New Stock News | Huaqin Technology (603296.SH) Submits Proposal to Hong Kong Stock Exchange Again as the World's Largest Consumer Electronics ODM Manufacturer by 2024.

According to the disclosure of the Hong Kong Stock Exchange on March 23rd, Huaqin Technology Co., Ltd. (referred to as Huaqin Technology (603296.SH)) has submitted an application for listing on the main board of the Hong Kong Stock Exchange, with CICC and BofA SECURITIES as joint sponsors. The company had previously submitted documents to the Hong Kong Stock Exchange on September 16th, 2025. Company Overview The prospectus shows that, according to data from Zhaoshi Consulting, Huaqin Technology is a full-stack smart product ODM platform, achieving the global first in multiple smart product categories. Additionally, based on global consumer electronic product ODM shipments, the company was the largest consumer electronics ODM manufacturer in the world in 2024, with a market share of 22.5%. Based on global smart phone ODM shipments, the company was also the second largest smart phone ODM manufacturer in the world in 2024, with a market share of 25.9%. Based on global tablet computer ODM shipments, the company was the largest tablet computer ODM manufacturer in the world in 2024, with a market share of 37.9%. Based on global smart wearable ODM shipments, the company was the largest smart wearable ODM manufacturer in the world in 2024, with a market share of 18.7%. Additionally, based on global notebook computer ODM shipments in 2024, the company was the fourth largest in the world and the largest in China, with a market share of 9.6%. Based on China's data infrastructure business revenue in 2024, the company ranked sixth among all data infrastructure manufacturers in China, with a market share of 5.0%. During the reporting period, the company's revenue came from the following products: (i) mobile terminals, mainly including smart phones, tablet computers, and smart wearable products, (ii) computing and data center business, mainly including personal computers and data infrastructure products. The company grouped these two product categories together because the development of its data center business benefited from the reuse and migration of computing business technologies. Several technology routes and research and development methods of the two product lines are the same. In the early stages of the company's development, the company implemented close coordination of resource allocation for product lines, (iii) AIoT products, such as smart home devices, XR products, and gaming hardware, (iv) innovation business, mainly including automotive electronics and industrial products, Siasun Robot & Automation products, and software, and (v) other products, mainly including materials and waste sales. In the future, with the popularization of artificial intelligence applications, mobile terminal products have entered a new iteration cycle, with product categories continuously enriching, greatly enhancing people's intelligent interactive experience. According to data from Zhaoshi Consulting, the total shipment volume of global smart phones, tablets, and smart wearable products is expected to increase from approximately 1.975 billion units in 2025 to approximately 2.321 billion units in 2030, an increase of approximately 346 million units. At the same time, platform-type ODM manufacturers are continuously improving their innovation and operational capabilities, further driving up the ODM penetration rate. It is worth noting that the ODM penetration rate for smart phone shipment is expected to increase from 44.8% in 2025 to 55.0% in 2030, which means that ODM shipments will add 226 million units. Financial Data Revenue: In the fiscal years 2023, 2024, and 2025, Huaqin Technology achieved revenues of approximately RMB 85.338 billion, RMB 109.878 billion, and RMB 171.437 billion, respectively. Profit: In the fiscal years 2023, 2024, and 2025, Huaqin Technology's profits were approximately RMB 2.657 billion, RMB 2.916 billion, and RMB 4.132 billion, respectively. Industry Overview In the future, global consumer electronics shipments are expected to increase to approximately 2.553 billion units by 2030, with a compound annual growth rate of 3.2% from 2025 to 2030. The key driving factor for this expected growth will be the proliferation of artificial intelligence. Artificial intelligence continues to drive the emergence of new products such as AI smartphones and AIPC, which are expected to create new demands and unleash new growth opportunities. Additionally, artificial intelligence continues to improve the performance and functionality of existing products, achieving functions such as intelligent personal assistants and advanced real-time translation. These advancements help stimulate replacement demands and accelerate the product iteration cycle of the entire consumer electronics industry. Global consumer electronics ODM shipments increased from approximately 844 million units in 2020 to approximately 1.053 billion units in 2025, with a compound annual growth rate of 4.5%. As market competition intensifies and product iteration cycles shorten, ODM manufacturers are able to help customers achieve more efficient product iteration and greater economic benefits, further driving up the ODM penetration rate. The global consumer electronics ODM penetration rate, which refers to the proportion of global consumer electronics ODM manufacturers' global shipments to total global shipments, is expected to increase from 48.3% in 2025 to 58.3% in 2030. Global consumer electronics ODM shipments are expected to reach approximately 1.489 billion units by 2030, with a compound annual growth rate of 7.2%, showing a higher growth rate compared to global consumer electronics product shipments. Although fluctuations in memory prices may lead to a short-term decline in smartphone shipments in 2026, the long-term demand for smartphones is expected to continue growing due to the ongoing replacement cycle and upgrades in AI functionality. Global smartphone shipments are expected to increase from approximately 1.26 billion units in 2025 to approximately 1.437 billion units in 2030, with a compound annual growth rate of 2.7%. ODM manufacturers continue to expand their coverage of product lines for brand customers, thereby driving the ODM penetration rate in the global smartphone market from 44.8% in 2025 to 55.0% in 2030. Despite fluctuations in memory prices that may cause short-term fluctuations in shipments, the continued increase in penetration rates in the education and enterprise environments, coupled with product innovation and optimization of product portfolios, is expected to support the development of the tablet computer market. Global tablet computer shipments are expected to increase from approximately 153 million units in 2025 to approximately 172 million units in 2030, with a compound annual growth rate of 2.4%. Brand customers tend to rely on ODM manufacturers' technological research and development and supply chain management capabilities to develop tablet computers based on resource allocation strategies, and the ODM penetration rate in the global tablet computer market is expected to increase from 49.2% in 2025 to 54.0% in 2030. Driven by the development of brand ecosystems, increased health awareness, and the increasing popularity of AI, the smart wearable device market is expected to continue growing. Global TWS earphone shipments are expected to increase from approximately 357 million units in 2025 to approximately 458 million units in 2030, with a compound annual growth rate of 5.1%; at the same time, global smart watch and wristband shipments are expected to increase from approximately 205 million units in 2025 to approximately 254 million units in 2030, with a compound annual growth rate of 4.4%. With cross-category research and development experience in consumer electronics and deep technical accumulation, they can accurately meet the core needs of health monitoring and cross-device coordination, driving the ODM penetration rate of TWS earphones from 44.2% in 2025 to 62.2% in 2030; and the ODM penetration rate of smart watches and wristbands from 43.2% to 50.2% in the same period. The laptop market continues to benefit from the acceleration of digital transformation and the increasing demand from enterprises and individual users for portable and efficient productivity devices, offsetting the short-term impact on shipments caused by rising storage chip costs. AIPC, with intelligent interaction functions and improved processing efficiency, is expected to become a key driver of growth, with the penetration rate expected to increase from 31.0% in 2025 to 83.5% in 2030. Global laptop shipments are expected to increase from approximately 206 million units in 2025 to approximately 232 million units in 2030, with a compound annual growth rate of 2.4%. With expertise in computing architecture design, ODM manufacturers can quickly respond to the demand for AI-related device upgrades, prompting a sustained high ODM penetration rate in the global laptop market, expected to increase from 81.2% in 2025 to 83.2% in 2030. As the core devices in the data communication scene, demand for data infrastructure products is rapidly increasing. The market size of global data infrastructure products, as measured by revenue, has increased from RMB 855.4 billion in 2020 to RMB 3,467.2 billion in 2025, with a compound annual growth rate of 32.3%. It is further expected to increase to RMB 10,245.2 billion by 2030, with a compound annual growth rate of 24.2%. With the rapid penetration of AI technology in downstream industries, AI servers have become the fastest-growing category in global data infrastructure products. The global AI server market size has increased from RMB 113 billion in 2020 to RMB 1,656.7 billion in 2025, and is expected to reach RMB 7,507.7 billion by 2030, with a compound annual growth rate of 35.3%. Board of Directors Information The Board of Directors will consist of nine directors, including six executive directors and three independent non-executive directors. Directors will serve for a term of three years, renewable upon expiration. Equity Structure Mr. Qiu Wensheng, Shanghai Aokin, Shanghai Haixian, Mr. Qiu Wenhui (brother of Mr. Qiu Wensheng), Ms. Lin Min (spouse of Mr. Qiu Wenhui) and Fujian Yuexiang are the controlling shareholder group. As of the most recent practicable date, Shanghai Haixian holds 20,400,000 A shares in the Company (approximately 2.01% of the total issued shares of the Company) for a loan to an independent third party, Tibet Trust Co. The 20,400,000 A shares held by Shanghai Haixian in the Company are pledged to Tibet Trust as collateral for the debt repayment obligation. The pledge is expected to mature on April 22, 2026, and will be extended upon maturity. The pledge covers all debt repayment obligations including principal, interest, penalties, and related costs, and cannot be transferred without the prior written consent of Tibet Trust. In the event of default, additional collateral must be provided, otherwise Tibet Trust may enforce the pledge through forced execution. Tibet Trust has the right to enforce the pledge through forced execution without litigation or arbitration. The pledge is to ensure Shanghai Haixian's financing arrangements and will not have an adverse impact on the Company's operations or financial condition. As of the most recent practicable date, Dongguan Huabei is directly owned by the Company by approximately 72.22% and indirectly owned by the Company's wholly-owned subsidiary Shanghai Chuanggong Communication Technology Co., Ltd. by approximately 27.78%. As of the most recent practicable date, Yuntu Future is owned by the Company by 75.00%, by a member of the controlling shareholder group Shanghai Aokin by 2.50%, by executive director and deputy general manager Mr. Deng Zhiguo by 4.80%, by executive director and deputy general manager Mr. Wu Zhenhai by 2.50%, and by four other shareholders (Shanghai Yunyao Changlong Management Consulting LLP ("Shanghai Yunyao"), Shanghai Yunxiangyuan Management Consulting LLP ("Shanghai Yuxiang"), Shanghai Yunxiang Rongda Management Consulting LLP ("Shanghai Yunxiangrongda"), and Mr. Cheng Lizhi) (independent third party) by 15.20%. Shanghai Yunyao has approximately 1.40% ownership held by its general partner Ms. Du Chunjuan (independent third party) and approximately 98.60% ownership held by 12 limited partners, none of whom hold a third or more of the partnership interest. Shanghai Yuxiangyuan is owned by approximately 3.38% by its general partner Mr. Yan Feilong (independent third party), approximately 40.57% by its limited partner Mr. Deng Zhiguo (our executive director and deputy general manager), and approximately 56.05% by the remaining 19 limited partners, none of whom hold a third or more of the partnership interest. Shanghai Yunxiangrongda is owned by approximately 39.88% by its general partner Mr. Cheng Lizhi (independent third party) and approximately 60.12% by 20 limited partners, none of whom hold a third or more of the partnership interest. Intermediary Team Joint Sponsors: China International Capital Corporation Hong Kong Securities Limited, Merrill Lynch (Asia Pacific) Limited Company Legal Counsel: For Hong Kong and U.S. law: Andrews & Kirk; for Chinese law: Zhong Lun Law Firm (Beijing); for U.S. export control and sanction laws, and foreign investment rules: Pillsbury Winthrop Shaw Pittman LLP Legal Advisers to Joint Sponsors: For Hong Kong and U.S. law: Baker & McKenzie; for Chinese law: Dentons Beijing Auditors and Reporting Accountants: PricewaterhouseCoopers Hong Kong Limited Industry Advisor: Zhaoshi Industry Consultancy Limited