Hangzhou Boco Electronics has filed for a Hong Kong IPO to raise capital for a strategic shift into the AI computing market. The company, which currently manufactures power supply units for cryptocurrency mining, is leveraging its experience in high-density computing to target the growing energy demands of AI servers and data centers. The move comes as Boco seeks to diversify its revenue streams, which remain heavily concentrated in the crypto sector, and capitalize on the higher margins associated with AI power products.

Boco's financial performance has shown significant growth in recent years. Revenue climbed from 261 million yuan in 2023 to nearly 1.05 billion yuan in 2025, while net profit jumped from 4.24 million yuan to 97.13 million yuan during the same period. Citing third-party data, the IPO filing describes Boco as the second-largest provider of power systems for high-performance computing in mainland China by revenue in 2025, holding a 15.8% market share domestically and 6.9% globally.

Financial Performance

The company's revenue breakdown highlights its current dependence on the crypto mining sector and the nascent stage of its AI business. In 2025, products for mining machines and energy storage systems (ESS) generated 719 million yuan and 318 million yuan, respectively. In contrast, revenue from the AI computing sector was just 7.43 million yuan, representing a mere 0.7% of total income.

Despite the low revenue contribution, AI power products offer significantly higher profitability. The gross margin for AI power products reached 47.7% in 2025, compared to 26.6% for specialized computing power equipment and 13.2% for ESS products. In the first quarter of the year, AI-related revenue surged from 158,000 yuan to 1.35 million yuan, with sales volume doubling to 1,200 units.

Operational Challenges and Strategic Goals

Boco faces considerable risks due to its concentrated client base. Its five largest customers provided 93.5% of its revenue in the first quarter of this year. While income from Shenzhen MicroBT, a key early partner, dropped from 89.9% of revenue in 2023 to about 9% in the first quarter of this year, the company remains exposed to purchasing shifts within a small group of clients.

The first quarter of 2026 also highlighted the costs of this transition. Revenue rose 35.3% year-on-year to 215 million yuan, but the company swung to a net loss of 5.32 million yuan from a profit of 7 million yuan. R&D expenses surged approximately 70% to 28.5 million yuan, now accounting for 13.3% of revenue. Additionally, the gross margin for the core specialized server business fell to 19.7% from 22.5% due to price cuts amid falling cryptocurrency values.

To compete with established players like Delta Electronics and Vertiv, Boco is developing integrated solutions such as 20 kW liquid-cooled units and 800-volt power distribution systems. However, these products remain at an early commercial stage with no dedicated production line, meaning the company's earnings are still fundamentally tied to the volatile crypto-mining market.