New Stock Preview | Grasping both storage and computing power, Sharetronic Data Technology intensifies transformation and prepares for Hong Kong IPO "seeking changes"

Since the beginning of this year, the total amount of funds raised by IPOs in the Hong Kong stock market has exceeded 190 billion Hong Kong dollars, ranking first among global exchanges. Leading A-share companies have also "gone to Hong Kong," becoming a bright spot in the Hong Kong stock market. With companies such as Contemporary Amperex Technology, Jiangsu Hengrui Pharmaceuticals, and Foshan Haitian Flavouring and Food listing on the Hong Kong Stock Exchange, they have become the main force in the A+H dual-listing boom. Against the backdrop of A-share companies listing in Hong Kong becoming a trend, another A-share company has joined this queue. Recently, Sharetronic Data Technology (300857.SZ) submitted a prospectus for a main board listing to the Hong Kong Stock Exchange, with TF International, BOCOM INTL, and Guoyuan International acting as joint sponsors, becoming another company seeking dual listings in "A+H" locations. From storage hardware to the rise of "computing power" Sharetronic Data Technology was established in November 2005, has been engaged in the consumer electronics manufacturing industry for nearly 20 years, and went public on the ChiNext board of the Shenzhen Stock Exchange in July 2020. Sharetronic Data Technology's core strategy is "intelligent IoT ecosystem," building a global industrial system of "intelligent terminals + computing power infrastructure + cloud services," and forming competitiveness covering the entire value chain through integration (research and development manufacturing services). With a focus on the "perception layer + edge layer" composite product system, Sharetronic Data Technology delves into the fields of AIoT intelligent hardware, data storage terminals, edge computing devices, and intelligent control terminals. Its technological research focuses on audio-video perception, wireless communication connectivity, and scenario-based AI agent landing. According to Frost & Sullivan data, by 2024, based on annual SSD revenue, the company is the second-largest domestic smart storage device manufacturer in the global market; based on shipment volume, the company is the second-largest domestic consumer-grade smart camera manufacturer globally, with a 6.6% market share. In 2025, Sharetronic Data Technology will shift its investment and business focus to the AI computing power field, which is currently the hottest trend. The company's transformation has the most natural conditions it not only inherits the company's accumulation in the consumer electronics field but also lays the foundation for its AI computing power transformation by focusing on hardware. In terms of business structure, from 2022 to the first half of 2025 (as of June 30), Sharetronic Data Technology's business structure has undergone significant changes. Previously, data storage devices were the core pillar, with revenues increasing from 1.694 billion yuan in 2022 to 3.502 billion yuan in 2024. Although the proportion decreased to 37.1% in the first half of 2025, it still led with revenue of 1.835 billion yuan, making it the largest business segment of the company. IoT intelligent terminals, formerly the second-largest business segment, saw revenues increase from 1.18 billion yuan in 2022 to 2.259 billion yuan in 2024, with the proportion remaining stable at around 30%. However, in the first half of 2025, revenue for this segment declined, with the proportion dropping to 17.7%, and revenue was overtaken by the intelligent computing power business. The third-largest business is intelligent computing power products and services, which are crucial for the company's transformation. After generating revenue for the first time in 2023, revenue has surged to 1.221 billion yuan in the first half of 2025, with the proportion rising to 24.7%, and a gross profit margin of 20.06%, making it an emerging growth engine. The server and peripheral remanufacturing business also saw breakthroughs in 2024, with the proportion increasing to 16.9% in the first half of 2025, supplementing the business. Benefiting from the steady growth of revenues across various business segments, the company's financial data has shown significant growth in recent years. In terms of revenue, it increased from 3.147 billion yuan in 2022 to 7.410 billion yuan in 2024 and further by 38.1% to 4.943 billion yuan in the first half of 2025 compared to the same period in 2024, reflecting the growth brought about by the expansion of Beijing Dynamic Power into the Internet of Things, AI development, and the proliferation of cloud computing. In terms of profits, the gross profit increased from 322 million yuan in 2022 to 1.233 billion yuan in 2024, with the gross profit margin rising from 10.2% to 16.6%. In the first half of 2025, the gross profit margin remained above 16%. The net profit of Sharetronic Data Technology also increased from 131 million yuan in 2022 to 687 million yuan in 2024, reaching 422 million yuan in the first half of 2025. Overall, the company is in a phase of rapid expansion, with significant growth in revenue and profit, improvement in gross profit margin and net profit, reflecting increased operational efficiency and market competitiveness. Opportunities and challenges in the computing power sector It is worth noting that the core goal of Sharetronic Data Technology's IPO in Hong Kong this time is not merely for "fundraising," but the deepening of its layout in the AI computing power arena has become the company's strategic plan. The prospectus shows that the funds raised from this IPO will be used for four main purposes: firstly, to build AI computing power infrastructure, including purchasing high-performance computing servers and storage server hardware and software, buying and setting up Internet dedicated lines and network equipment, hiring technical personnel to be responsible for the continuous maintenance of Sharetronic Data Technology's AI infrastructure; secondly, to enhance research and development capabilities; thirdly, for strategic and industry-related investments and acquisitions; and fourthly, to supplement operating funds. It is evident that Sharetronic Data Technology's core business focus is on the transformation towards AI computing power. In fact, the company's investment in the computing power sector has entered an "acceleration phase": the day before submitting documents to the Hong Kong Stock Exchange, the company announced in the A-share market that it plans to purchase servers worth up to 4 billion yuan (for cloud computing services, not constituting a major asset restructuring or related party transactions); up to August 15, 2025, the company had already invested a total of up to 8.2 billion yuan in purchasing high-computing power servers and expanding service areas in China, the US West, Europe, and the Asia-Pacific regions. With an additional 4 billion yuan investment, the total investment in the computing power sector will exceed 12 billion yuan in 2025, demonstrating the company's determination to transform into computing power. Furthermore, in terms of research and development, Sharetronic Data Technology invested 103 million yuan, 156 million yuan, 241 million yuan, and 109 million yuan in research and development in 2022, 2023-2024, and the first half of 2025, respectively. Although the proportion of research and development spending in the first half of 2025 slightly decreased, the overall size of investment has grown. The advancement of AI computing power business has also driven market value growth. Wind data shows that since 2025, the company's stock price has increased by over 122%, with the A-shares closing at 169.56 yuan per share on October 27, surpassing a total market value of 60 billion yuan. However, the road to transformation is not entirely smooth, as Sharetronic Data Technology faces financial risks in its journey for greater computing power. The prospectus reveals that the company's operating cash flow fluctuates significantly, with the net cash flow from operating activities reaching -96.65 million yuan and 98.996 million yuan in 2023 and 2024, respectively. In the first half of 2025, the company's net cash flow from operations was a net outflow of 1.56 billion yuan, mainly due to increases in inventory, prepayments, and other receivables. At the same time, the company's investment cash flow has remained negative, reflecting the company's stage of significant investment. By the end of the first half of 2025, the company's debt-to-asset ratio had surged to 256.4%, compared to 68.5% at the end of 2024, primarily due to increased bank borrowings in the first half of the year to support the expansion of its intelligent computing power product and service offerings. As of June 2025, the company's current liabilities amounted to a high of 7.87 billion yuan, doubling from 3.361 billion yuan at the end of 2024. Examining the prospectus closely, as of the end of August 2025, the total amount of loans due within one year was as high as 6.292 billion yuan, creating immense debt repayment pressure, prompting the urgent need for financing in Hong Kong. However, considering the industry landscape, the AI computing power industry has become a favorite of the capital market due to its characteristic of "high barriers to entry, high gross margins, and high repurchase rates." This provides a favorable market environment for the company's IPO but also requires scrutiny against industry valuation standards. Currently, the AI computing power industry is favorably viewed by capital markets, with valuation levels significantly higher than traditional IT companies. In the US market, the leading AI computing power company CoreWeave had a market value of up to 67.364 billion US dollars by October 27; in the A-share market, companies in the field of computing power infrastructure such as Dawning Information Industry and Inspur Electronic Information Industry have seen a surge in their price-to-earnings ratios. At the current juncture, Sharetronic Data Technology's IPO in Hong Kong has three major advantages: first, the company's business structure has been upgraded from storage hardware to AI computing power, with a new growth engine identified; second, revenue and profit have increased, with steady improvement in gross profit margin, indicating enhanced profitability; third, investments in research and development and a global footprint provide support for business expansion. These highlights are not only the core logic that attracts capital to the company but also the foundation of its confidence in listing in Hong Kong after transferring from the A-share market. Coupled with the industry being in a hot spot, the company will deeply bind itself to the prosperity of the computing power industry. Nonetheless, the market should remain cautious about the financial and debt repayment risks, which may become key factors constraining the company's valuation and long-term development. Overall, the company's IPO in Hong Kong is a seizing of the opportunity in the computing power sector but comes with liquidity risks. Ultimately, achieving a win-win situation for capital and business will require continued monitoring of developments in the computing power business and the company's listing financing process.