Core Viewpoint - The company, Haiguang Xinzhen Technology Co., Ltd., has experienced significant revenue growth, with an eightfold increase over three years, and is now preparing for an IPO on the Hong Kong Stock Exchange [1][3]. Revenue Growth and Financial Performance - Haiguang Xinzhen's revenue increased from 102.8 million yuan in 2022 to 861.8 million yuan in 2024, representing an over eightfold growth [3]. - The company's losses narrowed significantly, with net losses of 60.2 million yuan in 2022, 108.6 million yuan in 2023, and 17.8 million yuan in 2024 [3]. - In the first half of 2025, the company achieved revenue of 698.1 million yuan, a year-on-year increase of 164% [3]. Market Position and Product Offering - Haiguang Xinzhen ranks as the tenth largest global provider of professional optical modules by revenue in 2024 and is the fastest-growing among the top ten providers from 2022 to 2024 [3]. - The company specializes in optical interconnect products, including optical modules and active optical cables (AOC), which are widely used in AI data centers for high-speed data transmission [3]. Investment and Shareholder Structure - Prior to the IPO, the founder and key shareholders held 21.11% of the company's equity, with significant investments from Alibaba and Xiaomi [5][6]. - The company has undergone multiple funding rounds, with its valuation reaching 2.66 billion yuan after the latest round [6]. R&D and Innovation - Haiguang Xinzhen has a strong R&D team, with 101 researchers, accounting for about 30% of its total workforce [14]. - The company has filed for nearly 40 patents, including 16 invention patents, indicating a robust focus on innovation [15][18]. - R&D expenses as a percentage of total revenue have decreased from 36.2% in 2022 to 6.1% in the first half of 2025, reflecting improved operational efficiency [14]. Industry Trends and Market Potential - The global AI optical module market is projected to grow from 3.9 billion yuan in 2020 to 42.8 billion yuan in 2024, with a compound annual growth rate (CAGR) of 82.2% [9]. - China's optical module market is expected to maintain the highest growth rate globally, with a CAGR of 89.4% from 2020 to 2024 [10].

Core Viewpoint - The rapid growth of the AI industry has created unprecedented demands for bandwidth, density, and energy efficiency in communication networks, driving significant growth in the optical module industry, with companies like Beijing Haiguang Xinzhen Technology Co., Ltd. (Haiguang Xinzhen) seeking to capitalize on these opportunities through an IPO [1][12]. Company Overview - Haiguang Xinzhen, established in November 2011, specializes in optical interconnect products, including optical modules and active optical cables (AOC), with a focus on supporting high-speed, high-density, and energy-efficient data transmission in AI data centers [2][6]. - The company ranks as the tenth largest professional optical module provider globally, with a market share of 0.7% and is the fastest-growing among the top ten manufacturers from 2022 to 2024 [2][12]. Financial Performance - Haiguang Xinzhen's revenue has shown rapid growth, with figures of RMB 102.795 million in 2022, RMB 175.338 million in 2023, and projected revenues of RMB 861.832 million in 2024, reflecting a compound annual growth rate (CAGR) of 189.6% from 2022 to 2024 [7][9]. - Despite revenue growth, the company has not yet achieved profitability, reporting net losses of RMB 60.209 million in 2022, RMB 108.564 million in 2023, and RMB 17.895 million in the first half of 2024 [8][9]. Revenue Structure - The core revenue source for Haiguang Xinzhen is optical modules, which accounted for 68% of total revenue in 2022, with projections of 70.6% in 2023 and 68.5% in 2024 [4][5]. - AOC products have shown variability in revenue contribution, ranging from 12.5% to 26.3%, while other products contribute a smaller share [4][5]. Market Trends - The global optical interconnect market is expected to grow from RMB 4.2 billion in 2020 to RMB 46.2 billion by 2024, with a CAGR of 82.3%, and the AI optical module segment is projected to reach RMB 42.8 billion by 2024 [12][15]. - In China, the AI optical module market is anticipated to grow from RMB 600 million in 2020 to RMB 6.9 billion by 2024, with a CAGR of 86.8% [15]. Technological Development - Haiguang Xinzhen is focusing on advanced technologies such as 1.6T and 3.2T optical interconnect products to meet the increasing data throughput demands of AI data centers [6][18]. - The company has made progress in developing silicon photonic technology, which is expected to enhance its competitive edge in the market [19]. Investment Outlook - The upcoming IPO aims to raise funds for capacity expansion (51%), new product and technology development (37%), and business promotion (2%), positioning the company to strengthen its competitive advantage in the silicon photonic optical module sector [1][19]. - The company’s investment value is driven by its technological barriers and the growth potential of the industry, despite challenges related to profitability and market competition [19].