Core Viewpoint - Walden Materials is launching an H-share offering to raise funds for business expansion and product development, capitalizing on the growing demand in the data communication and power transmission sectors [1][3]. Group 1: H-share Offering Details - Walden Materials plans to issue 140 million H-shares, with 13.999 million shares allocated for public sale in Hong Kong, representing 10% of the total offering [1]. - The maximum price for the H-shares is set at HKD 20.09 per share, aiming for a net fundraising amount of up to HKD 2.734 billion [1]. - The shares are expected to be listed on the Hong Kong Stock Exchange on February 13, 2026 [1]. Group 2: Financial Performance and Projections - The company forecasts a net profit of between CNY 1.1 billion and CNY 1.18 billion for 2025, reflecting a year-on-year growth of 29.79% to 39.22% [2]. - Revenue is projected to grow from CNY 4.095 billion in 2020 to CNY 6.927 billion in 2024, with net profit increasing from CNY 396 million to CNY 848 million during the same period [1]. Group 3: Market Position and Clientele - Walden Materials ranks fifth among global communication cable manufacturers, holding a 12.7% market share based on projected 2024 revenues [1]. - Key clients include international companies such as Amphenol, Molex, TE Connectivity, and domestic firms like Luxshare Precision and Qinghong Electronics, which supply major server manufacturers like NVIDIA, Google, Amazon, and Meta [2]. Group 4: Use of Proceeds from H-share Offering - The proceeds from the H-share issuance will be allocated as follows: 45% for product development and upgrades, 27% for global business expansion, 18% for potential strategic investments or acquisitions, and 10% for working capital and general corporate purposes [4]. - Approximately HKD 557 million will be invested in establishing a new smart manufacturing base for communication cables and electronic materials in Johor, Malaysia [4].

Core Viewpoint - The company expects significant revenue growth in its high-speed communication wire products due to rapid demand release in downstream industries such as data communication, aligning with the company's operational and performance expectations for 2025 [1] Group 1: Market Demand and Performance - The market demand for high-speed communication wire products has seen a notable increase, driven by the needs of key downstream industries [1] - The overall operational and performance situation of the company is in line with its expectations [1] Group 2: Client Relationships and Supply Chain - The company's high-speed communication wire products have entered the core supplier systems of several key clients, indicating strong order demand [1] - Major direct clients include international companies such as Amphenol, Molex, TE Connectivity, and Hollysys, as well as domestic firms like Luxshare, Qinghong, and Huafeng [1] - These direct clients further process the products for supply to major international server manufacturers, including Nvidia, Google, Amazon, and Meta [1]