Core Viewpoint - The company, Guangzhou Haote Energy Conservation and Environmental Protection Technology Co., Ltd., is seeking to list on the Hong Kong Stock Exchange, marking a significant step in its challenging capital journey, amidst a rapidly growing market for data center energy management solutions in China [1][8]. Company Overview - Guangzhou Haote is the fifth largest provider of neutral data center energy management solutions in China, with a market share of 3.8% as of 2024 [1][8]. - The company has a strong focus on energy management solutions for data centers, including AI computing centers and edge data centers, and has completed over 200 projects across more than 11 provinces in China [2][3]. Financial Performance - The company has shown steady revenue growth, with revenues of 793 million RMB in 2022, 858 million RMB in 2023, and projected revenues of 1.018 billion RMB in 2024 [2][4]. - Net profits have also increased, with figures of 39.13 million RMB in 2022, 70.18 million RMB in 2023, and 50.49 million RMB in the first half of 2025 [2][4]. - However, the company's gross profit margin has fluctuated, declining from approximately 18.8% in 2022 to 11.9% in the first half of 2025, primarily due to price reductions to maintain competitiveness [4]. Business Structure - The data center energy management solutions segment is the company's primary revenue driver, accounting for 99% of total revenue by the first half of 2025, up from 85.3% in 2022 [3][4]. - The company is heavily reliant on a concentrated customer base, with sales to the top five customers representing 98.9% of revenue in the first half of 2025 [5]. Industry Outlook - The market for data center energy management solutions in China is expected to grow significantly, from 112 billion RMB in 2020 to 257 billion RMB in 2024, with a compound annual growth rate of 23.1% [6][7]. - By 2029, the market is projected to reach 839 billion RMB, driven by increasing demand for computing power and the need for energy management solutions due to rising energy consumption [6][7]. - The industry is characterized by a high number of participants, with over 100 companies expected to be involved in the data center energy management solutions market by 2024 [8]. Competitive Landscape - The market is relatively fragmented, with the top ten companies holding a combined market share of 57.9% in 2024 [8]. - The company is positioned to capitalize on the growing demand for energy management solutions driven by the digital economy and sustainability initiatives [9].

Core Viewpoint - Guangzhou Haote Energy Conservation and Environmental Protection Technology Co., Ltd. (Haote Energy) has submitted its prospectus to the Hong Kong Stock Exchange, aiming to capitalize on the growing demand for energy management solutions in the data center sector [2]. Industry Overview - The energy management market for data centers in China is experiencing significant growth, with the market size projected to increase from RMB 39.3 billion in 2020 to RMB 75.2 billion in 2024, representing a compound annual growth rate (CAGR) of 17.6% [2][5]. - The market is primarily divided into power systems and thermal management systems, with power systems including UPS, diesel generators, and other power-related equipment, while thermal management systems encompass air-cooled and liquid-cooled solutions [2]. Market Projections - By 2029, the total market size for data center energy management in China is expected to reach RMB 187.9 billion, with power systems contributing RMB 114.5 billion and thermal management systems contributing RMB 73.4 billion [3]. - The thermal management segment is anticipated to grow at a faster rate than the power systems segment, driven by the adoption of higher-value solutions such as liquid cooling and other advanced thermal management technologies [3].

Core Viewpoint - Guangzhou Haote Energy Conservation and Environmental Protection Technology Co., Ltd. has submitted an application for listing on the Hong Kong Stock Exchange, focusing on energy management solutions for data centers, with a comprehensive service system covering various aspects of energy management [1] Group 1: Company Overview - Haote Energy Conservation is a leading provider of energy management solutions in mainland China, specializing in the data center segment [1] - The company offers a full lifecycle service system for energy management solutions, including consulting, design, equipment selection, project integration, and system maintenance [1] - According to Frost & Sullivan, Haote is the fifth largest neutral data center energy management solution provider and the ninth largest overall in mainland China by revenue in 2024 [1] Group 2: Financial Performance - The company's revenue for the six months ending June 30 for the years 2022, 2023, 2024, and 2025 was approximately RMB 793 million, RMB 858 million, RMB 1.018 billion, and RMB 754 million respectively [1] - The net profit and total comprehensive income for the same periods were approximately RMB 39.13 million, RMB 70.18 million, RMB 75.87 million, and RMB 50.50 million respectively [1] Group 3: Customer Concentration - The company has a high customer concentration, with sales to the top five customers accounting for 86.1%, 79.4%, 94.9%, and 98.9% of total revenue for the years ending December 31, 2022, 2023, and 2024, and for the six months ending June 30, 2025 [2] - Sales to the largest single customer accounted for 62.6%, 36.3%, 82.8%, and 39.4% of total revenue during the same periods [2] Group 4: Revenue Concentration - Revenue is primarily derived from a limited number of projects, with the top five projects accounting for 77.3%, 76.7%, 87.4%, and 90.1% of total revenue for the years ending December 31, 2022, 2023, and 2024, and for the six months ending June 30, 2025 [3] - The number of projects recognized for revenue each year/period decreased from 22 to 13 from 2022 to the first half of 2025, indicating a reliance on a few large projects [3] Group 5: Accounts Receivable - The company faces increasing accounts receivable, with trade receivables amounting to RMB 210.40 million, RMB 94.70 million, RMB 317.30 million, and RMB 376.70 million for the years ending December 31, 2022, 2023, and 2024, and for the six months ending June 30, 2025 [4] - The turnover days for trade receivables increased from 67 days to 83 days over the same periods, indicating potential cash flow and financial stability risks [4]