#Hong Kong #AI Computing #Ten Pao Group #Smart Controllers

Ten Pao Group's Interim Results: Strength Amidst Challenges

On August 21, 2025, Ten Pao Group Holdings Limited announced its interim results for the first half of 2025, marking a successful period for the industry leader in intelligent power supply solutions. Despite a backdrop of global inflation, geopolitical tensions, and increasing trade friction, the company reported significant growth and strategic advances in several sectors.

Financial Performance Highlights

During the six months ending June 30, 2025, Ten Pao Group achieved remarkable financial results. The company's revenue surged to HK$2,948.1 million, representing a 19.3% increase from HK$2,471.0 million in the same period of 2024. This growth was complemented by a gross profit rise to HK$526.7 million, which, despite competitive pressure, remained robust with a net profit margin of 7.2%.

Net profit attributable to the company's owners escalated by 20.4% year-on-year, amounting to HK$211.7 million, while basic earnings per share increased by 23.5%, reaching HK21 cents. In line with its stable dividend policy, the Board declared an interim dividend of HK6.2 cents per share, affirming a commitment to rewarding shareholders even amidst turbulent market conditions.

Strategic Moves in AI and Smart Controller Markets

One of the standout aspects of Ten Pao’s interim results is its response to the escalating demand rooted in the emergence of AI. The market for high-end smart controllers is expanding quickly, and Ten Pao is positioning itself at the forefront. In the first half of 2025, the company took decisive action by collaborating with Fortune Global 500 clients, smoothly integrating AI-enabled equipment into new production lines established in Vietnam and Mexico. This step strengthens their capacity and paves the way for future order growth.

New Energy Sector's Expansion

Ten Pao’s ventures into the new energy market have been fruitful, with the segment contributing 19.1% of the group's total revenue and a striking 33.6% year-on-year growth. This surge is driven by advancements in energy storage systems and automotive electronics, aligning with the global trend towards sustainable energy decision-making. Projects in Southeast Asia, particularly Thailand’s electric vehicle initiatives, underline the group's commitment to participating in the transition from fuel to electric mobility.

Innovative Data Center Solutions

Recognizing the rising demand for computational resources due to AI proliferation, Ten Pao expanded its AI computing power supply line during the first half of 2025. One notable product is a high-power supply unit with 3,500W output tailored for data centers and high-performance computing environments, reaffirming the group’s commitment to meeting the complex needs of the AI revolution .

Global Production Strategy

The strategic deployment of its production and R&D centers across global locations such as China, Hungary, Vietnam, and Mexico has enhanced Ten Pao's capacity for risk resilience and flexibility. The new Huizhou Intelligent Manufacturing Industrial Park is set to improve operations significantly, enabling an agile response to changing market demands. This diversification strategy mitigates reliance on single markets, thus fortifying their business model.

Future Outlook

Looking ahead, the second half of 2025 poses a volatile landscape due to macroeconomic conditions and trade policy uncertainties. However, Ten Pao aims to leverage the global demand for high-quality productivity and AIoT advancements as catalysts for growth. The company plans to focus on green energy, energy storage solutions, and AI computing power supplies to create sustainable growth avenues.

As the market for smart controllers expands significantly, poised to surpass US$100 billion by 2033, Ten Pao's ongoing commitment to R&D and product advancement places it in an excellent position. The group also aims to intensify collaboration with leading technology firms to harness new growth opportunities while maintaining a commitment to high efficiency and sustainability.

By aligning its operational strategies with industry trends, Ten Pao Group is not only ensuring profitability but also gearing up for long-term, high-quality growth that benefits its shareholders and contributes to a sustainable future.