Honghe Technology (603256.SH), a stock that has surged over 15-fold, has taken a key step towards a Hong Kong listing. On May 15, Honghe Electronic Materials Technology Co., Ltd. (Honghe Technology) submitted a listing application to the main board of the Hong Kong Stock Exchange, with CITIC Securities acting as the sole sponsor. Just days before the filing, this A-share company, which has recently attracted significant investor interest, once again reached a new all-time high in its stock price. On May 11, Honghe Technology's share price briefly rose to 153.2 yuan per share during trading, closing at 149.98 yuan per share. Compared to the low of approximately 9.35 yuan per share around May 11, 2025, the company's stock has increased more than 15-fold over the past year, solidifying its status as a top performer. As the stock price soared, risk warnings followed. On the evening of May 8, Honghe Technology announced that its stock had experienced abnormal trading volatility, with the cumulative deviation of its closing price exceeding 20% over three consecutive trading days. However, signs of high-level volatility have emerged. At the close on May 18, Honghe Technology's shares were at 131.48 yuan, down 1.95%, with a total market capitalization of approximately 118.9 billion yuan.
Notably, while advancing its Hong Kong listing plan, the Chairman and Board Secretary of Honghe Technology have also swiftly completed share reductions. 01 Global Producer of the Thinnest Electronic Fabric From its initial disclosure of the Hong Kong listing plan on March 20 to the formal submission of the prospectus to the Hong Kong Stock Exchange on May 15, Honghe Technology has accelerated its pace towards a Hong Kong listing. Within less than two months, the company completed key processes including the appointment of an auditing firm, disclosure of draft systems, and review at an extraordinary general meeting, fully preparing for the filing. Founded in August 1998 and headquartered in Shanghai, Honghe Technology is a globally leading supplier of high-end electronic fabric. It listed on the main board of the Shanghai Stock Exchange in July 2019. The company focuses on the research, production, and sales of high-end standard electronic fabrics such as ultra-thin and super-thin fabrics, as well as specialty electronic fabrics with low Dk/Df and low CTE properties. Among these, ultra-thin and super-thin fabrics are primarily used in the production of high-density interconnect (HDI) boards, high-multilayer PCBs, and IC substrate packaging. Low Dk/Df fabrics are mainly used for high-multilayer PCBs and advanced HDI, while low CTE fabrics are core materials for high-end IC substrate packaging. Honghe Technology is currently one of only two companies globally capable of mass-producing 8μm ultra-thin electronic fabric and 3μm super-fine electronic yarn, the other being the century-old Japanese company Nitto Boseki. The prospectus indicates that the company's products have fully entered the core supply chains of leading manufacturers of graphics processing units (GPUs), central processing units (CPUs), and high-end smartphones. Its major clients include global top-ten copper-clad laminate manufacturers such as Panasonic Electronic Components, Doosan Electronic Materials, Taiwan Union Technology Corporation, Taiwan Ta Ya Technology, ITEQ Corporation, Shengyi Technology, and Nan Ya New Material, as well as leading global high-end IC substrate packaging manufacturers like Risho Kogyo and LG Chem. Cooperation with its top five clients has exceeded ten years. With the explosion in demand for AI computing power, the high-end electronic fabric market has entered a new cycle of prosperity. Based on total revenue from ultra-thin and super-thin fabrics in 2025, Honghe Technology ranks first in the global high-end standard electronic fabric market, with a market share of 20.5%. Concurrently, the company's sales of specialty electronic fabrics have grown rapidly, increasing from 1 million meters in Q1 2025 to 3.1 million meters in Q1 2026, a more than two-fold rise. Reflecting the tight industry supply and demand, four globally leading CPU, GPU, and PCB end customers have signed agreements with Honghe Technology and paid refundable deposits to secure the supply of specialty electronic fabrics for the next two to three years. Amid high demand, Honghe Technology is accelerating production expansion. The company currently has two major production bases in Shanghai and Huangshi, Hubei, with a total floor area of approximately 190,000 square meters. In March of this year, the company completed a private placement of A-shares, raising approximately 981 million yuan in net proceeds, which is being used for the construction of a new specialty electronic yarn production line at the Huangshi base. In April, the company signed an agreement with the Huangshi municipal government to invest 8 billion yuan in building a high-performance electronic materials industrial park project. Upon completion, the project is expected to bring the annual designed production capacity of high-end electronic fabric to 150 million meters. The Hong Kong IPO will also serve as an important source of funding for this investment. In terms of performance, Honghe Technology's profitability has significantly improved in recent years. From 2023 to 2025, the company's revenue was 661 million yuan, 835 million yuan, and 1.171 billion yuan, respectively. Its net profit shifted from a loss of 63 million yuan in 2023 to a profit of 202 million yuan in 2025.
In 2025, the company's gross profit margin increased by 17.5 percentage points year-on-year to 35.1%, primarily benefiting from a higher proportion of high-margin products such as ultra-thin fabric and low Dk/Df fabric. Entering 2026, the company's growth momentum continues. In the first quarter, it achieved revenue of 442 million yuan, a year-on-year increase of 79.72%, and a net profit attributable to shareholders of 140 million yuan, a substantial year-on-year surge of 354.22%. 02 Chairman and Board Secretary Just Reduced Holdings On April 14, Honghe Technology disclosed plans for share reductions by company directors and senior management. The announcement stated that due to personal funding needs, Chairman and General Manager Mao Jiaming planned to reduce his holdings by no more than 240,700 shares through centralized bidding. Board Secretary Zou Xin'e planned to reduce her holdings by no more than 75,000 shares, with the reduction window being within three months after 15 trading days. However, the market soon observed that both individuals acted very swiftly. On the evening of May 12, Honghe Technology disclosed the results of the share reductions. Within just two trading days on May 11 and 12, Mao Jiaming completed the full reduction, selling 240,700 shares at prices ranging from 141.15 yuan to 152 yuan per share, totaling approximately 35.64 million yuan. During the same period, Zou Xin'e reduced her holdings of 75,000 shares at prices between 143.78 yuan and 148.36 yuan per share, cashing out approximately 10.95 million yuan. After the reductions, Mao Jiaming still holds 722,200 shares, and Zou Xin'e holds 225,000 shares. It is noteworthy that on May 11, Honghe Technology's stock price had just reached a new all-time high since its listing. Despite having a reduction window of up to three months, the two senior executives chose to complete their cash-out swiftly during the stock price surge, drawing market attention. Public information shows that the 61-year-old Mao Jiaming, a Taiwanese national, has served as Production Department Manager, Deputy General Manager, and General Manager since joining Honghe Technology in 1999. He currently holds the positions of Chairman, General Manager, and Executive Director. The 49-year-old Zou Xin'e joined the company in 2001, previously serving as Head of the R&D Department and currently as Board Secretary. However, although Mao Jiaming has long managed the company's operations, the actual control of Honghe Technology does not lie with the professional management team. As of May 8, 2026, Yuan Yi International Limited holds 72.79% of Honghe Technology's shares, making it the controlling shareholder. Yuan Yi International is indirectly wholly owned by Hong Ren Enterprise Group Co., Ltd., behind which stands the family of well-known Taiwanese entrepreneur Wang Wen-yang. Grace Tsu Han Wong, Wang Wen-yang's daughter from his first marriage, controls Unicorn Ace Limited, Sharp Tone International Limited, Integrity Link Limited, and Fusecrest Limited. These four companies hold 3.18%, 2.87%, 2.73%, and 0.12% of Honghe Technology's shares, respectively. Through a concerted action arrangement, Wang Wen-yang and Grace Tsu Han Wong collectively control approximately 81.70% of Honghe Technology's equity and voting rights, making them the company's actual controllers. Besides Honghe Technology, the father and daughter are also the actual controllers of the A-share listed company Hongchang Electronics (603002.SH). The 75-year-old Wang Wen-yang is the son of Wang Yung-ching, founder of Formosa Plastics Group and known as the "God of Management," who passed away in 2008. In 1995, due to a scandal involving an extramarital affair, Wang Wen-yang, who was originally seen as the successor, was dismissed by his father and ousted from Formosa Plastics Group. After leaving the family business, he turned to entrepreneurship in mainland China, founding Hong Ren Enterprise Group in 1996 to produce products like copper-clad laminates and PVC. Both A-share listed companies under Hong Ren Enterprise Group adopt a professional management model. Wang Wen-yang himself has long retreated from frontline operations and, in the past six months, has been involved in a controversial romantic relationship widely characterized as a "May-December romance."
Reports from Taiwanese media in early April stated that the 75-year-old entrepreneur is in a stable relationship with a 20-year-old female university student. Meanwhile, his daughter, Grace Tsu Han Wong, continues to operate the luxury leather goods brand Grace Han, which she founded in 2012.
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