NewTimeSpace | IPO Decoding: Huaqin Technology, the World's Largest Consumer Electronics ODM Manufacturer, Files for Hong Kong Listing

On March 23, Huaqin Technology Co., Ltd. submitted a listing application to the Hong Kong Stock Exchange (HKEX), with CICC and BofA Securities acting as joint sponsors. As a platform-based enterprise with over 20 years of deep engagement in the intelligent product sector, Huaqin Technology provides global technology companies with intelligent products covering mobile terminals, computing and data centers, AIoT and innovative businesses.
According to China Insights Consultancy (CIC), the Company was the world's largest consumer electronics Original Design Manufacturer (ODM) in 2024 by global shipment volume of consumer electronic ODM products, with a market share of 22.5%. Meanwhile, the Company ranks among the top globally in multiple segments including smartphones, tablets and smart wearables. It is the only ODM manufacturer worldwide that has established a leading market position across smartphones, tablets, smart wearables, laptops and data infrastructure products simultaneously.

Business Model: "3+N+3" Product Matrix, Full-Stack Intelligent Product Platform

Huaqin Technology’s business landscape is built around the core framework of the "3+N+3" product matrix, forming a multi-tiered development pattern featuring "stable pillar businesses, extended peripheral businesses, and forward-looking layout for innovative businesses".
The three pillar products — smartphones, laptops and servers — form the foundation of the Company’s business. In the mobile terminal sector, the Company entered the mobile phone industry in 2005 and has gradually grown into the second largest player in the global smartphone ODM market (with a 25.9% market share), while extending its reach to tablets (ranked first globally with a 37.9% market share) and smart wearables (ranked first globally with an 18.7% market share). In the computing and data center sector, the Company has capitalized on AI computing demand to build a full-stack data infrastructure product portfolio including AI servers, general-purpose servers and switches. It ranked sixth among China's data infrastructure manufacturers in 2024, with a market share of 5.0%.
Based on the three pillar businesses, the Company extends into N categories of related products, covering peripheral areas such as mobile terminals, AIoT (Artificial Intelligence of Things) and computing businesses. Its AIoT product portfolio includes gaming hardware, smart home and XR products. Benefiting from the Internet of Everything trend, revenue from this segment grew from RMB 1.634 billion in 2023 to RMB 7.885 billion in 2025, representing a compound annual growth rate (CAGR) of 119.7%.
Meanwhile, the Company continues to explore innovative areas such as automotive electronics, robotics and software. Revenue from innovative businesses surged from RMB 821 million in 2023 to RMB 3.484 billion in 2025, with a CAGR of 105.9%, making it the fastest-growing business segment.
In terms of revenue structure, mobile terminals remain the largest revenue source, contributing RMB 80.21 billion or 46.8% of total revenue in 2025. Computing and data center business followed closely with revenue of RMB 75.475 billion, accounting for 44.0% of total revenue. Together, the two segments contributed over 90% of the Company’s total revenue. The share of revenue from AIoT and innovative businesses rose from 2.9% in 2023 to 6.6% in 2025, with its contribution continuing to rise.

Financial Performance: Sustained High Growth on Hundred-Billion Revenue Scale, Steady Profit Release

Financial data shows that Huaqin Technology is in a phase of sustained high growth even after its revenue scale exceeded the RMB 100 billion mark.
In terms of revenue, the Company recorded RMB 85.338 billion, RMB 109.878 billion and RMB 171.437 billion in 2023, 2024 and 2025 respectively, representing a year-on-year (YoY) growth of 28.8% in 2024 and a further 56.0% growth in 2025, achieving accelerated growth on a hundred-billion revenue base. The growth was mainly driven by three factors: first, deepened cooperation with customers for smartphones and tablets, leading to higher shipment volume; second, the expansion of the AI industry driving the release of server demand, with surging sales of high-value AI servers; and third, the rapid volume growth of AIoT and innovative businesses.
Both shipment volume and average selling price (ASP) rose in tandem. The Company’s total shipment volume increased from 213 million units in 2023 to 325 million units in 2025, with a CAGR of 23.7%. The ASP rose from RMB 402 in 2023 to RMB 528 in 2025, mainly driven by the growing sales of higher-priced AI servers.
On the profit side, the Company’s profitability continued to strengthen. Gross profit grew from RMB 9.337 billion in 2023 to RMB 13.23 billion in 2025; net profit rose from RMB 2.657 billion in 2023 to RMB 4.132 billion in 2025, with a CAGR of 24.7%, and the net profit margin remained stable at around 3.1%. Gross margin declined from 10.9% in 2023 to 7.7% in 2025, mainly affected by changes in product mix — the increased revenue contribution from lower-margin smartphones, as well as the higher share of lower-margin speakers and XR products in the AIoT portfolio.
In terms of expense structure, R&D expenditure was the largest input item, reaching RMB 4.548 billion, RMB 5.156 billion and RMB 6.363 billion in 2023, 2024 and 2025 respectively. Its share of revenue fell from 5.3% to 3.7%, with the absolute value continuing to rise while the proportion declined, reflecting economies of scale. Selling expenses accounted for a low and stable share, standing at only 0.2% in 2025.
In terms of customer structure, the revenue share of the Company’s top five customers fell from 64.6% in 2023 to 54.1% in 2025, and the share of the largest customer dropped from 25.9% to 14.9%, showing continuous optimization of customer concentration. Overseas revenue as a percentage of total revenue declined from 66.0% in 2023 to 53.8% in 2025, but its absolute value rose from RMB 56.291 billion to RMB 92.247 billion, marking steady progress in its global layout.
In terms of asset quality, the Company had a net asset value of RMB 26.345 billion and net current assets of RMB 7.046 billion as of the end of 2025, with ample liquidity.

Technical Strength and Market Outlook: R&D-Driven Barriers, AI Wave Unlocks Growth Space

As a platform-based ODM manufacturer, technological R&D is the core competitiveness of Huaqin Technology. As of the end of 2025, the Company had an R&D team of over 19,900 people, accounting for nearly 30% of its total workforce. It operates five major R&D centers in Shanghai, Wuxi, Xi'an, Nanchang and Dongguan, as well as a Software Center and X-Lab Innovation Center, covering cutting-edge fields such as intelligent terminals, automotive electronics, acoustics and optics. The Company holds approximately 3,500 domestically registered patents, over 50 internationally registered patents, and around 2,100 registered software copyrights, with an R&D system covering all business segments.
The consumer electronics and data infrastructure markets where the Company operates are entering a new growth cycle. Global shipment volume of consumer electronic ODM products is expected to grow from 1.053 billion units in 2025 to 1.489 billion units in 2030, with a CAGR of 7.2%, while ODM penetration rate will rise from 48.3% to 58.3%. In the smartphone sector, ODM penetration rate is projected to increase from 44.8% to 55.0%, bringing an additional 226 million units of ODM shipment volume. Meanwhile, the popularization of AI technology is driving the emergence of new products such as AI phones and AI PCs, accelerating the product iteration cycle and creating structural growth opportunities for ODM manufacturers.
The data infrastructure market is growing even more rapidly. In terms of revenue, the size of the global data infrastructure market is expected to grow from RMB 3.47 trillion in 2025 to RMB 10.25 trillion in 2030, with a CAGR of 24.2%. The continuous release of AI computing demand provides broad space for the Company in the server, switch and other related fields.
In terms of competitive landscape, the consumer electronics ODM industry is showing a trend of consolidation toward leading players. As the world's largest consumer electronics ODM manufacturer, Huaqin Technology has established a leading position in multiple segments. Through its global production capacity layout (Vietnam, Mexico, India) and full-stack product capabilities, the Company has built an inimitable scale effect and customer stickiness.

Listing Implication: A Benchmark for China's Intelligent Manufacturing Advancement from "Contract Manufacturing" to "Platform Provider"

Huaqin Technology’s Hong Kong listing application presents the growth path of a Chinese enterprise that started as a mobile phone ODM and has grown into a global platform-based intelligent product company after more than 20 years of accumulation. With the "3+N+3" product matrix at its core, the Company is consolidating its three pillar businesses of smartphones, laptops and servers, while extending into high-growth areas such as AIoT, automotive electronics and robotics, achieving a leap from a single product category to multiple categories.
Financially, the Company maintains rapid growth on a hundred-billion revenue scale, with sustained profit release, increasing R&D investment and continuously optimizing customer structure. Amid the AI-driven wave of intelligent product upgrading, as the world's only ODM platform covering smartphones, tablets, smart wearables, laptops and data infrastructure simultaneously, Huaqin Technology is well-positioned to further consolidate its market position in the intelligent product ODM sector with its full-stack technical capabilities and global delivery network.

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