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.
