Hisense's 6th IPO is on the horizon

Based on the Xiamen State-owned Assets Supervision and Administration Commission's investment of RMB 330 million for a 3.06% stake, the implied valuation is approximately RMB 10.8 billion.

Source: Direct IPO, by Wang Fei

This company, spun off from Hisense Group, is set to list on the Hong Kong stock market.

On August 30, Nazhen Technology (hereinafter referred to as "Nazhen Tech"), a supplier of optical communication and optical connectivity products, passed the listing hearing at the Hong Kong Stock Exchange and may soon list on the Main Board of the HKEX.

IPO filings show that Nazhen Tech submitted its prospectus to the Hong Kong Stock Exchange in August 2025 and March 2026. On August 4, 2026, Nazhen Tech completed filing with the CSRC, planning to issue no more than approximately 311 million overseas-listed ordinary shares and list on the Hong Kong Stock Exchange.

It is worth noting that Nazhen Tech is controlled by Hisense Group. Founded in 1969, Hisense Group already owns five listed companies: Hisense Visual Technology, Hisense Home Appliances, Sanden Holdings, Changelight, and Kelin Electric. In other words, with Nazhen Tech's successful listing, Hisense Group is poised to welcome its 6th IPO.

The history of Nazhen Tech can be traced back to the establishment of its two main operating subsidiaries, LigentTech and Qingdao Broadband, in the 2000s. In September 2025, Hisense Broadband Multimedia Technology (BVI) was officially renamed "Nazhen Technology," marking a key capital operation step in Hisense Group's spin-off listing.

Under the leadership of its 68-year-old founder, Dr. Huang Weiping, Nazhen Tech has entered the global optical communication and optical connectivity market and completed several major acquisitions.

Notably, in 2011, Nazhen Tech acquired the data communications business of Dongguan New Science Technology Research & Development Co., Ltd., thereby entering the data communications market. In 2012, the company completed the acquisition of LigentCom, a US-based manufacturer of active optical components, gaining Fabry-Pérot and distributed feedback laser technologies, which expanded its business into the optical chip market. In 2013, Nazhen Tech acquired assets from Multiplex, Inc., a US developer and manufacturer of optoelectronic components, obtaining electro-absorption modulated laser and tunable laser technologies, thereby enhancing optical chip performance.

Since its inception, Nazhen Tech has undergone multiple rounds of financing, attracting external capital from Chunhua Capital, Archcom LLC, and the Xiamen SASAC, with cumulative fundraising totaling approximately RMB 1.045 billion. The company completed its most recent funding round in July 2025, with an exclusive investment of RMB 330 million from the Xiamen SASAC.

Source: Nazhen Technology Prospectus

Prior to the IPO, Hisense Group and its wholly-owned subsidiary, Shiji Jinlong, held a combined stake of 48.61% in Nazhen Technology, making them the controlling shareholders. Specifically, Hisense Group held a direct stake of 44.44%, while Shiji Jinlong held 4.17%. TransLight, in which Dr. Huang Weiping holds a 31.88% stake, owned 23.22% of Nazhen Technology. The domestic employee stock ownership platform held 3.29% through Bolangde, and the overseas employee stock ownership platform held 0.83% through AI Talents.

Additionally, Primavera Capital held a 16.48% stake in Nazhen Technology, making it the largest external institutional shareholder; Archcom LLC held 4.51%; and the Xiamen State-owned Assets Supervision and Administration Commission (SASAC) held a combined 3.06%. Based on the Xiamen SASAC's investment of RMB 330 million for a 3.06% stake, Nazhen Technology's valuation was approximately RMB 10.784 billion.

As a global supplier of optical communication and optical connectivity products, Nazhen Technology is dedicated to the R&D, manufacturing, and sales of optical modules, optical chips, and optical network terminals. It is one of the few companies worldwide with both R&D and mass production capabilities for optical modules and optical chips. Leveraging its ability to deliver high-quality, multi-category products at scale in AI, cloud computing, FTTx, transmission networks, and wireless applications, its core customer base includes major cloud service providers, telecommunications operators, and network equipment suppliers in China and overseas.

According to Frost & Sullivan, based on global optical module revenue in 2025, Nazhen Technology ranked fifth among all specialized optical module manufacturers globally, with a market share of 4.0%. Based on optical module revenue in China in 2025, the company ranked third among all specialized optical module manufacturers globally, with a market share of 10.1%.

Based on global datacom optical module revenue in 2025, Nazhen Technology ranked fifth among all specialized optical module manufacturers globally, with a market share of 4.7%. Based on global FTTx optical module revenue, the company ranked third among all specialized optical module manufacturers globally, with a market share of 5.4%. Based on revenue from optical network terminal boxes in China, Nazhen Technology ranked second among all specialized optical network terminal box manufacturers globally, with a market share of 5.4%.

According to various prospectuses, Nazhen Technology's revenue from 2022 to 2025 and the first half of 2026 was approximately RMB 5.043 billion, RMB 4.239 billion, RMB 5.087 billion, RMB 8.355 billion, and RMB 5.393 billion, respectively. Gross profit was approximately RMB 1.117 billion, RMB 874 million, RMB 883 million, RMB 1.672 billion, and RMB 1.306 billion, with gross margins of 22.1%, 20.6%, 17.4%, 20.0%, and 24.2%, respectively. Net profit was approximately RMB 429 million, RMB 216 million, RMB 89 million, RMB 873 million, and RMB 661 million, respectively.

Source: Nazhen Technology Prospectus

As of the end of June 2026, Nazhen Technology held cash and cash equivalents of approximately RMB 1.584 billion.

For this IPO, Nazhen Technology plans to use the proceeds to continue investing in the R&D of new products and technologies; expand production capacity for optical modules and optical chips, and enhance automation across its product lines; strengthen business promotion and expand into overseas markets; and pursue strategic investments and acquisitions in domestic and international markets.

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