Market capitalization exceeds 100 billion, Xi'an CPO giant rushes to the Hong Kong Stock Exchange

Ask AI · What are the AI-driven factors behind the surge in Yuanjie Technology’s stock price?

In the past year, the stock price has increased by over 900% in the A-share market.

Article by | Zhitong IPO ID: zhitongIPO

Author | Shao Yangang

The first high-priced stock on the Sci-Tech Innovation Board has initiated the process for listing in Hong Kong.

On March 25, Shaanxi Yuanjie Semiconductor Technology Co., Ltd. (hereinafter referred to as “Yuanjie Technology”) officially submitted its prospectus to the Hong Kong Stock Exchange, aiming for a dual capital platform layout of “A+H”.

Yuanjie Technology is a popular target in the current A-share market, located at the core of the CPO (Co-Packaged Optics) concept, with its stock price rising approximately 85% since the beginning of this year. As of the market close on March 26, Yuanjie Technology’s stock price was reported at 1185.01 yuan per share, with a total market capitalization of 101.849 billion yuan, setting a new high since its listing on December 21, 2022. In the past year, Yuanjie Technology’s stock price has increased by over 900%.

Source: Xueqiu

It is reported that Yuanjie Technology was established in January 2013, focusing on the research, design, and manufacturing of laser chip technology. Its core product portfolio includes CW laser chips, EML laser chips, and DFB laser chips, covering key scenarios such as AI data centers, 5G communication construction, and fiber optic access. According to a report by TrendForce, Yuanjie Technology is the sixth largest supplier of laser chips globally and the second largest supplier of silicon photonics high-speed optical interconnect laser chips based on external sales revenue in 2025.

Currently, the rapid development of AI models and applications is driving a massive increase in computing power demand, which in turn boosts the need for high-speed, low-latency data transmission capabilities. To meet the requirements of the new generation of AI data centers for large-scale, high-speed, and highly reliable interconnects, optical interconnects have become a key solution, with laser chips playing a crucial role as the core of optical interconnect systems, thus driving the market enthusiasm for Yuanjie Technology.

According to Yuanjie Technology’s 2025 annual report, the company achieved an operating income of 601 million yuan last year, a year-on-year increase of 138.50%; the net profit attributable to shareholders reached 191 million yuan, turning a profit from a net loss of 6.13 million yuan in the previous year. Yuanjie Technology stated that the revenue growth was mainly due to the increase in revenue from its data center business, which accounted for a higher proportion of the company’s overall revenue, along with further optimization of the company’s overall product structure and a relatively high gross margin for data center products, resulting in a year-on-year increase in net profit levels.

The prospectus shows that in 2023, 2024, and 2025, Yuanjie Technology is expected to achieve revenues of 144 million yuan, 252 million yuan, and 601 million yuan, respectively; the gross profit will be 41.498 million yuan, 58.903 million yuan, and 335 million yuan, respectively. Sales and marketing expenses are projected to be 8.355 million yuan, 18.532 million yuan, and 23.784 million yuan, respectively; R&D investment is estimated at 30.946 million yuan, 54.518 million yuan, and 80.843 million yuan, respectively.

Source: Yuanjie Technology Prospectus

Yuanjie Technology’s products are primarily applied in the two major fields of data centers and telecommunications, with revenue mainly coming from the sale of data center laser chips and telecommunications laser chips. The data center market is showing strong growth momentum, driven by the rapid adoption of data-intensive technologies such as AI.

The prospectus indicates that in terms of revenue composition, Yuanjie Technology’s revenue from data center laser chips in 2023, 2024, and 2025 is expected to be 4.614 million yuan, 48.013 million yuan, and 393 million yuan, accounting for 3.2%, 19.0%, and 65.4% of total revenue, respectively; revenue from telecommunications laser chips is projected to be 1.33 billion yuan, 2.02 billion yuan, and 2.06 billion yuan, accounting for 92.1%, 80.2%, and 34.3% of total revenue, respectively.

Source: Yuanjie Technology Prospectus

Additionally, according to the data in the prospectus, in 2023, 2024, and 2025, the total revenue generated from sales to the top five customers of Yuanjie Technology is expected to be 80.2 million yuan, 149 million yuan, and 432 million yuan, respectively, accounting for 55.6%, 59.1%, and 71.8% of total revenue for those years, indicating a high customer concentration. In 2025, the revenue from Yuanjie Technology’s largest customer is expected to be 321 million yuan, accounting for as much as 53.4% of total revenue for that year.

In terms of equity structure, the company’s founder, Zhang Xingang, along with his concerted action partners, collectively holds about 27.85% of the voting rights, making them the actual controllers of the company.

With this IPO in Hong Kong, Yuanjie Technology plans to use the raised funds to enhance research and testing capabilities and expand the production capacity of laser chips; to make strategic investments and plan business synergies to fully unlock the growth potential of its customer base; to expand the sales and service network and support marketing activities; and for working capital and other general corporate purposes.

(Source of the first image: Lieyunwang)