Great Star Technology, a leading Chinese tool manufacturer, has made significant progress in its global expansion strategy, with its overseas listing plan receiving regulatory approval and its energy storage business emerging as a new growth driver.
Global Depositary Receipts Plan Advances
The company's application to issue Global Depositary Receipts (GDRs) has been formally accepted by the China Securities Regulatory Commission, marking a crucial step in its international financing strategy. This move would enable the company to access foreign capital markets while maintaining its domestic listing.
While the plan still requires approvals from both Chinese and Swiss regulators, the company expressed confidence in overcoming potential challenges. With a market capitalization of approximately 21.7 billion yuan ($3 billion), Great Star reported first-half revenues exceeding 6.2 billion yuan and net profits of 640 million yuan.
The company's strong international presence, with over 90% of revenue coming from overseas markets, positions it well for global expansion. Its operations include 10 overseas factories, more than 35 foreign subsidiaries and offices, and over 1,000 international employees.
Energy Storage Business Shows Promise
Beyond its core tool business, Great Star is making strategic moves into the energy storage market. The company recently secured a significant order from a Fortune 500 retailer for mobile and home energy storage products, valued at no less than $20 million annually for two years.
The company began selling mobile energy storage products in 2021 and is now introducing home energy storage solutions to retail markets. To support this expansion, Great Star plans to establish a new subsidiary with $15 million in registered capital, featuring initial production capacity of 1GWh for home energy storage systems.
Industry projections suggest substantial growth potential, with the global energy storage market expected to reach billions of dollars by 2025-2027. Great Star aims to capitalize on this opportunity while leveraging its existing expertise in power tools and global distribution networks.
Strengthening Core Business Operations
The company continues to optimize its global production layout for hand tools, storage cabinets, power tools, and laser measurement instruments. Since restarting its power tool business in 2021, Great Star has resumed production in North America and Europe while securing new retail contracts.
E-commerce channels have become increasingly important for product launches and sales growth. The company has also expanded its portfolio through strategic acquisitions of established tool brands including Sheffield, WORKPRO, and ARROW, enhancing its presence across multiple international markets.
With manufacturing bases in China, Europe, the United States, and Southeast Asia, Great Star maintains flexible production capabilities to meet diverse market demands. The potential success of its overseas listing could further strengthen its competitive position and support continued global expansion.