Emerging blue ocean categories are gaining popularity, and dark horse brands are raising tens of millions of yuan

While many overseas brands are focusing on clothing and consumer electronics, some sellers are taking an unconventional approach and starting to sell relatively “unpopular” but popular energy storage products. In the first half of the year, the listing of Huabao New Energy gave such sellers a shot in the arm.

In addition, a dark horse company in Guangzhou that makes energy storage products recently received tens of millions of yuan in financing thanks to its outstanding performance.

Energy storage dark horse brand Zhengtuo raises tens of millions of yuan

Guangzhou Jianghai Technology recently announced the completion of a strategic round A financing of tens of millions of yuan. Its Zendure brand is well-known in the industry. It is understood that this round was exclusively invested by Fenghe Capital, an energy storage industry investment institution, and Potential Energy Capital served as the exclusive financial advisor. The funds raised will be used for the company's new product research and development, production and marketing.

Jianghai Technology was founded in 2017. Since its inception, it has been deeply involved in the fields of household energy storage, smart home energy management systems, and portable outdoor power supplies, and has a leading advantage in some subcategories. From high-power power banks to mobile energy storage products, the company's business areas have also been expanded.

(Picture from Zendure official website)

The continuous innovation of products made the company a dark horse in the industry soon after. From the beginning, the company found the main entry point of the product: how to use electricity and how to save electricity.

In just a few years since its founding, the company has launched a number of new products, such as satellite batteries, smart home panels, smart plugs, EV chargers, etc., which are very popular in the European and American markets. In May this year, ZHENGTUO's new products also debuted in Europe with good results.

In addition, in the first quarter of this year, Zendure’s new travel adapter and Passport III on Kickstarter achieved their $5,000 fundraising goal in the first sixty seconds. More than 1,500 backers have already pre-ordered the 65W GaN charger, which is priced at $100,000.

It is understood that this product is roughly similar to the travel adapter previously launched by Zendure. The new Passport III has an automatic reset fuse and push-to-plug controls, which can be easily operated with one hand, but the product design adds some fun and retro feeling. From the feedback of sellers, both the product performance and appearance design have been highly recognized.

The increase in product recognition has also made Zendure pay more attention to production and research and development. At present, Zendure has 69 global technology patents and has established R&D centers in many countries, with R&D personnel accounting for more than one-third of the total.

In addition to R&D, design , and user matching, the brand also attributes the successful launch of its products in overseas markets to : providing the right product at the right time.

Zendure said that as the epidemic eases, more consumers are starting to resume travel and outdoor sports. In this context, Zendure turned its attention to the "humble travel adapter."

For those who love traveling and outdoor activities, a practical energy storage product is indispensable. Sales of chargers, portable generators and other products have increased significantly on major platforms such as Amazon and Walmart. In addition, according to the company's Google search trends, search terms such as "travel adapter" are becoming increasingly popular.

The first portable energy storage stock will be listed on the Shenzhen Stock Exchange

In the energy storage product industry, Huabao New Energy is a leader in the industry. In the first half of this year, Huabao New Energy passed the Shenzhen Stock Exchange Listing Committee meeting and was registered on the Growth Enterprise Market in June.

Huabao New Energy is mainly engaged in the research and development, production and sales of lithium battery energy storage products and their supporting products. It is known as the "first stock in portable energy storage" in the industry. Among them, portable energy storage products are the company's core products, which can be used in outdoor travel, emergency preparedness and other scenarios. The products are sold in China, the United States, Japan, the United Kingdom, Germany, Canada and other countries, and have been widely recognized by consumers.

Data shows that the company's total revenue in the first three months of this year was 612 million yuan, a year-on-year increase of 52.08%, and its net profit was 73.36 million yuan, a year-on-year decrease of 8.80%.

In this regard, Huabao New Energy stated that the increase in operating income was mainly due to the increase in the brand influence and market penetration of its overseas products and the increase in sales since 2021. The decline in net profit compared with the same period last year was mainly due to unfavorable factors such as market product competition, a sharp rise in raw material prices, increased international shipping logistics costs, and the continued appreciation of the RMB.

Huabao New Energy's products are mainly sold through well-known domestic and foreign third-party e-commerce platforms such as Amazon, Rakuten Japan, Yahoo Japan, Tmall and JD.com . The revenue obtained from third-party platforms accounts for more than 65% of the main business revenue.

As one of Huabao New Energy's most important sales channels, Amazon's revenue accounts for more than 51% of its main operating income. In addition, Huabao New Energy's two major brands " Jackery" and "Dian Xiaoer" rank first in the search lists of major e-commerce platforms. The sales amount of its popular portable energy storage products has reached 1.835 billion yuan by 2021, and the average annual compound growth rate from 2019 to 2021 has reached 171.10%.

In addition, under the technology innovation-driven model, Huabao New Energy's R&D capabilities continue to improve. From 2019 to 2021, the company's R&D expenses had an average annual compound growth rate of 167.13%, and R&D personnel accounted for nearly 30% of its total employees. In November 2016, it successfully launched its first lithium battery portable energy storage product, taking the lead in developing a new portable energy storage industry business model that meets the needs of outdoor portable green electricity consumption, and continuously realizing industrial transformation and upgrading.

Huabao New Energy's success in entering overseas markets is not only due to the role of brand and R&D, but also due to market opportunities .

Energy storage product market ushers in a new round of opportunities

According to relevant surveys, the global portable energy storage market is expected to reach US$6 billion, with an average annual compound growth rate of 190%. In addition, the global battery energy storage market will reach US$10 billion in 2025. Among them, the demand in the European and American markets is relatively high, which provides more opportunities for sellers engaged in related categories.

In addition to the well-known Huabao New Energy, Anker, Baseus, and Pisen have also entered this industry, mostly for outdoor power products. As for the energy storage industry that Zendure and Huabao New Energy are engaged in, energy storage products are mainly divided into portable energy storage, home-level energy storage, and commercial-level energy storage products.

Among them, portable energy storage products are more common, such as emergency power supplies and power banks, which are favored by many consumers due to their portability, environmental protection, and wide application scenarios. The main uses of such products are outdoor activities and earthquake resistance and disaster reduction. In the two major application scenarios, their importance becomes more prominent.

However, in recent years, consumers pay more and more attention to the sustainability of related products in addition to the performance and appearance of products. This has also brought the competition in the industry's R&D investment to a new stage. For sellers who are waiting or want to join the market, they need to make more considerations.