From BigGo Finance · BigGo Finance · · 1m 40s
Henan State Capital Targets XFusion IPO
Henan state capital bets five years on XFusion: CNY 80 billion valuation, CNY 8 billion IPO on the line this week.
In brief
Henan state capital bets five years on XFusion: CNY 80 billion valuation, CNY 8 billion IPO on the line this week. Henan state capital's XFusion Digital Technologies aims for CNY 80 billion valuation after raising CNY 8 billion in an IPO, becoming the largest ChiNext listing since China tightened IPO rules. Originally…
XFusion IPO Review
The Shenzhen Stock Exchange will review XFusion Digital Technologies' IPO application on Nov. 12.
IPO Valuation and Raise
XFusion plans to raise CNY 8 billion (approximately $1.2 billion) at a valuation of up to CNY 80 billion (approximately $12.0 billion).
XFusion's Origin
XFusion originated from Huawei's x86 server business, which Huawei spun off in 2.021 and Henan state capital took over.
2025 Performance
XFusion reported 2025 revenue of CNY 58.246 billion (approximately $8.7 billion) and net profit of CNY 1.03 billion (approximately $154.4 million).
Market Position
XFusion ranks second in China's server market with a 14.2% share and first in liquid-cooling servers for four consecutive years.
Shareholders
Shareholders include the three Chinese telecom carriers' investment arms and the National Structural Adjustment Fund.
Gross Margin Decline
Gross margin fell from 14.27% in 2023 to 8.58% in 2025, with upstream chip pricing power still the main constraint.
Zhengzhou Manufacturing
Zhengzhou's Airport Economy Zone attracted over 80 upstream and downstream companies for XFusion's smart manufacturing park.
Industry Impact
XFusion's success helps push 'Made in Zhengzhou' from contract assembly toward higher-value segments featuring proprietary brands.
Market Comparison
ChangXin Memory Technologies generated over CNY 1 trillion in paper gains for Hefei state capital, contrasting Henan's potential gains from XFusion.
What matters most
Henan state capital's XFusion Digital Technologies aims for CNY 80 billion valuation after raising CNY 8 billion in an IPO, becoming the largest ChiNext listing since China tightened IPO rules.
