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wrote a column · Jul 29 05:13

Founding shareholders exit, Hou Yuqing takes control at low cost—can Africa's 5G market support Tongze Konway?

Produced by | Frontline of Entrepreneurship Author | Xibo Editor | Wang Yajing Visual editor | Xing Jing Reviewed | Songwen Recently, Guangzhou Tongze Konway Technology Co., Ltd. (hereinafter referred to as 'Tongze Konway') submitted its IPO registration application to the ChiNext Board of the Shenzhen Stock Exchange, leveraging its 5G broadband connectivity terminals. In recent years, although Tongze Konway’s revenue has maintained an upward trend, its net profit and gross margin have actually declined. Moreover, the company’s sales are heavily concentrated in Africa, its accounts receivable are growing rapidly, and the selling prices of its core products continue to fall. It remains uncertain whether this company—which publicly claims deep expertise in the 5G sector and forward-looking deployment in 6G—can withstand scrutiny from both regulators and the market. 1. Founding shareholders liquidate holdings at original cost; profits fluctuate In 2019, the inaugural year of commercial 5G deployment, 5G FWA (5G Fixed Wireless Access) wireless broadband terminals entered a global growth window. In March of the same year, Tongze Konway was established in the Nansha Free Trade Zone of Guangzhou. 5G FWA refers to using 5G base station signals for internet access, replacing traditional fiber-optic cables to deliver broadband to fixed locations. In simple terms, it provides stable wireless broadband to homes or businesses without requiring physical network or fiber lines to be installed on-site. At its founding, Tongze Konway’s initial shareholders were Shan Jianxin, Wang Wu, and Li Jinlong, who collectively subscribed to a registered capital of RMB 100 million in cash at a price of RMB 1.08 per unit of registered capital. (Image ...
Produced by | Frontline of Entrepreneurship
Author | Xibo
Editor | Wang Yajing
Visual editor | Xing Jing
Reviewed | Songwen
Recently, Guangzhou Tongze Kangwei Technology Co., Ltd. (hereinafter referred to as 'Tongze Kangwei') submitted its IPO registration application to the Shenzhen Stock Exchange’s ChiNext board, leveraging 5G broadband-connected terminals.
In recent years, although Tongze Kangwei’s revenue has maintained an upward trend, its net profit and gross margin have both declined.
Moreover, the company’s sales are heavily concentrated in Africa, its accounts receivable have grown rapidly, and the selling prices of its core products continue to fall.
It remains uncertain whether this company—which publicly positions itself as deeply committed to the 5G sector and proactively investing in 6G—can withstand scrutiny from both regulators and the market.
1. Founding shareholders fully exited at cost; profits fluctuate
In 2019, the inaugural year of 5G commercialization, 5G FWA (5G Fixed Wireless Access) wireless broadband terminals entered a global growth window. In March of the same year, Tongze Kangwei was established in the Nansha Free Trade Zone of Guangzhou.
5G FWA refers to using signals from 5G base stations to provide broadband internet access to fixed locations, replacing traditional fiber-optic cables. In simple terms, it delivers stable broadband connectivity to homes or businesses without requiring physical installation of network or fiber lines, relying instead on wireless networks.
At its founding, Tongze Kangwei’s initial shareholders—Shan Jianxin, Wang Wu, and Li Jinlong—subscribed to a total registered capital of RMB 100 million in cash, at a price of RMB 1.08 per unit of registered capital.
Produced by | Frontline of Entrepreneurship Author | Xibo Editor | Wang Yajing Visual editor | Xing Jing Reviewed | Songwen Recently, Guangzhou Tongze Konway Technology Co., Ltd. (hereinafter referred to as 'Tongze Konway') submitted its IPO registration application to the ChiNext Board of the Shenzhen Stock Exchange, leveraging its 5G broadband connectivity terminals. In recent years, although Tongze Konway’s revenue has maintained an upward trend, its net profit and gross margin have actually declined. Moreover, the company’s sales are heavily concentrated in Africa, its accounts receivable are growing rapidly, and the selling prices of its core products continue to fall. It remains uncertain whether this company—which publicly claims deep expertise in the 5G sector and forward-looking deployment in 6G—can withstand scrutiny from both regulators and the market. 1. Founding shareholders liquidate holdings at original cost; profits fluctuate In 2019, the inaugural year of commercial 5G deployment, 5G FWA (5G Fixed Wireless Access) wireless broadband terminals entered a global growth window. In March of the same year, Tongze Konway was established in the Nansha Free Trade Zone of Guangzhou. 5G FWA refers to using 5G base station signals for internet access, replacing traditional fiber-optic cables to deliver broadband to fixed locations. In simple terms, it provides stable wireless broadband to homes or businesses without requiring physical network or fiber lines to be installed on-site. At its founding, Tongze Konway’s initial shareholders were Shan Jianxin, Wang Wu, and Li Jinlong, who collectively subscribed to a registered capital of RMB 100 million in cash at a price of RMB 1.08 per unit of registered capital. (Image ...
(Figure / Tongze Kangwei IPO prospectus)
Among these, a portion of the equity held by Shan Jianxin and Wang Wu was held on behalf of 15 natural persons, including Chen Yu, Jiang Han, and Xia Rongping, representing a combined equity stake of 26.1%.
To resolve the issue of nominee shareholding, in November 2020, Tongze Kangwei established an employee stock ownership platform, Tongkang Chuangzhi Investment. In December of the same year, Shan Jianxin transferred an 11.97% equity interest to Tongkang Chuangzhi Investment; Chen Yu, Jiang Han, and others subsequently completed registration procedures to unwind their nominee arrangements, while Guan Runming opted to exit his stake as he did not join the company.
Produced by | Frontline of Entrepreneurship Author | Xibo Editor | Wang Yajing Visual editor | Xing Jing Reviewed | Songwen Recently, Guangzhou Tongze Konway Technology Co., Ltd. (hereinafter referred to as 'Tongze Konway') submitted its IPO registration application to the ChiNext Board of the Shenzhen Stock Exchange, leveraging its 5G broadband connectivity terminals. In recent years, although Tongze Konway’s revenue has maintained an upward trend, its net profit and gross margin have actually declined. Moreover, the company’s sales are heavily concentrated in Africa, its accounts receivable are growing rapidly, and the selling prices of its core products continue to fall. It remains uncertain whether this company—which publicly claims deep expertise in the 5G sector and forward-looking deployment in 6G—can withstand scrutiny from both regulators and the market. 1. Founding shareholders liquidate holdings at original cost; profits fluctuate In 2019, the inaugural year of commercial 5G deployment, 5G FWA (5G Fixed Wireless Access) wireless broadband terminals entered a global growth window. In March of the same year, Tongze Konway was established in the Nansha Free Trade Zone of Guangzhou. 5G FWA refers to using 5G base station signals for internet access, replacing traditional fiber-optic cables to deliver broadband to fixed locations. In simple terms, it provides stable wireless broadband to homes or businesses without requiring physical network or fiber lines to be installed on-site. At its founding, Tongze Konway’s initial shareholders were Shan Jianxin, Wang Wu, and Li Jinlong, who collectively subscribed to a registered capital of RMB 100 million in cash at a price of RMB 1.08 per unit of registered capital. (Image ...
(Figure / Tongze Kangwei's response to inquiry letter)
In February 2021, Tongze Kangwei brought in Hou Yuqing, who has deep experience in the ICT(information and communications technology)sector and prior management experience at a listed company, as its new leader. Shan Jianxin and Wang Wu transferred their combined 46.035% equity stake in the company to Hou Yuqing and his controlled entity, Tongkang Investment.
Three months later, founding shareholder Li Jinlong also transferred all of his equity interests to Shan Jianxin and Wang Wu at the original capital contribution price of RMB 1.08 per registered capital unit, fully exiting the company. However, Tongze Kangwei did not provide detailed disclosure in its prospectus regarding the core reasons for this equity transfer and exit.
Notably, the transaction price at which Hou Yuqing acquired equity from the other two founding shareholders was likewise not disclosed in detail; the company only mentioned the figure of RMB 1.08 per registered capital unit in its response to the first round of inquiry letters.
Produced by | Frontline of Entrepreneurship Author | Xibo Editor | Wang Yajing Visual editor | Xing Jing Reviewed | Songwen Recently, Guangzhou Tongze Konway Technology Co., Ltd. (hereinafter referred to as 'Tongze Konway') submitted its IPO registration application to the ChiNext Board of the Shenzhen Stock Exchange, leveraging its 5G broadband connectivity terminals. In recent years, although Tongze Konway’s revenue has maintained an upward trend, its net profit and gross margin have actually declined. Moreover, the company’s sales are heavily concentrated in Africa, its accounts receivable are growing rapidly, and the selling prices of its core products continue to fall. It remains uncertain whether this company—which publicly claims deep expertise in the 5G sector and forward-looking deployment in 6G—can withstand scrutiny from both regulators and the market. 1. Founding shareholders liquidate holdings at original cost; profits fluctuate In 2019, the inaugural year of commercial 5G deployment, 5G FWA (5G Fixed Wireless Access) wireless broadband terminals entered a global growth window. In March of the same year, Tongze Konway was established in the Nansha Free Trade Zone of Guangzhou. 5G FWA refers to using 5G base station signals for internet access, replacing traditional fiber-optic cables to deliver broadband to fixed locations. In simple terms, it provides stable wireless broadband to homes or businesses without requiring physical network or fiber lines to be installed on-site. At its founding, Tongze Konway’s initial shareholders were Shan Jianxin, Wang Wu, and Li Jinlong, who collectively subscribed to a registered capital of RMB 100 million in cash at a price of RMB 1.08 per unit of registered capital. (Image ...
(Figure / Tongze Kangwei prospectus)
Following a round of exits by founding shareholders and entry by external capital, Hou Yuqing swiftly secured control of Tongze Kangwei as its actual controller at a transaction cost closely aligned with the company’s book net asset value.
As of the date of signing the prospectus, Hou Yuqing directly and indirectly controls a combined 53.6182% of voting rights, making him the controlling shareholder and actual controller of Tongze Kangwei, and he also serves as Chairman of the Board.
Produced by | Frontline of Entrepreneurship Author | Xibo Editor | Wang Yajing Visual editor | Xing Jing Reviewed | Songwen Recently, Guangzhou Tongze Konway Technology Co., Ltd. (hereinafter referred to as 'Tongze Konway') submitted its IPO registration application to the ChiNext Board of the Shenzhen Stock Exchange, leveraging its 5G broadband connectivity terminals. In recent years, although Tongze Konway’s revenue has maintained an upward trend, its net profit and gross margin have actually declined. Moreover, the company’s sales are heavily concentrated in Africa, its accounts receivable are growing rapidly, and the selling prices of its core products continue to fall. It remains uncertain whether this company—which publicly claims deep expertise in the 5G sector and forward-looking deployment in 6G—can withstand scrutiny from both regulators and the market. 1. Founding shareholders liquidate holdings at original cost; profits fluctuate In 2019, the inaugural year of commercial 5G deployment, 5G FWA (5G Fixed Wireless Access) wireless broadband terminals entered a global growth window. In March of the same year, Tongze Konway was established in the Nansha Free Trade Zone of Guangzhou. 5G FWA refers to using 5G base station signals for internet access, replacing traditional fiber-optic cables to deliver broadband to fixed locations. In simple terms, it provides stable wireless broadband to homes or businesses without requiring physical network or fiber lines to be installed on-site. At its founding, Tongze Konway’s initial shareholders were Shan Jianxin, Wang Wu, and Li Jinlong, who collectively subscribed to a registered capital of RMB 100 million in cash at a price of RMB 1.08 per unit of registered capital. (Image ...
(Image / Tongze Kangwei Prospectus)
Currently, Tongze Kangwei’s main products include CPE (Customer Premises Equipment, specifically referring to FWA CPE), portable devices, industrial electronics, optical communication products, and traditional complete units.
Reportedly, these devices can convert 5G base station signals into Wi-Fi and wired network connections, meeting broadband demand in areas where fiber deployment is difficult, and are suitable for residential, retail, and industrial scenarios.
From 2023 to 2025 (hereinafter referred to as the 'Reporting Period'), Tongze Kangwei recorded revenues of RMB 1.025 billion, RMB 1.152 billion, and RMB 1.646 billion, respectively; net profit attributable to shareholders amounted to RMB 107 million, RMB 80.3544 million, and RMB 95.3689 million, respectively.
Produced by | Frontline of Entrepreneurship Author | Xibo Editor | Wang Yajing Visual editor | Xing Jing Reviewed | Songwen Recently, Guangzhou Tongze Konway Technology Co., Ltd. (hereinafter referred to as 'Tongze Konway') submitted its IPO registration application to the ChiNext Board of the Shenzhen Stock Exchange, leveraging its 5G broadband connectivity terminals. In recent years, although Tongze Konway’s revenue has maintained an upward trend, its net profit and gross margin have actually declined. Moreover, the company’s sales are heavily concentrated in Africa, its accounts receivable are growing rapidly, and the selling prices of its core products continue to fall. It remains uncertain whether this company—which publicly claims deep expertise in the 5G sector and forward-looking deployment in 6G—can withstand scrutiny from both regulators and the market. 1. Founding shareholders liquidate holdings at original cost; profits fluctuate In 2019, the inaugural year of commercial 5G deployment, 5G FWA (5G Fixed Wireless Access) wireless broadband terminals entered a global growth window. In March of the same year, Tongze Konway was established in the Nansha Free Trade Zone of Guangzhou. 5G FWA refers to using 5G base station signals for internet access, replacing traditional fiber-optic cables to deliver broadband to fixed locations. In simple terms, it provides stable wireless broadband to homes or businesses without requiring physical network or fiber lines to be installed on-site. At its founding, Tongze Konway’s initial shareholders were Shan Jianxin, Wang Wu, and Li Jinlong, who collectively subscribed to a registered capital of RMB 100 million in cash at a price of RMB 1.08 per unit of registered capital. (Image ...
(Image / Wind (unit: 10,000 yuan))
In 2024, Tongze Kangwei experienced a situation of 'revenue growth without profit growth': revenue continued to rise at a double-digit rate, while net profit declined significantly, resulting in divergent trends between revenue and profitability. In 2025, the company’s net profit attributable to shareholders rebounded somewhat but remained below the 2023 level.
2. Sales heavily concentrated in Africa, with declining average selling prices of core products
Amid accelerating global 5G FWA adoption, telecom operators have intensified cost controls, intensifying market competition, which has compelled Tongze Kangwei to lower prices to win customers.
From a revenue composition perspective, during the Reporting Period, CPE products generated revenues of RMB 828 million, RMB 911 million, and RMB 1.370 billion, respectively, accounting for over 80% of total core business revenue, while other categories—including portable devices and industrial electronics—collectively contributed less than 20%.
Specifically, 5G CPE products accounted for 54.66%, 57.25%, and 63.28% of revenue, while 4G CPE products represented 28.65%, 23.32%, and 20.59%, respectively.
Produced by | Frontline of Entrepreneurship Author | Xibo Editor | Wang Yajing Visual editor | Xing Jing Reviewed | Songwen Recently, Guangzhou Tongze Konway Technology Co., Ltd. (hereinafter referred to as 'Tongze Konway') submitted its IPO registration application to the ChiNext Board of the Shenzhen Stock Exchange, leveraging its 5G broadband connectivity terminals. In recent years, although Tongze Konway’s revenue has maintained an upward trend, its net profit and gross margin have actually declined. Moreover, the company’s sales are heavily concentrated in Africa, its accounts receivable are growing rapidly, and the selling prices of its core products continue to fall. It remains uncertain whether this company—which publicly claims deep expertise in the 5G sector and forward-looking deployment in 6G—can withstand scrutiny from both regulators and the market. 1. Founding shareholders liquidate holdings at original cost; profits fluctuate In 2019, the inaugural year of commercial 5G deployment, 5G FWA (5G Fixed Wireless Access) wireless broadband terminals entered a global growth window. In March of the same year, Tongze Konway was established in the Nansha Free Trade Zone of Guangzhou. 5G FWA refers to using 5G base station signals for internet access, replacing traditional fiber-optic cables to deliver broadband to fixed locations. In simple terms, it provides stable wireless broadband to homes or businesses without requiring physical network or fiber lines to be installed on-site. At its founding, Tongze Konway’s initial shareholders were Shan Jianxin, Wang Wu, and Li Jinlong, who collectively subscribed to a registered capital of RMB 100 million in cash at a price of RMB 1.08 per unit of registered capital. (Image ...
(Chart / Tongze Konway IPO prospectus)
However, the average selling price of CPE products—the core of its business—has continued to decline.
From 2023 to 2025, the average price of 5G CPE products fell from RMB 914.25 per unit to RMB 682.30 per unit, while that of 4G CPE products dropped from RMB 195.16 per unit to RMB 175.87 per unit.
Produced by | Frontline of Entrepreneurship Author | Xibo Editor | Wang Yajing Visual editor | Xing Jing Reviewed | Songwen Recently, Guangzhou Tongze Konway Technology Co., Ltd. (hereinafter referred to as 'Tongze Konway') submitted its IPO registration application to the ChiNext Board of the Shenzhen Stock Exchange, leveraging its 5G broadband connectivity terminals. In recent years, although Tongze Konway’s revenue has maintained an upward trend, its net profit and gross margin have actually declined. Moreover, the company’s sales are heavily concentrated in Africa, its accounts receivable are growing rapidly, and the selling prices of its core products continue to fall. It remains uncertain whether this company—which publicly claims deep expertise in the 5G sector and forward-looking deployment in 6G—can withstand scrutiny from both regulators and the market. 1. Founding shareholders liquidate holdings at original cost; profits fluctuate In 2019, the inaugural year of commercial 5G deployment, 5G FWA (5G Fixed Wireless Access) wireless broadband terminals entered a global growth window. In March of the same year, Tongze Konway was established in the Nansha Free Trade Zone of Guangzhou. 5G FWA refers to using 5G base station signals for internet access, replacing traditional fiber-optic cables to deliver broadband to fixed locations. In simple terms, it provides stable wireless broadband to homes or businesses without requiring physical network or fiber lines to be installed on-site. At its founding, Tongze Konway’s initial shareholders were Shan Jianxin, Wang Wu, and Li Jinlong, who collectively subscribed to a registered capital of RMB 100 million in cash at a price of RMB 1.08 per unit of registered capital. (Image ...
(Chart / Tongze Konway IPO prospectus)
Under pressure on unit prices of its core products, it is naturally not easy for Tongze Konway to maintain solid profitability.According to Tongze Konway’s estimates, assuming no impact from new product launches, material cost reductions, or design optimizations, a 1% decline in the company's average product price would reduce gross margin by approximately 0.7 percentage points; a 1-percentage-point drop in gross margin would lead to a roughly 0.5-percentage-point decline in net margin.
This trend is already reflected in its financial statements. During the reporting periods, Tongze Konway’s consolidated gross margins were 30.70%, 27.86%, and 23.25%, respectively—a decline of over 7 percentage points over three years.
Produced by | Frontline of Entrepreneurship Author | Xibo Editor | Wang Yajing Visual editor | Xing Jing Reviewed | Songwen Recently, Guangzhou Tongze Konway Technology Co., Ltd. (hereinafter referred to as 'Tongze Konway') submitted its IPO registration application to the ChiNext Board of the Shenzhen Stock Exchange, leveraging its 5G broadband connectivity terminals. In recent years, although Tongze Konway’s revenue has maintained an upward trend, its net profit and gross margin have actually declined. Moreover, the company’s sales are heavily concentrated in Africa, its accounts receivable are growing rapidly, and the selling prices of its core products continue to fall. It remains uncertain whether this company—which publicly claims deep expertise in the 5G sector and forward-looking deployment in 6G—can withstand scrutiny from both regulators and the market. 1. Founding shareholders liquidate holdings at original cost; profits fluctuate In 2019, the inaugural year of commercial 5G deployment, 5G FWA (5G Fixed Wireless Access) wireless broadband terminals entered a global growth window. In March of the same year, Tongze Konway was established in the Nansha Free Trade Zone of Guangzhou. 5G FWA refers to using 5G base station signals for internet access, replacing traditional fiber-optic cables to deliver broadband to fixed locations. In simple terms, it provides stable wireless broadband to homes or businesses without requiring physical network or fiber lines to be installed on-site. At its founding, Tongze Konway’s initial shareholders were Shan Jianxin, Wang Wu, and Li Jinlong, who collectively subscribed to a registered capital of RMB 100 million in cash at a price of RMB 1.08 per unit of registered capital. (Image ...
(Chart / Tongze Konway IPO prospectus)
Consequently, regulators have requested that Tongze Konway explain the sustainability of its future operating performance growth, taking into account future market potential and expansion, post-reporting-period operating results, R&D investment and effectiveness, and gross margin trends.
In response, Tongze Konway stated that its market expansion is progressing well, it has a robust backlog of orders, and post-reporting-period operations continue to improve.
However, the company also candidly stated in its prospectus that if it fails to adjust accordingly to future market conditions or demand, its gross margin could decline further.
Facing intense market competition, Tongze Kangwei has set its sights on Africa. It is reported that Africa’s overall telecommunications infrastructure still primarily relies on 3G and 4G, with strong demand emerging for 5G.
According to the GSMA's 'The Mobile Economy 2025,' 5G networks accounted for 7% of mobile connections in the Middle East and North Africa in 2024, projected to rise to 49% by 2030; in Sub-Saharan Africa, 5G and 4G networks represented 3% and 38% respectively in 2024, and are expected to increase to 17% and 52% by 2030, indicating substantial room for mobile network upgrades across both African regions.
Produced by | Frontline of Entrepreneurship Author | Xibo Editor | Wang Yajing Visual editor | Xing Jing Reviewed | Songwen Recently, Guangzhou Tongze Konway Technology Co., Ltd. (hereinafter referred to as 'Tongze Konway') submitted its IPO registration application to the ChiNext Board of the Shenzhen Stock Exchange, leveraging its 5G broadband connectivity terminals. In recent years, although Tongze Konway’s revenue has maintained an upward trend, its net profit and gross margin have actually declined. Moreover, the company’s sales are heavily concentrated in Africa, its accounts receivable are growing rapidly, and the selling prices of its core products continue to fall. It remains uncertain whether this company—which publicly claims deep expertise in the 5G sector and forward-looking deployment in 6G—can withstand scrutiny from both regulators and the market. 1. Founding shareholders liquidate holdings at original cost; profits fluctuate In 2019, the inaugural year of commercial 5G deployment, 5G FWA (5G Fixed Wireless Access) wireless broadband terminals entered a global growth window. In March of the same year, Tongze Konway was established in the Nansha Free Trade Zone of Guangzhou. 5G FWA refers to using 5G base station signals for internet access, replacing traditional fiber-optic cables to deliver broadband to fixed locations. In simple terms, it provides stable wireless broadband to homes or businesses without requiring physical network or fiber lines to be installed on-site. At its founding, Tongze Konway’s initial shareholders were Shan Jianxin, Wang Wu, and Li Jinlong, who collectively subscribed to a registered capital of RMB 100 million in cash at a price of RMB 1.08 per unit of registered capital. (Image ...
(Figure / Tongze Kangwei Prospectus)
Tongze Kangwei has thus precisely captured this market opportunity. During the reporting period, the proportion of overseas revenue to its core business revenue surged from 81.32% in 2023 to 90.61% in 2025.
Of this, revenue from Sub-Saharan Africa, the Middle East, and North Africa totaled RMB 709 million, RMB 834 million, and RMB 1.222 billion respectively, representing significant sources of income for Tongze Kangwei.
Produced by | Frontline of Entrepreneurship Author | Xibo Editor | Wang Yajing Visual editor | Xing Jing Reviewed | Songwen Recently, Guangzhou Tongze Konway Technology Co., Ltd. (hereinafter referred to as 'Tongze Konway') submitted its IPO registration application to the ChiNext Board of the Shenzhen Stock Exchange, leveraging its 5G broadband connectivity terminals. In recent years, although Tongze Konway’s revenue has maintained an upward trend, its net profit and gross margin have actually declined. Moreover, the company’s sales are heavily concentrated in Africa, its accounts receivable are growing rapidly, and the selling prices of its core products continue to fall. It remains uncertain whether this company—which publicly claims deep expertise in the 5G sector and forward-looking deployment in 6G—can withstand scrutiny from both regulators and the market. 1. Founding shareholders liquidate holdings at original cost; profits fluctuate In 2019, the inaugural year of commercial 5G deployment, 5G FWA (5G Fixed Wireless Access) wireless broadband terminals entered a global growth window. In March of the same year, Tongze Konway was established in the Nansha Free Trade Zone of Guangzhou. 5G FWA refers to using 5G base station signals for internet access, replacing traditional fiber-optic cables to deliver broadband to fixed locations. In simple terms, it provides stable wireless broadband to homes or businesses without requiring physical network or fiber lines to be installed on-site. At its founding, Tongze Konway’s initial shareholders were Shan Jianxin, Wang Wu, and Li Jinlong, who collectively subscribed to a registered capital of RMB 100 million in cash at a price of RMB 1.08 per unit of registered capital. (Image ...
(Figure / Tongze Kangwei Prospectus)
Currently, 4G and 5G penetration rates in Africa remain relatively low, offering long-term growth potential for wireless network development. However, infrastructure progress varies significantly across regions and competition is fierce; whether Tongze Kangwei can leverage the African market to solidify its overseas revenue advantage remains to be seen.
3. R&D expense ratio below industry peers, accounts receivable elevated
In recent years, Tongze Kangwei’s revenue has grown consistently year after year, yet nearly 30% of it represents 'paper profits.'”。
During the reporting periods, Tongze Kangwei's accounts receivable balances were RMB 217 million, RMB 343 million, and RMB 560 million, respectively, representing 21.19%, 29.81%, and 34.03% of its revenue, primarily consisting of receivables aged less than one year.
Produced by | Frontline of Entrepreneurship Author | Xibo Editor | Wang Yajing Visual editor | Xing Jing Reviewed | Songwen Recently, Guangzhou Tongze Konway Technology Co., Ltd. (hereinafter referred to as 'Tongze Konway') submitted its IPO registration application to the ChiNext Board of the Shenzhen Stock Exchange, leveraging its 5G broadband connectivity terminals. In recent years, although Tongze Konway’s revenue has maintained an upward trend, its net profit and gross margin have actually declined. Moreover, the company’s sales are heavily concentrated in Africa, its accounts receivable are growing rapidly, and the selling prices of its core products continue to fall. It remains uncertain whether this company—which publicly claims deep expertise in the 5G sector and forward-looking deployment in 6G—can withstand scrutiny from both regulators and the market. 1. Founding shareholders liquidate holdings at original cost; profits fluctuate In 2019, the inaugural year of commercial 5G deployment, 5G FWA (5G Fixed Wireless Access) wireless broadband terminals entered a global growth window. In March of the same year, Tongze Konway was established in the Nansha Free Trade Zone of Guangzhou. 5G FWA refers to using 5G base station signals for internet access, replacing traditional fiber-optic cables to deliver broadband to fixed locations. In simple terms, it provides stable wireless broadband to homes or businesses without requiring physical network or fiber lines to be installed on-site. At its founding, Tongze Konway’s initial shareholders were Shan Jianxin, Wang Wu, and Li Jinlong, who collectively subscribed to a registered capital of RMB 100 million in cash at a price of RMB 1.08 per unit of registered capital. (Image ...
(Figure / Tongze Kangwei IPO prospectus)
As of the end of 2024, Tongze Kangwei had overdue accounts receivable amounting to RMB 129 million, accounting for 37.60% of its total receivables. In the first half of 2025, the company still had RMB 63.5932 million in overdue receivables.
Tongze Kangwei stated that this was primarily due to occasional factors such as insufficient foreign exchange quotas among certain overseas customers and temporary payment delays caused by the company’s name change.
Produced by | Frontline of Entrepreneurship Author | Xibo Editor | Wang Yajing Visual editor | Xing Jing Reviewed | Songwen Recently, Guangzhou Tongze Konway Technology Co., Ltd. (hereinafter referred to as 'Tongze Konway') submitted its IPO registration application to the ChiNext Board of the Shenzhen Stock Exchange, leveraging its 5G broadband connectivity terminals. In recent years, although Tongze Konway’s revenue has maintained an upward trend, its net profit and gross margin have actually declined. Moreover, the company’s sales are heavily concentrated in Africa, its accounts receivable are growing rapidly, and the selling prices of its core products continue to fall. It remains uncertain whether this company—which publicly claims deep expertise in the 5G sector and forward-looking deployment in 6G—can withstand scrutiny from both regulators and the market. 1. Founding shareholders liquidate holdings at original cost; profits fluctuate In 2019, the inaugural year of commercial 5G deployment, 5G FWA (5G Fixed Wireless Access) wireless broadband terminals entered a global growth window. In March of the same year, Tongze Konway was established in the Nansha Free Trade Zone of Guangzhou. 5G FWA refers to using 5G base station signals for internet access, replacing traditional fiber-optic cables to deliver broadband to fixed locations. In simple terms, it provides stable wireless broadband to homes or businesses without requiring physical network or fiber lines to be installed on-site. At its founding, Tongze Konway’s initial shareholders were Shan Jianxin, Wang Wu, and Li Jinlong, who collectively subscribed to a registered capital of RMB 100 million in cash at a price of RMB 1.08 per unit of registered capital. (Image ...
Produced by | Frontline of Entrepreneurship Author | Xibo Editor | Wang Yajing Visual editor | Xing Jing Reviewed | Songwen Recently, Guangzhou Tongze Konway Technology Co., Ltd. (hereinafter referred to as 'Tongze Konway') submitted its IPO registration application to the ChiNext Board of the Shenzhen Stock Exchange, leveraging its 5G broadband connectivity terminals. In recent years, although Tongze Konway’s revenue has maintained an upward trend, its net profit and gross margin have actually declined. Moreover, the company’s sales are heavily concentrated in Africa, its accounts receivable are growing rapidly, and the selling prices of its core products continue to fall. It remains uncertain whether this company—which publicly claims deep expertise in the 5G sector and forward-looking deployment in 6G—can withstand scrutiny from both regulators and the market. 1. Founding shareholders liquidate holdings at original cost; profits fluctuate In 2019, the inaugural year of commercial 5G deployment, 5G FWA (5G Fixed Wireless Access) wireless broadband terminals entered a global growth window. In March of the same year, Tongze Konway was established in the Nansha Free Trade Zone of Guangzhou. 5G FWA refers to using 5G base station signals for internet access, replacing traditional fiber-optic cables to deliver broadband to fixed locations. In simple terms, it provides stable wireless broadband to homes or businesses without requiring physical network or fiber lines to be installed on-site. At its founding, Tongze Konway’s initial shareholders were Shan Jianxin, Wang Wu, and Li Jinlong, who collectively subscribed to a registered capital of RMB 100 million in cash at a price of RMB 1.08 per unit of registered capital. (Image ...
(Figure / Tongze Kangwei response to regulatory inquiry)
Notably, while the wireless router and CPE industry appears to have low entry barriers—with basic hardware assembly easily replicable—achieving stable multi-band network compatibility, securing carrier certifications across multiple global markets, and continuously integrating new Wi-Fi and 5G technologies all require sustained, substantial R&D investment.
However, Tongze Kangwei’s R&D expense ratio does not compare favorably with that of its peers.
During the reporting periods, Tongze Kangwei’s R&D expenses amounted to RMB 67.3382 million, RMB 89.1643 million, and RMB 97.9859 million, respectively, representing R&D expense ratios of 6.57%, 7.74%, and 5.95%.
Produced by | Frontline of Entrepreneurship Author | Xibo Editor | Wang Yajing Visual editor | Xing Jing Reviewed | Songwen Recently, Guangzhou Tongze Konway Technology Co., Ltd. (hereinafter referred to as 'Tongze Konway') submitted its IPO registration application to the ChiNext Board of the Shenzhen Stock Exchange, leveraging its 5G broadband connectivity terminals. In recent years, although Tongze Konway’s revenue has maintained an upward trend, its net profit and gross margin have actually declined. Moreover, the company’s sales are heavily concentrated in Africa, its accounts receivable are growing rapidly, and the selling prices of its core products continue to fall. It remains uncertain whether this company—which publicly claims deep expertise in the 5G sector and forward-looking deployment in 6G—can withstand scrutiny from both regulators and the market. 1. Founding shareholders liquidate holdings at original cost; profits fluctuate In 2019, the inaugural year of commercial 5G deployment, 5G FWA (5G Fixed Wireless Access) wireless broadband terminals entered a global growth window. In March of the same year, Tongze Konway was established in the Nansha Free Trade Zone of Guangzhou. 5G FWA refers to using 5G base station signals for internet access, replacing traditional fiber-optic cables to deliver broadband to fixed locations. In simple terms, it provides stable wireless broadband to homes or businesses without requiring physical network or fiber lines to be installed on-site. At its founding, Tongze Konway’s initial shareholders were Shan Jianxin, Wang Wu, and Li Jinlong, who collectively subscribed to a registered capital of RMB 100 million in cash at a price of RMB 1.08 per unit of registered capital. (Image ...
(Figure / Tongze Kangwei IPO prospectus)
In the same periods, the average R&D expense ratios of comparable industry peers were 15.06%, 14.64%, and 13.64%, respectively—nearly double that of Tongze Kangwei.
Produced by | Frontline of Entrepreneurship Author | Xibo Editor | Wang Yajing Visual editor | Xing Jing Reviewed | Songwen Recently, Guangzhou Tongze Konway Technology Co., Ltd. (hereinafter referred to as 'Tongze Konway') submitted its IPO registration application to the ChiNext Board of the Shenzhen Stock Exchange, leveraging its 5G broadband connectivity terminals. In recent years, although Tongze Konway’s revenue has maintained an upward trend, its net profit and gross margin have actually declined. Moreover, the company’s sales are heavily concentrated in Africa, its accounts receivable are growing rapidly, and the selling prices of its core products continue to fall. It remains uncertain whether this company—which publicly claims deep expertise in the 5G sector and forward-looking deployment in 6G—can withstand scrutiny from both regulators and the market. 1. Founding shareholders liquidate holdings at original cost; profits fluctuate In 2019, the inaugural year of commercial 5G deployment, 5G FWA (5G Fixed Wireless Access) wireless broadband terminals entered a global growth window. In March of the same year, Tongze Konway was established in the Nansha Free Trade Zone of Guangzhou. 5G FWA refers to using 5G base station signals for internet access, replacing traditional fiber-optic cables to deliver broadband to fixed locations. In simple terms, it provides stable wireless broadband to homes or businesses without requiring physical network or fiber lines to be installed on-site. At its founding, Tongze Konway’s initial shareholders were Shan Jianxin, Wang Wu, and Li Jinlong, who collectively subscribed to a registered capital of RMB 100 million in cash at a price of RMB 1.08 per unit of registered capital. (Image ...
(Figure / Tongze Kangwei IPO prospectus)
Moreover, the domestic telecom operators’ centralized procurement market has long been dominated by Huawei, ZTE, and FiberHome, making it difficult for Tongze Kangwei to mount effective competition. Coupled with the company’s R&D expense ratio being nearly the lowest in the industry, Tongze Kangwei faces significant obstacles in achieving business breakthroughs.
In this IPO, the company plans to raise RMB 1.381 billion, allocating funds to a R&D and operations center and IT infrastructure project, a global marketing and service network construction project, and supplementing working capital—indicating an intention to channel resources toward R&D.
However, beyond its plan to address the shortfall in R&D investment, pressure from valuation adjustment mechanisms (‘wager agreements’) may also be one of the reasons prompting Tongze Kangwei to pursue an IPO.
It is reported that Tongze Kangwei has brought in multiple investors during its development.
In June 2022, Tongze Kangwei increased its registered capital by RMB 3.4722 million, fully subscribed by Junquan Xiu at RMB 7.20 per unit of registered capital, amounting to a total investment of RMB 25 million.
In May 2023, the employee stock ownership platform, Tongkang Chuangren Investment, subscribed at a reduced price of RMB 3.02 per unit of registered capital; by December of the same year, external institutional investors—including Chuangdongfang Fubo, Hongzhuan Dongfang, Haihui Technology Innovation, Jinteng Industrial Investment, and Xinzhou Jinghua No.1—subscribed at a sharply higher price of RMB 21.00 per share, reflecting an enormous valuation gap across different financing rounds.
Produced by | Frontline of Entrepreneurship Author | Xibo Editor | Wang Yajing Visual editor | Xing Jing Reviewed | Songwen Recently, Guangzhou Tongze Konway Technology Co., Ltd. (hereinafter referred to as 'Tongze Konway') submitted its IPO registration application to the ChiNext Board of the Shenzhen Stock Exchange, leveraging its 5G broadband connectivity terminals. In recent years, although Tongze Konway’s revenue has maintained an upward trend, its net profit and gross margin have actually declined. Moreover, the company’s sales are heavily concentrated in Africa, its accounts receivable are growing rapidly, and the selling prices of its core products continue to fall. It remains uncertain whether this company—which publicly claims deep expertise in the 5G sector and forward-looking deployment in 6G—can withstand scrutiny from both regulators and the market. 1. Founding shareholders liquidate holdings at original cost; profits fluctuate In 2019, the inaugural year of commercial 5G deployment, 5G FWA (5G Fixed Wireless Access) wireless broadband terminals entered a global growth window. In March of the same year, Tongze Konway was established in the Nansha Free Trade Zone of Guangzhou. 5G FWA refers to using 5G base station signals for internet access, replacing traditional fiber-optic cables to deliver broadband to fixed locations. In simple terms, it provides stable wireless broadband to homes or businesses without requiring physical network or fiber lines to be installed on-site. At its founding, Tongze Konway’s initial shareholders were Shan Jianxin, Wang Wu, and Li Jinlong, who collectively subscribed to a registered capital of RMB 100 million in cash at a price of RMB 1.08 per unit of registered capital. (Image ...
Produced by | Frontline of Entrepreneurship Author | Xibo Editor | Wang Yajing Visual editor | Xing Jing Reviewed | Songwen Recently, Guangzhou Tongze Konway Technology Co., Ltd. (hereinafter referred to as 'Tongze Konway') submitted its IPO registration application to the ChiNext Board of the Shenzhen Stock Exchange, leveraging its 5G broadband connectivity terminals. In recent years, although Tongze Konway’s revenue has maintained an upward trend, its net profit and gross margin have actually declined. Moreover, the company’s sales are heavily concentrated in Africa, its accounts receivable are growing rapidly, and the selling prices of its core products continue to fall. It remains uncertain whether this company—which publicly claims deep expertise in the 5G sector and forward-looking deployment in 6G—can withstand scrutiny from both regulators and the market. 1. Founding shareholders liquidate holdings at original cost; profits fluctuate In 2019, the inaugural year of commercial 5G deployment, 5G FWA (5G Fixed Wireless Access) wireless broadband terminals entered a global growth window. In March of the same year, Tongze Konway was established in the Nansha Free Trade Zone of Guangzhou. 5G FWA refers to using 5G base station signals for internet access, replacing traditional fiber-optic cables to deliver broadband to fixed locations. In simple terms, it provides stable wireless broadband to homes or businesses without requiring physical network or fiber lines to be installed on-site. At its founding, Tongze Konway’s initial shareholders were Shan Jianxin, Wang Wu, and Li Jinlong, who collectively subscribed to a registered capital of RMB 100 million in cash at a price of RMB 1.08 per unit of registered capital. (Image ...
(Figure / Tongze Kangwei IPO prospectus)
When bringing in external investors such as Chuangdongfang Fubo, Hou Yuqing, Shan Jianxin, and Tongkang Investment entered into agreements with these investors, which included special rights provisions such as co-sale rights, anti-dilution rights, and local investment return clauses.
The agreement stipulates that if Tongze Kangwei’s listing process is terminated, these special provisions will automatically regain legal effect, requiring Hou Yuqing, Shan Jianxin, and Tongkang Investment to fulfill their obligations and cooperate with investors in exercising the agreed-upon special shareholder rights.
Africa's untapped telecommunications market presents growth opportunities for Tongze Kangwei. However, risks such as lagging R&D expense ratios, continuously rising accounts receivable, and looming performance-based compensation obligations mean the company faces both significant opportunities and challenges as it pursues a listing on the ChiNext board.
*Note: The featured image in this article is sourced from Tongze Kangwei's official website.
Risk Disclaimer: The above content only represents the author's view. It does not represent any position or investment advice of Futu. Futu makes no representation or warranty.Read more
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