IPO News | 'The world's leading smart product platform' Huaqin Technology launches its IPO, with plans to go public on April 23. The subscription amount for one lot is HKD 7,848.36.

Futu Information reported on April 15 that $HUAQIN (03296.HK)$ the company announced the offering from April 15 to April 20. It plans to globally offer approximately 58,548,200 shares and expects to be listed on April 23.

Company Overview

HQ Tech is a smart product platform company with over 20 years of experience in the intelligent products field. Its smart products integrate core technologies such as artificial intelligence, IoT, big data, and communication technology while incorporating multiple intelligent functions. Drawing upon its accumulated experience throughout its development, the company drives the development and application of products and technologies in the era of mobile communications, the Internet, cloud computing, and artificial intelligence, providing global tech companies with smart products covering mobile terminals, computing and data center businesses, AIoT, and innovative business areas.

Source: Prospectus

According to CIC Consulting, HQ Tech is one of the most category-diverse smart product ODM platforms globally. Moreover, it is the only ODM provider worldwide to have established a leading market position across smartphones, tablets, smart wearables, laptops, and data infrastructure products simultaneously. The company's platform and product capabilities have gained widespread recognition in the global market. As of December 31, 2025, the company's clients will include major global industry players such as mobile terminal brands, PC brands, cloud service providers, and automotive manufacturers.

Financial Summary

In 2023, 2024, and 2025, Huaqin Technology’s revenue reached RMB 85,338.5 million, RMB 109,878.0 million, and RMB 171,436.9 million, respectively. In 2023, 2024, and 2025, the company’s R&D expenditures were RMB 4,547.5 million, RMB 5,155.8 million, and RMB 6,363.5 million, accounting for 5.3%, 4.7%, and 3.7% of total revenue during the same periods, respectively. In 2023, 2024, and 2025, the company’s profits were RMB 2,657.0 million, RMB 2,916.4 million, and RMB 4,131.6 million, respectively.

Source: Prospectus

Industry Overview

Against the backdrop of accelerated integration and penetration of advanced technologies, various types of smart products are upgrading towards deeper intelligence, broader digitization, and closer interconnectivity, expanding into various fields. This comprehensive upgrade process of smart products has gradually advanced over several decades of technological iterations.

Based on the breadth of service coverage, common business models for smart product development include the ODM model, EMS model, and IDH model. ODM manufacturers provide end-to-end services for brand customers, covering product design, R&D, supply chain management, logistics, manufacturing, and delivery. Compared to EMS and IDH manufacturers, ODM manufacturers' core advantage lies in their ability to offer full lifecycle end-to-end services from smart product design to production and delivery.

Cornerstone Investors

Cornerstone investors have agreed to subscribe for, or procure their designated entities to subscribe for, shares worth approximately USD 290 million (or approximately HKD 2.273 billion) at the offer price, subject to certain conditions. Assuming the offer price is HKD 77.70 per H-share (the maximum offer price), the total number of shares subscribed by cornerstone investors will be 29,250,100 shares. Cornerstone investors include: JPMAMAPL, UBS AM Singapore, Shanghai Gao Yi, CICC FT, Perseverance Asset Management, Cloud Map, among others.

Source: Prospectus

Use of Proceeds

Regarding the use of proceeds, Huaqin Technology expects the net proceeds from the global offering to be approximately HKD 4.463 billion (assuming the over-allotment option is not exercised and calculated at the maximum offer price of HKD 77.70). According to the prospectus, Huaqin Technology intends to use the proceeds from the global offering for the following purposes:

Approximately 40% will be used for product-centric R&D investment to enhance technical capabilities; about 35% will be allocated to expanding and optimizing the company's manufacturing system; around 15% will go towards strategic investments and vertical integration; and roughly 10% will be used for working capital and general corporate purposes.

More reading:Huaqin Technology Prospectus

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