Source | Phoenix Finance "IPO Observation Post"

As the demand for computing power in AI Data Centers (AIDC) continues to grow, the energy storage industry is welcoming new application scenarios. Haichen Energy Storage has achieved a certain market position in the long-duration energy storage and AIDC matching field with its 1175Ah battery cells and 6.25MWh energy storage system. According to its official introduction, it currently ranks among the top two globally in terms of energy storage battery shipments.

At the same time, this company, which is advancing its IPO in the Hong Kong stock market, is also facing multiple operational challenges. According to the prospectus and public information, the company is currently involved in multiple litigation disputes, and its profit data shows a high dependence on government subsidies. While revenue is growing, some financial indicators reflect certain operational pressures.

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Director of the President's Office Arrested, Supplier Claims Nearly 100 Million, Haichen Energy Storage's "Troublesome Autumn"

Tianyancha data shows that Haichen Energy Storage currently has 25 court announcements, with 15 cases scheduled for trial in 2026, and the remaining 10 occurring in 2025, most of which are defendants.

The most concerning issue is the unfair competition dispute with industry giant CATL. In August 2025, CATL sued Haichen Energy Storage's actual controller Wu Zuyu and several related companies, claiming damages of up to 150 million yuan.

Haichen Energy Storage's actual controller Wu Zuyu

At the same time, CATL also accused Haichen Energy Storage of poaching core talent and violating non-compete agreements among other core demands.

Haichen Energy Storage stated in its prospectus that the probability of the other party winning is low, and even if it has to pay 150 million yuan, it would only account for 1.2% of its total revenue for 2024 and 3.5% of its cash on hand, making the financial impact relatively limited.

In addition, according to multiple media reports, the Director of the President's Office of Haichen Energy Storage, Feng Dengke, has been subjected to compulsory measures by the police for allegedly infringing on commercial secrets, and the case has been transferred to the procuratorial organ. Although Haichen Energy Storage claims that the "composite flow technology" involved is not secret, there is significant industry controversy, and this incident will undoubtedly further amplify external doubts about the compliance of its technology sources.

Meanwhile, disputes with suppliers directly involve financial aspects. In February 2026, Fujian Xinyu Flexible Materials Technology Co., Ltd. listed Haichen Energy Storage, actual controller Wu Zuyu, and co-founder Wang Pengcheng as joint defendants, claiming a total of 90.3853 million yuan due to a contract dispute.

It is reported that this dispute originated from a lithium battery materials cooperation project, where Fujian Xinyu accused its former legal representative of assisting the disciplinary inspection department's investigation, during which the project's core team, technical materials, and experimental data were transferred, ultimately becoming one of Haichen Energy Storage's core competitive advantages, directly pointing to its unfair competition behavior. For Haichen Energy Storage, this nearly 100 million yuan claim is not a small amount—its net profit for the first half of 2025 was only 213 million yuan, and a loss in this case would directly erode its profit results.

It is important to note that as of now, these lawsuits have not yet been resolved, and there is no clear judgment result. Although in terms of amount, even if it loses, the substantial financial impact on the company is not significant, the ongoing litigation process still requires the company to invest a large amount of human and material resources to respond, consuming core operational energy, and at this critical juncture of its push for a Hong Kong IPO, these unresolved lawsuits pose significant compliance risks that may affect the IPO review process 02

Haitian Energy's "Subsidy Dependency Syndrome"

From the financial data disclosed in the prospectus, Haitian Energy has experienced rapid revenue growth in recent years and is expected to turn a profit in 2024. From 2022 to 2024, the company's operating revenue increased from 3.615 billion yuan to 12.917 billion yuan, with a compound annual growth rate of nearly 90%; in 2024, it achieved a net profit of 288 million yuan, while in 2022 and 2023, it recorded losses of 1.777 billion yuan and 1.975 billion yuan, respectively; in the first half of 2025, revenue further increased to 6.971 billion yuan, a year-on-year growth of 224.5%, with a net profit of 213 million yuan.

In terms of profit composition, government subsidies account for a significant portion of the company's earnings. The prospectus and public data show that from 2022 to the first half of 2025, Haitian Energy received a total of over 800 million yuan in government subsidies, while the net cash flow generated from operating activities during the same period was below that amount.

Specifically, in 2024, Haitian Energy achieved a net profit of 288 million yuan, while receiving government subsidies of 414 million yuan that year, making the subsidy amount 1.43 times the net profit; if government subsidies are excluded, the company would have been in a net loss position for the year, with a loss amounting to approximately 126 million yuan. In the first half of 2025, the company received government subsidies of 334 million yuan, exceeding the net profit of 213 million yuan during the same period, and after deducting the subsidies, the company remained in a net loss position.

From a financial structure perspective, Haitian Energy's R&D investment is relatively low. The R&D expense ratio was 4.1% in 2024 and 3.9% in the first half of 2025, which is lower than some comparable companies in the same industry—CATL's R&D expense ratio was 5.14% in 2024, Yiwei Lithium Energy was 5.6%, and Guoxuan High-Tech was 6.07%.

Additionally, Haitian Energy faces operational risks from some overseas customers. Its U.S. customer Powin filed for bankruptcy protection in June 2025, creating uncertainty regarding the execution of their previously signed 5GWh framework agreement (valued at approximately 1.5 billion yuan).

In terms of debt and receivables, the company faces certain financial pressures. As of the end of 2024, the company's bank and other loan balances amounted to 9.983 billion yuan, with a debt-to-asset ratio of 73.1%; accounts receivable increased from 223 million yuan in 2022 to 8.31 billion yuan in 2024, accounting for 64.3% of revenue, with accounts receivable turnover days at 185.7 days. For reference, in 2024, CATL's accounts receivable turnover days were 63.72 days, Yiwei Lithium Energy's were approximately 85 days, and Guoxuan High-Tech's were 152 days, with the average collection cycle for industry power battery manufacturers being around 103 days.

In the first half of 2025, the aforementioned pressures intensified. By the end of June, the company's bank and other loans increased to 10.97 billion yuan, a 9.9% increase from the end of 2024, and the debt-to-asset ratio rose to 74.95%; accounts receivable stood at 7.703 billion yuan, with accounts receivable turnover days further extending to 227.9 days, while during the same period, CATL's accounts receivable turnover days were 59.72 days In terms of liquidity, as of the end of June 2025, the company had cash available for withdrawal amounting to 3.905 billion yuan, while interest-bearing liabilities (mainly bank and other borrowings) were 10.97 billion yuan, with cash accounting for 35.6% of interest-bearing liabilities, which is lower than the 4.932 billion yuan in borrowings due within one year.

For HAI CHEN Energy, which plans to list on the Hong Kong stock market, how to address litigation risks, reduce reliance on government subsidies, and enhance the profitability of its core business are important issues it needs to face