Source: Live Report

Abstract: On February 21, 2025, Sigo New Energy submitted a prospectus to the Hong Kong Stock Exchange for the first time, intending to be listed on the main board of the Hong Kong Stock Exchange, with CITIC Securities and BNP Paribas Securities as joint sponsors.

The company is the world's No. 1 stackable distributed optical storage all-in-one solution provider, with revenue of 700 million yuan in the first three quarters of 2024, a year-on-year increase of 16 times, a net loss narrowed by more than 7%, and a gross profit margin of 44.24%.

LiveReport learned that Sigenergy Technology Co., Ltd. (hereinafter referred to as "Sigenergy New Energy") submitted a listing application on the Hong Kong Stock Exchange on February 21, 2025, and intends to list on the main board of the Hong Kong Stock Exchange. This is the company's first submission.

The company is a global leader in renewable energy solutions. According to the Frost & Sullivan report, two years after its establishment, the company has become the world's No. 1 stackable distributed optical storage all-in-one solution provider in terms of product shipments, with a market share of 24.3% for the nine months ended September 30, 2024.

Founded in May 2022, the company aims to reshape the distributed energy storage system industry with technology and product innovation. In June 2023, the company launched its flagship product, SigenStor, which is the world's first AI-enabled 5-in-1 optical storage and charging all-in-one machine, according to the Frost & Sullivan report. In terms of the number of years it takes to reach $100 million in annual revenue, the company is the fastest growing of any energy storage plant in China.

The company develops and delivers innovative renewable energy solutions for homes and businesses, with its flagship product, SigenStor, featuring a modular, stackable product design that seamlessly integrates PV inverters, DC charging modules, energy storage converters (PCS), energy storage batteries, and energy management systems (EMS). During the Track Record Period, SigenStor's sales continued to contribute more than 90% of the Company's total revenue.

The Company also derives smaller revenue from the sale of smart energy gateways (including three-phase smart energy gateways, industrial and commercial smart energy gateways and single-phase smart energy gateways) and other products such as AC chargers.

In addition, the company has developed mySigen, an AI-enabled mobile app that enables real-time monitoring, easy device management, and seamless troubleshooting across the entire product line, providing an advanced all-in-one solution for smart energy management, all with the click of a finger on a variety of platforms and screens.

As of the Latest Practicable Date, the Company has established an extensive network of 99 distributors in over 60 countries and regions, and has become the preferred partner of leading distributors in all major markets including Europe, Asia Pacific and Africa, including the leading distributors in the United Kingdom, Ireland, Sweden, South Africa, Australia and the United States. For the nine months ended September 30, 2024, the Company's flagship SigenStor achieved total energy capacity sales of 220 MWh.

The Company has production facilities in Lingang, Shanghai and Nantong, Jiangsu, and has an estimated annual production capacity of 90,000 inverters and 1.8 GWh of energy storage batteries as of the Latest Practicable Date, with utilization rates of 73.6% and 88.3%, respectively, for the nine months ended September 30, 2024.

Financial analysis

For the two years ended 31 December 2023, 2023 and the first nine months of 2024:

The revenue was about RMB 0, 58 million, 04 million and 700 million respectively, with a year-on-year growth rate of 15724.08% in the first nine months of 2024;

R&D was approximately RMB26 million, -193 million, -133 million and -198 million respectively, with a year-on-year growth rate of 48.59% in the first nine months of 2024;

The net profit was approximately RMB76 million, RMB373 million, RMB200 million and RMB53 million respectively, with a year-on-year growth rate of -73.27% in the first nine months of 2024;

R&D accounted for approximately 34.34%, 51.68%, 66.63% and 370.45% of the loss, respectively;

Net profit margins were approximately *(nil), -640.55%, -4514.45% and -7.62% respectively.

In the first three quarters of 2024, the company's revenue soared by nearly 16 times, with a gross profit margin of 44.24%, while R&D maintained a high growth, the net loss of 53 million yuan also narrowed by more than 70% compared with the previous year, and the adjusted net loss after deducting employee equity incentives was only 20 million yuan.

As of September 30, 2024, the operating cash flow for the first three quarters was -200 million, cash and bank balances were 300 million, inventories were 424 million, trade receivables were 162 million, and short-term borrowings were 334 million. The rapid growth of sales performance has led to a large number of short-term debts, and listing is a better choice to replenish funds and achieve rapid global business development.

Industry outlook

The market size of distributed optical storage all-in-one solutions

From 2021 to 2023, the global shipment of distributed optical storage solutions increased from 0.1 gigawatt hours

to 2.5 GWh. Global shipments of distributed optical storage solutions are expected to reach 61.9 gigawatt hours by 2029, growing at a CAGR of 60.9% from 2024 to 2029.

Industry status

The distributed PV solution market is highly concentrated, with the top five distributed PV solution companies accounting for 74.5% of total global shipments from Q1 to Q3 2024. The company is the third largest distributed optical storage all-in-one solution company in terms of shipments from the first quarter to the third quarter of 2024, with shipments of 231 MWh and a market share of 5.9%.

comparable companies

Comparable IPO companies in the same industry are: Peneng Technology (688063.SH), Sunrun (RUN. US)、Fluence Energy(FLNC. US)

Directors

Xu Yingtong, chairman, executive director and CEO of the company, is known as the "pioneer of Huawei's smart PV", and has worked at Huawei for nearly 23 years, successively serving as the PDT manager of wireless products, the director of the wireless software platform, the director of Huawei Wireless Hangzhou Research Institute, the president of Huawei's smart photovoltaic business, and the president of Ascend's artificial intelligence computing business.

Substantial shareholder

Prior to the IPO, Mr. Xu held 10.18% of the shares directly and indirectly held approximately 39.10% of the shares through the holding entity (6.43% held by Shanghai Ouji, 7.86% held by Shanghai Guli, 21.07% held by Shanghai Maili and 3.74% held by Shanghai Maita), holding a total of approximately 49.28% of the shares and was the controlling shareholder of the Company. In addition, Mr. Zhang holds 1.25% of the shares directly and 9.88% indirectly through Shanghai Qianzhusong, for a total of 11.13%.

Among the institutional shareholders, Hillhouse Venture Capital indirectly holds 14.89% of the shares through Zhuhai Meiheng, Walden International indirectly holds 8.18% of the shares through Guangzhou Huaxin, Yunhui Capital and Zhongding Capital hold 2.88% of the shares respectively, and other pre-listing investors hold a total of 10.76% of the shares.

Financing journey

The company conducted multiple rounds of financing with pre-IPO investors from June 2022 to January 2024, and in the latest B1 round of financing, Paradise Silicon Valley Venture Capital invested RMB30 million, with an estimated cost per share of approximately RMB18.821, corresponding to a post-investment valuation of approximately RMB4.4 billion (HK$4.7 billion).

Mediation team

According to LiveReport big data statistics, there are a total of 9 intermediary teams in Sigo New Energy, including 2 sponsors, and nearly 10 sponsor projects have acceptable data; There are a total of 2 lawyers in the company, and the comprehensive project data is average. Overall, the intermediary team performed well in terms of historical data.

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