SIGENERGY raised over 130 million yuan to stabilize 1 hand, but exploded with patent disputes on the eve of listing

The mainland distributed energy storage system (DESS) solution provider SIGENERGY (6656) officially listed on Thursday (16th) and began dark trading after today's market close; it is rumored that an investment of over HKD 130 million to subscribe for 4,000 to 6,000 lots is needed to secure a hand, while drawing 6,787 lots of "head hammer flying" can only yield 1 to 2 lots. With a shortage of hands, the stock's performance after listing is highly anticipated, but just before the listing, a patent dispute has erupted. Huawei Digital Energy Accuses of Patent Infringement According to domestic media reports, SIGENERGY's founder Xu Yingtong and several senior executives have backgrounds in Huawei's smart photovoltaic business, but they have recently been accused by Huawei Digital Energy of infringing on two core patents, involving inverter bus voltage adjustment technology and global maximum output power determination methods, the latter of which won the Shenzhen Science and Technology Award Patent Award in 2022. Core Product Revenue Accounts for Over 90% The report mentions that the group's core products, including the SIGENERGY integrated solar storage machine (models: SigenStor EC 6.0SP, SigenStor EC 12.0TP, and other related products), SIGENERGY solar storage inverters (models: Sigen Hybrid 6.0 SP2, Sigen Hybrid 12.0 TP2, and other related products), and SIGENERGY commercial photovoltaic inverters (model: Sigen PV 110M1-CN and other related products), are all suspected of infringing on Huawei Digital Energy's related patent portfolio. It is noteworthy that SIGENERGY's growth is almost entirely tied to its core product SigenStor, with product revenue accounting for over 90% in the past three years; the prospectus also states, "Our business currently relies heavily on SigenStor," and any decline in sales could have a significant adverse impact on the business. Therefore, if SIGENERGY is found to have infringed, and related products contribute over 90% of revenue, it indicates that the listing itself may also be significantly non-compliant, posing risks and uncertainties for business development