Key Points and Executive Summary

• Richard Hu appointed as CEO, effective August 17, 2026.
• Hu replaces Xun (Kenneth) Li, who served as Interim CEO since May 2026 and will continue as Chief Financial Officer.
• The appointment follows a comprehensive executive search led by Spencer Stuart, evaluating leaders across power generation, industrial equipment, automotive, and adjacent technology sectors.
• Hu’s extensive global industrial experience includes senior leadership roles at BorgWarner, Delphi Technologies, Eberspächer, Magna Steyr, and Magneti Marelli.
• PSI is actively targeting growth opportunities in the data center market, positioning this leadership change as a strategic move.

Details of Richard Hu’s Background

Richard Hu brings over 25 years of global leadership, having worked in Asia, Europe, and the Americas. Most recently, he served as Vice President and General Manager of the Americas Region for BorgWarner’s Turbo & Thermal Technology business unit (2020-2026), managing a multi-billion-dollar operation with full P&L responsibility and leading a global team of approximately 3,900 employees across manufacturing plants and technical centers in the U.S., Mexico, and Brazil. His prior experience includes:

• Senior Vice President and General Manager of Delphi Technologies’ Global Powertrain unit, guiding the company through its acquisition by BorgWarner in 2020.
• Vice President and Managing Director, Asia Pacific at Eberspächer.
• General Manager for China and Korea at Magna Steyr.
• Executive positions at Magneti Marelli.

This track record demonstrates Hu’s capacity to scale complex industrial businesses, drive operational excellence, and manage large international teams.

Strategic Implications and Shareholder Considerations

Leadership transitions are often critical, particularly when accompanied by strategic pivots or growth initiatives. The Board, chaired by James Zhang, explicitly cited Hu’s ability to scale businesses and his global perspective as reasons for his selection, emphasizing the pursuit of “significant opportunities in the data center market.”

PSI is a leader in advanced, emission-certified engines and power systems, offering integrated turnkey solutions to OEMs and end-users in power systems, industrial, and transportation markets. PSI’s products are increasingly being deployed in stationary and mobile power generation—including standby, prime, demand response, microgrid solutions, and data center applications. The data center market is rapidly growing and is a strategic focus for PSI, which could be a catalyst for future growth and share price appreciation.

The company’s fuel-agnostic approach, supporting natural gas, propane, gasoline, diesel, and biofuels, further positions it to cater to evolving market demands and regulatory environments. PSI also provides powertrain solutions for industrial and specialized transportation applications, including forklifts, agricultural equipment, industrial sweepers, aerial lifts, irrigation pumps, ground support, terminal tractors, port equipment, military vehicles, and other vocational vehicles.

Risks and Forward-Looking Statements

Investors should note that PSI’s forward-looking statements, including anticipated growth and market positioning, are subject to risks. Key risks cited include:

• Macro-economic impacts in U.S. and international markets.
• Integration of acquisitions (including MTL Manufacturing and Equipment).
• Leadership transitions and recruitment/retention of key personnel.
• Changes in customer demand, volatility in oil and gas prices, U.S. tariffs and trade restrictions.
• Pending litigation and regulatory inquiries, including a federal securities class action.
• Cybersecurity risks and accuracy of sales forecasting.
• Tax rate changes or new legislation.

The company expressly disclaims any obligation to update forward-looking statements, and investors are cautioned not to place undue reliance on them.

Contact and Additional Information

Investors and stakeholders can find additional details in PSI’s current filings with the SEC, available at www.sec.gov, and are encouraged to visit www.psiengines.com for more information on PSI’s products and strategy.

Company contact: Kenneth Li, 630-284-9719, [email protected]

Potential Impact on Share Price

The appointment of Richard Hu as CEO is a significant, potentially price-sensitive event. Leadership transitions, especially to an executive with extensive global experience and a track record of managing billion-dollar businesses, can impact investor confidence and share valuation. PSI’s explicit focus on capturing opportunities in the data center market, an area of robust growth, may further influence share price. Investors should monitor upcoming disclosures and performance under Hu’s leadership closely.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Readers should conduct their own research and consult with professional advisors before making any investment decisions. The information presented is based on public filings and press releases and may be subject to change. Past performance is not indicative of future results.