New stock news | Kubo Energy submits application to Hong Kong Stock Exchange as a provider of utility-grade distributed BESS solutions

According to the disclosure by the Hong Kong Exchange on June 16th, Shenzhen Kubo Energy Co., Ltd. (referred to as "Kubo Energy") has submitted an application to the Hong Kong Exchange Main Board, with GUOTAI JUNAN I as the exclusive sponsor. Company Overview The prospectus shows that Kubo Energy is a provider of utility-grade distributed BESS solutions. The company is committed to promoting energy storage technology innovation, focusing on the research, development, manufacturing, and sales of integrated AC/DC distributed energy storage systems. The company serves a global customer base, offering solutions designed to flexibly adapt to a wide range of scenarios and provide full-life-cycle services for BESS. The company's BESS solutions have been widely used in distribution networks, industrial and commercial sectors, and microgrids. The company has established a strong market presence in overseas markets, especially in Europe, and has gained industry recognition. In recent years, the company has continuously upgraded its product portfolio in the field of distributed utility-grade BESS. The company has obtained internationally recognized safety certifications and test reports, including UL9540, UL9540A, and LSFT (CTS-800, large-scale fire testing). The company has also obtained medium and high voltage grid connection certifications in 16 European countries, including Finland, Sweden, Denmark, the Czech Republic, Italy, Spain, the UK, and Germany. Furthermore, since 2023, the company has obtained the financeable and compliance (VoC) certification issued by DNV. These certifications, independent test reports, and compliance verifications are key elements to strengthen the company's financeable image, providing investors, lenders, and project stakeholders with greater confidence in financial evaluations and due diligence processes. The company's product portfolio includes three main series, supplemented by proprietary BMS, PCS, and EMS subsystems. The BMS uses active balancing technology to ensure battery consistency and significantly reduce operating costs. The PCS integrates diverse grid norm models from different countries and regions, combined with a proprietary EMT simulation and modeling platform to provide strong grid adaptability and significantly shorten grid connection times. The EMS provides power trading support and grid analysis. The company has three product series: PowerCombo, FlexCombo, and FlexCube. Each product series adopts an AC/DC integrated design. Each series offers expandable capacity to adapt to different deployment scenarios, depending on factors such as grid connection voltage levels, site conditions, logistics requirements, and local environmental and fire safety regulations. According to Frost & Sullivan data, by shipment volume, the top ten suppliers in the European distributed utility-grade BESS solution market in 2025 had a total market share of 82.7%, indicating a relatively concentrated market. The company's market share in the European distributed utility-grade BESS market is approximately 5.5%, ranking fifth among Chinese solution providers and eighth among all solution providers. In the Nordic distributed utility-grade BESS market, the top five suppliers accounted for 81.5% of the market share, while the group's market share was approximately 22.3%, ranking first among Chinese solution providers and second among all solution providers. Financial information Revenue: In the fiscal years 2023, 2024, and 2025, the company achieved revenues of approximately RMB 451 million, RMB 494 million, and RMB 703 million, respectively. Net profit: In the fiscal years 2023, 2024, and 2025, the company's annual net profits were RMB 12.33 million, RMB 33.17 million, and RMB 53.81 million, respectively. Gross profit margin: The company's gross profit margin increased from 22.9% in 2023 to 26.7% in 2024, mainly due to the decrease in battery cell prices, and then maintained a relatively stable level at 25.7% in 2025. Industry Overview The energy storage system industry chain upstream mainly includes manufacturers of energy storage cells, PCS, BMS, and other core components, as well as software providers such as EMS. The midstream is dominated by BESS solution providers, responsible for system design, integration, installation, and commissioning. The downstream mainly consists of BESS operations and maintenance service providers in different scenarios, responsible for system maintenance and energy management, with core applications including centralized utility-grade BESS, distributed utility-grade BESS, and small-scale industrial and household BESS. From 2021 to 2025, global BESS shipments increased from 26.9 GWh to 419.7 GWh, with a compound annual growth rate of 98.7% during the period. Global BESS shipments are expected to further increase to 1,545.4 GWh by 2030, with a compound annual growth rate of approximately 29.8% from 2025 to 2030. By region, China is the largest market, with BESS shipments increasing from 5.3 GWh in 2021 to 252.5 GWh, with a compound annual growth rate of 162.7%. The future growth of the European BESS market is driven by centralized and distributed utility-grade BESS, with European BESS shipments expected to increase from 36.5 GWh in 2025 to 176.9 GWh by 2030, with a compound annual growth rate of 37.1%. By application, centralized utility-grade BESS remains the largest application scenario, mainly used for grid-side peak shaving/frequency regulation and large-scale renewable energy integration needs. Distributed utility-grade BESS is experiencing rapid growth, as the high proportion of distributed renewable energy integration has exacerbated local grid congestion and fluctuations, necessitating the deployment of BESS to replace expensive traditional grid expansion costs and transition to proactive management. This has led to explosive growth, especially in the European sub-market. Distributed utility-grade BESS shipments are expected to increase from approximately 56.1 GWh in 2025 to approximately 257.5 GWh in 2030, with a compound annual growth rate of 35.6%. Small-scale industrial and household BESS, as an important carrier for user-side energy management and power self-sufficiency, are mainly concentrated in markets such as Europe, Asia-Pacific, and Africa. The European BESS market is experiencing rapid growth, with market size increasing from 4.4 GWh in 2021 to 36.5 GWh in 2025, expected to reach 176.9 GWh by 2030, with a compound annual growth rate of 37.1% from 2025 to 2030. Distributed utility-grade BESS is gradually maturing as commercial models evolve, driven by factors such as increasing electricity price volatility, widening peak-to-valley price differentials, and increased demand from enterprises for energy cost control and power reliability. Distribution System Operators (DSOs) view BESS as a core means to provide local grid flexibility, alleviate capacity expansion pressure, and defer costly traditional grid upgrade investments. Furthermore, factors such as expanding peak-to-valley price differentials and strict carbon emissions assessments in the European region are driving medium to large-sized industrial and commercial users to accelerate the deployment of energy storage for economic arbitrage and energy self-sufficiency. Therefore, the share of distributed utility-grade BESS in the overall European BESS market is expected to increase from approximately 22.2% in 2025 to 30.2% in 2030. The Nordic region's power system is primarily based on clean energy, with cold winter climates and pronounced seasonal fluctuations in electricity demand. At the same time, Nordic countries are accelerating the transition to a high proportion of renewable energy sources, especially impacted by the integration of renewable energy sources and the exit of some traditional baseload power sources. This has increased the volatility and pressure of voltage/frequency regulation in their power systems. In this context, the market size of lithium-ion energy storage in the Nordic region is expected to increase from 2.0 GWh in 2025 to 10.0 GWh in 2030, with a compound annual growth rate of 38.0%. Board Information The board consists of nine directors, including three executive directors, two non-executive directors, and four independent non-executive directors. Ownership Structure Under the Consistent Action Agreement, before Dr. Men, Dr. Wu, and Mr. Xu exercise proposal and voting rights at board or shareholder meetings, they must negotiate and attempt to reach consensus. If consensus cannot be reached, Dr. Wu and Mr. Xu must follow Dr. Men's opinion; Mr. Qian and Kubo Energy Investment must exercise relevant director and/or shareholder rights (as applicable) based on internal decisions formed by Dr. Men, Dr. Wu, and Mr. Xu. Therefore, according to the Securities and Futures Ordinance, Dr. Men, Dr. Wu, and Mr. Xu are deemed to have an interest in the shares held by their respective consistent action parties. As of the last practicable date, Dr. Men is a general partner of Kubo Energy Investment. Therefore, according to the Securities and Futures Ordinance, Dr. Men is deemed to have an interest in the shares held by Kubo Energy Investment. Intermediary Team Exclusive Sponsor: GUOTAI JUNAN Financing Limited Legal Counsel for Hong Kong Legislation: Ashurst Morris Crispin Solicitors; for Chinese Legislation: Zhong Lun Law Firm Legal Counsel for Exclusive Sponsors: for Hong Kong Legislation: Ditor International Limited Liability Partnership; for Chinese Legislation: DeHeng Law Firm Auditors and Reporting Accountants: Ernst & Young Independent Industry Consultant: Frost & Sullivan (Beijing) Consulting Co., Ltd. Shanghai Branch