Sales of nearly 5 billion in one year! Another cross-border company successfully listed

In recent years, the energy storage sector has ushered in huge development opportunities.

According to statistics, in the first half of 2023, global energy storage battery shipments reached 110.2GWh, an increase of 73.4% compared with the same period in 2022. Among them, China's energy storage battery shipments reached 101.4GWh, accounting for 92% of global energy storage battery shipments, almost occupying the top 20 in the shipment rankings.

Many Chinese companies saw the development opportunities in the energy storage sector and jumped in. Many leading companies in this sector chose to go public to accelerate the capitalization process and gain more market opportunities.

Recently, another energy storage company successfully went public.

Arrow Energy successfully listed

On January 3, 2024, Zhejiang Aero Network Energy Technology Co., Ltd. (referred to as "Aero Energy") was listed on the Shanghai Stock Exchange Science and Technology Innovation Board, becoming the first energy storage stock in the new year of 2024.

Arrow Energy issued 40 million shares at a price of RMB 55.66 per share, raising a total of RMB 222.64 million in new shares, with a total share capital of 160 million shares after the issuance. After the first day of trading, Arrow Energy's highest price once exceeded RMB 100 per share, and its market value exceeded RMB 16 billion.

However, Aero Energy's road to listing was full of twists and turns.

Previously, Arlo Energy had suspended its issuance six times , mainly due to reasons such as the relevant securities service agency it hired was filed and its financial information had expired .

In June 2022, Arlo Energy's IPO was accepted.

In August 2022, Aero Energy received inquiries .

In March 2023, Aero Energy passed the review for the first time.

In May 2023, the registration of Arlo Energy will take effect.

Finally, on December 22, 2023, Aero Energy opened for subscription .

On January 3, 2024, Aero Energy was successfully listed on the Shanghai Stock Exchange.

In this IPO, Arlo Energy plans to raise 809 million yuan, of which 281 million yuan will be used for the expansion of energy storage batteries and inverters, 151 million yuan will be used for the construction of a photovoltaic storage smart energy research and development center, 76 million yuan will be used for overseas marketing and service system projects, and 300 million yuan will be used to supplement working capital projects.

The final issuance results showed that Aero Energy's fundraising funds rose to 2.226 billion yuan, exceeding the issuance plan by about 1.75 times.

Founded in 2012, Aero Energy is headquartered in Hangzhou, Zhejiang Province. It is an internationally renowned supplier of photovoltaic energy storage systems and products. It mainly provides photovoltaic energy storage inverters, energy storage batteries and grid-connected inverters to overseas customers. Its products are mainly used in distributed photovoltaic energy storage and grid-connected fields.

Aiello Energy targets developed countries such as Europe and the United States, and its products are sold in more than 80 countries and regions including Germany, the United Kingdom, the Netherlands, the United States, and Australia . It has been recognized by EuPD Research , a well-known research organization in the field of renewable energy, as the "Top Inverter Brand (Germany, Poland, Italy, Australia, the United Kingdom, Greece)" and "Top Energy Storage Brand (UK)".

Since its establishment, Aero Energy has been focusing on the field of new energy. In 2013, the company launched its first energy storage inverter, which became one of the earliest energy storage inverter products in China.

In 2016, Aero Energy began to develop energy storage batteries and officially launched related products in 2018.

In the first half of 2023 , Aero Energy's energy storage battery production capacity reached 1,389.96 MWh, energy storage inverter production capacity was 126,000 units, and grid-connected inverter production capacity was 178,560 units.

In recent years, the energy crisis that broke out in Europe has led to a huge explosion in the European household energy storage market , and the demand for household photovoltaics and energy storage has surged . Arlo Energy, which focuses on the overseas energy storage market , has seized the market opportunity.

Driven by high demand, Aero Energy 's performance also ushered in rapid growth.

According to the prospectus of Aero Energy, from 2020 to 2022 and the first half of 2023 , Aero Energy's operating income was approximately RMB 389 million, RMB 833 million, RMB 4.612 billion and RMB 3.399 billion, respectively. In the same period, the company's net profit was approximately RMB 33 million, RMB 63 million, RMB 1.134 billion and RMB 975 million, respectively.

In terms of growth rate, from 2020 to 2022, the compound growth rate of revenue of Aero Energy will reach 244.27% , and the compound growth rate of net profit will reach 485.64%.

Arlo Energy said that based on the current operating conditions, market environment and orders in hand, the company's revenue in 2023 is expected to be approximately 4.5 billion yuan to 4.7 billion yuan, and its net profit attributable to shareholders of the parent company is expected to be approximately 1.05 billion yuan to 1.15 billion yuan, which is basically the same as the previous year .

Judging from the financial report data released by Aero Energy , Europe is Aero Energy's largest sales market.

From 2020 to 2022 and the first half of 2023 , Arlo Energy's revenue in the European market was RMB 289 million, RMB 650 million , RMB 4.358 billion and RMB 3.163 billion , respectively, accounting for 74.25%, 78.11% , 94.50 % and 93.04% of its revenue, respectively , showing a steady growth trend.

In 2022 alone , Aero Energy achieved sales revenue of 4.358 billion yuan in Europe .

This is thanks to the two large orders that Arrow Energy won that year, one from Hanwha Group, one of the top ten business groups in South Korea, and GBC , a Czech trader . The main sales locations of these two major customers are both in Europe , contributing 46.44% of Arrow Energy's revenue.

Under multiple risks, Arrow Energy still faces challenges!

However, it should be noted that Arrow Energy currently faces multiple risk factors .

Arrow Energy's high dependence on the European market is very unfavorable to its long-term development. If international trade policies change, the company will be greatly affected. At the same time, Arrow Energy's long-term dependence on the single market will also put the company's performance growth at risk of sustainability .

On the other hand, the chips and cells used by Aero Energy to produce energy storage batteries are all purchased from outside, and it has a very high degree of dependence on suppliers. Among them, Aero Energy 's chips mainly come from advanced foreign manufacturers . From 2020 to 2022 and the first half of 2023, the company's purchase of foreign brand chips accounted for 76.93%, 72.70%, 76.02% and 86.16% of the total amount of purchased chips, respectively .

From 2020 to the first half of 2023, all the cells used by Aero Energy to produce energy storage batteries were purchased from outside , and it was completely dependent on suppliers . In the long run, this will be detrimental to the company's future production and operations .

At the same time, Arrow Energy also faces debt risks.

It is understood that the company's actual controllers, Li Xinfu and Li Guomei, hold a total of 46.75% of the shares.

As of January 31, 2023, Li Xinfu and Li Guomei have outstanding principal and interest of RMB 357 million, of which RMB 343 million is owed to family members and their controlled companies , due between 2025 and 2027. RMB 14 million of the loans are housing loans, due in 2035.

After Aero Energy completed the issuance of new shares, Li Xinfu and Li Guomei still held 35.06% of Aero Energy's shares .

Aiello Energy plans to raise 300 million yuan to supplement its working capital projects , which inevitably makes people worry whether Li Xinfu and his wife will use the funds raised from the IPO to repay debts.

In general, after successfully listing, Arrow Energy faces many opportunities and challenges. To remain invincible in the overseas market , it needs to continue to innovate technology, adapt to the market , and resolve many risks in the future.

Listing

Energy Storage