DLK Advisory Limited
Karrie International’s Production Capacity Operating at High Levels; 3 Years Orders Locked for Flagship Models from Major Customers with AI Server Orders Growing Steadily

【For Immediate Release】                  27 May 2024

Karrie International Holdings Limited

嘉利國際控股有限公司

(Stock Code: 1050.HK)

Increase in orders for both AI and General-purpose Servers;

Karrie International’s Production Capacity Operating at High Levels

3 Years Orders Locked for Flagship Models from Major Customers with

AI Server Orders Growing Steadily

(27 May 2024 – Hong Kong) The leading global manufacturer of server chassis – Karrie International Holdings Limited (“Karrie International”, and together with its subsidiaries, the “Group”, stock code: 1050.HK) is pleased to announce that benefiting from the surge in artificial intelligence (“AI”) development, the Group has seen robust demand for AI server orders from its major customers, including HP, Dell, and Lenovo, since the beginning of 2024. Additionally, the inventory of general-purpose servers in the market has been reduced, leading to a recovery in traditional server order demand. As a result, the Group’s production capacity utilisation for the second quarter of 2024 remains at high levels. The management believes that the growth momentum of both general-purpose and AI server demand will continue this year, and is expected to drive the Group’s server manufacturing business.

Karrie International has been a major server chassis supplier for leading server brands such as HP, Dell, and Lenovo. Over the past year, the Group has actively collaborated with its customers on their AI strategies. It successfully developed multiple AI server-related moulds and secured long-term orders for several flagship models from its major customers, laying a solid foundation for the Group’s revenue in the next three years. Some AI servers, such as the H100 and H200 liquid-cooled servers, are expected to commence mass production in the second half of the year. In addition, the Group has initiated multiple new product introduction (NPI) projects for AI servers, with some already in the mould design and production stages.

Karrie International’s product portfolio includes server chassis for AI servers equipped with NVIDIA GPU platforms with higher U-height configurations, offering 4U, 5U, 8U, and 13U specifications. This demonstrates the recognition in the Group’s production quality of AI server chassis by leading brands.

Furthermore, the Group has acquired new NCT equipment to enhance its capability in handling high-mix, low-volume production. 

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About Karrie International Holdings Limited

Established in 1980, Karrie International (1050.HK) is a leading global manufacturer of server chassis. Providing one-stop solutions for global customers from mechanical engineering design, mold development, automated production, assembly, quality inspection and logistics, etc. The products cover server chassis, chassis rails, smart cash register and vending chassis, electric vehicle charging pile chassis and storage, etc. The Group occupies a leading position in the global server enclosure market, mainly serving global server suppliers and cloud service providers (CSPs).