Dier Laser experiences its first net profit decline in six years since going public. Can domestic laser manufacturers flocking to Hong Kong break the deadlock?

Once a leader in photovoltaic laser equipment with limitless prospects, DiEr Laser is now facing growth bottlenecks.

On March 12, the company released its 2025 performance forecast, showing that its full-year revenue growth was only 0.93%, and net profit attributable to shareholders decreased by 1.59% year-on-year.

Looking back at the company’s previous performance, the revenue growth rates for 2023 and 2024 were 21.49% and 25.20%, respectively, with net profit attributable to shareholders increasing by 12.16% and 14.40%. Until the first three quarters of 2025, the company’s revenue growth and net profit growth still reached 23.69% and 29.39%. The slowdown for the full year may indicate a sharp decline in the company’s Q4 performance.

DiEr Laser’s performance is highly tied to the capital expenditure cycle of leading photovoltaic companies. In 2024, over 63.30% of its sales came from the top five customers, indicating high customer concentration. If downstream companies slow down their expansion, the company’s orders will be directly impacted.

In 2025, the domestic photovoltaic industry experienced multiple shocks, including overcapacity and accelerated technological iteration. Industry price wars continued to intensify, squeezing profit margins upstream and downstream. Under these circumstances, the photovoltaic equipment industry where DiEr Laser operates is also likely to hit a wall, with a clear growth ceiling emerging.

Amidst industry cycle constraints and performance setbacks, the company has initiated plans to list on the H-share market. On the same day as the performance forecast, the company announced its intention to issue overseas listed foreign shares (H shares) and apply for listing on the main board of the Hong Kong Stock Exchange. The proposal was approved at the eighth meeting of the company’s fourth board of directors and is now subject to shareholder approval.

Regarding the purpose of listing in Hong Kong, the company stated that it aims to deepen its internationalization strategy, build a diversified capital operation platform, and enhance its global brand image and market competitiveness.

According to statistics, seeking “A+H” listings in China has become an industry consensus for laser and optoelectronic companies. Since 2025, subsidiaries of Han’s Laser, such as Han’s CNC, Huagong Tech, and Yuanjie Tech, along with other upstream and downstream laser companies, have flocked to the Hong Kong stock market.

Opinions on this phenomenon vary. Some cross-border investment bankers believe that high-end manufacturing companies listing in Hong Kong can expand overseas markets, hedge exchange rate risks through foreign financing platforms, and enhance global brand recognition.

However, private investors argue that the Hong Kong market does not offer significant valuation advantages for high-end manufacturing, and the liquidity divide is becoming more pronounced. The clustering of laser companies going public in Hong Kong more reflects domestic market growth concerns reaching a peak.

Note: This article is generated with AI assistance. The viewpoints expressed do not constitute investment advice and are for reference only. The market carries risks; please invest cautiously.