In late October 2026, RELYEZ ENERGY (9621.HK) officially launched its global public offering in Hong Kong, with China Merchants Bank International as the sole sponsor, and is expected to list on the Hong Kong Stock Exchange on November 9. The company is a domestic integrated energy storage system solutions provider, ranking tenth in China's energy storage system solutions industry in 2025 with 5.4GWh of shipments and a 2.1% market share.
From a financial standpoint, this company, founded only six years ago, has delivered impressive results in revenue scale and profitability. However, dramatic shifts in business structure, concerns over customer concentration and cash flow, and a thin cornerstone investor lineup have raised questions about the sustainability of its profits and the anchoring of its valuation.
Revenue Triples in Two Years and Gross Margin Rebounds on Overseas Mega Deal
Financial performance is the most prominent highlight in RELYEZ ENERGY's prospectus. Total revenue grew from RMB 430 million in 2023 to RMB 1.87 billion in 2025, expanding more than threefold over two years. Profit rose in tandem, from RMB 40 million in 2023 to RMB 150 million in 2025. In the first four months of 2026, the company's performance structure showed new changes. Revenue reached RMB 280 million during the period, compared to only RMB 10 million in the same period of 2025, representing a significant year-over-year surge. Gross margin traced a deep V-shaped trajectory, falling from 21.6% in 2023 to 16.1% in 2025, before rebounding to 27.4% in the first four months of 2026. This improvement has become a key argument for the company's narrative of "enhanced profitability" to the market.
This round of gross margin recovery is highly dependent on overseas projects. In 2025, overseas revenue was only RMB 8.8 million, accounting for less than 1% of total revenue. In the first four months of 2026, driven by the 110MWh large-scale energy storage project in Oroszlány, Hungary and energy storage product sales in Poland, overseas revenue reached RMB 120 million, representing 44.6% of total revenue for the period. The average selling price of the Hungary project was RMB 1.11/Wh, with a project gross margin of 38.0%, significantly higher than the domestic large-scale energy storage market average of approximately RMB 0.57/Wh. In addition, the full-lifecycle operation and maintenance and entrusted power trading services newly developed in 2025 carry a high gross margin of over 80%, contributing approximately RMB 30 million in gross profit in the first four months of 2026, already exceeding the full-year 2025 level and becoming an important supplement to profits. However, the current high-margin overseas results come from only a few projects, and whether they can be sustainably replicated remains highly uncertain.
Full Bet on Large-Scale Energy Storage and Revenue Growth Accompanied by High Customer Concentration
Behind the impressive growth is a highly directional business restructuring in 2024. Facing price involution and continuously compressed profits in the commercial and industrial energy storage segment, RELYEZ ENERGY proactively scaled back its commercial and industrial energy storage business, redirecting all research and development, production, and market resources toward large-scale energy storage station solutions, and adding full-lifecycle operation and maintenance and entrusted power trading services starting in 2025. By 2025, the company no longer delivered commercial and industrial energy storage projects. Revenue from large-scale energy storage system solutions surged from 1.6% in 2023 to 89.4% in 2025, and remained at a high proportion of 76.4% in the first four months of 2026.
The rapid business pivot boosted revenue scale, but operational uncertainty rose simultaneously. Large-scale energy storage projects are characterized by high per-order values and a limited number of projects. The company completed only 1 large-scale energy storage project in 2023, 2 in 2024, 8 in 2025, and 5 additional ones in the first four months of 2026. Along with the shift toward the large-scale energy storage segment, the company's customer pool notably contracted. The number of active customers dropped from 42 in 2023 to 38 in 2024 and 35 in 2025, with only 14 remaining in the first four months of 2026. Customer concentration continued to rise, with revenue from the top five customers climbing steadily, reaching 94.3% in the first four months of 2026, of which the largest single customer accounted for 43.6% of revenue. The vast majority of the company's revenue is tied to a small number of customers.
More notably, related-party transactions warrant market attention. In February 2024, Yunnan Lingwei was established with RELYEZ ENERGY holding an 18% stake. One month later, the company extended an unsecured non-trade loan of RMB 150 million to Yunnan Lingwei at an annualized interest rate of 4%. In 2025, Yunnan Lingwei's energy storage projects procured energy storage system equipment and operation and maintenance services from RELYEZ ENERGY, with total transactions exceeding RMB 700 million. As of the end of April 2026, RMB 140 million of the RMB 150 million loan principal remained outstanding. The background of the related revenue recognition and the risk of fund recovery deserve market attention.
The "Hidden Card" Behind Gross Margin Improvement Relies on a Single Overseas Project
The jump in gross margin in the first four months of 2026 has an even more concentrated source. According to the prospectus, all of the company's revenue in 2023 and 2024 came from China. Overseas revenue was first recorded in 2025 at only RMB 8.8 million. In the first four months of 2026, overseas revenue expanded to RMB 120 million. Among this, the 110MWh project in Oroszlány, Hungary contributed a significant portion of total sales during the period and achieved a relatively high gross margin, directly pushing the average selling price of large-scale energy storage system solutions from RMB 0.48/Wh in 2025 to RMB 0.79/Wh in the first four months of 2026.
The problem is that this improvement is currently built on a single project. Whether the overseas market can be continuously expanded and whether high-margin single projects can be replicated as normalized business have not been given a clear, verifiable path in the prospectus. One project's gross margin lifted the entire period's data, and whether this can be sustained remains to be seen.
High Receivables and Cash Flow Pressure With Idle Capacity Yet Plans to Raise Funds for Expansion
The cost of pivoting to the large-scale energy storage station model is that working capital is heavily occupied. As of the end of April 2026, the company's trade receivables and contract assets totaled RMB 1.36 billion. Trade receivables turnover days surged from 65 days in 2023, 117 days in 2024, and 143 days in 2025 to 326 days in the first four months of 2026. Inventory turnover days also increased significantly from 84 days in 2025 to 291 days in the first four months of 2026, mainly due to advance stockpiling for concentrated project deliveries in 2026.
Cash flow came under corresponding pressure. Net cash inflow from operating activities was RMB 800 million in 2025, turning to a net outflow of RMB 450 million in the first four months of 2026, affected by increased inventory and concentrated repayment of supplier payables. As of the end of 2025, the company had total assets of RMB 2.77 billion and total liabilities of RMB 2.29 billion, with an asset-liability ratio of 82.7%, and book cash of RMB 260 million. The large payment from the Hungary overseas project that boosted gross margin for the period is also reflected as accounts receivable, not yet converted into actual cash inflow.
While funds are tight, the company's capacity utilization is not encouraging either. In the first four months of 2026, the overall capacity utilization rate of the existing three production plants was only 39.1%, with 60% of production equipment sitting idle. However, according to the listing documents, the company plans to allocate approximately 20% of this IPO's proceeds toward building a new 10GWh energy storage factory in Wuzhen, Zhejiang. Meanwhile, equipment installation and subsequent development at two under-construction factories in Chaoyang and Jinchang, whose main structures are already completed, have been postponed. Existing capacity is not yet fully utilized, yet the company continues to raise funds to add new capacity.
Thin Cornerstone Investor Lineup and Sluggish Secondary Market Performance in Energy Storage Sector
From an issuance perspective, market recognition for this IPO is hardly strong. Regarding cornerstone investors, the cornerstone lineup for this offering consists of only one entity — CDH Global under CDH Investments — with a total subscription of USD 4.0 million (approximately HKD 31.4 million). Based on the upper limit of the offer price of HKD 11.10, its subscribed shares represent approximately 4.91% of the offer shares and approximately 0.69% of total issued share capital. This structure falls far short of current market standards for a "good issuance." Typically, a project considered solidly issued requires cornerstone investors to account for 40% to 50%, with long-term institutions or industry leaders on the list to provide an effective confidence anchor for the market. An arrangement with only one cornerstone investor and less than 10% allocation can hardly serve the function of stabilizing the issuance.
The broader secondary market environment is also unfriendly. The Wind Energy Storage Index (884790.WI) has been fluctuating downward since reaching a stage high of 6,769.90 points on May 21, 2026, recently closing at 4,307.49, down 36.4% from its peak. Domestic large-scale energy storage winning bid prices have fallen sharply over the past two years, compounded by rebounding lithium carbonate prices and the implementation of a lithium battery consumption tax. Integrators like RELYEZ ENERGY, which lack their own cell production capacity, continue to face dual pressure from rising upstream raw material costs and downstream customer price negotiations. In an environment of cooling industry sentiment, small and mid-cap new listings can only attract limited thematic capital attention.
Conclusion: An "Aggressive" Growth Stock and a Blurry Valuation Anchor
Piecing the above clues together, RELYEZ ENERGY presents itself as a company with a rather aggressive style. Its aggressiveness is reflected on three levels. In business, the company cut its commercial and industrial energy storage operations, restructuring its revenue mix to make large-scale energy storage the absolute core, betting on a handful of large clients and their single mega-projects. Financially, the company trades high receivables, high inventory, long payment cycles, and even extending loans in exchange for revenue scale, turning operating cash flow into a net outflow of RMB 450 million in the first four months of 2026. On capacity, the company already has completed but uninstalled equipment and proactively delayed under-construction projects (the Chaoyang and Jinchang plants) on its books, yet still plans to continue expanding capacity through this fundraising, creating a pattern of "idling on one hand, expanding on the other."
More noteworthy is that this aggressiveness is not built on a mature business, but on a business structure that has just completed its pivot and has yet to be tested by cycles. The question thus returns to the beginning: when a company's revenue sources, customer structure, and profit sources are all changing rapidly, valuation loses its reference point.