Preview of New Stocks | Behind a Revenue Surge of 168%, the Technological Moat and Capital Test of Guoxia Technology

Under the dual drive of carbon neutrality goals and the profound transformation of the global energy structure, energy storage-based power systems are experiencing explosive growth. According to data from Zhaoshi Consulting, it is projected that by 2050, electricity will become the dominant form of global energy consumption, with renewable energy contributing over 88.0% of global electricity supply, providing a solid structural opportunity for the development of the energy storage industry. Against this backdrop, Guoxia Technology, a renewable energy solutions and products provider based on platform technology and driven by artificial intelligence (AI), has formally submitted its application for listing on the Hong Kong Stock Exchange. Since its establishment in 2019, Guoxia Technology has achieved explosive growth in its business scale with its dual-driven strategy of "AI + energy storage," embarking on a new capital journey. Facing rapidly changing market competition and fluctuations in upstream raw material prices, can Guoxia Technology solidly translate its technological advantages into sustainable capital returns? From household to large-scale energy storage, AI-driven rapid growth In recent years, Guoxia Technology has shown extraordinary growth momentum in terms of revenue. From 2022 to 2024, the company's total revenue surged from 141.8 million yuan to 1.0256 billion yuan, with a compound annual growth rate (CAGR) of up to 168.9%. In the first half of 2025, this growth curve remained steep, with revenue increasing by 663.1% year-on-year, reaching 691.4 million yuan. Under this growth rate, the company has rapidly established its position in the global energy storage supply chain since its establishment in 2019. In terms of market competition, according to data from Zhaoshi Consulting, based on the additional installed capacity of multi-purpose energy storage systems in China in 2024, the company ranked eighth among global energy storage system suppliers in China; and based on the shipment volume of global household energy storage systems in 2024, the company also ranked tenth among global energy storage system suppliers in China. In terms of revenue structure, from 2022 to 2024, the company strategically shifted its focus from household energy storage to large-scale energy storage in just two years. In 2024, the proportion of revenue from large-scale energy storage system solutions accounted for as high as 76.6% of the total revenue, and it maintained a 74.2% share in the first half of 2025, becoming the main revenue driver for the company. This is due to the explosion of energy storage construction on the grid side and power side. According to the prospectus, since 2023, the Chinese government has introduced a series of supportive policies, greatly boosting the demand for large-scale energy storage in the domestic market. Guoxia Technology promptly adjusted its resource allocation, prioritizing the layout of its business in the Chinese large-scale energy storage sector, thereby seizing the growth dividend driven by policies. It is this strategic transformation that has positioned the company accurately in the largest and fastest-growing core market in China. In addition to choosing the right track, the foundation that supports all this rapid growth is the company's hard-tech moat - the platform technology and artificial intelligence (AI)-driven solutions. By deeply integrating artificial intelligence technology, Guoxia Technology has built an ecosystem platform empowering the entire industry chain. The core of its business model lies in two self-developed software platforms: Safe ESS: Targeting large-scale energy storage and industrial and commercial energy storage scenarios, this platform adopts a "cloud-edge-end" collaborative architecture. This technological architecture is crucial: it allows for low-latency, high-reliability real-time control and data processing at the "edge" (project site) to meet the stringent requirements for grid-level applications; simultaneously, it utilizes the powerful computing power of the "cloud" for complex AI modeling, data analysis, and predictive maintenance. This architecture, combined with AI technology and advanced control algorithms, provides cost-effective energy management support to users such as peak shaving and frequency regulation, building a more robust technological moat than pure cloud-based solutions. Hanchu iESS: Targeting household energy storage scenarios, this application uses the Internet of Things technology to automatically optimize charging and discharging strategies according to weather, electricity price fluctuations, and user habits, providing households with intelligent and efficient energy management experiences, and allowing monitoring and maintenance on mobile devices anytime, anywhere. With this platform-based approach, Guoxia Technology's platform can link and empower the entire ecosystem from upstream suppliers to downstream end-users. For upstream suppliers, the platform helps their products enter the target market accurately; for midstream partners, the platform assists with service delivery; for downstream users, the platform provides efficient, intelligent energy solutions. This ecosystem model not only significantly enhances customer stickiness but also builds competitive barriers that pure hardware manufacturers cannot replicate. From growth to profitability, facing challenges under expansion Although Guoxia Technology has shown outstanding performance in market size and technological innovation, the company's financial data also reveals the profitability dilemma and liquidity challenges it faces in pursuit of high growth. It is understood that while revenue is soaring, the company's profitability indicators have continued to deteriorate. The company's gross profit margin decreased significantly from 26.7% in 2023 to 15.1% in 2024, and further dropped to 12.5% in the first half of 2025. In contrast, the company's net profit margin also declined from 17.1% in 2022 to 0.8% in the first half of 2025. The main reason for the decrease in gross profit margin is attributed to the fierce market competition in the energy storage system solutions industry, where low-price competition strategies have become common, and this competitive pressure forces the company to absorb some or all of the costs without passing them on to customers. At the same time, the company's profitability is highly susceptible to fluctuations in raw material prices. The main material for energy storage system products is battery cells, with the cost accounting for 94.1% of total sales costs in 2024. However, the global price of the main raw material for lithium-ion batteries, lithium carbonate, has experienced significant fluctuations in recent years. If raw material prices rise significantly in the future and the company is unable to adjust product pricing or seek alternative sources in a timely manner, its gross profit margin and operational performance will be significantly impacted. In the fiercely competitive market environment, the company's operating cash flow situation is not optimistic. For the fiscal years ending in 2022, 2023, and the six months ending on June 30, 2025, the company recorded net cash outflows from operating activities of approximately 30.3 million yuan, 72.9 million yuan, and 205 million yuan, respectively. The main reason for the continuous net cash outflow is the rapid growth of the business, leading to a significant increase in trade receivables, as well as a substantial increase in inventory to meet large orders and strategic expansion. It is reported that as of June 30, 2025, the company's trade receivables and bills receivable amounted to as high as 952 million yuan. The significant increase in trade receivables has also brought about serious credit risks. If customers encounter liquidity issues and delay or default on payments, it will directly impact the company's cash flow and financial condition negatively. In the market landscape of fluctuating raw material prices and intense competition, how to break free from the dual squeeze of shrinking profit margins and rising costs, and overcome the dilemma of "growth without profitability," is the current challenge facing Guoxia Technology. If the company's listing on the Hong Kong Stock Exchange is successful, it will provide valuable financial support for Guoxia Technology to increase investment in research and development, expand production capacity, and explore overseas markets. However, the support of capital is just the beginning. Finding the optimal balance between scale and profitability, truly turning AI empowerment into a "profit protection moat" in the face of homogenized competition will be the long-term test that Guoxia Technology will face after listing, and it is the key to determining whether it can cross the finish line in the competition.