Sino Hua-An eyes energy storage as game changer

THE metallurgical coke business has been a drag for China-based Sino Hua-An International Bhd over the past two years. But transformation started to take place last year with a slew of technology-related acquisitions, paving the way for the company to become a full-fledged technology firm.

Among the many segments within the technology space, Sino Hua-An sees energy storage as a game changer for the company. “[Energy storage is] going to drive our business in the next two to three years. As one of the fastest-growing industries, it is a national interest for many countries,” its executive director Datuk Jared Lim tells The Edge in a recent interview.

He is hopeful that the company will be able to return to the black next year, on the back of a US$300 million (RM1.25 billion) order book secured so far, including US$230 million of super capacitor battery modules for Kone Elevators over three years.

The company slipped into the red with a net loss of RM184.3 million in 2019, compared with a net profit of RM29.6 million in 2018. For its first quarter ended March 31, Sino Hua-An reported a higher net loss of RM41.09 million against RM4.19 million in the same quarter a year ago.

In line with the diversification into the technology business, Sino Hua-An has proposed a name change to Techna-X Bhd to better reflect its core business and future undertakings. Quoting a study by Lux Research, Lim says the global energy storage industry is expected to grow into a US$550 billion industry by 2035.

“It is not a question of demand. The challenge is how fast we can increase our capacity to meet the demand,” he says.

“We are talking to a lot of transport companies. In fact, one government-backed transport division is looking to use our batteries to power its electric vehicles. The electric vehicle segment is leading the growth in energy storage.”