New stock news | Daqin Numerical Capabilities to deliver to the Hong Kong Stock Exchange as the fifth largest provider of ESS in the world.

According to the disclosure of the Hong Kong Stock Exchange on June 26th, Daqin Digital Energy Technology Co., Ltd. (referred to as Daqin Energy) submitted an application for listing on the main board of the Hong Kong Stock Exchange, with GUOTAI JUNAN I as its exclusive sponsor. According to Frost & Sullivan's data, based on the shipment volume in 2025, the company is the world's fifth largest household ESS provider, with a shipment volume of approximately 2.5 gigawatt hours. Company Profile The prospectus shows that Daqin Energy is a pioneer in the energy storage system (ESS) industry in China, focusing on the research, development, manufacturing, and sales of household and commercial ESS products. According to Frost & Sullivan's data, the company's commercial and industrial ESS shipment volume in 2025 is approximately 0.6 gigawatt hours, bringing the company's total ESS shipment volume to around 3.1 gigawatt hours. Among Chinese ESS companies, the company is one of the enterprises with the most extensive global business footprint. With extensive practical experience accumulated from serving a large number of customers in different markets and energy environments over the years, Daqin Energy offers a comprehensive product portfolio. The company's products are designed with standardization and modular design, allowing flexible configuration based on different customer needs and market environments to support a wide range of energy storage applications, including self-use of photovoltaics, peak shaving and valley filling, electricity price arbitrage, emergency backup power, and microgrid construction, providing services to households and commercial customers worldwide. Daqin Energy is one of the first Chinese companies to focus on the overseas ESS market. From the early days of its establishment, the company has adopted a globalization operating model based on localized services to enter various markets with products developed for local needs. Over the years, the company has established a distribution network covering Europe, Asia-Pacific, the Americas, Africa, and the Middle East, accumulating localized knowledge about grid environments, energy consumption patterns, and end-user behaviors in dozens of markets. These market insights enable the company to quickly adapt to diverse market demands and provide products tailored to local application scenarios. In 2025, 95.1% of the company's revenue came from outside mainland China, with household ESS product sales accounting for 75.7% of total revenue. The company's commercial business is also growing rapidly, as more and more commercial operators seek cost-effective and reliable energy management solutions in response to rising electricity prices and grid instability. As of December 31, 2025, the company's products have been deployed in over 100 countries and regions, with cumulative shipments of ESS batteries exceeding one million units. Daqin Energy's business includes two main product lines: household ESS. The company develops and sells small ESS products for household end users, including household ESS batteries and integrated ESS. The company's household ESS products are designed to address challenges faced by households in different regions, including high electricity prices, unstable grid conditions, and higher rates of self-usage for CECEP Solar Energy. By storing energy when energy costs are low or energy supply is sufficient, and dispatching it when needed, the company's systems can help household users manage energy usage more effectively and have the opportunity to benefit from dynamic electricity prices. Commercial ESS. The company provides commercial ESS batteries and integrated ESS products to commercial customers. These systems enable large-scale storage, conversion, and dispatch of electric energy, and are widely used in industrial parks, commercial complexes, and other scenarios. By optimizing energy management strategies, the company's commercial ESS products can help users reduce electricity costs, manage peak demand, and ensure continuous power supply. Financial Information Revenue In the financial years 2023, 2024, and 2025, the company achieved revenues of approximately RMB 723 million, RMB 734 million, and RMB 2.525 billion, respectively. Gross Profit and Gross Margin In the financial years 2023, 2024, and 2025, the company recorded gross profits of approximately RMB 19.365 million, -RMB 14.6 million, and RMB 58.5 million, respectively, corresponding to gross margins of 2.7%, -19.9%, and 23.2%. Net Profit In the financial years 2023, 2024, and 2025, the company recorded net profits of approximately -RMB 182 million, -RMB 378 million, and RMB 125 million, respectively. Industry Overview In recent years, driven by the expansion of renewable energy and the increasing demand for energy management, the global ESS shipment volume has been rapidly increasing. Centralized ESS dominates the market, while distributed ESS is gradually accelerating in penetration in the commercial and household sectors. With the increasing penetration of renewable energy and the improvement of electricity market mechanisms, it is expected that the global ESS shipment volume will continue to steadily climb up to 2030. With the increasing penetration of renewable energy, the intensification of electricity price fluctuations, and the growing demand for grid flexibility, the demand for distributed energy storage continues to rise. Between 2021 and 2025, as ongoing electricity market reforms and increasing resident demand for energy independence continue, household ESS is witnessing significant growth. Additionally, policy support, combined with rising electricity prices, increases the economic feasibility of energy storage in distributed CECEP Solar Energy photovoltaic applications. Looking ahead, the widening gap in peak and off-peak electricity prices, the continued growth of installed solar capacity, and decreasing system costs will further drive the development of the household ESS market. Commercial ESS is also experiencing rapid growth, mainly driven by the declining costs of energy storage and the widening gap between peak and off-peak electricity prices. Additionally, the increasing demand for high reliability power supply from advanced infrastructure such as AIDC is driving new opportunities for commercial energy storage applications. By 2030, as these demands intensify, the global distributed ESS market will continue to expand, with a significant increase in shipment volume. Driven by high electricity prices globally, the widening gap between peak and off-peak electricity prices, and the continuous increase in the penetration of renewable energy, the global household ESS market is experiencing rapid growth. In Europe and the Americas, particularly in areas with high electricity costs, the demand for household ESS continues to grow. Time-of-use pricing mechanisms and virtual power plant models allow consumers to reduce costs through peak shaving and participate in demand response programs for additional income. By 2025, Europe and the Americas account for over 63% of the total global household ESS shipment volume. In emerging markets, demand is mainly concentrated in areas with lower grid stability, where local households urgently need reliable power and emergency backup solutions. The rapid development of generative AI and large models is driving the expansion of global data centers, with data center capital expenditures expected to reach $3 trillion by 2030. The increasing demand for high-power centralized electric power is driving the need for reliable, high-density power supply solutions, which in turn is boosting the demand for commercial ESS. The rise of new energy vehicles and the increasing demand from large commercial users further expand the applications of ESS in peak load management and energy optimization. Board of Directors Information The board of directors will consist of nine directors, including five executive directors, one non-executive director, and three independent non-executive directors. Directors serve a term of three years and may be re-elected upon expiry. Shareholding Structure Mr. Yang holds a direct stake of 41.10%, and through Suzhou Qinhu Pan, Hehan Jiangze, and Nanzhang Zizhu, he holds 17.94%, totaling 59.04% in holdings; Far View Dao Tong holds 1.12%; other pre-listing investors collectively hold 39.84%. Nanzhang Zizhu and Far View Dao Tong are employee shareholding platforms of the company. As of the last practicable date, Mr. Liu is a general partner of Suzhou Qinhu Pan, Hehan Jiangze, and Nanzhang Zizhu. Therefore, in accordance with the Securities and Futures Ordinance, Mr. Liu is deemed to have an interest in the shares held by Suzhou Qinhu Pan, Hehan Jiangze, and Nanzhang Zizhu. As of the last practicable date, Hua Ye Zhiyuan's general partner is Hengxin Huaye, of which Wu Hao holds 45% and Chen Ying holds 35%. Therefore, under the Securities and Futures Ordinance, Wu Hao and Chen Ying are considered to have interests in the shares held by Hua Ye Zhiyuan. Intermediary Team Exclusive sponsor: Guotai Junan Financing Co., Ltd. Company's legal advisor: Regarding Hong Kong and US law: FED Law Firm; Regarding Chinese law: Tongli Law Firm; Regarding Dutch law: Haoda Law Firm Exclusive sponsor's legal advisor: Regarding Hong Kong law: Jingtian & Gongcheng; Regarding Chinese law: Tianyuan Law Firm Auditor and reporting accountant: KPMG Industry consultant: Frost & Sullivan (Beijing) Consulting Co., Ltd. Shanghai Branch Compliance advisor: Mais Capital Co., Ltd.