Huaming Power Equipment Co.,Ltd., the world's second-largest manufacturer of tap-changers, which holds a dominant 80% market share in China, is accelerating its plans for a dual A+H share listing amid steady financial growth. The company recently submitted a listing application to the Main Board of the Hong Kong Stock Exchange, with J.P. Morgan Securities (Far East) Limited and Haitong International acting as joint sponsors. As a leading global producer of transformer tap-changers, Huaming Power Equipment held a 17.9% global market share by revenue in 2024, ranking second worldwide and first in China, according to Frost & Sullivan data. The company offers a wide variety of tap-changers and related solutions, serving both traditional and high-growth end markets, and has demonstrated consistent performance growth. From 2023 to 2025, the company's revenue increased from RMB 1.945 billion to RMB 2.412 billion, while net profit grew from RMB 551 million to RMB 720 million, representing compound annual growth rates of 11.36% and 14.3%, respectively. The net profit margin during this period was 28.3%, 26.8%, and 29.8%. As of December 2025, the company held cash and cash equivalents of RMB 1.166 billion. As an indispensable and critical component of power transformers, tap-changers enable Huaming Power Equipment to benefit from developments in the power industry driven by demand from the new energy sector, energy storage systems, AI data centers, and other end markets. As an industry leader, the company is well-positioned to capitalize on these trends.
The core business of Huaming Power Equipment shows stable growth and strong profitability. Founded in 1995, the company now has 28 directly and indirectly held subsidiaries. It listed on the A-share market in 2015 and has since grown into a global leader in the tap-changer industry, with operations spanning 120 countries and regions. The company operates three main business segments: power equipment, CNC equipment, and power engineering. The power equipment and CNC equipment segments are the core businesses, both maintaining revenue growth. In 2025, these two segments accounted for 86.6% and 10.1% of total revenue, respectively. The power engineering segment, however, experienced significant revenue volatility, with its share of total revenue dropping sharply from 12.4% in 2024 to 1.2% in 2025. Other business activities, including electricity sales from certain photovoltaic power stations, remained stable, contributing 2.1% to revenue in 2025.
Within its core operations, the power equipment segment's main products are on-load tap-changers, including oil-immersed and vacuum types, as well as key components such as tap selectors, drive mechanisms, and controllers. The company also provides operation and maintenance services. The CNC equipment segment manufactures machinery used to produce steel components for transmission towers, communication towers, and various urban infrastructure projects, as well as large-scale metal plates. In terms of production capacity, the company operates four tap-changer manufacturing bases: two in China (Shanghai Fengxian and Guizhou Zunyi) and two overseas (Turkey and Indonesia). The domestic bases account for 93.7% of the total production area. From 2023 to 2025, the capacity of the domestic bases remained unchanged, but utilization rates climbed steadily. By 2025, the utilization rates at the Shanghai Fengxian and Guizhou Zunyi bases had reached 92% and 80.9%, respectively, indicating potential for further increase. The company's CNC equipment is produced at a base in Jinan, Shandong Province, with output rising from 223 units in 2023 to 338 units in 2024 and 458 units in 2025.
The rising capacity utilization and output of the two core business segments have driven sustained revenue growth for these segments and contributed to overall top-line expansion. The power engineering segment primarily offers EPC services for photovoltaic power plants, involving the engineering, procurement, and construction of solar power generation facilities. While this segment's revenue is volatile, its impact on overall performance is limited. The company maintains a stable and diversified customer base, with the top five customers contributing 26.7% of total revenue in 2025, and the largest single customer accounting for 9.9%. Notably, alongside the core business drivers, Huaming Power Equipment's overseas operations have emerged as a key growth area. The company has a solid global presence, operating two overseas production bases in Turkey and Indonesia, and maintaining sales and service networks in the United States, Brazil, and Singapore. From 2023 to 2025, its overseas revenue grew from RMB 274 million to RMB 479 million, achieving a compound annual growth rate of 32.1%.
Huaming Power Equipment has maintained strong profitability, with gross margins remaining at high levels. From 2023 to 2025, the gross margin was 51.5%, 48.3%, and 53.9%, respectively, showing stability with an upward trend. The power equipment segment boasts the highest gross margin and is the primary profit contributor, with a segment gross margin of 59.3% and a gross profit contribution of 95.2% in 2025. The company's various expense ratios have remained stable, and it enjoys high net profit and return on equity (ROE). In 2025, the net profit margin was 29.8% and ROE was 22.7%.
The company's leading position in the industry is solid, and its pursuit of a dual A+H listing may lead to a correlated valuation reassessment. The global tap-changer industry is growing at a double-digit rate. According to Frost & Sullivan, the global market size was RMB 10.07 billion in 2024, with a compound annual growth rate of 12.1%. The Chinese market size was RMB 2.738 billion, with a 12% CAGR, accounting for over 27% of the global total. The institution forecasts that the global tap-changer market will reach RMB 15.39 billion by 2030, with the Chinese market expected to grow to RMB 3.789 billion. Although the industry is experiencing strong growth, its absolute size remains relatively small, suggesting potential limitations on growth space. The industry is highly concentrated; the top three global players collectively held approximately 82.5% of the market share by revenue in 2024. Huaming Power Equipment, with its 17.9% share, ranks second globally. By sales volume, it commands an 80% market share in China. This indicates that Huaming Power Equipment possesses significant competitive advantages in scale both in China and globally. The company is also increasing its R&D investments, having established China's first CNAS-accredited tap-changer laboratory, which helps it gain a differentiated advantage in products. In 2025, its R&D expense ratio was 3.7%. As of December 2025, the company held 108 invention patents, 181 utility model patents, and 11 design patents registered in mainland China, along with 13 invention patents and 1 utility model patent in the United States, Brazil, Germany, South Korea, and India combined.
Furthermore, the company maintains a very strong cash flow position. Its core business generates robust operational cash flow, with net cash from operating activities of RMB 622 million from 2023 to 2025. The company also has a low debt-to-asset ratio of 39.1%, with interest-bearing debt constituting only 16% of total liabilities. As of December 2025, its cash and cash equivalents of RMB 1.166 billion were 1.4 times its interest-bearing debt. This ample cash flow positions the company favorably for global market expansion.
In summary, Huaming Power Equipment demonstrates stable performance. Its two core businesses, power equipment and CNC equipment, continue to grow. With production capacity and market presence distributed globally, and overseas markets showing impressive growth, international operations have become a key growth engine. Benefiting from trends like new energy and AI development, the industry is growing at a double-digit compound rate. As a global leader, Huaming Power Equipment, with its scale, R&D, and cash flow advantages, is poised to capture a larger market share. The company's strong profitability and ample cash reserves support its current move to secure a dual A+H listing status. This strategic step towards capital market globalization prepares the company for accelerated international expansion and is likely to trigger a correlated reassessment of its valuation.
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