On October 28, Dongshan Precision (02384.HK) began trading on the Main Board of the Hong Kong Stock Exchange, completing its dual-listing strategy across "A+H" markets.
The global offering comprised approximately 114 million H shares at a fixed price of HKD 86.80 per share, raising total proceeds of approximately HKD 9.717 billion. On the first day of trading, the opening price was HKD82.40 per share; as of this report, the share price stood at HKD 84.8, with a combined A+H market capitalization of HKD 164.3 billion.
According to the prospectus, net proceeds from this offering will be allocated to four key areas: constructing new production facilities and upgrading existing lines and equipment; potential strategic investments and acquisitions; repayment of certain existing debts; and supplementing working capital for general corporate purposes. Notably, 64.5% of the net proceeds are earmarked for capacity expansion, representing the core focus of capital deployment.
Capacity investment follows two main tracks: first, the high-end PCB base in Zhuhai, which is being developed in two phases and will add approximately 636,000 square meters of designed annual capacity upon completion; second, expanding capacity for high-speed EML laser chips and optical modules to address shortcomings following the acquisition of Source Photonics.
As AI large models and global computing infrastructure accelerate, the value of PCBs and optical modules is being reassessed. AI training relies on computing clusters composed of tens of thousands of accelerator cards, requiring continuous high-frequency synchronization of massive parameters between GPUs and servers. Bandwidth, latency, and signal integrity directly determine whether cluster computing power can be fully unleashed, making PCBs and optical modules two indispensable hardware components in this interconnect architecture.
In terms of financial performance, Dongshan Precision has maintained steady revenue growth over the past three years. From 2023 to 2025, revenue increased from CNY 33.651 billion to CNY 40.125 billion, with profits rebounding in 2025 due to the acquisition of Source Photonics. Structurally, PCBs remain the largest revenue source, contributing CNY 25.620 billion in revenue and CNY 4.269 billion in gross profit in 2025. The consolidated results for optical modules, covering three months post-acquisition, contributed CNY 1.436 billion in revenue and CNY 528 million in gross profit. In the first half of this year, Dongshan Precision achieved operating revenue of CNY 27.798 billion, a year-on-year increase of 63.95%. Revenue from optical modules (including optical chips) reached CNY 5.351 billion, accounting for 19.25% of total company revenue, with a gross margin of 39.33%, significantly higher than the 18.80% for electronic circuit products and 12.13% for precision components overall.
The semi-annual report clearly defines Source Photonics' positioning:
It is one of the few companies globally adopting an IDM model to achieve integrated layout of EML optical chips and optical modules;
Its product speeds cover the full matrix from 2.5G to 200G, with 100G/200G PAM4 EML serving as the flagship high-end series;
Cumulative usage of 100G PAM4 EML exceeds ten million units in 400G and 800G optical modules, while 200G PAM4 EML has entered mass production stage, capable of supporting 1.6T optical modules;
By region, overseas customers form the foundation of Dongshan Precision's revenue. From 2023 to 2025, revenue from customers outside mainland China (based on customer registration location) grew from CNY28.002 billion to CNY 32.665 billion, with revenue proportions standing at 83.20%, 83.20%, and 81.40%, respectively. While the proportion of revenue from US customers declined from 57.50% to 50.80%, the absolute amount increased from CNY 19.334 billion to CNY 20.386 billion; the share from Europe and other regions rose from 4.00% to 8.10%, with revenue increasing from CNY 1.340 billion to CNY 3.232 billion; and the share from other Asian countries excluding Japan rose from 2.80% to 4.20%.