160 billion yuan, Suzhou ushers in another mega IPO
Another super IPO is coming.
On October 28, Dongshan Precision (02384.HK) officially debuted on the Hong Kong Stock Exchange. The company opened at HK$82.4 per share, with a total market capitalization of approximately HK$160 billion. Following its listing on the Shenzhen Stock Exchange in 2010, Dongshan Precision has realized its "A+H" dual listing layout.
This is an enterprise specializing in PCB, optical modules and precision components, backed by a 100-billion-yuan family. According to the *2026 Hurun China Rich List* recently released by Hurun Research Institute, the Yuan Fugen family has a fortune of 117 billion yuan, ranking 37th on the rich list.
Looking beyond Dongshan Precision, we see the booming IPO wave sweeping across Suzhou.
From Town Workshop to 100-Billion-Yuan Industry Leader
This is an enterprise with a history of several decades.
In 1980, township enterprises sprung up across the country amid the wave of reform and opening up. Yuan Fugen led several workers to set up a small sheet metal stamping factory in Dongshan Town, Suzhou, mainly producing sheet metal components. In 1998, Yuan Fugen restructured the factory into a modern corporate system and established the company, which mainly provided precision sheet metal components and hardware stamping parts for communication equipment manufacturers. In 2007, to enhance its brand image and market positioning, the company completed shareholding system reform, renamed Suzhou Dongshan Precision Manufacturing Co., Ltd., and introduced two strategic shareholders: Suzhou Guofa Innovation Capital Investment Co., Ltd. (hereinafter referred to as "Suzhou Guofa") and Shanghai Hengrui Venture Capital Co., Ltd. (hereinafter referred to as "Shanghai Hengrui"). In 2010, Dongshan Precision was listed on the Shenzhen Stock Exchange.
More than 40 years later, the company has become the world's second largest FPC supplier and top three PCB supplier in the world. From a small workshop in Dongshan Town to a 100-billion-yuan leading enterprise, its growth is supported by a series of acquisitions. According to the development timeline on its official website, the frequency of Dongshan Precision's acquisitions has increased significantly after its listing.
The first round of expansion was concentrated from 2013 to 2018.
In 2013, the company acquired the touch panel business under Taiwan's Motech for 51 million US dollars, obtaining 12 intellectual property rights for touch display panels, with customers including Samsung and LG. Dongshan Precision thus entered the touch panel sector and became an integrated solution provider for "backlight module plus touch panel". In 2016, the company acquired NASDAQ-listed company MFLX for about 610 million US dollars (about 4 billion yuan). Founded in 1984, MFLX is one of the few core FPC suppliers in the world that can provide customized design and integrated solutions, and Dongshan Precision thus entered Apple's supply chain. In 2018, the company acquired Multek under Flextronics for about 2 billion yuan, filling the gap in rigid circuit boards and forming a full range of PCB products covering FPC and rigid boards.
Up to this point, Dongshan Precision has gradually entered the fields of touch panels, flexible circuit boards and rigid PCBs through acquisitions, expanding its product line from sheet metal parts to electronic circuits.
The second round of expansion started in 2023. This time, in addition to acquisitions, the company also built self-operated factories.
In January 2023, the company acquired JDI's liquid crystal module factory and Aranda Tooling factory located in Suzhou. In the same year, the company's display business extended to automotive display. In May of the same year, its factory in Monterrey, Mexico was put into operation. In August of the same year, its factory in Kunshan, Suzhou was put into operation. In 2024, the company broke ground on its Thailand factory. By 2025, the company successively acquired France's GMD and optical module manufacturer Source Photonics. The prospectus states that with the support of Source Photonics, the company has the independent R&D capability for 2.5G to 200G EML optical chips.
However, acquisitions and factory construction have expanded the scale of Dongshan Precision, but its profit has decreased instead of increasing.
The prospectus discloses that from 2023 to 2025, the company's revenue was 33.651 billion yuan, 36.77 billion yuan and 40.125 billion yuan respectively, and its profit during the period was 1.965 billion yuan, 1.085 billion yuan and 1.393 billion yuan respectively. The revenue increased year by year, but the profit dropped significantly in 2024, and the rebound in 2025 was still lower than that in 2023. The prospectus explains the decline in gross profit margin in 2024 as the increase in losses of communication equipment components and other businesses, mainly LED display products.
The turning point came after Source Photonics was consolidated into the financial statements. The company's 2026 semi-annual report shows that in the first half of 2026, its operating revenue reached 27.798 billion yuan, a year-on-year increase of 63.95%, the net profit attributable to owners of the parent company was 2.957 billion yuan, a year-on-year increase of 290.09%, and the non-recurring profit and loss deducted net profit attributable to owners of the parent company was 2.48 billion yuan, a year-on-year increase of 277.52%. By business segment, the optical module revenue was 5.351 billion yuan, with a gross profit margin of 39.33%, more than double the 18.80% of electronic circuit products. The precision component revenue was 6.581 billion yuan, a year-on-year increase of 178.63%.
In its semi-annual report, Dongshan Precision also attributed the performance growth mainly to the continuous introduction of new customers and new products in the optical module business, and mentioned that the consolidation of Source Photonics and GMD also contributed, "Mainly due to the consolidation of Source Photonics and GMD in the reporting period, as well as the continuous introduction of new customers and new products in the optical module business, the revenue has increased significantly."
One Enterprise, One City
Almost every step of Dongshan Precision's development took place in Suzhou.
The most obvious point is that the "Dongshan" in Dongshan Precision comes from "Dongshan Town" which belongs to Wuzhong District, Suzhou. It can be said that this is a native Suzhou enterprise.
At the same time, Suzhou's capital appeared in the shareholder list of Dongshan Precision very early. The prospectus shows that on December 24, 2007, the company was restructured into a joint-stock company. When the joint-stock company was established, Suzhou Guofa and Shanghai Hengrui, as sponsor shareholders, held 8.1 million shares and 3 million shares respectively, accounting for 6.75% and 2.5%.
As shown in the sponsor shareholder list in the figure above, Suzhou Guofa is the second largest shareholder after the three members of the Yuan family: Yuan Yonggang, Yuan Yongfeng and Yuan Fugen.
Since its listing in 2010, Dongshan Precision has continued to grow through acquisitions, but its headquarters has never left Suzhou.
In 2016, when it acquired MFLX of the United States, it obtained 100% equity of Suzhou MFLX Electronics Co., Ltd., its operating entity in Chinese mainland. At the extraordinary general meeting in October 2018, the company reviewed and approved the capital increase for Suzhou MFLX Electronics, and provided additional guarantee for the bank financing of Suzhou Aifu Electronic Communication Co., Ltd. In 2023, the company acquired JDI's liquid crystal module factory located in Suzhou, and in August of the same year, the Kunshan factory located in Suzhou was put into operation... Even though it set up an overseas headquarters in Singapore in 2019 and opened factories in Mexico, Thailand and other places, the core focus of Dongshan Precision has never left Suzhou.
Enterprises may feel the support from Suzhou more directly.
At the government-enterprise symposium and listed company forum held by the Jinji Lake in September this year, Yuan Yongfeng, general manager of Dongshan Precision, spoke highly of Suzhou's business environment, and said that the company will always focus on the high-end manufacturing track and promote the continuous release of supporting production capacity for high-end computing power hardware.
Growing from a small sheet metal factory in Dongshan Town to a 100-billion-yuan leading enterprise, Dongshan Precision is just a node on Suzhou's industrial network.
Originated from Suzhou
On Suzhou's industrial network, Dongshan Precision is not the only company that has rung the listing bell.
First look at the scale of this network. Wind data shows that as of December 31, 2025, the total market value of the A-share "Suzhou Sector" reached 2.79 trillion yuan, an increase of more than 60% compared with the end of 2024. The 229 Suzhou-listed stocks had an average annual increase of 47.79%, of which 33 stocks saw an increase of over 100% within the year. Three stocks, TFC, Dongshan Precision and Huadian Electronics, entered the "100-billion-yuan market value club".
According to statistics as of August this year, the total market value of Suzhou's A-share listed companies has exceeded 3.8 trillion yuan, and there are 7 listed companies with a market value of more than 100 billion yuan at home and abroad. Among them, Suzhou companies on the AI computing power industrial chain are particularly concentrated. Eoptolink leads with a market value of over 1 trillion yuan, followed by Dongshan Precision, TFC, Huadian Electronics and Hengtong Optic-Electric. The combined market value of the five companies exceeds 1 trillion yuan, distributed in different tracks such as optical modules, PCBs and optical fiber cables. Their common point is that they have all become an indispensable part of the global AI computing power infrastructure supply chain.
It is worth mentioning that in terms of company registration place, Eoptolink is a "Shandong enterprise" rather than a "Suzhou enterprise". But looking at the development history of Eoptolink, it is not difficult to find that Shandong is the starting point of Eoptolink, while Suzhou is the core of its business. The financial report shows that Eoptolink's total annual revenue in 2025 was 38.24 billion yuan, of which Suzhou Eoptolink's revenue reached 36.447 billion yuan, contributing more than 95% of the total. In other words, Suzhou Eoptolink, which was incubated and grown in Suzhou Industrial Park, is exactly the "core engine" of Eoptolink.
Back in 2008, Dr. Liu Sheng, an expert in optical communication technology, returned to China and founded Suzhou Eoptolink in Suzhou Industrial Park, starting his in-depth exploration in the optical module field. At that time, the investment promotion team of Suzhou Industrial Park had been waiting for a long time. Zhang Feng, the then chairman of Suzhou Science and Technology Park, recalled in a previous media interview, "Our investment promotion team invited Dr. Liu Sheng, the optical communication technology expert, to come back to start a business."
Yuanhe Holdings, under the state-owned assets of Suzhou, was the leader of Eoptolink's Series A financing, contributing about 30 million yuan. After that, in 2010 and 2011, Suzhou Eoptolink successively obtained investments from three funds at different stages under Yuanhe Holdings and Yuanhe's creditor's rights platform. Yuanhe also introduced Tailong Capital and other institutions settled in Dongshahu Fund Town to follow up the investment. Suzhou Eoptolink, which was incubated and grown in Suzhou back then, has now become the core business of Eoptolink, fulfilling the unique strategic vision of Suzhou in those days.
Behind this, it is naturally inseparable from Suzhou's long-term investment in the venture capital ecosystem.
In Suzhou's venture capital landscape, Yuanhe Holdings is the most influential player. As a state-owned investment enterprise controlled by the state-owned assets of Suzhou Industrial Park and participated by Jiangsu Guoxin Group, Yuanhe Holdings was founded in 2001. After more than 20 years of development, it has grown into a first-class domestic equity investment institution with a total fund management scale of over 1.3 trillion yuan. 95% of its investment projects are in strategic emerging industries, including integrated circuits, biomedicine, high-end manufacturing, artificial intelligence, industrial mother machines and other sectors, covering the full life cycle of technology enterprises. As of the end of September 2026, Yuanhe Holdings has directly invested in more than 2000 projects, cultivated 134 listed companies (including 56 on the Sci-Tech Innovation Board), and invested in 229 sub-funds through its FOF.
On June 18, 2022, Suzhou Innovation Investment Group Co., Ltd. was inaugurated and established. With a registered capital of 18 billion yuan, it set sail with the goal of entering the top tier of domestic venture capital. Over the past four years, Suzhou Venture Capital has worked closely with all sectors to explore and form a systematic working method, guiding more financial "living water" to irrigate Suzhou's industrial innovation clusters, and truly realizing "taking root downwards and consolidating the foundation". The latest data shows that the scale of funds managed by Suzhou Venture Capital has exceeded 320 billion yuan, with nearly 500 new direct investment projects, and a total of 138 enterprises have been supported to land on the capital market through direct investment and cooperative funds.
On the other side of the capital hot land is a highland of listed companies.
Data shows that Suzhou added 20 new listed companies at home and abroad in 2025, doubling year on year. Among the new domestic A-share listed companies in China in 2025, Suzhou accounted for 10.34%, which means that 1 out of every 10 new stocks comes from Suzhou. And 90% of the 20 new listed companies come from five emerging industries: electronics, mechanical equipment, electric power, automobiles and biomedicine, which fully demonstrates the high quality of these IPOs.
In 2026, this growth pace has not slowed down. In January, Ribo Biotech rang the bell on the Hong Kong Stock Exchange, winning the first IPO in Jiangsu for the whole year. In the same month, Asilon Technology landed on the Beijing Stock Exchange, filling the blank of Xiangcheng District. In April, Link Instruments was listed on the Sci-Tech Innovation Board. In July, Momenta, known as the "first physical AI stock", went public... As of August 21, Suzhou has added 15 new listed enterprises within the year, including 9 A-share listed companies, maintaining the rhythm of "an enterprise going public