NewTimeSpace | IPO Decoding: HGTECH, China's First Laser Stock, Files for Hong Kong Listing — Three Synergistic Businesses Tap into the AI Computing Power Blue Ocean

On April 13, HGTECH Company Limited submitted a listing application to the Hong Kong Stock Exchange, with CITIC Securities serving as the sole sponsor. The company was listed on the Main Board of the Shenzhen Stock Exchange in 2000 (000988.SZ). As the first listed company in China's laser industry, HGTECH relies on its profound accumulation in the optoelectronic information field and is committed to becoming a global leading enabler of full-stack artificial intelligence capabilities. Its business covers three major segments: optical interconnection, intelligent sensing and intelligent manufacturing, forming a complete intelligent closed loop of "sense-transmit-analyze-apply".

I. Business Model: Synergy of Three Segments to Build Full-Stack Capabilities

HGTECH's business layout is centered around AI full-stack capabilities, with the three segments deeply synergized at the technical level: intelligent sensing is responsible for collecting physical world data ("sense"), optical interconnection for efficient data transmission ("transmit"), industry large models and intelligent platforms for data analysis and decision-making ("analyze"), and intelligent manufacturing for precision production and execution ("apply"). This closed loop has enabled the company to upgrade from a single equipment supplier to a full-value-chain enabler covering data sources to industrial applications.
Optical interconnection business is the core engine of the company's growth in recent years. The company has a complete product chain from chips to components, modules and subsystems. It has achieved global mass production and delivery of 800G and 1.6T optical transceivers. In 2025, it launched self-developed 200G per channel silicon photonic chips and 3.2T CPO optical engines. In 2026, it launched the world's first 6.4T NPO and 12.8T XPO optical transceivers. By revenue in 2025, the company is the world's sixth largest professional optical interconnection product manufacturer.
Intelligent sensing business is the company's traditional advantage area. The company is one of the first enterprises in China to develop and industrialize new energy vehicle temperature sensors and thermal management systems, with a complete sensor product portfolio covering temperature, pressure and optoelectronics. By revenue, the company ranks first globally in both new energy vehicle PTC heaters and NTC temperature sensors, with a domestic market share of 67.2% for PTC heaters. In 2025, this business generated revenue of RMB 4.027 billion, accounting for 28.1% of total revenue.
Intelligent manufacturing business is centered on laser equipment and intelligent solutions. The company leads the formulation of global industry standards for laser equipment and has established a complete industrial chain covering chips, components, equipment, production lines and smart factories. In 2025, the company was the second largest laser equipment manufacturer in China, with a 15.4% domestic market share for marine laser equipment, ranking first. This business generated revenue of RMB 3.636 billion in 2025, accounting for 25.4% of total revenue.

II. Financial Performance: Steady Growth in Revenue and Profit, Continuous Optimization of Expense Ratios

The company is in a stage of steady growth. Its revenue grew by 13.6% from RMB 10.310 billion in 2023 to RMB 11.709 billion in 2024, and further increased by 22.6% to RMB 14.355 billion in 2025, with a compound annual growth rate (CAGR) of 18.0%. Among them, revenue from optical interconnection business increased from RMB 3.212 billion to RMB 6.097 billion, with its share rising from 31.2% to 42.4%, becoming the core driver of growth; intelligent sensing and intelligent manufacturing businesses maintained steady growth. The share of overseas revenue increased from 10.7% in 2023 to 14.0% in 2025.
In terms of gross profit, it was RMB 2.321 billion in 2023 with a gross margin of 22.5%; RMB 2.523 billion in 2024 with a gross margin of 21.5%; and RMB 3.046 billion in 2025 with a gross margin of 21.2%. The gross margin remained in the range of 21%-22%, overall stable.
In terms of net profit, it was RMB 1.003 billion in 2023 with a net margin of 9.8%; RMB 1.203 billion in 2024 with a net margin of 10.1%; and RMB 1.454 billion in 2025 with a net margin of 10.1%. The net margin remained stable at around 10%.
The expense structure continued to optimize. The ratio of sales and distribution expenses to revenue fell from 4.7% to 3.9%, and the ratio of administrative expenses dropped from 4.6% to 3.1%. R&D investment continued to increase, with a cumulative total of over RMB 2.8 billion from 2023 to 2025. Annual R&D investment was RMB 802 million, RMB 993 million and RMB 1.092 billion respectively, accounting for a stable 7.6%-8.5% of revenue.
As of the end of 2025, the R&D team had 2,698 people, accounting for 28.5% of the total workforce, of whom 790 held master's degrees or above. The company has won 5 National Science and Technology Progress Awards, holds 2,234 authorized patents, and has taken the lead in formulating 43 national standards and 96 industry standards. It has 3 National Specialized, Refined, Differential and Innovative "Little Giant" Enterprises and 2 National Manufacturing Single Champion Products.

III. Market Outlook and Use of Proceeds: Rapid Expansion of Tracks, Proceeds to Boost Next-Generation Technologies

The three major business segments of the company are all in an accelerated growth channel. Global optical transceiver sales are expected to increase from RMB 162.4 billion in 2025 to RMB 707.6 billion in 2030, with a CAGR of 34.2%, among which the Chinese market will grow faster (36.1%); China's sensor market is expected to grow from RMB 427 billion in 2025 to RMB 588.2 billion in 2030, with a CAGR of 6.6%, and the new energy vehicle thermal management system segment will have a CAGR of 49.8%; China's laser equipment market is expected to grow from RMB 92.6 billion in 2025 to RMB 111.6 billion in 2030. The company ranks among the top in each track (6th globally in optical interconnection, 1st globally in PTC heaters with 67.2% market share, 2nd in China in laser equipment), with a solid leading position.
The proceeds from this IPO will be mainly used for: construction of next-generation ultra-high-speed optical transceiver R&D centers and production bases; R&D and industrialization of MEMS series sensors; R&D and industrialization of high-precision additive manufacturing equipment and production lines; intelligent agricultural machinery (including intelligent laser weeding robots) projects; R&D projects of HGTECH Central Research Institute; repayment of bank loans; and working capital and general corporate purposes.
This filing marks that this laser leader with more than 20 years of technical accumulation has officially launched an A+H dual-platform layout 25 years after its A-share listing, accelerating globalization by riding the wave of AI computing power.

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