Shuangdeng Group: The Leader in Communication and Big Data Energy Batteries Returns to Hong Kong for IPO

Company Profile

$SHUANGDENG(06960.HK) was established in 2011 and is dedicated to energy storage solutions in the fields of big data and telecommunications. This Jiangsu-based company, with 30 years of experience in energy storage batteries, boasts the title of "Global No. 1 in Shipments of Energy Storage Batteries for Telecommunications and Data Centers" (according to Frost & Sullivan data, in 2024, the company ranked first in global shipments among energy storage battery suppliers for telecommunications and data centers, with a market share of 11.1%). Before applying for a Hong Kong listing, Shuangdeng Group submitted a listing application to the Shenzhen Stock Exchange in 2023, which was terminated in April 2024, ultimately leading to its pivot to a Hong Kong listing. This marks the company's second attempt to list on the Hong Kong Stock Exchange, and Shuangdeng Holdings has now passed the Hong Kong Stock Exchange hearing on August 10.

01 Core Business: A Leader in Telecommunications and Data Center Energy Storage Solutions

Shuangdeng Group has become a solutions provider covering three major areas: telecommunications base stations, data centers, and power energy storage, with its business structure undergoing profound transformation. The company's product portfolio includes two major categories: lithium-ion batteries (primarily lithium iron phosphate batteries) and lead-acid batteries, widely applied in three core scenarios:

The company holds a strong market share in the telecommunications base station energy storage sector. In 2024, it ranked first globally in shipments for telecommunications base station energy storage, with a market share of 9.2%. Telecommunications base station energy storage has long contributed over 50% of revenue, with clients including giants like China Mobile, China Unicom, China Telecom, and Huawei, and a domestic base station backup power market share exceeding 35%. Additionally, the company performs exceptionally well in the data center energy storage sector, serving 80% of China's top 10 self-owned data center enterprises and 90% of third-party data center enterprises. In 2024, it ranked first among Chinese companies with a 16.1% market share. In power energy storage, the company is gradually expanding into grid-side and developing energy storage projects for the user side, forming a diversified application layout.

02 Financial Data Analysis: Growth Resilience Amid Profitability Pressures

Shuangdeng Group's revenue primarily comes from energy storage battery sales, including lithium-ion and lead-acid batteries. Below are the financial data for the past three years: In 2022, revenue was RMB 4.072 billion, net profit was RMB 281 million, and gross margin was 16.9%; in 2023, revenue was RMB 4.260 billion, net profit was RMB 385 million, and gross margin was 20.3%; in 2024, revenue was RMB 4.499 billion, net profit was RMB 353 million, and gross margin was 16.7%. In the first five months of 2025, Shuangdeng Group's revenue was RMB 1.867 billion, a year-on-year increase of 33.36%; gross profit was RMB 279 million, with a gross margin of 14.9%.

From the financial data, we can see that despite steady revenue growth, profitability shows underlying concerns. Due to rising raw material costs and declining product prices, gross margins fluctuated, dropping from a high of 20.3% in 2023 to 16.7% in 2024 and further to 14.9% in the first five months of 2025 (a year-on-year decrease of 4.8 percentage points).

In terms of revenue composition, data center energy storage business accounted for 46.7% of revenue in the first five months of 2025, surpassing telecommunications base stations for the first time, with absolute growth outpacing peers. The explosive demand for data center energy storage has become a new driver of the company's revenue growth.

Notably, the company's cash flow situation faces some challenges. As of May 31, 2025, Shuangdeng Group held cash and cash equivalents of RMB 617 million, while accounts receivable reached RMB 2.318 billion (accounting for 63.68% of current assets) and inventory stood at RMB 514 million as of the end of 2024, representing significant capital occupation. This may impact the company's capital turnover efficiency and short-term debt repayment capacity.

03 Industry Growth Potential: The Golden Era of the Energy Storage Market

The energy storage market is growing rapidly, with demand continuing to rise due to advancements in new energy, 5G telecommunications, big data, and artificial intelligence. According to Frost & Sullivan estimates, the global energy storage battery market will grow from 746.8 GWh in 2024 to 6,810.1 GWh by 2030. China's market is also experiencing strong growth, with the energy storage battery market size expected to reach 54.2 GWh by 2030.

The global number of 5G base stations is expected to exceed 20 million by 2025, driving demand for backup power. The development of cloud computing and AI is accelerating the construction of hyperscale data centers, making energy storage systems a standard requirement. In 2024, global data center power consumption reached 415 TWh, projected to exceed 945 TWh by 2030, with an annual growth rate of 15%. Data centers require power restoration within 100ms of an interruption to avoid data asset losses, making high-rate batteries a necessity.

Shuangdeng Group's leading position in global and Chinese markets, along with its deep expertise in telecommunications and data center energy storage, gives it significant potential in this rapidly growing market. China's "East Data, West Computing" project is promoting the construction of supercomputing centers, with the Xiong'an Urban Supercomputing Center already adopting Shuangdeng's composite energy storage solutions. China's "Dual Carbon" goals and energy storage subsidy policies in Europe and the U.S. are accelerating industry development. Shuangdeng, with its first-mover technological advantages, is securing a strong position: it leads the formulation of industry standards for high-rate batteries, has begun shipping its self-developed 587Ah large-capacity cells, and has introduced semi-solid-state energy storage devices to enhance safety. This strategy has made it the sole winning vendor for Alibaba's Zhangbei Data Center project.

04 Company Strengths and Concerns: Can High Growth Continue?

Core Competitiveness: 

• Customer Barriers: Covers 5 of the global TOP10 telecommunications operators, with over 8 years of collaboration with China's three major operators, and an 80% penetration rate among leading data center enterprises (covering Alibaba, Tencent, and ByteDance).

• Parallel Technologies: Combines the low-temperature performance advantages of lead-acid batteries with the energy density upgrades of lithium batteries, plus reserves in sodium-ion/solid-state batteries, mitigating risks through multiple technology pathways.

• Global Production Capacity: The Malaysia factory achieved "same-year production," with energy storage projects launched in Cambodia and Mongolia.

  Risks and Concerns: 

• Technology Substitution Risk: 64.6% of revenue comes from lead-acid batteries, facing threats from the EU's 2030 lead-acid restrictions; subsidiaries have been penalized for environmental issues. The "de-leadification" trend in telecommunications base stations is accelerating, yet the company's lead-acid battery revenue share remains at 28.4%, lagging behind industry changes (lithium battery penetration in telecommunications base stations exceeds 50%, while Shuangdeng's is only 33.3%).

• Insufficient R&D Investment: R&D expense ratio is only 2.3%-2.8%, below the industry average of 4.1%-4.4%; sodium-ion batteries remain in the laboratory stage.

• Weak Pricing Power: Top five customers account for 46.1% of revenue, limiting bargaining power with operators and forcing strategic price reductions.

05 Investment Value Assessment and Outlook

Shuangdeng Group's IPO aims to raise a total of HKD 2.75 billion, with the following fund allocation plan:

Key Metrics to Watch:

📍Can data center energy storage business maintain over 30% growth?

📍Order acquisition capability after Southeast Asia production capacity goes live.

📍Can gross margins stabilize and recover to over 18%?

⚠️Risk Warnings:

• Accounts receivable bad debt risk.

• Increased volatility in raw material prices.

• Industry price wars leading to unexpected profit declines.