Nazha Technology files for listing on the Hong Kong Stock Exchange, Hisense Group aims to create the sixth IPO

Hisense’s capital map may expand again. After the previous listing application failed, recently, Hisense Group’s subsidiary Naxin Technology (hereinafter referred to as “Naxin Technology”) once again submitted listing application materials to the Hong Kong Stock Exchange. However, behind this attempt to go public, Naxin Technology’s performance has shown significant fluctuations in recent years; at the same time, the overlap between the company’s clients and suppliers has become a market focus. Pushing for Naxin Technology’s IPO in Hong Kong is another important move for Hisense Group, a well-established company with 57 years of history, to expand its capital footprint. Currently, the group has built a capital map spanning A-shares, H-shares, and Japanese stocks, including five listed companies such as Hisense Visual and Hisense Home Appliances. If Naxin Technology successfully lists in Hong Kong, Hisense’s capital map will expand further.

Significant Profit Fluctuations

Recently, Hisense Group’s Naxin Technology again submitted a listing application to the Hong Kong Stock Exchange, aiming for a Hong Kong listing. Previously, the company had submitted an application in August 2025, but that application ultimately failed.

It is understood that Naxin Technology is a global provider of optical communication and optical connection products, dedicated to the research, manufacturing, and sales of optical modules, optical chips, and optical network terminals. According to Frost & Sullivan, in 2024, by global optical module revenue, the company held a 2.9% market share, ranking fifth among all professional optical module manufacturers worldwide; by Chinese optical module revenue, it held a 7.2% market share, ranking third globally.

Behind this renewed attempt at a Hong Kong IPO, Naxin Technology’s net profit during the reporting periods has shown notable fluctuations. Financial data shows that from 2023 to 2025, the company’s revenue was approximately 4.239 billion yuan, 5.087 billion yuan, and 8.355 billion yuan, respectively; corresponding net profits were about 216 million yuan, 89.49 million yuan, and 873 million yuan.

Breaking down by product line, in 2025, Naxin Technology’s revenue from optical modules, optical chips, and optical network terminals was approximately 6.535 billion yuan, 28.931 million yuan, and 1.791 billion yuan; accounting for 78.2%, 0.3%, and 21.4%, respectively.

Bai Wenxi, Vice Chairman of the China Enterprise Capital Alliance, told Beijing Business Today that the optical communications industry is迎来 a historic development opportunity, driven by the explosive growth of artificial intelligence computing infrastructure.

It is worth noting that during each reporting period, Naxin Technology declared substantial dividends. The prospectus shows that from 2023 to 2025, the company declared dividends of 259 million yuan, 124 million yuan, and 51.3 million yuan, totaling about 434 million yuan.

Overlap Between Clients and Suppliers

Along with Naxin Technology’s application to the Hong Kong Stock Exchange, the issue of overlapping clients and suppliers during the reporting periods has also come under scrutiny.

The prospectus shows that during any year in the historical record, among the company’s top five clients, only Client C was not a supplier to the company. Additionally, from 2023 to 2025, among all suppliers or their related parties, 7, 4, and 5 were also clients of the company, with income from these suppliers or related parties accounting for 50.6%, 15%, and 49.3% of total revenue, respectively. Naxin Technology emphasizes that the total procurement from these suppliers during each reporting period accounts for less than 1% of the company’s total procurement.

Furthermore, the prospectus indicates that during any year in the historical record, only Suppliers A, E, and G were not among the company’s top five suppliers.

As a company affiliated with Hisense, the transaction relationship between Naxin Technology and Hisense Group has also attracted market attention. The shareholding structure shows that Naxin Technology is directly or indirectly held by Hisense Group through its wholly owned subsidiary Century Jinlong, holding a total of 394 million shares, accounting for about 48.61% of the company’s issued shares. Hisense Group and Century Jinlong are the controlling shareholders.

From 2023 to 2025, Hisense Group has been among Naxin Technology’s top five suppliers, ranking first, second, and fourth, with procurement amounts accounting for 6.9%, 5.9%, and 3.3% of the company’s total purchases, respectively. Meanwhile, the prospectus shows that Hisense Group was a overlapping client/supplier in 2023 and 2024, but not in 2025.

Zhai Dan, President of Fire Private Equity Fund, stated that over-reliance on overlapping clients and suppliers could lead to insufficient supply chain resilience, and if these clients or suppliers encounter operational issues, it could impact the company’s production and operations.

Additionally, it is worth noting that the controlling shareholder of Naxin Technology, Hisense Group, and the shareholder TransLight, which holds 23.22% of the company’s shares, have been questioned by the China Securities Regulatory Commission (CSRC). In November 2025, the CSRC issued supplementary materials for overseas issuance and listing, requiring the company to clarify the transparency of its controlling shareholder and whether the domestic entities behind the shareholder TransLight, holding over 5%, are subject to legal or regulatory prohibitions on shareholding.

Hisense’s Capital Expansion Expected

Founded 57 years ago, Hisense Group has adhered to the development strategy of “technological innovation and steady operation,” evolving from the “Qingdao Radio Factory” producing semi-conductor radios in 1969 to a well-known technology enterprise covering six core industries: home appliances, semiconductors, smart energy, lasers, automotive electronics, and content platforms. In 2025, Hisense’s annual revenue reached 224.4 billion yuan, with overseas revenue of 110.7 billion yuan, a year-on-year increase of 11%, accounting for 49.3% of total revenue.

Meanwhile, the group’s capital layout continues to expand, building a cross-border capital map across A-shares, H-shares, and Japanese stocks. As of now, the group owns four A-share listed companies: Hisense Visual, Hisense Home Appliances, Qianzhao Optoelectronics, and Kelin Electric, with Hisense Home Appliances also listed in H-shares; and one Japanese-listed company, San Electric Holdings.

In terms of market value, according to Tonghuashun iFinD data, as of March 9, the combined market capitalization of the five Hisense-listed companies was approximately 101.288 billion yuan. Specifically, among these, Qianzhao Optoelectronics led with 320.18 billion yuan; Hisense Home Appliances followed with 302.72 billion yuan; Hisense Visual was third with 288.27 billion yuan. Kelin Electric and San Electric Holdings had market caps of less than 10 billion yuan, at 9.405 billion yuan and 766 million yuan, respectively.

Looking at the fundamentals of these four A-share companies, in the first three quarters of 2025, Hisense Home Appliances posted the highest profit of 2.812 billion yuan; Hisense Visual’s profit was about 1.629 billion yuan. Meanwhile, Kelin Electric and Qianzhao Optoelectronics achieved net profits of approximately 217 million yuan and 87.99 million yuan, respectively.

With the push for Naxin Technology’s IPO in Hong Kong, Hisense’s capital map is poised to expand further. If Naxin Technology successfully completes its IPO process, the group’s listed platforms will grow to six.

We sent an interview request to Naxin Technology for comments, but as of press time, no response has been received.

Beijing Business Today Reporter Wang Manlei