of the core engines driving financial performance. Financial Information Revenue In the fiscal years 2023, 2024, the nine months ended September 30, 2024, and the nine months ended September 30, 2025, the company achieved revenues of approximately RMB 12.46 billion, RMB 15.458 billion, RMB 10.407 billion, and RMB 13.827 billion, respectively. Gross Profit and Gross Margin In the fiscal years 2023, 2024, the nine months ended September 30, 2024, and the nine months ended September 30, 2025, the company recorded gross profits of approximately RMB 3.612 billion, RMB 4.738 billion, RMB 3.233 billion, and RMB 4.425 billion, with corresponding gross margins of 29.0%, 30.6%, 31.1%, and 32.0%, respectively. Annual/Periodic Profits In the fiscal years 2023, 2024, the nine months ended September 30, 2024, and the nine months ended September 30, 2025, the company recorded annual/perio profits of approximately RMB 1.609 billion, RMB 2.085 billion, RMB 1.519 billion, and RMB 2.271 billion, respectively. Industry Overview The accelerated electrification process is driving continuous growth in global electricity demand, leading to a steady increase in total electricity generation. In 2024, global electricity generation reached 31,256.0 TWh, a year-on-year growth of 4.4%; with wind power and solar energy accounting for approximately 14.8% of the total electricity generation. New energy, with its technological iterations and significant cost advantages, has become the core driver of global electricity supply growth. At the same time, the aging of electrical grid infrastructure in developed economies is becoming more critical, necessitating upgrades and renovations to ensure system reliability. The transformation of energy structure and the need for infrastructure upgrades are jointly driving the continuous expansion of the global power transmission and distribution market. With the accelerated global energy transition, the large-scale grid integration of renewable energy, the upgrade and renovation of old grids, and the construction of power infrastructure in emerging economies are leading to steady growth in the global power transmission and control equipment market. According to Frost & Sullivan data, the global power transmission and control equipment market increased from RMB 580.8 billion in 2020 to RMB 863.6 billion in 2024, with a compound annual growth rate of 10.4%; it is expected to reach RMB 1,475.5 billion by 2029, with a compound annual growth rate of 11.3% from 2025 to 2029. Under the dual drive of the "carbon neutrality" strategy and the construction of new electricity systems, the continuous release of the demand for smart grid upgrades and grid integration of new energy in China has driven steady growth in the Chinese power transmission and control equipment market. According to Frost & Sullivan data, the Chinese power transmission and control equipment market increased from RMB 225.1 billion in 2020 to RMB 311.3 billion in 2024, with a compound annual growth rate of 8.4%; it is expected to reach RMB 483.4 billion by 2029, with a compound annual growth rate of 9.4% from 2025 to 2029. A Lithium-ion Battery Energy Storage System (BESS) refers to a technology device that uses lithium-ion batteries as the core storage unit to store and release electric energy through electrochemical reactions. With superior energy density and cost-effectiveness, and benefiting from the huge demand brought by the global electrification transformation, lithium-ion battery energy storage systems have occupied an important position in electrochemical energy storage systems. According to Frost & Sullivan data, in 2024, the global new installed capacity of lithium-ion battery energy storage systems reached 187.2 GWh, with a compound annual growth rate of 100.7% from 2020 to 2024, and is expected to reach 922.0 GWh by 2030, with a compound annual growth rate of 30.4% from 2025 to 2030. The urgent growth in global electrification modernization and the demand for grid integration of new energy have accelerated the deployment of lithium-ion battery energy storage systems in power transmission and distribution. According to Frost & Sullivan data, the global market for lithium-ion battery energy storage systems in power transmission and distribution increased from RMB 5.1 billion in 2020 to RMB 100.2 billion in 2024, with a high compound annual growth rate of 110.4%. Concurrently, the Chinese market size increased from RMB 1.5 billion to RMB 35.1 billion, with a compound annual growth rate of 120.6%. It is expected that by 2029, the global and Chinese market sizes will reach RMB 564.1 billion and RMB 303.0 billion respectively, with compound annual growth rates of 39.0% and 54.7% from 2025 to 2029. Board of Directors Information The Board of Directors is responsible for the management and operation of the company's business and has the necessary general powers. The eighth Board of Directors of the company currently consists of seven directors, including three executive directors, one non-executive director, and three independent non-executive directors. Equity Structure Mr. Dong Zengping holds 16.80% of the shares, Mr. Chen Bangdong holds 12.32% of the shares, and other A-share shareholders collectively hold 70.88% of the shares. As of the last practicable date, Mr. Dong holds 131,444,820 A-shares, accounting for approximately 16.80% of the total issued share capital of the company. Therefore, the company does not have a controlling shareholder, and Mr. Dong is considered the single largest shareholder of the company. In order to facilitate the company's A-shares listing on the Shenzhen Stock Exchange main board in August 2004, Mr. Dong and Mr. Chen issued non-compete commitments to the company on May 20, 2003. Accordingly, Mr. Dong and Mr. Chen have committed (including among others) that they and any entities they operate or invest in will not engage in any business that competes with the group's business. Intermediary Team Exclusive Sponsor: CITIC SEC (Hong Kong) Ltd. Company Legal Advisor: Morgan, Lewis & Bockius LLP for Hong Kong law; Beijing Tongshang Law Firm for Chinese law; Beijing Tongshang Law Firm for intellectual property and international sanctions law. Exclusive Sponsor Legal Advisor: Baker McKenzie for Hong Kong and U.S. law; Beijing Deheng Law Firm for Chinese law. Auditors and Reporting Accountants: Ernst & Young LLP Independent Industry Consultant: Frost & Sullivan (Beijing) Consulting Co., Ltd. Shanghai Branch Compliance Consultant: Softbank China Hong Kong Securities Limited Transfer Pricing Consultant: Ernst & Young (China) Enterprise Consulting Co., Ltd.