Tianfu Communications Plans Hong Kong IPO to Accelerate Global Layout; Product Demand Growth Drives Consolidated Net Profit Increase of over 40%

Changjiang Business Daily News ● Changjiang Business Reporter Xu Yang

Tianfu Communication (300394.SZ) Accelerates Global Expansion.

On the evening of March 16, Tianfu Communication announced that the company plans to issue H-shares and list on the Hong Kong Stock Exchange, appointing Ernst & Young Hong Kong as the audit firm for this issuance and listing. The funds raised will be used to expand production capacity, invest in R&D, strategic investments, and acquisitions.

Tianfu Communication is committed to becoming a leading global optical device company. Through independent R&D and acquisitions, after years of development, it has formed two core business segments: passive optical device solutions and optoelectronic advanced packaging. The company actively promotes internationalization, establishing dual headquarters, dual production bases, and multiple R&D centers worldwide.

Thanks to the rapid development of the artificial intelligence industry and global data center construction, the demand for high-speed optical device products has continued to grow steadily, driving Tianfu Communication’s rapid performance growth. According to its 2025 performance forecast, the company expects net profit attributable to shareholders of approximately 1.881 billion to 2.15 billion yuan, a year-on-year increase of 40% to 60%. This will be Tianfu Communication’s best annual performance to date. From 2018 to 2025, net profit attributable to shareholders will have increased for eight consecutive years.

Plans to Issue H-shares and List on the Hong Kong Stock Exchange

On the evening of March 16, Tianfu Communication announced that to continue advancing its internationalization strategy and global layout, and to build an international capital operation platform to better meet global customer needs and support high-quality development, the company plans to issue shares abroad (H-shares) and list on the Main Board of the Hong Kong Stock Exchange.

The announcement states that Tianfu Communication will appoint Ernst & Young Hong Kong as the audit firm for this issuance and listing. The funds raised, after deducting issuance costs, will be used for (but not limited to): expanding capacity, R&D investment, strategic investments and acquisitions, and supplementing working capital.

Founded in 2005 and listed on the ChiNext in China in 2015, Tianfu Communication is a leading provider of comprehensive optical device solutions and optoelectronic packaging manufacturing services. It focuses on the R&D, production, and sales of high-speed optical devices. Its products are widely used in artificial intelligence, data centers, fiber-optic communications, and optical sensing.

In recent years, Tianfu Communication has actively promoted its internationalization strategy, establishing a dual-headquarters, dual manufacturing bases, and multiple R&D centers: with headquarters in Suzhou and Singapore; mass production bases in Jiangxi and Thailand to provide diversified options and localized technical support and services; and R&D centers in Japan, Shenzhen, and Suzhou.

During the investor relations event in November 2025, Tianfu Communication indicated that its Thailand production base will be built in two phases. The first phase was operational by mid-2024, with capacity increasing based on customer demand; the second phase is expected to be operational within the same year, with each product line in Thailand gradually increasing capacity by 2026.

Financial reports show that Tianfu Communication’s export business has become a major contributor to its performance. From 2022 to the first half of 2025, export revenues were 689 million, 1.592 billion, 2.473 billion, and 1.922 billion yuan, accounting for 57.56%, 82.14%, 76.06%, and 78.28% of operating income during those periods.

In the secondary market, Tianfu Communication’s stock price has generally been rising. On March 17, the intraday price closed at 280 yuan per share, with a cumulative increase of over 300% since the beginning of 2025. Its total market value reached 217.68 billion yuan.

Maximum Profit Forecast of 2.15 Billion Yuan

With its accelerated overseas expansion, Tianfu Communication’s overall operating performance has been impressive.

In 2018, the company achieved revenue of 443 million yuan, a year-on-year increase of 31.04%; net profit attributable to shareholders was 136 million yuan, up 21.84%; and net profit after deducting non-recurring gains and losses (hereinafter “non-recurring net profit”) was 127 million yuan, up 23.97%.

From 2019 to 2024, Tianfu Communication’s revenue, net profit attributable to shareholders, and non-recurring net profit all maintained strong growth, mostly with double-digit year-on-year increases.

According to its latest forecast for 2025, the company expects net profit attributable to shareholders of approximately 1.881 billion to 2.15 billion yuan, a 40% to 60% increase; non-recurring net profit of about 1.829 billion to 2.108 billion yuan, up 39.19% to 60.40%. Both are expected to be the best annual results in the company’s history, with net profit and non-recurring net profit potentially surpassing 2 billion yuan for the first time. From 2018 to 2025, net profit attributable to shareholders and non-recurring net profit will have increased for eight consecutive years.

Tianfu Communication states that the expected increase in net profit attributable to shareholders in 2025 is mainly due to the accelerated development of the artificial intelligence industry and global data center construction, which drive steady growth in demand for high-speed optical devices. Coupled with the company’s ongoing cost reduction and efficiency improvements through intelligent manufacturing, this has jointly promoted revenue growth in both active and passive product lines. Additionally, during the reporting period, financial expenses increased year-on-year due to exchange losses, which had a slight negative impact on performance growth.

Furthermore, in 2025, the company estimates that non-recurring gains and losses will impact net profit attributable to shareholders by approximately 42 million to 52 million yuan, compared to 29.54 million yuan in the same period last year.

Besides market demand, Tianfu Communication’s own market competitiveness is also a key factor driving steady growth.

The company reports that since going public, it has maintained high R&D investment, continuously deepening its capabilities in optical device solutions and advanced optical packaging manufacturing. This has kept the company at the forefront of technology in its niche, providing strong support for customers’ new product development and accelerating the commercialization of high-speed products.

In the first three quarters of 2023-2025, R&D expenses were 143 million, 232 million, and 200 million yuan, totaling 575 million yuan over three years, with year-on-year increases of 16.74%, 62.11%, and 15.82%. The R&D expense ratios during these periods were 7.39%, 7.14%, and 5.11%.

Since its IPO in 2015, including the initial public offering, Tianfu Communication has completed three rounds of equity financing, totaling 1.302 billion yuan. These funds have mainly been used for industry layout, including expansion and upgrades of optical passive devices, R&D centers, high-speed optical devices, and high-speed optical engines for 5G and data centers.

Meanwhile, Tianfu Communication actively distributes dividends, sharing its operating results with shareholders. Data shows that the company has paid dividends for 12 consecutive years, totaling 2.172 billion yuan, with a payout ratio of 166.79%. In mid-2025, the company announced a cash dividend of 5 yuan per 10 shares (tax included), totaling 389 million yuan, accounting for 43.23% of the net profit attributable to shareholders in the first half of 2025.