Energy Storage "Heat" Ignites Shou航New Energy, CATL "Shares" Capital Feast

AI Inquiry · How did CATL’s early investment in First Horizon New Energy lead to capital gains through strategic布局?

Under high oil prices, the new energy sector with clear substitution logic stands out. On March 20, First Horizon New Energy’s energy storage stock hit the daily limit with a 20cm increase, bringing its total market value close to 25 billion yuan, a 111% increase over the past three months. The excellent performance of First Horizon New Energy has also resulted in significant equity appreciation for its major shareholder, CATL.

First Horizon New Energy surges against the trend.

On March 20, First Horizon New Energy opened lower and then rose strongly, hitting the daily limit with a 20cm increase near midday, closing at 60.35 yuan. Data shows that in March alone, the stock surged by 85.75%, and since the beginning of the year, its cumulative increase exceeded 111%.

Since March 3, First Horizon New Energy has appeared on the龙虎榜 (top trading list) for over ten consecutive trading days, reflecting strong market interest. The reason for the stock’s hype may also be related to its布局 in household storage, industrial storage, and large-scale storage, especially in the current environment of high oil prices and strong calls for renewable energy substitution.

Notably, CATL has also become one of the biggest beneficiaries of this surge.

It is reported that CATL’s subsidiary, Wending Investment, invested in First Horizon New Energy at a “discounted price” in 2021, when the company’s valuation was about 7.7 billion yuan. Now, the market value of First Horizon New Energy has risen to nearly 25 billion yuan, tripling the initial valuation, and CATL’s 11.13 million shares are now worth 672 million yuan.

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First Horizon New Energy**“Soaring”******

After strong momentum to hit the “20cm” limit, First Horizon New Energy’s stock price reached a new high. Since 2026, the stock has surged by 111.31%, ranking 46th among Shanghai, Shenzhen, and Beijing markets, with excellent overall performance.

The hot performance of First Horizon New Energy naturally benefits from many capital inflows. From March 3 to March 20, the stock’s turnover rate ranged from a minimum of 28.94% to a peak over 67%. During this period, it also appeared on the龙虎榜 multiple times, totaling thirteen appearances.

Further, recent trading of First Horizon New Energy involves diverse investors. For example, on March 16, the top five trading departments all bought the stock through Shenzhen Stock Connect and four institutional dedicated seats. From March 17 to 20, institutions like Guoxin Beijing Branch, Shenzhen Stock Connect, Lhasa “Troupe,” quant funds, and well-known retail traders like “T Wang” all participated actively.

It is understood that recent Middle Eastern conflicts have driven up oil and gas prices, especially in energy-scarce Europe, where taxpayers have spent about 3 billion euros on fossil fuel imports. This has stimulated local energy storage demand in Europe, which is a key reason why the market dares to hype First Horizon New Energy.

Data shows that First Horizon New Energy’s main products include photovoltaic grid-connected inverters, photovoltaic energy storage inverters, energy storage batteries, and systems, covering household, industrial, and large-scale storage. The company’s overseas business accounts for the majority of its operations, with Europe being its primary sales market.

In the first half of 2025, First Horizon New Energy achieved overseas revenue of 936 million yuan, accounting for 84.16% of total revenue, with Italy contributing 348 million yuan. The company mainly supplies large photovoltaic system integrators and distributors, including Italy’s ZCS, Poland’s CORAB, EnergyNAT, Czech MV Technology, among others.

It is noteworthy that at the start of the Ukraine conflict four years ago, the EU’s short-term ban on Russian energy led to rapid risks of “gas and power outages” for households and businesses, making household energy storage the main growth point for global energy storage. However, even before this conflict, global energy storage demand had already begun to flourish.

Looking at First Horizon New Energy’s strategic development, it mainly targets Australia, establishing subsidiaries and providing localized services. The company previously mentioned: “Currently, in Australia, driven by ‘home battery subsidy plans’ and ‘shared sunlight’ free electricity policies, household and commercial energy storage demand is rapidly releasing.”

CATL**“Eating Meat”******

The “King” with a vast capital empire is also a shareholder of First Horizon New Energy.

CATL’s investment in First Horizon New Energy dates back to 2021. In December of that year, the company’s registered capital increased from 360 million yuan to 371 million yuan, with 11.13 million shares issued, all subscribed by CATL’s subsidiary, Wending Investment, at a valuation of 7.732 billion yuan.

Interestingly, First Horizon New Energy offered CATL a “preferential price,” as in November 2021—just a month before CATL’s investment—First Horizon New Energy had already received subscriptions from Linghui Cornerstone, Huajin Lingyi, Zhishu Investment, Jifa No.2, and Changjiu Group, when its valuation was 10 billion yuan.

First Horizon New Energy states that introducing CATL helps better integrate upstream and downstream industry resources, aligning with its strategic plan. From their relationship, CATL is a supplier providing batteries for energy storage, with cooperation starting in 2021.

According to the IPO prospectus, from 2021 to 2022, the company’s transactions with CATL for battery supply amounted to 70.9 million yuan and 784 million yuan, accounting for 6.44% and 27.56% of operating costs, respectively. During this period, benefiting from stable supply from CATL and industry prosperity, the company’s energy storage battery revenue grew from 217 million yuan to 1.246 billion yuan, and total revenue increased from 1.817 billion yuan to 4.456 billion yuan.

Subsequently, First Horizon New Energy and CATL did not maintain “deep binding.” In 2023 and the first half of 2024, the company’s purchases of batteries from CATL dropped to 3.024 million yuan and 709,000 yuan, respectively, with the proportion of operating costs falling below 3%, and CATL falling out of the top five suppliers.

Meanwhile, First Horizon New Energy has also introduced CATL’s “competitor,” EVE Energy, to secure large quantities of batteries. The prospectus shows that the company signed procurement contracts with Hubei EVE Power, with a contract period from December 28, 2022, to “long-term.”

Even though CATL is no longer a major supplier at the business level, at the capital level, First Horizon New Energy has still delivered a “wealth feast” to CATL.

Currently, as First Horizon New Energy’s stock price surges, its market value has risen to 24.89 billion yuan, three times CATL’s initial investment valuation. Based on Wending Investment’s approximately 11.13 million shares, CATL’s latest stake is worth 672 million yuan.

********Billionaire’s****Xu Tao

The leader of First Horizon New Energy, Xu Tao, has a rich technical background.

Data shows Xu Tao was born in December 1965, now 60 years old. He studied industrial foreign trade at Hunan University and began his teaching career at Jiangsu University’s School of Management; according to First Horizon New Energy, he also worked at Shenzhen for a period.

In 2010, Xu Tao founded Shenzhen First Horizon Communication Co., Ltd., leading the company into the automotive intelligent connected terminal industry. But soon, the global photovoltaic industry was hit by policy shocks from Europe and America, leading to undervaluation. At that time, Xu Tao chose to “bottom fish,” officially establishing First Horizon New Energy.

Initially, First Horizon New Energy focused on small-power grid-connected inverters mainly for domestic sales. Starting in 2015, as domestic brands gained cost advantages over foreign brands, Xu Tao expanded abroad to tap into overseas markets.

During this period, Xu Tao led First Horizon New Energy to cooperate with clients like ZCS and EnergyNAT, and began “testing the waters” in energy storage, developing energy storage inverters and batteries. This布局 helped the company survive the darkest days of China’s photovoltaic industry in 2018 and ride the wave of the 2019 “big cycle” of solar storage and exports.

Later, Xu Tao’s ambition grew: to take First Horizon New Energy public. In 2022, the company’s IPO was accepted, but it experienced a “photovoltaic winter” before successfully listing on the ChiNext in April 2025.

As First Horizon New Energy’s stock price soared, Xu Tao also enjoyed the capital feast. As of the 2025 semi-annual report, he directly held 173 million shares, accounting for 41.96% of the total. Through Hao Shou Wei Feng Investment, he indirectly held 1.06% of the company, and through Bai Zhu Cheng Hang Investment, 4.55%. His total direct and indirect holdings amount to 47.57%, estimated to be worth over 10 billion yuan.

Of course, many other shareholders have benefited too. The seventh largest shareholder is Xu Zhiying, Xu Tao’s spouse; the sixth and ninth largest shareholders, Liu Shaogang and Tao Cheng, are Xu Tao’s friends and suppliers.

Data shows that in 2023, First Horizon New Energy ranked tenth globally in photovoltaic inverter shipments, and in 2021, it ranked ninth in the global household inverter market. This indicates the company still has room to improve its international market position, which will likely be a key focus for Xu Tao’s future.

Editor | Chen Bin