Yuanxin Energy Storage (09621) October 30-November 4 prospectus plans to sell 57.5405 million H shares globally and introduce CDH Global as a cornerstone investor

According to the Zhitong Finance App, Yuanxin Energy Storage (09621) will raise shares from October 30, 2026 to November 4, 2026. It plans to sell 575.405 million H shares globally, of which the Hong Kong public sale accounts for about 10%, and the international sale accounts for about 90%. The sale price is HK$8.54-11.1 per share, with 500 H shares per lot. It is expected that H shares will start trading on the Stock Exchange at 9:00 a.m. (Hong Kong time) on November 9, 2026 (Monday).

The Group is a supplier of integrated energy storage system solutions in China. It focuses on providing comprehensive energy storage system solutions, hardware products, software systems/platforms and supporting services, covering all key stages of energy storage projects from energy storage asset development and delivery to operation and management. The Group is engaged in R&D, manufacturing and sales of energy storage system solutions and products, and provides supporting services to customers in China and overseas. The Group's energy storage system solutions and products can be applied to various scenarios, including large-scale energy storage power plants and industrial and commercial applications. According to Frost & Sullivan, the Group ranked 10th in the energy storage system solutions industry in China in 2025 with a shipment volume of 5.4 GWh and a market share of 2.1%.

The Group has entered into a cornerstone investment agreement with CDH Global (Cornerstone Investor). Based on this, Cornerstone Investors have agreed that, subject to certain conditions, the number of relevant offered shares (rounded down to the nearest complete trading unit of 500 H shares per lot) can be purchased for a total amount of approximately HK$31.4 million (excluding brokerage commissions, SFC transaction levies, and SEHK transaction fees). Based on the offer price of HK$9.82 per share (that is, the median of the indicative offer price range set out in this prospectus), the total number of shares to be subscribed by Cornerstone investors will be 3.196,500 H shares, accounting for approximately 5.56% of the shares offered under the global offering and approximately 0.78% of the total issued share capital of the Company immediately after the completion of the global offering (assuming that any share options that may be granted under the pre-initial public offering incentive plan have not been exercised).

After deducting the underwriting commissions, fees and estimated expenses payable by the Group in connection with the global offering, and assuming that the offering price was HK$9.82 per H share (that is, the median of HK$8.54 per H share to HK$11.10 per H share in the indicative price range of the global offering), the Group estimates that the net proceeds from the global offering will be approximately HK$504 million. The Group intends to use the net proceeds of the Group's global sales for the following purposes: (1) Approximately 45.0% of the net proceeds will be used to enhance the Group's technical capabilities to optimize the hardware product matrix and software development and operation. (2) Approximately 25.0% of the net proceeds will be used to expand the Group's overseas business. (3) Approximately 20.0% of the net proceeds will be used for construction, equipment procurement and laboratory expenses related to the construction of the Group's Wuzhen plant, with an estimated annual design capacity of about 10 GWh. (4) Approximately 10.0% will be used as working capital and other general corporate purposes.

During the track record period, the Group generated revenue from the following businesses: (i) large-scale energy storage system solutions, (ii) industrial and commercial energy storage system solutions, (iii) sales of energy storage system products, and (iv) provision of full-life cycle operation and maintenance and power contract trading services. During the track record period, the majority of the Group's revenue came from China. In the second half of 2024, the Group began to explore overseas markets and began generating revenue from these markets in 2025. The Group achieved rapid financial growth during the track record period. The Group's revenue increased significantly from RMB 435 million in 2023 to RMB 1,144 billion in 2024, and further increased to RMB 1,868 billion in 2025. For the four months ended April 30, 2025 and 2026, the Group's revenue was RMB 8.5 million and RMB 280 million, respectively. The Group achieved net profit of RMB 40.7 million, RMB 96.3 million and RMB 154 million respectively in 2023, 2024 and 2025, while for the four months ended April 30, 2025 and the four months ended April 30, 2026, the Group achieved net loss of RMB 28.9 million and net profit of RMB 23.1 million, respectively.