"Self-Storage Solar Business: Kesheng Technology Advances to Hong Kong Stock Exchange"

(Source: Qianlong.com)

Higher market concentration brings dependency on major clients for Kesheng Technology. The prospectus shows that from 2023 to 2025, the top five customers will nearly account for all of Kesheng Technology’s revenue, with the largest single customer’s revenue share once exceeding 80%. Losing any major customer or experiencing a decrease in their demand could adversely affect the company’s financial condition and operating performance.

The solar thermal power sector may welcome new capital players.

According to the Hong Kong Stock Exchange website, on March 24, Zhejiang Kesheng Technology Co., Ltd. (“Kesheng Technology”) officially submitted its prospectus.

Founded in 2010, Kesheng Technology is a core supplier of tower-type solar thermal systems. Under the push of the “dual carbon” goals and the development of new energy bases, solar thermal power with peak-shaving and long-duration energy storage capabilities has attracted renewed attention. As early as February 2024, Kesheng Technology initiated an A-share listing plan and registered for guidance with the Zhejiang Securities Regulatory Bureau, with CITIC Construction Investment as the guidance institution. The company stated that the current guidance agreement before listing has not been terminated, but to facilitate international business expansion and global capital allocation strategies, it has decided to adjust its listing strategy and prioritize Hong Kong listing.

However, in the context of the industry still being in early development stages and heavily reliant on policies, Kesheng Technology’s business is highly concentrated among a few large clients. The company’s path to going public and the growth prospects of the solar thermal industry are also attracting market attention.

Key figure involved in a share transfer dispute last September

The key figure at Kesheng Technology is 63-year-old Jin Jianxiang, who has long been a faculty member at Zhejiang University since earning his bachelor’s degree in chemical automation in 1984. He is mainly responsible for formulating overall development strategies and presiding over the board of directors. The prospectus describes Jin Jianxiang as having “rich experience in industrial automation and renewable energy technological innovation.” In November 2025, Jin Jianxiang was appointed vice chairman of the Solar Thermal Branch of the China Electricity Enterprise Federation.

Crucially, last September, Jin Jianxiang was involved in a lawsuit over a share transfer from 2018. That year, the controlling shareholder of Kesheng Technology, Zhongyi, sought to exit, and Jin Jianxiang decided to acquire 31.28% of Kesheng Technology’s total investment through his personal holding company, Huzhou Yueri, becoming a controlling shareholder. In September 2025, Zhejiang Chuangrui Investment Consulting Co., Ltd., which held 11.34% of shares that year, filed a lawsuit requesting the court to declare the transfer invalid.

The prospectus discloses that the case was heard in October 2025. The company has received legal opinions indicating that there are no criminal factors or procedures involving Jin Jianxiang at this stage, and based on evidence, the likelihood of the request being approved appears low. Kesheng Technology believes that this case does not pose a significant adverse impact on its business operations or listing application.

Kesheng Technology is one of the providers of tower-type solar thermal power and molten salt energy storage solutions. Its main business model involves directly supplying core subsystems, such as the heat collection system and heat exchange/storage system, to solar thermal power plant owners or EPC contractors.

Regarding the company’s market position, Kesheng Technology cites data from institutions stating that between 2021 and 2024, 20 tower-type solar thermal projects in China have started construction with confirmed suppliers of the concentrating solar collectors. The company supplied the concentrating collectors for 11 of these projects, with a total installed capacity of 1,250 MW. Based on capacity and project count, its market share reached 57.9% and 55.0%, respectively. Notably, the 10 MW Delingha project in Qinghai, developed by Kesheng Technology in 2013, is China’s first commercial tower-type solar thermal power plant.

What is solar thermal power?

Crucial information from Shell Finance indicates that solar thermal power is a technology that concentrates sunlight using mirrors onto a solar receiver. The concentrated solar energy heats a transfer medium (liquid or gas), which then heats water to produce steam that drives a turbine or directly powers a generator. Most of Kesheng Technology’s projects are located in desert regions.

Solar thermal power combines power generation and energy storage, making it regarded as a “solar power station with built-in storage.” With the surge in grid integration of new energy sources in recent years, the demand for grid peak-shaving capacity has increased, bringing solar thermal power back into focus.

The “Energy Law of the People’s Republic of China,” approved in November 2024, explicitly encourages the development of solar thermal power. In December 2025, the National Development and Reform Commission and the National Energy Administration jointly issued the “Opinions on Promoting the Scale Development of Solar Thermal Power,” which highlight that solar thermal power has dual functions of peak-shaving power and long-duration energy storage. It can support renewable energy regulation, provide long-term peak-shaving capacity and inertia for the power system, and has potential as a peak-shaving and foundational power source in some regions. It is an effective means to replace traditional energy with new energy safely and reliably and an important support for accelerating the construction of a new power system. The industry chain for solar thermal power is long, and large-scale development and utilization will become a new growth point for China’s renewable energy industry.

The above opinions set a quantitative target: by 2030, the total installed capacity of solar thermal power should reach about 15 million kW, with the cost per kWh roughly comparable to coal-fired power.

Top five clients nearly contribute all revenue, order grabbing still relies on price wars

Kesheng Technology mentions that the current solar thermal industry heavily depends on government support. Changes in renewable energy targets or supporting policies could significantly impact the company’s revenue and growth prospects.

Shell Finance notes that Kesheng Technology also had to pivot during the industry downturn. The prospectus shows that since 2020, due to the failure of the second batch of national solar thermal demonstration projects, the industry entered a stagnation period. Kesheng Technology proactively adjusted its strategy, expanding into molten salt energy storage and photovoltaic tracking systems. After 2021, with the promotion of China’s “dual carbon” goals, the value of peak-shaving in solar thermal power gained recognition, and the “solar thermal + multi-energy complementary” model emerged. The company subsequently secured multiple project orders.

Benefiting from the continuous expansion of solar thermal projects in recent years, Kesheng Technology turned profitable again in 2023, with performance continuing to grow thereafter.

Infographic/By Jingyan News Shell Finance Reporter Zhu Yueyi

The high entry barrier in the solar thermal power industry means that only large state-owned enterprises, leading private energy groups, and EPC contractors engaged in large-scale solar thermal plant development can gain access.

Higher market concentration increases dependence on major clients for Kesheng Technology. The prospectus shows that from 2023 to 2025, the top five customers will nearly account for all revenue, with the largest customer’s share once exceeding 80%. The company admits that losing any major customer or a reduction in their demand could significantly harm its financial health and operational results.

Infographic/By Jingyan News Shell Finance Reporter Zhu Yueyi

The industry structure dominated by central and state-owned enterprises, along with the higher bargaining power of project owners, results in weaker bargaining ability for Kesheng Technology during bidding. The company states that price is one of the main factors in bidding for solar thermal projects. If competitors offer lower prices or more favorable terms, the company may need to lower its prices to stay competitive, which could compress profit margins.

Data from the prospectus shows that the unit investment cost of solar thermal projects has decreased from about 1.15 yuan/kWh during the demonstration phase to 0.55 yuan/kWh in 2024. While cost reductions help improve the industry’s overall competitiveness against other energy sources, they also create pricing pressures among participants in the industry.

Infographic/By Jingyan News Shell Finance Reporter Zhu Yueyi