On September 24, Zhejiang Kesun Technology Co., Ltd. (hereinafter referred to as "Kesun Technology" or "the Company") submitted its listing application to the Main Board of the Hong Kong Stock Exchange, with CITIC Securities International serving as the sole sponsor and sole global coordinator.

Kesun Technology plans to use the raised funds for core technology research and development and forward-looking technology reserves, promoting the deployment of innovative molten salt energy storage technology, achieving industrialization of concentrated solar power through the construction of intelligent production facilities, improving operational efficiency, working capital, and general corporate purposes.

In terms of operating performance, from 2022 to 2024, Kesun Technology's revenue surged from 20.85 million yuan to 2.189 billion yuan, with a compound annual growth rate of 924.64%. Net profits were -91.259 million yuan, 248 million yuan, and 540 million yuan respectively, showing rapid growth year by year. However, in the first half of 2025, the company's revenue and net profit growth significantly slowed, raising questions about the sustainability of high-speed growth.

Additionally, Kesun Technology's gains from disposing of multiple associate companies in 2023 accounted for approximately 60% of net profit for that period, reflecting some "watering down" of profitability. The company also faces risks including extremely single product structure, abnormally high customer concentration, and continuously declining gross margins. As of June 30, 2025, the company's accounts receivable and contract assets accounted for over 30% of total assets, presenting significant impairment risks.

**Single Product Revenue Approaching 100%, Latest Period Shows Significant Growth Slowdown**

Kesun Technology is one of the world's leading providers of tower-type concentrated solar power and molten salt energy storage solutions, specializing in related technology research, equipment sales, and engineering applications, with full lifecycle service capabilities from project development and construction consulting to operational support.

According to statistics, Kesun Technology has raised a total of 2.188 billion yuan since its establishment. As of the latest equity transfer in September this year, the company's valuation is approximately 4.054 billion yuan.

As of September 16, 2025, Jin Jianxiang directly and indirectly holds a total of 25.1% of Kesun Technology through Huzhou Yuri and Hangzhou Jingjiu, constituting the company's single largest shareholder group. Other investors include Luneng Group, Xizi Clean Energy, Zhejiang Xinrui, Zhejiang Merchant Venture Capital, and Hangzhou Dunxing.

Jin Jianxiang, 63 years old, serves as Chairman, Executive Director, and Chief Scientist of Kesun Technology, primarily responsible for formulating overall development strategies and presiding over the group's board work.

Jin Jianxiang has extensive experience in industrial automation and renewable energy technology innovation. Academically, since July 1984, Jin Jianxiang has served at Zhejiang University as teaching assistant, lecturer, associate professor, researcher (professor), and doctoral supervisor. He currently serves as Chairman of Zhejiang Province Instrumentation Industry Association, Vice Chairman of the Solar Thermal Power Generation Committee of China Society for Electrical Engineering, Vice Chairman of the Solar Thermal Power Generation Committee of China Renewable Energy Society, and Director of the New Energy Chamber of Commerce of the All-China Federation of Industry and Commerce.

From 2021 to 2024, Kesun Technology provided heliostat systems for 11 concentrated solar power plants in China. According to Frost & Sullivan reports, from 2011 to 2014, the company's market share reached 57.9% and 55.0% respectively by total designed installed capacity and number of projects.

From 2022 to 2024, Kesun Technology's revenue scale expanded dramatically, surging from 20.85 million yuan to 2.189 billion yuan, with a compound annual growth rate of 924.64%. Net profits were -91.259 million yuan, 248 million yuan, and 540 million yuan respectively, turning profitable from 2023, with 2024 showing a significant year-on-year increase of 117.48%.

In the first half of 2025, Kesun Technology's performance growth significantly slowed, with total revenue of 981 million yuan, up 31.61% year-on-year, and net profit of 233 million yuan, up 13.24% year-on-year.

Kesun Technology's revenue mainly comes from sales of heliostat systems and other core subsystems, and construction consulting, operation and maintenance technical guidance, and other technical services. Pricing is primarily determined through bidding procedures and cost-plus considerations, with cost-plus factors covering contract scope, milestone schedules, and warranty responsibilities.

In 2023, 2024, and the first half of 2025, revenue from sales of heliostat systems and other core subsystems accounted for 99.6%, 95%, and 99% of total revenue respectively, showing an extremely single product structure.

Based on past IPO hearing cases, when applicant companies' sales revenue significantly depends on a single product, regulators typically require them to explain the stability of operating performance in conjunction with the market space, technological competitiveness, and order cooperation stability of their main products. Additionally, regulators may raise questions about the issuer's possibilities and risks in expanding new products.

Notably, Kesun Technology's net profit appears to have some "dilution."

During the reporting period, Kesun Technology's other income and other gains were 20.717 million yuan, 145 million yuan, 78.825 million yuan, and 37.093 million yuan respectively. Among these, they accounted for 58.19%, 14.60%, and 15.92% of net profit for 2023, 2024, and the first half of 2025 respectively.

The prospectus shows that Kesun Technology's other income mainly includes government subsidies, bank deposit interest income, VAT additional deductions, and technical support service income generated from specific product joint research and development agreements signed with independent third parties.

In 2023, Kesun Technology's other gains reached 115 million yuan, mainly from gains on disposal of multiple associate companies.

In April 2023, Kesun Technology sold 100% equity in Jinta Kesun to an independent third party for 12.023 million yuan. In November of the same year, the company sold 51% equity in Green Storage Technology to Hangzhou Green Storage Holding Partnership (Limited Partnership) controlled by Jin Jianxiang for a cash consideration of 128 million yuan. In December of the same year, the company sold 100% equity in Qinghai Zhongguang to related party Zhongguang New Energy for 7.895 million yuan.

According to Tianyancha, Longkong Zhongguang and Fuju Zhongguang hold 51% and 28.857% equity in Zhongguang New Energy respectively. Meanwhile, Longkong Zhongguang and Fuju Zhongguang are associate companies of Kesun Technology, with the company holding 12.33% and 28.25% equity respectively.

**Customer Concentration Nearly 100%, Significant Growth in Accounts Receivable and Contract Assets**

Notably, Kesun Technology has abnormally high customer concentration, with significant dependence risk on major customers. During the reporting period, revenue from the top five customers accounted for approximately 99.9%, 99.9%, 88.5%, and 99.9% of total revenue respectively, approaching 100% except for 2024. Revenue from the single largest customer accounted for approximately 93.3%, 84.8%, 22.3%, and 28.5% respectively.

However, with rapid revenue growth, Kesun Technology's accounts receivable and contract assets have also surged. As of June 30, 2025, combined accounts receivable and contract assets totaled 1.029 billion yuan, accounting for 33.62% of total assets at period end.

Meanwhile, the proportion between contract assets and accounts receivable has changed significantly, with contract assets growing from 591 million yuan at the end of 2024 to 668 million yuan, with their proportion of combined accounts receivable and contract assets increasing from 59.40% to 67.41%.

During the reporting period, Kesun Technology recorded trade receivables impairment losses of 18.435 million yuan, 26.474 million yuan, 23.185 million yuan, and 22.539 million yuan, and contract asset impairment losses of 13.982 million yuan, 19.632 million yuan, 20.433 million yuan, and 29.131 million yuan respectively. Contract asset impairment losses grew significantly faster than trade receivables impairment losses.

Notably, Kesun Technology adopts an asset-light model, focusing on core technology output and system equipment assembly supply and other high value-added segments, while selecting qualified outsourcing manufacturers to conduct component outsourcing production according to the company's design plans and technical parameter requirements, including high-quality reflective glass and steel metal components for heliostats.

On one hand, the asset-light model helps reduce upfront fixed asset investment and accelerate project startup speed, but on the other hand, reliance on substantial outsourcing production may expose the company to supply chain coordination risks, quality control risks, and operational risks, potentially affecting project execution and financial performance.

During the reporting period, procurement amounts from Kesun Technology's top five suppliers accounted for approximately 50.7%, 52.9%, 44.4%, and 37.4% of total material procurement for production respectively, while the largest supplier accounted for approximately 14.1%, 14.9%, 14.3%, and 9.0% in the relevant years. In stark contrast to customers being mainly state-owned enterprises, the company's top five suppliers are generally private enterprises.

Kesun Technology acknowledges that due to the company's limited control over these suppliers and their business conduct, the company cannot ensure consistent quality of key materials they provide. Any defects or quality issues with key materials, as well as compliance incidents involving such third-party suppliers, may lead to quality control problems and negative publicity related to the company's services, potentially damaging the company's brand image and affecting its business, prospects, operating performance, financial condition, and cash flow.

Additionally, significant increases in reflective glass or molten salt prices may raise Kesun Technology's production costs and squeeze profit margins. Reflective glass requires precise optical characteristics and is produced by a limited number of specialized suppliers. Similarly, molten salt prices are subject to market fluctuations. In China's highly competitive concentrated solar power market, fixed-price contracts are very common, and the company's ability to pass on such cost increases to customers is often limited, thereby affecting the company's gross margin profitability.

Kesun Technology's gross margin was 36.1% in 2023, subsequently declining to 31.7% in 2024. Although it recovered to 31.9% in the first half of 2025, this compared to 35.4% in the same period of 2024, representing a year-on-year decrease of 3.5 percentage points. Overall, the company's profitability shows a declining trend.