New stock news | Suzhou TFC Optical Communication (300394.SZ) submitted its application to the Hong Kong Stock Exchange, with the top five customers expected to contribute over 90% of revenue before 2025.

According to the disclosure on April 10th by the Hong Kong Stock Exchange, Suzhou TFC Optical Communication Co., Ltd. (Suzhou TFC Optical Communication) submitted an IPO application to the Main Board of the Hong Kong Stock Exchange, with Goldman Sachs, Bank of America Securities, and CICC as joint sponsors. Company Overview The prospectus shows that Suzhou TFC Optical Communication (300394.SZ) is the world's largest provider of overall optical device solutions, offering a one-stop optical interconnection solution from passive optical devices, active optical devices to integrated co-research. The company's products are mainly used in the data communication (datacom) and telecommunications fields to achieve efficient data transmission. Regarding passive optical devices, the company offers a diversified product portfolio, including optical parts (single components manufactured from basic materials) and optical components (functional unit components composed of multiple parts). Regarding active optical devices, the company mainly provides high-speed optical engines to achieve functions such as optoelectronic conversion and signal modulation. In addition, the company also provides optical module integrated co-research services to meet customized requirements of different customers. The company is the world's first enterprise to deliver 800G and 1.6T optical engines and focuses on ultra-precise high-density optical interconnection solutions within co-packaged optics (CPO) architecture, becoming a core partner of the global leading AI computing infrastructure manufacturer in CPO solutions. The company has also started laying out next-generation technology routes such as silicon photonics (SiPh) integration and thin-film lithium niobate (TFLN). The company's products are mainly applied in AI computing, data centers, and various datacom and telecommunications fields, using a direct sales model to provide products and services to customers in approximately 30 countries and regions globally, covering Asia, North America, Europe, and other countries and regions worldwide. In terms of customers, the company's customers include all global leading optical module manufacturers and global leading AI computing infrastructure manufacturers. For the years ended December 31, 2023, 2024, and 2025, revenue from the top five customers accounted for 82.2%, 87.5%, and 90.6% of total revenue respectively, while revenue from the largest single customer accounted for 54.0%, 62.2%, and 63.9% of total revenue respectively. According to Frost & Sullivan, the total market size of the global optical device industry in 2025 reached $6.1 billion, with the top five optical device suppliers accounting for a total of 25.4% of sales revenue. In the same year, the company ranked first with a market share of 11.7%. Financial Information Revenue In the years 2023, 2024, and 2025, the company's revenue was approximately RMB 1.926 billion, RMB 3.226 billion, and RMB 5.115 billion respectively. Profit In the years 2023, 2024, and 2025, the company's annual net profit was approximately RMB 736 million, RMB 1.35 billion, and RMB 2.028 billion respectively. Gross Margin In the years 2023, 2024, and 2025, the company's gross margins were 53.1%, 56.3%, and 52.9% respectively. Industry Overview Global Optical Interconnect Industry In the optical interconnect industry chain, optical devices as the middle part are the most concentrated in value and have the highest technological barriers, accounting for over 45% of the total cost of optical modules. The global optical interconnect market size grew from $10.9 billion in 2021 to $22.7 billion in 2025, with a compound annual growth rate of 20.3%. It is estimated to reach $99.1 billion by 2030, with a compound annual growth rate of 34.2% from 2025 to 2030. In 2025, it accounts for approximately 71% of the overall optical interconnect market, with a prediction that it will reach around 90% by 2030. In terms of rate iteration, the explosive expansion of data centers and AI computing is driving structural growth in the high-speed optical interconnect market, with particularly significant growth in products with speeds of 800G and above. As the most commercialized advanced solution currently, 800G optical interconnect products achieved a high compound annual growth rate of 155.8% from 2021 to 2025, with the market size rapidly increasing from $200 million in 2021 to $8 billion in 2025. Looking ahead, 800G optical interconnect products are expected to maintain growth momentum in the next three years, with a compound annual growth rate of 26.7% from 2025 to 2028, and the market size is expected to reach $16.2 billion by 2028, remaining one of the mainstream deployment solutions in the datacom optical interconnect market. CPO technology, by directly integrating optical engines onto switch-specific integrated circuits (ASIC), has fundamentally transformed the architecture of optical modules. Clear plans from global leading AI computing infrastructure manufacturers are accelerating the large-scale commercial use of CPO technology, with the CPO market expected to experience explosive growth, reaching $28.6 billion by 2030, with a forecasted compound annual growth rate of 218.7% from 2025 to 2030. The global datacom optical interconnect industry is undergoing technological iteration upgrades towards silicon photonics and thin-film lithium niobate. The silicon photonics market size reached $6.5 billion in 2025, with a compound annual growth rate of 64.8% from 2021 to 2025. It is expected to reach $56 billion by 2030, maintaining a high growth rate of 54.0% from 2025 to 2030. At the same time, as an emerging material, thin-film lithium niobate, with its characteristics of ultra-high bandwidth, low loss, and low driving voltage, is rapidly breaking through in high-speed modulation and long-distance transmission scenarios, with an anticipated compound annual growth rate of 176.4% from 2025 to 2030, and a market size reaching $5.2 billion by 2030, showing significant growth potential. Driven by various factors including the surge in AI computing and the high-density upgrade of data centers, the global optical device market continues to expand, reaching approximately $6.1 billion in 2025, with a compound annual growth rate of 15.4% from 2021 to 2025, maintaining a steady growth trend. Looking ahead, as the 1.6T optical module industry chain matures and cutting-edge technologies like CPO and silicon photonics are deployed on a larger scale, high-speed optical devices will continue to act as a core engine driving market growth, lifting the overall scale and central value of the industry. By 2030, the high-speed optical device market is expected to reach $19.6 billion, with a compound annual growth rate of 58.5% from 2025 to 2030. In 2025, based on optical device supply revenue (only counting optical devices used for external sales in optical interconnect products), the company ranked first with revenue of $711 million, holding a market share of 11.7%, while the top five global optical device suppliers collectively occupied 25.4% of the market share. Board of Directors Information The company's board of directors consists of 7 directors, including 3 executive directors, 1 non-executive director, and 3 independent non-executive directors. Equity Structure Mr. Tian Fu Renhe, Mr. Zou, Ms. Ou, Ms. Zou Yonghang, and Mr. Zou Xinhang are the controlling shareholders of the company. As of April 3, 2026, Mr. Tian Fu Renhe owned approximately 37.56% of the equity, and Ms. Ou owned approximately 0.01% of the equity. Mr. Tian Fu Renhe holds 40% equity owned by Mr. Zou, Ms. Ou (Mr. Zou's spouse) holds 20% equity, Ms. Zou Yonghang (daughter of Mr. Zou and Ms. Ou) holds 20% equity, and Mr. Zou Xinhang (son of Mr. Zou and Ms. Ou) holds 20% equity. Intermediary Team Joint Sponsors: Goldman Sachs (Asia) Limited, Merrill Lynch (Asia Pacific) Limited, China International Financial Hong Kong Securities Limited Company Legal Advisor: For Hong Kong laws and US laws: JiaLi (Hong Kong) Law Firm; For Chinese laws: Tongshang Law Firm Legal Advisor of Joint Sponsors: For Hong Kong laws and US laws: Kerry Law Firm; For Chinese laws: Jingtian & Gongcheng Law Firm Declared Accountants and Auditors: Ernst & Young Industry Consultant: Frost & Sullivan Consulting (Beijing) Co., Ltd. Shanghai Branch Compliance Consultant: SOMERLEY CAP Limited