Energy storage firms spark Hong Kong IPO boom as H-Shares emerge as key financing platform

H-Shares are shares of companies incorporated in mainland China that list on the exchange in Hong Kong, or internationally, enabling firms to tap into financing from a broader base of investors. When listed in Hong Kong, they are denominated in Hong Kong Dollars but are subject to Chinese law.

According to its financial report, Sunwoda is a company in the green and eco-friendly energy sector primarily engaged in the R&D and manufacturing of lithium-ion batteries. Its lithium battery business is categorised into three segments: consumer electronics, electric vehicles (EVs), and energy storage systems (ESS).

In 2024, Sunwoda accelerated the development of its lithium battery project in Vietnam and power battery projects in Hungary and Thailand. The same year, its overseas revenue reached approximately RMB 23.431 billion (US$3.265 billion), accounting for 41.83% of its total annual revenue.

It is reported that just one day before Sunwoda’s announcement (30 June), EVE Energy (300014.SZ) also submitted its listing application to the HKEX. Similar to Sunwoda’s statement, EVE Energy’s move to list in Hong Kong was also aimed at “enhancing its international brand image, meeting the needs of its global business expansion, and further advancing its globalisation strategy.”

Against the backdrop of tightened A-share (listings for mainland Chinese companies on the Shanghai and Shenzhen stock exchanges) IPO approvals and escalating industry competition, the Hong Kong stock market is emerging as a critical avenue for energy storage companies to diversify financing channels and further their global strategies.

Since 2025, multiple energy storage industry chain companies have initiated plans for Hong Kong listings.

As an example, industry leader CATL completed its H-share application in just three months and officially listed on the HKEX on 20 May this year, securing HK$41 billion (US$5.22 billion) in the year’s largest Hong Kong IPO.

According to its prospectus, 90% of CATL’s raised capital will be allocated to the construction of its battery factory in Hungary. Notably, Hungary’s annual GDP is approximately US$250 billion, indicating that CATL’s investment in its Hungarian plant accounts for about 2% of the country’s GDP.

Prior to CATL’s Hong Kong listing, four other Chinese lithium battery companies had already listed on the HKEX: BYD (1211.HK), CALB (03931.HK), REPT BATTERY (00666.HK) and ZENERGY(03677.HK).

Besides the previously mentioned Sunwoda and EVE Energy, other energy storage companies, including Shuangdeng, Narada Power, Hithium and Sigenergy, are also pursuing Hong Kong listings.

On 23 April, Narada Power announced its Hong Kong IPO plan, aiming to list on the HKEX via H-share issuance. According to the prospectus, the core objective of the company’s Hong Kong listing is to deepen its overseas market presence, expand international business operations, and supplement offshore working capital.

On 11 March, Shuangdeng Group Co., Ltd. (Shuangdeng) submitted its prospectus to the HKEX. The funds raised will primarily be used to establish lithium-ion battery production facilities in Southeast Asia, build R&D centres, strengthen overseas sales and marketing, and supplement working capital.

Founded in 2011, Shuangdeng specialises in the R&D, production, and sales of energy storage batteries. Its main offerings include lead-acid and lithium-ion storage batteries, primarily used in energy storage applications for telecom base stations, data centres and power systems.

The prospectus reveals that the company has achieved consistent revenue growth in recent years, with revenues of RMB4.072 billion, RMB4.26 billion, and RMB4.5 billion in 2022, 2023, and 2024, respectively.

Similarly, in March, Hithium submitted its listing application to the HKEX, seeking a main-board listing. Regarding the rationale for the Hong Kong IPO, Hithium stated in its prospectus that ‘a listing on the HKEX will provide the company with an international platform to enhance its global market visibility, access international capital, optimise its capital structure, further elevate its market position, and attract international talent.’

According to an HKEX announcement dated February 21, Sigenergy filed its prospectus with the exchange. Sigenergy is a “very young” energy storage company, established in 2022. Its flagship product is the world’s first AI-powered, five-in-one integrated solar-storage-charging system, SigenStor. This modular, stackable product seamlessly combines a PV inverter, DC charging module, power conversion system (PCS), energy storage battery and energy management system (EMS).

The prospectus shows that as of 30 September 2024, Sigenergy achieved revenue of approximately RMB 700 million, representing 16-fold year-over-year growth, with a gross margin of 44.24%.