New Stock News | MeiG Smart Technology (002881.SZ) submits a second filing to the Hong Kong Stock Exchange and is ranked fourth in the global wireless communication module industry by 2024.

According to the disclosure by the Hong Kong Stock Exchange on December 19, MeiG Smart Technology Technology Co., Ltd. (MeiG Smart Technology, 002881.SZ) has submitted an application for listing on the main board of the Hong Kong Stock Exchange, with CICC as its exclusive sponsor. This is the second time the company has submitted an application this year, having previously submitted an application on June 18. According to Frost & Sullivan data, by 2024, based on wireless communication module business revenue, the company ranks fourth in the global wireless communication module industry, with a market share of 6.4%. The prospectus shows that MeiG Smart Technology is a leading global provider of wireless communication modules and solutions, focusing on intelligent modules (especially high computing power intelligent modules) as its core, driving the widespread application of intelligence, edge AI, and 5G communication. Based on its technical expertise in the field of wireless communication modules, MeiG Smart Technology focuses on intelligent modules (including conventional intelligent modules and high computing power intelligent modules) and data transmission module products, with a focus on the three core application areas of Internet of Things, intelligent connected vehicles, and wireless broadband. By offering high computing power intelligent modules and customization solutions, the company aims to create a differentiated competitive advantage and continuously lead industry technological development. In the field of intelligent modules, according to Frost & Sullivan data, MeiG Smart Technology launched intelligent module products in 2014, becoming the first company in the world to do so; MeiG Smart Technology's 5G intelligent modules were first deployed in a leading manufacturer's new energy vehicles in China in 2021, making it the first company to achieve large-scale deployment of 5G intelligent modules in new energy vehicles globally. As AI computing gradually extends from the cloud to the edge and local device end, MeiG Smart Technology has been at the forefront, providing high computing power intelligent modules. These modules, as key infrastructure, provide powerful software and hardware support for various edge AI applications. According to Frost & Sullivan data, by 2024, in terms of revenue from high computing power intelligent module business, the company is the largest supplier of high computing power intelligent modules, with a market share of 29.0%; MeiG Smart Technology is the first company in the world to develop a high computing power intelligent module with 48 TOPS and has become one of the designated suppliers of such modules for leading automotive manufacturers; and in 2023, MeiG Smart Technology successfully ran a text generating image generative AI model on a high computing power intelligent module, becoming the first company in the world to successfully run such an AI model on a high computing power intelligent module. As of the last feasible date, MeiG Smart Technology has a product matrix of high computing power intelligent modules ranging from 8 TOPS to 64 TOPS. The company's high computing power intelligent modules are capable of supporting the deployment and operation of various mainstream AI models on the edge. In the wireless communication module industry, MeiG Smart Technology is one of the pioneers in transitioning from 4G to 5G, helping to achieve faster and more reliable connections with modules. According to Frost & Sullivan data, MeiG Smart Technology is one of the first enterprises globally to launch 5G data transmission module products; MeiG Smart Technology is one of the first enterprises globally to launch 5G-A and 5G RedCap module products; and by 2024, in terms of shipments, the company ranks first in the 5G module industry for vehicles, with a market share of 35.1%. Under MeiG Smart Technology's business model, the company focuses on the research and design of modules and solutions, while outsourcing production to third-party EMS suppliers. According to Frost & Sullivan data, outsourcing production to EMS suppliers is in line with industry practices in the Chinese wireless communication module industry. Financial Information Revenue For the fiscal years 2022, 2023, 2024, and the six months ended June 30, 2025, the company recorded revenues of RMB 23.06 billion, RMB 21.47 billion, RMB 29.41 billion, and RMB 18.87 billion respectively. Gross Profit and Gross Margin For the fiscal years 2022, 2023, 2024, and the six months ended June 30, 2025, the company recorded gross profits of RMB 4.05 billion, RMB 3.96 billion, RMB 4.85 billion, and RMB 2.43 billion, with corresponding gross margins of 17.6%, 18.4%, 16.5%, and 12.9%. Net Profit for the Year/Period For the fiscal years 2022, 2023, 2024, and the six months ended June 30, 2025, the company recorded net profits for the year/period of RMB 1.27 billion, RMB 62.609 million, RMB 1.34 billion, and RMB 84.167 million respectively. Industry Overview The global wireless communication module market has experienced rapid growth, increasing from RMB 323 billion in 2020 to RMB 436 billion in 2024, with a compound annual growth rate of 7.7%. In terms of regions, the market size in China has surpassed that of other regions globally, growing from RMB 174 billion in 2020 to RMB 247 billion in 2024, achieving a compound annual growth rate of 9.1%. The accelerated development of the global high-tech industry continues to drive the expansion of the wireless communication module market, with increasing demand for highly customized and high-value-added solutions driving companies in the sector to develop more technically advanced products, leading to higher revenues. It is expected that the global market will further accelerate, with a compound annual growth rate of 10.6% from 2025 to 2029, reaching RMB 726 billion by 2029, surpassing its historical growth rate. At the same time, China's leading position in the manufacturing industry has led to higher demand for wireless communication modules in China compared to the global average, with an expected compound annual growth rate of 12.7% in China from 2025 to 2029, surpassing other regions, and the market size in China is expected to expand to RMB 455 billion by 2029. In terms of wireless communication module types, data transmission modules have grown from RMB 266 billion in 2020 to RMB 346 billion in 2024, with a compound annual growth rate of 6.7%. Due to expectations of increased downstream demand, the growth of the data transmission module market is expected to accelerate, with projections from RMB 374 billion in 2025 to RMB 500 billion in 2029, with a compound annual growth rate of 7.5%. As lightweight intelligent module applications such as digital payments and smart homes become more widespread, the global market for conventional intelligent modules is expected to grow from RMB 63 billion in 2025 to RMB 111 billion in 2029, with a compound annual growth rate of 15.1%. However, with the rapid deployment of high-complexity AI tasks such as large models, video structuring, and local generation at the edge, the industry is increasingly demanding modules with higher computing power. This has led to the growth of intelligent modules shifting more towards high computing power modules. For example, in the field of intelligent connected vehicles, the need for high computing power intelligent modules to support advanced functions such as real-time voice interaction and high-definition streaming has increased, leading automotive manufacturers to replace conventional intelligent modules with high computing power intelligent modules. On the other hand, the explosion of high computing power applications in AI has led to the market size of high computing power intelligent modules growing from RMB 14 billion in 2020 to RMB 35 billion in 2024, with a compound annual growth rate of 29.2%, and projected to grow from RMB 49 billion in 2025 to RMB 115 billion in 2029, with a compound annual growth rate of 23.9%. Segmenting the market further, the market size of data transmission modules has increased from RMB 144 billion in 2020 to RMB 193 billion in 2024, with a compound annual growth rate of 7.7% from 2020 to 2024, and is expected to further expand to RMB 287 billion by 2029, with a compound annual growth rate of 8.1% from 2025 to 2029. The market size of conventional intelligent modules has increased from RMB 25 billion in 2020 to RMB 32 billion in 2024, with a compound annual growth rate of 6.3% from 2020 to 2024, and is expected to reach RMB 83 billion by 2029, with a compound annual growth rate of 19.6% from 2025 to 2029. The market size of high computing power intelligent modules has rapidly expanded from RMB 5 billion in 2020 to RMB 22 billion in 2024, with a compound annual growth rate of 38.1% from 2020 to 2024, and is expected to reach RMB 85 billion by 2029, with a compound annual growth rate of 28.9% from 2025 to 2029. Looking at downstream application scenarios for wireless communication modules, the market size for IoT scenarios has grown from RMB 168 billion in 2020 to RMB 220 billion in 2024, with a compound annual growth rate of 6.9%. Due to expectations of expansion in specific IoT application scenarios, it is projected that the growth of the IoT market will accelerate, increasing from RMB 242 billion in 2025 to RMB 338 billion in 2029, with a compound annual growth rate of 8.7%. With the continuous advancement of intelligent connected vehicle technology, particularly the widespread adoption of in-car entertainment, the future demand for wireless communication modules is expected to significantly increase to support high-speed data transmission, low-latency communication, and multi-device collaboration. The market size for intelligent connected vehicle scenarios has increased from RMB 23 billion in 2020 to RMB 50 billion in 2024, with a compound annual growth rate of 21.3%. Due to the increasing application of intelligent connected vehicles in the existing vehicle market, the demand for wireless communication modules in the field of intelligent connected vehicles is expected to expand, with the market growth expected to accelerate from RMB 67 billion in 2025 to RMB 159 billion in 2029, with a compound annual growth rate of 24%. Furthermore, with the accelerated deployment of FWA/MBB in home broadband substitution and wireless access for enterprises, the demand for high-performance, multi-mode wireless communication modules in wireless broadband continues to grow. It is estimated that the market size in the wireless broadband field will increase from RMB 116 billion in 2025 to RMB 155 billion in 2029, with a compound annual growth rate of 7.5%. In terms of application scenarios, the wireless communication module market in China exhibits several distinct features. In the field of IoT, the market size has increased from RMB 94 billion in 2020 to RMB 124 billion in 2024, with a compound annual growth rate of 7.3%, and is expected to reach RMB 200 billion by 2029, with a compound annual growth rate of 10.1%. China demonstrates particularly large application scale, with the widespread deployment of standardized IoT use cases resulting in a market size and growth trajectory similar to the global trend but with higher deployment density. In the field of intelligent connected vehicles, the market size has expanded from RMB 16 billion in 2020 to RMB 31 billion in 2024, with a compound annual growth rate of 17.3%, and is expected to reach RMB 104 billion by 2029, with a compound annual growth rate of 27.5%. In the wireless broadband sector, the market size has increased from RMB 39 billion in 2020 to RMB 52 billion in 2024, with a compound annual growth rate of 7.3%, and is expected to reach RMB 79 billion by 2029, with a compound annual growth rate of 8.7%. The overall growth trend is consistent with the global market. Board of Directors Information After listing on the Hong Kong stock market, the board of directors will consist of seven members, including four executive directors and three independent non-executive directors. Equity Structure Mr. Wang Ping directly holds 39.13% of the shares, and through Zhaoge Investment holds 10.03% of the shares, totaling 49.16% of the shares; the company's directors and senior management members collectively hold 0.22% of the shares; other A-share shareholders collectively hold 50.62% of the shares. As of the last feasible date, Zhaoge Investment is ultimately controlled by Mr. Wang Ping (as its general partner). According to the Securities and Futures Ordinance, Mr. Wang Ping is considered to have an interest in the shares held by Zhaoge Investment. The company's directors and senior management members include Mr. Du Guobin holding 390,000 A-shares, Mr. Xia Youqing holding 104,000 A-shares, and Mr. Huang Min holding 78,000 A-shares. As of the last feasible date, to the best of the company's knowledge, (i) independent third party Hu Peize holds approximately 3.72% of the total shares of the company; (ii) Phoenix Investment is a wholly-owned subsidiary of Shenzhen Jiangsu Phoenix Property Investment Co., Ltd., a joint-stock company operated by pooled funds from rural collective economic organizations or their members, Phoenix Investment holds approximately 2.98% of the total shares of the company and is an independent third party; and (iii) Hong Kong Securities, as an independent third party, holds approximately 0.35% of the total shares of the company. Apart from the above, the remaining equity held by all other A-share shareholders is less than 1%. Intermediary Team Exclusive Sponsor: China International Capital Corporation Hong Kong Securities Limited. Company Legal Advisor: For Hong Kong and U.S. law: Squire Patton Boggs (Hong Kong office); For Chinese law: Han Kun Law Firm. Legal Advisor for Exclusive Sponsor: For Hong Kong and U.S. law: Jones Day; For Chinese law: King & Wood Mallesons. Auditors and Reporting Accountants: Ernst & Young LLP. Industry Consultant: Frost & Sullivan Consulting (Beijing) Co., Ltd. Shanghai Branch. Compliance Advisor: SOMERLEY CAP Limited.