New Energy Firm Growatt Plans Hong Kong IPO
Growatt Technology Co., Ltd., the Cayman Islands holding company of Shenzhen Growatt, has submitted a prospectus to the Hong Kong Stock Exchange (HKEx) in a bid to list on its main board. The co-sponsors of the move are Credit Suisse and CICC.
According to information on the company’s website, Growatt was founded in 2011 and is a new energy enterprise focusing on R&D and manufacturing solar grid-connected energy storage systems, intelligent charging piles and providing intelligent energy management solutions. At present, it has three R&D centers across China in Shenzhen, Huizhou and Xi’an, and it has obtained more than 80 authorized patents at home and abroad. In March 2021, Growatt Smart Industrial Park was officially completed and put into production in Huizhou. The park covers an area of 200,000 m² and can produce 3 million sets of inverter products every year.
According to Frost & Sullivan, Growatt is the world’s largest provider of household photovoltaic inverters in terms of shipments in various regions in 2021, accounting for 19.9% of the global market share. It ranks first in the Americas, first in Asia and third in EMEA (Europe, Middle East and Africa), and it is the third-largest provider of photovoltaic inverters in the world.
According to its prospectus, the company’s operating income was 1.001 billion yuan ($149.7 million) in 2019, 1.8932 billion yuan in 2020 and 3.195 billion yuan in 2021. The company’s revenue increased by 89.1% in 2020 and 68.7% in 2021.
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The revenue growth rate of Growatt’s reserve system has been impressive. The firm’s revenue was 71 million yuan in 2019, 214 million yuan in 2020 and 670 million yuan in 2021, corresponding with year-on-year growth rates in 2020 and 2021 of 198.7% and 212.4% respectively.
The gross profit margin of Growatt was 30.4% in 2019, 38.7% in 2020 and 35.8% in 2021. The firm’s net profit was 92 million yuan in 2019, 365 million yuan in 2020 and 572 million yuan in 2021, while the net profit margin was 9.2%, 19.3% and 17.9% respectively.
IDG invested 900 million yuan in the company on June 6 and obtained 6.52% of the shares. Based on this transaction consideration, the company’s pre-IPO valuation is about 13.8 billion yuan.
Growatt stated in its prospectus that the net funds raised by the IPO will be mainly used to build and expand existing production facilities and equipment, as well as to upgrade the supply chain. It will invest in core technologies and product lines. The company also plans to promote global sales channels and deepen its global localization strategy. The raised funds will also be used as working capital and for general corporate purposes.