Chinese PV Industry Brief: Fox ESS and Gold Electronics Secure IPO Approvals in Shenzhen
Key Insights
Fox ESS has secured approval for its IPO on the ChiNext board, aiming to raise over CNY 1.6 billion for energy storage and R&D projects.
Hangzhou Gold Electronics also received IPO approval, planning to issue 120 million A-shares to raise CNY 850 million for BMS and data services expansion.
JinkoSolar's subsidiary sold eight distributed solar projects in Zhejiang for CNY 287 million, with a grid-connected capacity of 76.55 MW.
J.S. Machine announced a CNY 150 million debt-to-equity swap investment in Runergy, contingent on debt repayment by Runergy's subsidiary.
Fox ESS, a solar and energy storage company, has received approval for its initial public offering (IPO) on the Shenzhen Stock Exchange's ChiNext board. The company plans to issue up to 90 million A-shares, backed by Guotai Haitong Securities, to raise more than CNY 1.6 billion. Founded in 2019, Fox ESS specializes in inverters and battery systems and intends to use the proceeds to construct an intelligent energy storage industrial park, an R&D center, and a marketing network. This move underscores the growing investor interest in China's energy storage sector.
Hangzhou Gold Electronics, another key player in the energy storage market, has also secured IPO approval for the ChiNext board. The company, established in 1998, focuses on battery management systems (BMS) for energy storage, backup power, and electric vehicles. It plans to issue 120 million A-shares to raise up to CNY 850 million, with funds earmarked for expanding its integrated control units and data services. Gold Electronics ranked first among China's top 10 new energy storage BMS companies in 2023, according to a CNESA white paper.
In a separate development, JinkoSolar's subsidiary, Jinko Power, has sold eight operational distributed solar projects in Zhejiang province to China Construction Bank Leasing for CNY 287 million. The rooftop systems, with a combined capacity of 76.55 MW, are expected to generate a profit of 10% to 20% of JinkoSolar's recent audited annual earnings. This transaction highlights the increasing liquidity in China's distributed solar market.
Additionally, J.S. Machine has announced a CNY 150 million debt-to-equity swap investment in Runergy, contingent on Runergy's subsidiary repaying outstanding debt. The deal exemplifies the growing trend of financial restructuring in the renewable energy sector to stabilize operations and attract further investment.