Since their invention in the 19th century, transformers have remained a core component of power systems, integral to the entire chain from power generation and transmission to distribution and end-user consumption. Currently, with the rapid global expansion of artificial intelligence computing infrastructure, the demand for high-power, highly stable electricity supplies from data centers has surged, further increasing reliance on high-performance transformers. Against this backdrop, China's transformer industry is facing a historic development opportunity. According to industry research, manufacturing capacity at transformer producers in regions like Guangdong and Jiangsu is nearing its limit, with some companies having order backlogs for data center clients scheduled as far out as 2027. This high industry growth has quickly attracted attention from the capital markets. It was disclosed by the Hong Kong Stock Exchange on January 30 that transformer equipment supplier Eaglerise Electric & Electronic (China) Co., Ltd. has submitted a listing application for the main board, with Guotai Junan Financing Limited acting as the sole sponsor. As it makes another attempt to access the capital markets, will Eaglerise secure the favor of the Hong Kong exchange?
The company has optimized its business structure, supporting stable revenue growth. According to its prospectus, Eaglerise is a global supplier of power equipment and solutions. Market-driven and leveraging its proprietary core technologies and R&D capabilities, the company offers a portfolio of products and solutions covering multiple application areas. It focuses on sectors including new energy, data centers, power distribution, industrial control, and lighting, with a primary emphasis on transformer equipment products. Additionally, Eaglerise provides customized integrated solutions tailored to different application scenarios to empower its global clientele. As of September 30, 2025, Eaglerise had reached over 60 countries and regions through its international sales network, delivering quality products and solutions to customers across various industries and applications. In 2024, within the global medium-voltage transformer equipment industry, the top five Chinese suppliers collectively held a 9.7% market share, with Eaglerise ranking second among them with a 2.2% share. The company also maintains leading positions in specific segments: in the new energy transformer equipment sector, it ranked second among Chinese suppliers globally with a 3.7% market share; in the data center transformer equipment sector, it held the third position among Chinese suppliers with a 2.3% global market share; and in the lighting power supply industry, it ranked fifth globally among suppliers with a 1.2% market share.
Eaglerise's global strategy encompasses a comprehensive, deeply localized approach covering production, sales, and service. As of September 30, 2025, the company operated nine production bases worldwide, including facilities in overseas markets such as the United States, Mexico, Malaysia, and Thailand, as well as sites in mainland China located in Ji'an, Jiangxi; Foshan, Guangdong; Huainan, Anhui; Shenzhen, Guangdong; and Zhongshan, Guangdong. This global footprint has enabled Eaglerise to establish scaled production capacity, significantly enhancing delivery certainty and shortening lead times. The company's smart transformer manufacturing plant in the United States officially commenced operations in October 2025; combined with capacity from its production base in Mexico, it is set to form a localized supply capability serving the North American market. Furthermore, Eaglerise's factories in Malaysia and Thailand are already operational. This expanding operational footprint is matched by steady financial progress. For the full years 2023 and 2024, and the first nine months of 2025, the company generated revenues of approximately RMB 3.616 billion, RMB 4.603 billion, and RMB 3.769 billion, respectively.
Analyzing by product type reveals a continuously optimizing revenue structure. Transformer equipment products form the core business, consistently accounting for over 70% of total revenue in 2023, 2024, and the first nine months of 2025. Within this, new energy products act as the primary growth engine, with their revenue contribution increasing from 54.0% in 2023 to 58.6% in the first nine months of 2025, demonstrating strong market demand in sectors like solar and wind power and validating the company's strategic focus. The revenue share from data center products has risen steadily, growing from 1.4% in 2023 to 2.6% in the first nine months of 2025, reflecting the gradual payoff of the company's positioning within the global wave of computing infrastructure construction. The revenue contributions from power distribution products and industrial control products have declined, falling from 10.3% and 6.9% in 2023 to 8.3% and 4.3% in the first nine months of 2025, respectively, indicating an accelerated shift towards higher value-added, high-growth areas. The share of revenue from lighting products decreased from 22.4% in 2023 to 17.5% in the first nine months of 2025 but remains a stable contributor. The share from other products increased from 5.0% to 8.7%, primarily benefiting from incremental growth from emerging applications and diversified business expansion.
Accompanying the product mix adjustment, the company's profitability has shown phased changes. Net profit for 2023, 2024, and the first nine months of 2025 was approximately RMB 217 million, RMB 300 million, and RMB 188 million, respectively. Gross profit margins for the same periods were 21.7%, 20.1%, and 17.8%. While these margins have experienced some pressure due to the changing product structure, they remain at reasonable overall levels.
The sustained high growth in Eaglerise's performance is underpinned by favorable industry conditions. As noted, transformers are fundamental to power systems. The accelerated construction of global AI computing infrastructure has made high-power, stable power supply a critical requirement for data centers. Industry forecasts project the global data center market to grow significantly from 2024 to 2032, positioning transformer upgrades as a core element of computing infrastructure. In this context, markets like the US and Europe are facing severe supply shortages. As the world's largest transformer importer, the US faces supply gaps for power transformers and distribution transformers estimated at 30% and 6%, respectively, driven by accelerated AI data center construction and an aging grid. Estimates suggest a large portion of future US transformer demand will rely on imports. Europe also experiences significant supply-demand imbalances. Data indicates that a substantial percentage of US and European grid infrastructure is operating beyond its intended lifespan. Over the past decade of frequent extreme weather events, failure rates for aging transformers have surged, while repair cycles can be extremely long, severely constraining grid resilience.
The global transformer supply side faces structural bottlenecks. Due to complex manufacturing processes and extended supply chains, new capacity typically requires one to two years from planning to operation, with large-scale expansions by major international players not expected to come online until around 2027. Currently, lead times for large transformers have extended significantly, far exceeding the pace of urgent market demand. Amid this supply-demand mismatch, the global transformer equipment market has continued to expand, growing from RMB 306.3 billion in 2020 to RMB 420 billion in 2024. Looking ahead, driven by energy transition, increasing electrification, and diversified downstream applications, the market size is projected to reach RMB 685 billion by 2030. Furthermore, the global energy transition is rapidly propelling the new energy transformer segment, with its market size expected to grow substantially by 2030, representing a high compound annual growth rate from 2024 levels.
In summary, facing a historic opportunity driven by both the global energy transition and AI computing infrastructure development, Eaglerise has steadily grown into an internationally competitive supplier of transformers and power solutions. This is based on its clear strategic focus, continuously optimized product mix, global production layout, and leading positions in high-growth sectors like new energy and data centers. Although the industry faces challenges such as long supply chain cycles and margin pressure, the company has effectively enhanced delivery certainty and market responsiveness through deep local operations, technological iteration, and customized client services. As its Hong Kong listing process advances, Eaglerise is poised to strengthen its capital base, accelerate global production synergy and technological innovation, and solidify a foundation for long-term, high-quality development, positioning itself as a more critical player in the global construction of new power systems.