CIG will conduct an IPO from October 20 to October 23, planning to globally offer 67.0105 million H shares, with cornerstone subscriptions of 290 million USD

According to the Zhitong Finance APP, Cambridge Technology (06166) will conduct an IPO from October 20, 2025, to October 23, 2025. The company plans to globally offer 67.0105 million H shares, with 10% allocated for public offering in Hong Kong and 90% for international offering. There is also a 15% over-allotment option. The offer price will not exceed HKD 68.88 per share. Each lot consists of 50 H shares, and it is expected that H shares will begin trading on the Hong Kong Stock Exchange at 9:00 AM on October 28, 2025 (Tuesday). The group is primarily engaged in the design, development, and sale of connectivity and data transmission equipment. During the track record period, the group generated revenue mainly from the sales of (i) broadband; (ii) wireless; and (iii) optical module technology products. According to Frost & Sullivan, the group is one of the few companies globally that offers all three types of technology products. In 2024, based on sales revenue, the group ranked fifth in the global Optical and Wireless Connectivity Devices (OWCD) industry, with a market share of 4.1%. During the track record period, the group established partnerships with several global leading partners and maintained stable cooperation with these partners for over ten years. Additionally, as of June 30, 2025, the group's customer base includes artificial intelligence data centers, telecommunications operators, ICT equipment providers, MSOs, and IoT solution providers. Most of the group's operations and revenue come from international markets, including the United States, Europe, and the Asia-Pacific region. In 2022, 2023, and 2024, as well as for the six months ended June 30, 2025, the revenue from overseas markets accounted for 82.9%, 89.3%, 92.6%, and 94.0% of the group's total revenue, respectively. The group has entered into cornerstone investment agreements with Baillie Gifford, MSIP, HCEP Master Fund, HCEP Long Only Master Fund, Arc Avenue, Singularity Asset, Weiss Asset Management, Cithara Fund, 3W Fund, GMF, IRMF, Infini, Alpine, DAMSIMF, Aqua Ocean, Martis Fund, L.P., Taikang Life, and ICBC Credit Suisse Asset Management (each being a cornerstone investor, collectively referred to as cornerstone investors). Under these cornerstone investment agreements, the cornerstone investors have agreed, subject to certain conditions, to subscribe for or procure their designated entities (including qualified domestic institutional investors) to subscribe for a total amount of USD 290 million worth of the offered shares (rounded down to the nearest complete trading unit of 50 H shares) at the offer price (cornerstone placement). Based on the maximum offer price of HKD 68.88 per H share, the total number of offered shares to be subscribed by the cornerstone investors (including those subscribed by qualified domestic institutional investors) will be 32.7628 million shares. Based on the maximum offer price of HKD 68.88 per offered share and assuming that the over-allotment option is not exercised, after deducting the underwriting fees and commissions related to the global offering and the estimated expenses payable by the group, the group estimates that it will receive net proceeds of approximately HKD 4.48 billion from the global offering According to the group's future strategy, the group intends to use the proceeds from the global offering for the following purposes: (1) The group plans to use approximately 50.0% of the net proceeds to enhance its own facilities and the capacity of current and future co-location partner facilities. Among them: the group intends to use 12.0% of the net proceeds for the group's broadband products, including the group's 50G/25G PON products. The group plans to use 13.0% of the net proceeds for the group's wireless products, including the group's Wi-Fi 7 and Wi-Fi 8 products. The group intends to use approximately 25.0% of the net proceeds for the group's optical module products, including the group's 800G/1.6T optical module products. (2) The group plans to use approximately 20.0% of the net proceeds to further enhance the group's R&D talent and technology to achieve more R&D breakthroughs. Among them: the group intends to use 5.5% of the net proceeds to recruit professional R&D personnel. The group will also use approximately 9.5% of the net proceeds to support the continuous R&D of the group's manufacturing technology through the procurement of advanced machines and software. In addition, approximately 5.0% of the net proceeds will be used to procure necessary materials to support R&D work. (3) The group will use approximately 5.0% of the net proceeds for business promotion and marketing through the implementation of the following sales and marketing strategies. Among them: the group will use approximately 4.7% of the net proceeds to enhance the capabilities of the group's sales and marketing team. The group intends to use approximately 0.3% of the net proceeds to enhance the group's brand and reputation by increasing industry association memberships and to expand the group's market exposure and improve customer reach by increasing the group's participation in global industry activities. (4) The group will use approximately 15.0% of the net proceeds for overseas strategic investments to achieve the group's long-term growth strategy. (5) Finally, the group will use approximately 10.0% of the net proceeds for general corporate purposes, including working capital needs. In terms of the group's financial performance, during the track record period, the group generated revenues of RMB 3.784 billion, RMB 3.085 billion, RMB 3.65 billion, and RMB 2.034 billion, with gross profits of RMB 689 million, RMB 664 million, RMB 762 million, and RMB 445 million, and gross profit margins of 18.2%, 21.5%, 20.9%, and 21.9%, respectively. In the same year/period, the group's net profits were RMB 171 million, RMB 95 million, RMB 167 million, and RMB 118 million, with net profit margins of 4.5%, 3.1%, 4.6%, and 5.8%, respectively