The global technology landscape is being reshaped by artificial intelligence, with computing power emerging as the new "oil" of our era. Yet, to efficiently fuel this immense computing engine, a critical yet often overlooked component is required: high-performance server power supplies.

These systems, acting as the "heart" of electrical power, directly determine the stability and survival of data centers through their reliability and efficiency.

Hangzhou Pt Electronics Co., Ltd. has recently submitted a listing application to the Hong Kong Stock Exchange, aiming for a Main Board IPO. This company, with years of expertise in power supplies for computing servers, is positioning itself at the forefront of the AI boom, seeking to leverage capital markets to solidify its role in the global supply chain.

With this renewed application, what are its chances of success?

Riding the Wave of AI Computing Demand

The ascent of Pt Electronics is closely tied to the explosive growth in global AI computing needs. According to data from Frost & Sullivan, the proliferation of generative AI and large model training is driving a rapid expansion in global computing scale.

Projections indicate that by 2030, the global computing power scale will reach 50,542 EFLOPS, with Mainland China's share expected to hit 8,965 EFLOPS. This backdrop has ushered in a golden era for the server power supply industry.

AI servers impose far more stringent demands on power supplies than traditional ones, requiring higher power density, superior conversion efficiency, and exceptional stability.

The prospectus highlights that the market for high-performance computing server power supplies, defined as units with a rated power of 3,000W or more, is experiencing explosive growth. From 2025 to 2030, the global compound annual growth rate for this segment is forecast to reach a staggering 110.5%, with the market size expected to surge from RMB 10.5 billion to RMB 433.6 billion.

Pt Electronics stands out as a leader in this niche. Based on projected 2025 revenue, the company ranks second in the Mainland China market for high-performance computing server power supplies, holding an approximate 15.8% share, and fifth globally with about a 6.9% share.

This positioning underscores its role not only as a key domestic player replacing imports but also as a significant participant in the global supply chain.

The company's core strength lies in its technical barriers. In an era where AI servers demand high power density, Pt Electronics has successfully developed high-density AI power supplies with a density of 100 watts per cubic inch, as well as 5,500-watt power units compliant with the OCP Ruby standard, achieving a peak efficiency of 97.5%.

These specifications mean that within the same physical space, Pt Electronics' products can deliver more power while generating less heat, offering immense commercial value for AI data centers where space is at a premium and cooling pressures are intense.

Beyond its core computing power business, Pt Electronics has also astutely identified opportunities in the Energy Storage System market. Leveraging its expertise in power conversion technology, the company has expanded into portable and residential energy storage, serving top global brands.

This dual-drive model of "computing power + energy storage" helps mitigate cyclical volatility from relying on a single industry and opens up broader growth avenues.

Financial Surge: Growth Logic and Underlying Concerns

If industry prospects are the company's public face, its financials reveal the substance beneath. The prospectus shows a remarkable growth trajectory over the past three years.

Revenue has surged from RMB 261 million in 2023 to RMB 556 million in 2024, and further to RMB 1.045 billion in 2025. This represents a near 300% increase over three years, with a formidable compound annual growth rate.

The momentum continued into 2026, with first-quarter revenue reaching RMB 215 million, a 35.3% year-on-year increase.

This growth is not solely driven by volume at the expense of price. The company has maintained relatively healthy gross margins of 22.6%, 22.0%, and 22.7% for 2023, 2024, and 2025 respectively.

Although the Q1 2026 gross margin dipped slightly to 18.2%, this level remains competitive within the hardware manufacturing sector, considering factors like raw material price fluctuations and costs associated with new product introductions.

Profitability improvements are even more pronounced. Profit attributable to owners grew from RMB 4.24 million in 2023 to RMB 39.6 million in 2024, and then to RMB 97.13 million in 2025.

The net profit margin increased from 1.6% in 2023 to 9.3% in 2025, indicating significant improvements in cost control and profit quality as economies of scale are realized.

However, risks lurk behind these impressive figures. A primary concern is high customer concentration. From 2023 to 2025, revenue from the top five clients accounted for 94.8%, 91.6%, and 86.7% of total revenue, respectively.

A related party, Shenzhen Bit Micro Group, was a major early contributor. While this concentration has been decreasing and the company has successfully diversified its client base to include other cloud service providers and server manufacturers, the process requires further validation.

Another challenge is the trade-off between R&D investment and short-term profitability. As a technology-driven firm, Pt Electronics invests heavily in R&D, with expenditures of RMB 42.3 million, RMB 63.2 million, and RMB 83.3 million from 2023 to 2025, representing 8% to 16% of revenue.

While this spending builds a technological moat, it also pressures short-term net profit. For instance, a net loss of RMB 5.32 million in Q1 2026 was attributed partly to increased R&D costs.

For investors, balancing long-term technological investment against short-term earnings volatility is a key valuation consideration.

Cash flow is another area to watch. Although operating cash flow was positive and grew substantially from 2023 to 2025, it turned negative at RMB -79.8 million in Q1 2026, primarily due to changes in working capital, including increases in accounts receivable and inventory.

As revenue scales, the company's ability to negotiate favorable terms with suppliers and customers will directly impact its capital turnover efficiency.

Future Outlook Holds Promise

Looking ahead, Pt Electronics' future appears promising. From an industry trend perspective, the adoption of liquid cooling technology represents the next critical frontier.

As AI chip power consumption surpasses 1000W, traditional air cooling is nearing its physical limits. Pt Electronics is advancing the development and commercialization of 20kW liquid cooling units and 800V high-voltage DC solutions.

The company has already delivered 200kW and 1MW integrated computing power systems to clients. Successfully establishing a position in the liquid-cooled power supply market could trigger a significant revaluation.

Global expansion is another major focal point. In response to complex international trade dynamics, the company is actively expanding overseas. Since 2025, it has begun exporting to markets like Singapore and Malaysia and is establishing OEM capacity in Vietnam.

This strategy helps mitigate tariff risks associated with a single market and improves responsiveness by being closer to overseas clients. The prospectus shows a rising proportion of revenue from outside Mainland China, indicating initial success for its internationalization strategy.

The funds raised from this IPO are intended to enhance R&D capabilities, upgrade smart manufacturing facilities, and expand the global sales network. This represents not just a capital raise but a strategic upgrade.

In summary, as a core player in the AI computing power supply chain, Pt Electronics possesses a solid performance foundation and significant growth potential. Its leading position in the Mainland China high-performance power supply market, coupled with its strategic moves in liquid cooling and energy storage, provides it with the potential to navigate industry cycles.

While challenges like customer concentration exist, the sustained release of AI computing demand and the execution of its global strategy position Pt Electronics to potentially evolve from a domestic "hidden champion" into a globally influential power conversion leader with the support of capital markets. For investors, this represents an opportunity to invest not just in a hardware manufacturer, but in the foundational infrastructure of the AI era.