Huagong Technology, the leader in AI computing power optical modules, goes public in Hong Kong

On April 13, Huagong Technology officially submitted an application to the Stock Exchange of Hong Kong Limited for the issuance of overseas listed foreign shares (H shares) and listing on the main board of the Hong Kong Stock Exchange. The exclusive sponsor is CITIC Securities.

Huagong Technology was founded in 1999. In 2000, the company was listed on the Shenzhen Stock Exchange and became the first listed company in China's laser industry. It is known as the "No. 1 Laser Stock". The company completed the school-enterprise separation reform in 2015, and the actual controller was changed from Huazhong University of Science and Technology to Wuhan State-owned Assets Supervision and Administration Commission.

After years of development, Huagong Technology has transformed from a school-run enterprise into a high-tech enterprise group integrating R&D, production, sales, and services. In September 2025, the company's total market value exceeded 100 billion yuan for the first time, becoming the first A-share listed company in Hubei Province with a market value of 100 billion yuan.

Huagong Technology has now established three core business structures. Among them, the connection business is based on information and communication technology as an important support, focusing on the research and development and production of optical modules and optoelectronic devices. The company has achieved large-scale delivery of 800G silicon photonic LPO series and 1.6T optical module products; the industry's first launch of 1.6T3nmFRO/LRO, 1.6TLPO solutions, 3.2TNPO, 3.2TCPO optical engines, and 400G/lane optical engines Solution; 800GZR/ZR+Pro coherent optical modules are delivered in batches; 800GACC and 1.6TAEC/ACC copper cable modules are simultaneously launched. The products fully cover the four major technical lines of high-speed optical connection, high-speed copper cable connection, high-efficiency liquid cooling, and optoelectronic integration.

In 2025, Huagong Technology’s connection business will achieve operating income of 6.097 billion yuan, a year-on-year increase of 53.39%, accounting for 42.4% of total revenue, becoming the company’s fastest growing business segment.

The sensing business is centered on sensitive electronic technology and is committed to the industrialization of new sensors for the Internet of Things. Its products include PTC heaters for new energy vehicles, NTC temperature sensors, pressure sensors, etc., with revenue in 2025 of 4.027 billion yuan, a year-on-year increase of 9.78%.

The intelligent manufacturing business is supported by laser processing technology and provides intelligent equipment and automated production line solutions such as laser cutting, welding and marking. Revenue in 2025 will be 3.636 billion yuan, a year-on-year increase of 4.13%.

Financial data shows that Huagong Technology’s operating performance has maintained a steady growth trend in recent years. From 2023 to 2025, the company's operating income will be 10.309 billion yuan, 11.709 billion yuan, and 14.355 billion yuan respectively, with a compound annual growth rate of 17.8%; net profits will be 1.003 billion yuan, 1.203 billion yuan, and 1.454 billion yuan respectively, with a three-year compound growth rate of 20.4%.

The company's performance forecast for the first quarter of 2026 shows that it is expected to achieve a net profit attributable to the parent company of 600 million to 640 million yuan, an increase of 46.38% to 56.13% over the same period last year, showing strong growth momentum.

By listing in Hong Kong, Huagong Technology aims to deepen its global strategic layout, enhance its international reputation and comprehensive competitiveness, create diversified financing channels, and optimize its capital structure. The company stated that it will fully consider the interests of existing shareholders and the conditions of domestic and overseas capital markets, and choose the appropriate time and issuance window to complete this issuance and listing.

Market analysts predict that the scale of Huagong Technology's Hong Kong IPO is expected to be between HK$6 billion and HK$8 billion, and the funds raised will mainly be used for overseas production capacity construction, technology research and development investment, and upstream and downstream mergers and acquisitions in the industry chain.

In terms of international layout, Huagong Technology has taken the lead in taking substantial steps. The first phase of the company's Thailand factory of 40,000 square meters has been completed and put into production, with a planned monthly production capacity of 150,000 800G optical modules, and is expected to expand to 300,000 units in 2026; the Vietnam factory has also been put into operation. In addition, the company has R&D centers and sales service centers in North America, Australia, Europe and other places, and its products are exported to more than 80 countries and regions. Huagong Technology's listing on the Hong Kong stock market is also expected to further enhance international market recognition, build an overseas ecosystem of "technology export, regional manufacturing, and global delivery" and seize a larger market share in the wave of AI computing infrastructure construction.