[HK IPO Subscription] Xizhi Technology-p, Leader in Optical-Electronic Hybrid Computing Power

Congratulations to everyone for making a profit today. The AI computing power PBC concept stock, Shenghong Technology, surged over 64% at its grey market opening today. Getting one lot would earn you 13,000, and I got two lots. Although I didn't sell at the peak, I still made over 20,000. The recent IPO market in Hong Kong has been incredibly hot. This year, any new stock in Hong Kong related to concepts like AI and chips has performed very well. The recent new listings have all been big winners. Today, another new stock called Xizhi Technology is coming, focusing on the photonic-electronic hybrid computing concept. Let's analyze the quality of Xizhi Technology.

    The pain points of current AI large models and computing power data centers: The more NVIDIA GPUs are stacked, the slower the data transfer between chips, the higher the power consumption, and the more severe the heat generation. Traditional copper wire transmission can't handle it anymore. Xizhi Technology aims to solve these two problems.

Xizhi Technology doesn't use copper wires for data transfer. Instead, it uses optical fibers / optical signals to connect a cluster of GPUs, making data transfer within the computing cluster faster, with lower latency, and more energy-efficient. It builds high-speed "optical network cables" for major internet companies and computing centers. Currently, it is basically the market leader in this domestic field.

  The company will start its IPO subscription on April 20th, with an offer price range of HKD 166.6~183.2. Each board lot consists of 15 shares, with a minimum subscription of HKD 2775.71. The market capitalization is HKD 15.322 billion ~ 16.849 billion. The total number of shares issued is 13.7952 million. It belongs to the digital solutions services industry and has a greenshoe option.

  The sponsors are China International Capital Corporation (CICC) and Haitong International. The first-day rise rate for projects sponsored by CICC in the past two years is 69.01%, and for Haitong International, it's 78.57%. The overall performance of the sponsors is quite good.

  There are a total of 20 cornerstone investors, including Alibaba, GIC, Baillie Gifford, BlackRock, Fidelity International, Schroders, Temasek, Shanghai China Mobile Fund, Hillhouse HHLRA, UBS Asset Management, 3W Fund, Aspex, CPE Fir, Greenwoods Asset Management, GF Fund, Lenovo Group, Mirae Asset, ZTE, ICBC Wealth Management, Ping An Asset Management, etc. The cornerstone lineup is impressive, with a total subscription of USD 209.9 million, accounting for 68.14% of the total issue size. The cornerstone ratio is extremely high.

    In 2025, there were only two companies in China's scale-up optical interconnect market that achieved large-scale commercialization, leading to a highly concentrated competitive landscape. The top two participants together accounted for approximately 99.8% of the total market share. Among them, our company is the only independent scale-up optical interconnect solution supplier in China that has achieved large-scale commercialization. Among independent scale-up optical interconnect solution suppliers, our company ranked first by revenue in 2025, generating revenue of RMB 79.2 million, accounting for approximately 88.3% of the market share. Our company is also the only independent supplier in the market capable of providing integrated large-scale scale-up optical interconnect solutions.

  The company's revenue from 2023 to 2025 was RMB 38.235 million, RMB 60.191 million, and RMB 106 million respectively. Revenue in 2025 increased by 76.72% year-on-year. Net profit from 2023 to 2025 was -RMB 414 million, -RMB 735 million, and -RMB 1.342 billion respectively. Net profit in 2025 decreased by 82.57% year-on-year. The company is still operating at a loss.

    Based on the median issue price, the market cap is HKD 16.086 billion, with an issue size of HKD 2.413 billion. The issuance ratio is 15%. With cornerstones locking up 68.14%, the free float is HKD 769 million.

    This issuance adopts an 18C clawback mechanism. The initial public offering portion is 5%. If the subscription multiple is 10 times or more but less than 50 times, the clawback is 10%. If it's 50 times or more, the clawback is 20%. The current subscription multiple is 363.06 times, indicating extremely high demand. Assuming a 20% clawback, there are a total of 183,937 board lots. The supply is ample, so the winning rate should be relatively high.

Subscription Strategy:

Xizhi Technology focuses on the photonic-electronic hybrid computing field and ranks first among independent scale-up optical interconnect solution suppliers. The sponsors are CICC and Haitong International, and their overall performance is quite good. The lineup of 20 cornerstone investors is impressive, with a total subscription of USD 209.9 million, accounting for 68.14% of the total issue size, which is extremely high. The net profit in 2025 was -RMB 1.342 billion, indicating the company is still operating at a loss. This issuance adopts an18C clawback mechanism, with an initial public offering portion of 5% and a maximum clawback of 20%. Thefree float is HKD 769 million. Subscription demand is extremely high, with a total of 183,937 board lots. The supply is ample, so the winning rate should be relatively high. Basically, everyone who applies will likely get an allocation. Although the financial performance is weak, the concept is very strong. New stocks related to AI, chips, and computing power concepts have performed well this year. I plan to participate in the subscription as well!

My remarks represent personal opinions only and do not constitute any investment advice. The stock market carries risks; invest with caution!

$XIZHI TECH-P(01879.HK) $VGT(02476.HK)