Key Takeaways:
Huaqin's strategic expansion from its original ODM electronics business into data center products helped to double its revenue to 83.9 billion yuan in the first half of 2025
The contract manufacturer is betting on AIoT products and robotics to boost its margins, but remains dependent on more traditional products like smartphones and tablets
What do you do when your traditional business as an original design manufacturer (ODM) for electronics makers is quickly reaching a saturation point? If your name is Huaqin Co. Ltd. (603296.SH), the answer is you diversify into the data center products. Now, this company is taking its hybrid ODM-data center show to Hong Kong, where it filed to make a second listing last week to complement its current listing in Shanghai.
Huaqin raised eyebrows in 2017 when it first announced its data center move, which marked a major departure from its traditional business of contract manufacturing for electronics brands. The move required not only substantial investment but also that Huaqin build a new client book from scratch.
Fast forward to the present, when the unusual pivot now looks prescient. A surge in demand for computing power, particularly following the release of OpenAI's ChatGPT, has sparked a boom in demand for data centers and related products, which have become a cornerstone of Huaqin's business.
The fast-growing segment helped the company to more than double its revenue in the first half of this year, reaching 83.9 billion yuan ($11.8 billlion). Investors are embracing Huaqin's transformative story, with its Shanghai-listed shares surging about 40% year-to-date.
That momentum may be a factor leading Huaqin to pursue a second IPO right now. The timing of its filing appears strategic, as it joins a wave of Mainland-listed firms seeking listings on the more internationally focused Hong Kong Stock Exchange. While Huaqin hasn't disclosed its fundraising target, its choice of prominent underwriters CICC and BofA Securities suggests a substantial offering, probably at least $100 million, is in the works.
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