摘要：Xiamen-based Hithium Energy Storage Technology Co., Ltd. has rapidly risen to prominence since its founding in 2019, quickly ranki

Credit: CFP

TMTPOST -- On the cusp of a highly anticipated IPO on the Hong Kong Stock Exchange, Hithium Energy Storage faces mounting legal and financial challenges that threaten to overshadow its ambitious market debut.

Xiamen-based Hithium Energy Storage Technology Co., Ltd. has rapidly risen to prominence since its founding in 2019, quickly ranking among the top three global energy storage battery suppliers and amassing a valuation exceeding $3.5 billion.

Recently, Hithium issued a detailed statement titled “Solemn Statement on Recent Online Rumors and Other False Information,” directly addressing five major points of controversy. The move, described by some observers as a “late-night counterattack,” has intensified scrutiny on the company, which had long been hailed as a shining example of China’s burgeoning energy storage sector.

At the heart of Hithium’s official response is the unfolding legal case involving former executive Feng Dengke, who is accused of trade secret infringement. Feng, previously the director of the president’s office, has been placed under compulsory measures by Ningde public security authorities. Hithium distanced itself from the case, asserting that the “composite current collector technology” cited is publicly known and has never been used in its products.

However, questions remain after Shenzhen Haihong New Energy Technology — which transferred multiple patents on current collector technology to Hithium in 2022 — was swiftly dissolved, a detail left unexplained in the statement.

More pressing is the lawsuit filed by industry titan CATL, seeking damages exceeding $14 million over alleged unfair competition and intellectual property infringement. The court hearing is scheduled for August 12 — a pivotal date that coincides with the Hong Kong Stock Exchange’s IPO review for Hithium.

Hithium brushed off the lawsuit as “unilateral assertions” by CATL, but the legal battle underscores a deep-seated rivalry. The two companies have been embroiled in multiple disputes, including a 2023 arbitration ruling where Hithium’s founder Wu Zuyu was penalized for violating a non-compete agreement and accused of poaching key CATL personnel.

Further fueling uncertainty are concerns around Hithium’s largest U.S. client, Powin, which recently filed for bankruptcy. Rumors suggested that the fallout wiped out $215 million in orders, but Hithium countered, saying cooperation with Powin had not reached mass delivery, and it is not listed as a creditor in the bankruptcy case.

Hithium’s statement also addressed online speculation about the age of the chairman’s spouse, confirming she was born in 1991 rather than 1964, reflecting the intense public interest in the company’s leadership amid the ongoing controversies.

The statement defended its “full independent R&D” amid accusations that Hithium’s 587Ah battery cell closely resembles CATL’s technology roadmap. While pointing to technical differences, the company sidestepped detailed explanations on the striking similarities, leaving analysts to question the robustness of its innovation claims.

Hithium’s IPO prospectus highlights an impressive revenue surge—from RMB 3.6 billion (about $510 million) in 2022 to an expected RMB 13 billion ($1.85 billion) in 2024. The company also projects an adjusted net profit of RMB 318 million ($45 million) for 2024, signaling a potential turnaround.

But a closer examination reveals the profits are heavily reliant on government subsidies amounting to RMB 414 million ($59 million). Without these subsidies, the company would still face a net loss of RMB 96 million ($14 million), raising questions about its profitability and sustainability.

More concerning is the explosive growth in trade receivables, which ballooned from RMB 223 million ($32 million) in 2022 to RMB 8.3 billion ($1.2 billion) by 2024—a nearly 40-fold increase. This means over 60% of Hithium’s sales have not yet been converted into cash. The company’s accounts receivable turnover days surged from 12 days to more than 185 days in the same period, signaling strained cash flow and potentially weaker negotiating power in the supply chain.

At the end of 2024, Hithium’s liabilities stood at RMB 10.1 billion ($1.45 billion), with an asset-liability ratio of 73.1%, indicating significant leverage.

While Hithium touts its technological breakthroughs and new product launches every nine months, its R&D spending as a share of revenue has steadily declined—from 5.4% in 2022 to 4.1% in 2024. Over the three-year period, total R&D investment amounted to RMB 1.2 billion ($172 million), a relatively modest commitment for a tech-intensive sector reliant on long-term innovation.

This decline has fueled skepticism about the company’s claims of “independent” R&D, especially in light of CATL’s allegations of intellectual property infringement.

As Hithium Energy Storage stands on the verge of its Hong Kong IPO, the company faces a perfect storm: looming legal battles with one of the industry’s largest players, financial red flags related to cash flow and profitability, and market concerns over governance and innovation authenticity.

For investors and regulators, the key question is how to value a company grappling with fundamental doubts about its core technology, leadership, financial health, and ethical standing. While Hithium’s rapid rise and growth prospects are impressive, the weight of unresolved issues raises significant risks.

The August 12 court hearing and subsequent IPO decisions will likely serve as a critical litmus test—not just for Hithium’s public listing but for investor confidence in China’s next-generation energy storage players.

来源：钛媒体