xFusion Digital Technologies, the Chinese server maker carved out of Huawei's x86 server business, passed its ChiNext listing review on November 12, when the Shenzhen Stock Exchange's listing committee ruled the company meets issuance, listing and disclosure requirements. The approval came just 174 days after the application was accepted on May 22, with CITIC Securities as sponsor — and the company is seeking 8 billion yuan (roughly $1.1 billion), the largest IPO filed on ChiNext this year.
The lineage matters as much as the numbers. xFusion was formed in 2021 when Huawei spun off its x86 server operations as an independently operated entity, headquartered in Zhengzhou and now controlled by Henan provincial state-owned assets. What began as a business-continuity vehicle has become one of the fastest-scaling compute infrastructure companies in China, with the IPO prospectus positioning it around AI and data-era full-stack compute supply.
The growth curve is steep. Revenue was 25.09 billion yuan in 2023, 44.27 billion yuan in 2024 and 58.25 billion yuan in 2025, with 37.29 billion yuan in the first half of 2026 alone. Net profit ran 507 million yuan in 2023, 722 million yuan in 2024 and 1.03 billion yuan in 2025 — yet first-half 2026 net profit reached 2.11 billion yuan, roughly double the entire previous year. Listing committee questions focused on exactly that: the sustainability of gross margin trends and profit growth given customer and supplier concentration and downstream capital spending cycles.
On market position, IDC data cited in the prospectus shows xFusion's share of the Chinese server market rising from 11.7 percent in 2022 to 14.2 percent in 2025, lifting it to second place by shipments. The company ranks first in China for domestically-produced server sales and has held the top spot in standard liquid-cooled server share for four consecutive years — the segment growing fastest as AI racks push past what air cooling can handle.
The 8 billion yuan raise targets three lines: research and industrialization of next-generation compute infrastructure, a smart manufacturing campus and R&D center, and key technologies for intelligent computing and AI power architecture. That allocation tracks the prospectus's stated decade focus on four technical pillars — AI, compute, data and energy — and reflects where the money is in Chinese data center buildout right now.
For the market, xFusion is a bellwether of two trends at once. First, China's AI infrastructure layer is producing its own large-cap supply chain champions, capable of billion-dollar listings on domestic exchanges rather than depending on US capital. Second, the IPO backlog on ChiNext is now dominated by compute hardware, not consumer internet — a quiet re-rating of what counts as a growth asset. The listing will also hand Henan province its most prominent tech listing to date, part of a deliberate push to anchor AI manufacturing away from the coastal hubs.
Comments (0)
Log in to join the discussion
Log InNo comments yet