Jerry Co. really showed off this time

（Source: Weiyuran Xiansheng Lite）

Author | Qingyu

Editor | Wang Gefa

On March 30, Jerry Co., Ltd. disclosed its latest contract: its wholly owned subsidiary, GenSystems Power Solutions LLC, reached a sales agreement with a customer in the United States for a gas turbine generator set. The deal value is $341 million, equivalent to approximately RMB 2.36B. This figure is equal to 17.66% of the company’s audited full-year operating revenue for 2024.

The next day, Jerry Co., Ltd.’s intraday high rose by more than 6%, closing at 100.41 yuan, with trading volume of 2.95 billion yuan.

From November 2025 to now, Jerry Co., Ltd. has secured five similar contracts in North America. The customer roster has expanded from an initial one to four. The cumulative deal value, converted to RMB, exceeds RMB 5 billion. A traditional high-end equipment manufacturer has established a foothold in the North American data center power supply market in less than half a year.

01

For Jerry Co., Ltd. to break into the North American data center power supply market, timing is crucial. Over the past two years, the gap between the construction speed of North American data centers and the availability of supporting power supply has continued to widen. Technology companies are continuously increasing their computing capacity investments, driving a rapid rise in electricity demand, but generation-side capacity expansion has not kept up.

Calculations from multiple energy research institutions indicate that in the early 2030s, data centers’ share of the overall electricity consumption mix in the United States could approach one-fifth. Even in the North American market alone, the scale of additional generating units required is substantial.

There are several ways to fill this gap, but each has constraints. Nuclear power plant construction often takes a decade; while photovoltaic and wind power can be installed relatively quickly, short-term large-scale rollout is difficult due to tariff policies and insufficient capacity for some equipment.

By contrast, gas turbine unit construction cycles are measured in months. They have rapid start-up response, can connect to existing power grids quickly, and have therefore become the preferred supplementary power option for data center operators at this stage.

In a related research report, Dongwu Securities mentioned this and believes it is one of the feasible paths to address near-term power demand driven by computing capacity. With U.S. natural gas prices falling sharply from their peak levels, the cost of gas-fired power generation has also become more acceptable.

Beyond the supply-and-demand backdrop, Jerry Co., Ltd.’s own accumulation should not be overlooked. The company has focused on the oil and gas sector for nearly three decades. It has built comprehensive engineering experience in areas such as natural gas boosting, transmission and distribution, and control systems. This overlaps highly with the technical integration requirements of data center power supply systems.

Jerry Co., Ltd. does not manufacture the gas turbine engine core itself. Instead, it purchases key equipment from manufacturers such as Siemens, Baker Hughes, and Kawasaki Heavy Industries, while focusing on system integration, on-site delivery, and overall solutions. This division of labor allows it to bypass the segment with the highest technical barriers and enter the market faster.

In product design, Jerry Co., Ltd.’s gas turbine generator sets use a modular structure, emphasizing on-site assembly and rapid deployment, and are equipped with nitrogen oxides emission reduction solutions to meet data centers’ dual needs for both fast response and environmental compliance.

In addition, the company set up a local company in the United States as early as 2008. In recent years, it has continuously advanced the expansion of local plants. It currently has the capability for total assembly of related products. The foundation for localization services also provides practical support for taking on projects of this type.

02

By continuously landing large contracts, Jerry Co., Ltd.’s financial performance has already shown some results, but pressure at the execution level is also accumulating in parallel.

According to the company’s 2025 Q3 report, in the first three quarters, operating revenue was RMB 10.42 billion, up approximately 30%; net profit was RMB 1.81B, up 13.11%; and net cash flow from operating activities nearly doubled year over year.

As of the end of last year’s third quarter, the company held approximately RMB 8.25B in cash and cash equivalents on its books, and its contract liabilities balance was RMB 1.65B. The latter increased by more than 10% from the beginning of the year, to some extent reflecting an expansion in the scale of in-hand orders.

From the gross margin perspective, in the first three quarters of 2025 it was 31.29%, slightly narrowing compared with the prior period. This is mainly related to an increase in the share of the EPC general contracting business, which has relatively lower gross margins. Net profit margin has remained around 17.9%, and the overall profitability structure remains stable.

However, another side of order growth is the extension of delivery cycles. The delivery milestone for this $341 million contract is set for the end of 2027. The $181.5 million contract signed in February this year is also as long as 30 months. Compared with a contract signed in January this year with delivery within 13 months, the revenue recognition timeline for the latest several orders has clearly been stretched.

This means that, in the short term, the impact of these contracts on performance is relatively limited, and the real effect will be gradually released between 2026 and 2028.

With longer delivery cycles, requirements for supply chain coordination and project management increase accordingly, and external variables become harder to avoid as well. Exchange rate volatility is one direct risk point. Because contracts are priced in U.S. dollars, changes in the RMB exchange rate will affect the actual level of returns.

In addition, factors such as changes in the geopolitical landscape and adjustments to trade policies may also introduce uncertainty during contract execution. In its announcements, Jerry Co., Ltd. clearly disclosed the above risks. For payment terms, it adopts an arrangement of “signing payment with advance prepayment, staged payments based on progress, and the remaining balance settled before shipment” to reduce the risk of receivables recovery.

In terms of capacity reserves, besides expanding facilities in North America, Jerry Co., Ltd. has also built an equipment manufacturing base in the Dubai Jebel Ali Free Zone. Another, larger-scale base is still under advancement; in China, the lithium battery anode/cathode? (lithium battery negative electrode material) project plant has also been basically completed.

The company’s business layout is not limited to the data center power line. In the traditional oil and gas engineering segment, it still has an ongoing digital transformation project for ADNOC in the UAE with a value of about $920 million. In the new energy segment, revenue in the first half of 2025 grew year over year by nearly 70%.

Transitioning from an oil and gas equipment manufacturer to a comprehensive supplier that serves both energy extraction and data centers, the path Jerry Co., Ltd. has taken over the past few years has not been short. Concentrated order execution is a signal, but there is still a considerable road from signing to cash collection. Supply chain stability, the exchange rate trend, and project execution capability will be key factors determining whether these orders can be successfully converted into profits.

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