New Stock News | Cig Shanghai (603083.SH) submitted an application to the Hong Kong Stock Exchange, ranking fifth in the global integrated optical and wireless connectivity equipment industry.

According to the disclosure of the Hong Kong Stock Exchange on April 28, Shanghai Cig Shanghai Co., Ltd. (603083.SH) submitted its application to the HKEX, with Guotai Junan International acting as its sponsor. According to Frost & Sullivan data, Cig Shanghai is a global company that provides high-efficiency real-time connectivity solutions related to optical communication, broadband, and wireless technologies. As of 2024, the company ranks fifth in the global Integrated Optical and Wireless Connectivity Devices (OWCD) industry in terms of sales revenue. According to the prospectus, Cig Shanghai is a global industry leader providing key infrastructure components to support the development of artificial intelligence. In the past performance period, Cig Shanghai's sales revenue mainly came from optical connectivity solutions, broadband solutions, and wireless technology solutions. Cig Shanghai's optical connectivity solutions enable efficient internal and inter-cluster communication. According to Frost & Sullivan data, the company is one of the first to develop 800G and 1.6T optical module products in the global OWCD industry. Additionally, as of the latest practicable date (April 18, 2025), the company's 800G optical modules represent the world's most advanced mass-produced optical module products, while the 1.6T optical modules are among the leading research products in the industry. Cig Shanghai has also developed several important technologies in the industry, such as silicon-based optical modulation module technology, proprietary Linear Pluggable Optics (LPO) technology, and Packaging Laser and Silicon Optical Module (ELS) technology for co-packaging optics (still under development), which integrates network and optical engines into a single slot, significantly reducing the distance between switch chips and optical engines and leading to significantly reduced costs. Cig Shanghai's high-speed broadband solutions enable efficient transmission between compute clusters and users. As of December 31, 2024, the company's XGS PON products (representing the latest mainstream 10GPON technology in the broadband field) account for over 30% of the global 10GPON market by shipment volume. The company was also the first in the world to achieve mass production of 25GPON and the development of 50GPON. As of the latest practicable date, 25GPON is the fastest mass-produced product globally, and 50GPON is poised to become the next generation mainstream product in the broadband field. In terms of market opportunities and competitive landscape, according to Frost & Sullivan data, global sales revenue in the OWCD industry has increased from $32.4 billion in 2020 to $54.6 billion in 2024, with a compound annual growth rate of 13.9%, and is expected to reach $111.8 billion by 2029 with a compound annual growth rate of 15.4% from 2024 onwards. The explosive growth of recent artificial intelligence applications has increased the demand for future connectivity solutions that ensure fast, low-latency, and high-capacity data transmission to support artificial intelligence development. Financially, in the years 2022, 2023, and 2024, Cig Shanghai's revenues were approximately RMB 3.784 billion, RMB 3.085 billion, and RMB 3.65 billion respectively; during the same periods, the annual profits were approximately RMB 171 million, RMB 95 million, and RMB 167 million respectively. According to the risk factors section of Cig Shanghai's prospectus, the company may face risks related to its global business. As a global company, the company's operations and revenue are largely derived from international markets, including the United States, Europe, and the Asia-Pacific region. As of December 31 in the years 2022, 2023, and 2024, revenues from overseas markets accounted for 82.9%, 89.3%, and 92.6% of total revenue respectively. Operating internationally, especially when expanding into new emerging markets with limited previous experience, exposes the company to various risks and challenges.