New stock news | Huaming Power Equipment (002270.SZ) submits a listing application to the Hong Kong Stock Exchange. It is ranked second globally and first in China in terms of revenue in the distribution switch market.

According to the disclosure by the Hong Kong Stock Exchange on March 6, Huaming Power Equipment Co., Ltd. (002270.SZ) has submitted an application for listing on the main board of the Hong Kong Stock Exchange. J.P. Morgan Securities (Far East) Limited and HAITONG INT'L Capital Limited are the joint sponsors for the company. According to the prospectus, Huaming Power Equipment is a leading global manufacturer of transformer tap-changers. According to Frost & Sullivan data, by 2024, Huaming Power Equipment is ranked second globally and first in China in terms of revenue in the tap-changer market. Company Profile Huaming Power Equipment provides a wide variety of tap-changers and related solutions, serving traditional and high-growth end markets. As an essential and crucial component of power transformers, tap-changers enable them to benefit from the development of the power industry being driven by demand from the new energy industry, energy storage systems, AI data centers, and other end markets. Huaming Power Equipment has established comprehensive end-to-end capabilities covering research and development, design, manufacturing, testing, sales, and after-sales services, and has established deep and long-term cooperative relationships with leading transformer manufacturers and grid operators worldwide. Products and Services of Huaming Power Equipment: Power equipment business. During the past performance period, approximately 82.8%, 77.9%, and 86.6% of Huaming Power Equipment's total revenue came from the power equipment business. The company's tap-changer products include on-load and off-load models, with on-load tap-changers being the main product. Huaming Power Equipment provides full life-cycle services, including initial design, customization, after-sales maintenance, and online monitoring. The company's products are widely used in power plants, transmission and distribution networks, industrial sectors (including chemical and metallurgical industries), rail transportation systems, energy storage systems, and AI data centers. CNC equipment business. Huaming Power Equipment designs, manufactures, sells, and provides after-sales services for CNC equipment. The company's CNC equipment is widely used in the production of steel structural components and large plates for transmission towers, communication towers, and various urban infrastructure components. Approximately 8.3%, 7.6%, and 10.1% of the company's total revenue came from the CNC equipment business during the past performance period. Power engineering business. Huaming Power Equipment provides EPC services for photovoltaic power stations, mainly involving the engineering, procurement, and construction of photovoltaic power facilities. Approximately 6.0%, 12.4%, and 1.2% of the company's total revenue came from the power engineering business during the past performance period. Financial Information Revenue In 2023, 2024, and 2025, the company achieved revenues of approximately RMB 1.946 billion, RMB 2.309 billion, and RMB 2.412 billion, respectively. Annual profit In 2023, 2024, and 2025, the company achieved annual profits of approximately RMB 551 million, RMB 620 million, and RMB 720 million, respectively. Gross profit margin In 2023, 2024, and 2025, the company's gross profit margin was 51.5%, 48.3%, and 53.9%, respectively. Industry Overview Electricity is an indispensable infrastructure that supports modern economies and daily life. The demand for electricity is continuously growing, driven by the structural electrification transformation in transportation, construction, and industrial processes, as well as the increasing penetration of power-consuming infrastructures such as AI data centers. At the same time, the continuous integration of renewable energy sources into the grid has increased the demand for grid reinforcement and reliable power supply, prompting continuous investments in the power grid sector. The graph below illustrates the global electricity demand from 2020 to 2030. The global demand for tap-changers is steadily growing, driven by Beijing Dynamic Power's continuous investment in the power grid, expansion of transformer installations, and the normalization of replacement demand due to the end of equipment lifecycles. In addition, the continuous upgrading of technology and application combinations (including the increase in penetration rates of on-load and vacuum solutions, and the deployment in higher voltage levels and high-voltage direct current transmission applications) has driven revenue growth to exceed shipment growth rates. The graph below shows the market size of tap-changers globally divided by sales volume and revenue from 2020 to 2030. Board of Directors Information The company's board of directors currently consists of ten directors, including five executive directors, one non-executive director, and four independent non-executive directors, as follows: Equity Structure As of the last practicable date, Mr. Xiao Yi (Company's executive director and chairman), Mr. Xiao Shen (Mr. Xiao Yi's brother), and Mr. Xiao Riming (Mr. Xiao Yi and Mr. Xiao Shen's father) collectively own interests in 390,130,835 A shares (of which 136,986,301 A shares are held by Huaming Development), representing approximately 43.54% of the company's shareholder voting rights (excluding 246,209 A shares held by the company as treasury shares as of the last practicable date). Mr. Xiao Yi, Mr. Xiao Shen, Mr. Xiao Riming, Huaming Group, and Huaming Development will be considered as a group of controlling shareholders of the company after the compilation. Intermediary Team Joint Sponsors: J.P. Morgan Securities (Far East) Limited, HAITONG INT'L Capital Limited Company's Legal Advisers: Sullivan & Cromwell LLP (Hong Kong) and Guohao Law Firm (Shanghai) Legal Advisers to the Joint Sponsors: Clifford Chance LLP and Fangda Partners Reporting Accountants and Independent Auditors: Ernst & Young Certified Public Accountants Industry Consultant: Frost & Sullivan (Beijing) Consulting Co., Ltd. Shanghai Branch Compliance Adviser: FIRST SHANGHAI Financing Limited