This leading ODM company is attracting global investor attention with the rapid growth of its AI data center business and strategic layout in robotics and automotive electronics.
<h4>Key Points:</h4>
<ul>
<li>Huaqin Technology's stock rose 14% on its first day of trading on the Hong Kong Stock Exchange, complementing its existing A-share listing platform, with strong double-digit growth in both revenue and profit last year.</li>
<li>This electronic ODM company started with smartphone manufacturing and has gradually expanded into tablet computers, wearable devices, laptops, as well as data center servers and switches.</li>
</ul>
Yang Ge
Just like the millions of electronic products produced each year, Huaqin Technology (3296.HK; 603296.SH) operates like a complex, multi-component precision device.
The company's profitability is outstanding, achieving double-digit profit growth for the past three years, with a year-on-year increase of 41% last year; the return on equity (ROE) is expected to rise by more than 6 percentage points to 16.9% by 2025.
To broaden its business landscape and alleviate profit pressure, the company is increasing its R&amp;D investment in new fields such as data centers and automotive electronics, while also strategically acquiring to enter the robotics sector, supported by cash flow for expansion. In addition to mergers and acquisitions, the company has also formed an internal robotics R&amp;D team. This Hong Kong listing aims to attract international capital to support strategic advancement. The IPO is co-sponsored by Bank of America Securities and China International Capital Corporation, raising a total of HKD 4.46 billion (USD 654 million).
The IPO issued 58.5 million shares, priced at HKD 77.70 per share. The stock rose 13.6% to HKD 87.85 by Thursday's close.
The Hong Kong listing will synergize with the company's A-share listing, aligning with the recent trend of Chinese tech companies pursuing secondary listings in Hong Kong to connect with international investors and enhance global influence. Huaqin Technology has a highly globalized layout, with production bases in Vietnam, Mexico, and India, generating over 50% of its revenue from overseas clients.
Huaqin Technology was founded in 2005 by Qiu Wensheng, a senior figure from ZTE Corporation, initially focusing on mobile phone ODM business. In 2024, the company ranks second in the smartphone ODM industry with approximately 25% global market share; based on cumulative shipments from 2020 to 2024, it is the largest smartphone ODM manufacturer in the world. As the mobile phone business grows, the company continues to expand its diverse product lines. The prospectus shows that its wearable devices and tablet computer ODM businesses have rapidly grown to become the largest in the world.
The company has also achieved significant breakthroughs in the laptop, data center server, and switch sectors, while laying out smart interconnected products based on AIoT technology, and actively exploring new fields such as automotive electronics and robotics, expanding its business scale while entering more segmented and higher-margin blue ocean markets.
The rapid expansion initiated about ten years ago has put Huaqin Technology's revenue on a fast growth track. The growth momentum is expected to continue in 2025, with revenue increasing from RMB 110 billion to RMB 171 billion (USD 25.1 billion), a year-on-year growth of 55%, further accelerating from the previous year's growth rate of 29%
The company's core mobile terminal business (including smartphones, wearable devices, and tablets) saw a revenue increase of 57% last year, reaching 80.2 billion yuan, accounting for approximately 47% of total revenue. The AIoT business grew even faster, with a year-on-year increase of 69% to 7.88 billion yuan, which only accounted for 4.6% of total revenue, indicating significant growth potential in the future. The innovative business experienced the fastest growth, with revenue doubling last year to 3.48 billion yuan, still a relatively low proportion at 2%.
<h4>Data Center Business Becomes a New Growth Star</h4>
The computing and data center business was one of the company's core highlights last year, covering laptops, data center switches, and servers. With the AI wave driving an explosion in computing power and storage demand, the global demand for new data centers surged, propelling rapid growth in this business. Overall, this segment is expected to see a revenue increase of 52% to 75.5 billion yuan by 2025, accounting for 44% of the company's total revenue.
Huaqin Technology is a core supplier for leading domestic cloud service providers such as Alibaba Cloud, Tencent Cloud, and Volcano Engine, with products covering AI servers, general servers, switches, and AI racks. The company's full-stack technology reserves in integrated computing, networking, power supply, and liquid cooling have established a first-mover advantage in the AI rack system field. It is also one of the few companies in the industry that can simultaneously provide self-developed switches and AI servers, supporting super-node architectures, with products compatible with GPU platforms from NVIDIA, AMD, Intel, and domestic AI chip manufacturers.
Real estate consulting firm JLL predicts that from 2026 to 2030, global data center operators will add nearly 100 gigawatts of capacity, nearly doubling in scale. This means that Huaqin Technology's computing and data center business is expected to become the primary growth engine, potentially surpassing mobile terminals as the largest source of revenue.
To advance its emerging business direction, Huaqin Technology has undertaken several strategic mergers and acquisitions and investments: at the end of 2024, it acquired a 75% stake in Shenzhen Haocheng Intelligent Technology, which focuses on connected products such as home cleaning and companion robots; in August 2025, it invested approximately 2.4 billion yuan for a 6% stake in Nexchip Semiconductor, a company that produces various electronic chips, helping the company control costs and ensure stable supply of core chips.
In terms of profitability, Huaqin Technology's net profit increased from 2.92 billion yuan in 2024 to 4.13 billion yuan last year. Notably, the company's operating cash flow turned negative last year, which the company attributed to the support of rapid business expansion during that period. As of the end of last year, the company's cash on hand still reached 10.3 billion yuan, combined with funds raised from its Hong Kong IPO, providing ample financial support for business diversification.
Yongzhufang focuses on reporting on Chinese companies listed in the United States and Hong Kong, including sponsored content. For more information, including inquiries about individual articles, please click here to contact us.

03296

603296

Huaqin successfully listed on the Hong Kong stock market, with the stock price rising 14% on the first day. The company has attracted global investors' attention due to the rapid growth of its AI data center business and its strategic layout in the fields of robotics and automotive electronics. Huaqin achieved double-digit growth in revenue and profit last year, and it is expected that the return on equity will increase to 16.9% by 2025. This IPO raised HKD 4.46 billion, aiming to introduce international capital to support the company's strategic advancement

BambooWorks

HUAQIN

Huaqin

Bank of America

CICC

BABA-W

Alibaba

TENCENT

NVIDIA

Intel

BANK OF AMERICA CORPORATION DEP SHS REP 1/1000TH INT NON CUM PFD QQ

BANK OF AMERICA CORPORATION DEP SHS REP 1/1200TH PRF SERIES '5'

BANK OF AMERICA CORPORATION 7.25% NON-CUM PERP CONV PFD SER L

BANK OF AMERICA CORPORATION 5.875%NON CUM DEP SHS REP1/1000TH SER HH

BANK OF AMERICA CORPORATION DEP SHS REP 1/1200TH PRF SERIES '2'

BANK OF AMERICA CORPORATION 5% DEP SHS REPR 1/1000TH NON CUM PFD LL

BANK OF AMERICA CORPORATION DEP SHARES REP 1/1000TH PERP PFD SER 'E'

BANK OF AMERICA CORPORATION INCOME CAPITAL OBLIG NTS DUE 15/12/2066

BANK OF AMERICA CORPORATION 4.375% DP SH RP 1/1000TH IN NON CU PF NN

BANK OF AMERICA CORPORATION DEP SH REP 1/1200TH PRF SER 1 USD25

BANK OF AMERICA CORPORATION 5.375%DEP SHS REP 1/1000TH NON CUM SR KK

BANK OF AMERICA CORPORATION 6%NON CUM DEP SHS EACH REP 1/1000 SER GG

BANK OF AMERICA CORPORATION DEP SHS REP 1/1200 PFD SER 4 USD25

BANK OF AMERICA CORPORATION DEP SHS REP 1/1000TH NON CUM PFD SER SS

BANK OF AMERICA CORPORATION 4.125%DEP SH REP 1/1000 PFD SER PP USD25

Bank of America Corp

ZTE Corporation

BABA-WR

Alibaba HK SDR 5to1

Tencent

TENCENT-R

Tencent HK SDR 10to1

Tencent Holdings Limited

NVIDIA Corporation

AI data center business is booming, Huaqin Technology goes public on the Hong Kong Stock Exchange