Chinese industrial automation and power technology firm Inovance Technology has filed its prospectus with the Hong Kong Stock Exchange, planning to raise around US$2 billion (RMB 13.7 billion) following strong growth in its energy storage business.
The IPO marks another major capital move following the spin-off and listing of its subsidiary United Power, as well as a key step toward building an A+H dual-listing platform (being listed in both mainland China and Hong Kong).
Booming energy storage: the new revenue driver
Among the highlights of Inovance’s IPO filing, its robust storage business stands out prominently.
According to Frost & Sullivan, Inovance ranked 5th globally in the medium-to-high power storage power conversion system (PCS) market by 2025 shipment volume, with a 6.7% market share. Throughout 2025, its shipments of storage PCS inverters and step-up integrated units exceeded 10GW, while cumulative storage system shipments surpassed 1GWh.
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The segment has grown into a core pillar driving the company’s overall revenue growth. As a key part of Inovance’s emerging business portfolio, the division posted 16% year-on-year growth in 2025, with revenue reaching RMB 1.795 billion (US$264 million).
Growth momentum carried into 2026: Q1 revenue hit approximately RMB 489 million, up 32% year-on-year. Inovance’s strong growth in storage is widely seen as part of a shift to becoming a comprehensive energy solutions provider.
Nevertheless, its rapid business expansion is taking place amid industry-wide headwinds. The storage sector remains mired in a brutal price war. As disclosed in the prospectus, while Inovance’s 2025 storage gross margin of around 28% remains above the industry average, the company’s overall gross margin has fallen from over 50% in prior years to 28.1% in 2025. In Q1 2026, its net profit attributable to the parent company shareholders fell 23.39% year-on-year, reflecting an obvious trend of revenue growth accompanied by sliding profitability.
Against this backdrop, the company has a clear plan for the roughly RMB 13.7 billion to be raised through the Hong Kong IPO: the proceeds will be mainly allocated to the forward-looking expansion of emerging businesses and production bases.
The company has laid out ambitious strategic targets: it aims to ship 15GW of PCS products in 2026, representing a 50% year-on-year increase, alongside 3GWh of storage system shipments. By 2028, it plans to raise annual PCS shipments to 30GW, capturing a 15–20% global market share and breaking into the global top three.
On the capacity front, Inovance has already taken proactive steps. In November 2025, its Xi’an storage manufacturing hub with a total investment of around RMB 1 billion-officially commenced operation. Designed for an annual capacity of up to 50GW, the facility ranks among the world’s top-tier standalone production bases for storage PCS. It has shortened the production cycle to just three days, providing solid support for large-scale order delivery.
As Inovance’s Hong Kong IPO moves forward, the capital market and the industry will be watching closely to see whether this industrial automation leader can secure a spot among the global top three in the medium-to-high power storage PCS market by 2028.
