Jingwang Electronics, the automotive PCB leader, makes a push for Hong Kong listing, positioning its technology amid the profit and expansion gamble behind AI

ZC Asia has learnt that Shenzhen Jingwang Electronics Co., Ltd. (hereinafter referred to as ‘Jingwang Electronics’) has formally submitted its application for a Main Board listing to the Hong Kong Stock Exchange. The joint sponsors are CITIC Securities, Bank of America Securities and Guolian Securities International. As a global leader in automotive electronic PCBs and a core supplier of AI computing infrastructure, this marks another significant capital deployment following its listing on the Shanghai Stock Exchange in 2017.

Established in 1993, Jingwang Electronics operates under a ‘1+1+N’ business model: one pillar business (automotive electronics), one key development business (communications and data infrastructure), and N high-potential business portfolios (including smart terminals and industrial control).

Its comprehensive product range spans single/double-sided boards to HDI, FPC, and rigid-flex boards. The company serves over 700 global clients, with products exported to 53 countries and regions. Its customer base includes seven of the world's top ten Tier 1 automotive suppliers.

Steady Revenue Growth Coexists with Profitability Pressures

Financial data indicates revenue for 2023, 2024, and the first three quarters of 2025 stood at RMB 10.757 billion, RMB 12.659 billion, and RMB 11.083 billion respectively. During the same periods, net profits stood at RMB 911 million, RMB 1.16 billion, and RMB 961 million respectively. The year-on-year growth rate of net profit for the first three quarters of 2025 slowed to 7.25%, representing a marked deceleration compared to the 27.3% growth achieved for the full year of 2024.

Core pressure stems from the persistent decline in gross profit margin, which stood at 23.2%, 22.7% and 21.6% respectively during the reporting period. The company attributes this primarily to persistently high raw material prices, ramp-up of new factory capacity, and strategic investments in high-end production capabilities.

Deep Integration with ‘AI+’ and Automotive Intelligence Trends

According to a CIC (灼识咨询) report, the glbal AI server PCB market is projected to grow from US$3.5 billion in 2024 to US$10.8 billion by 2030, representing a compound annual growth rate (CAGR) of 20.7%. The global automotive electronics PCB market is anticipated to reach US$12.2 billion by 2030.

Jingwang Electronics not only leads the automotive electronics sector but also ranks among the few manufacturers capable of supplying PCBs to globally leading AI computing infrastructure enterprises.

The company has achieved mass production of high-end technologies, such as 40+ layer high-multilayer boards and 6-layer 22-layer HDI boards, while possessing manufacturing capabilities for 70+ layer high-multilayer boards and 9-layer 28-layer HDI boards. This positions it to capitalise on opportunities arising from the AI investment cycle.

Real-world tests during the expansion cycle

Despite promising prospects, clear challenges lie ahead on the path to Hong Kong listing and future growth.

The primary risk is uncertainty surrounding profitability recovery. The sustained decline in gross margin reflects the company's challenging balancing act between new capacity investments, cost control, and product mix optimisation. Should market conditions or customer validation fall short of expectations, the period of profitability pressure may prolong.

Secondly, substantial capital expenditure contrasts with the historical returns of prior projects. The prospectus indicates the company is pursuing large-scale expansion. In August 2025, it announced plans to invest RMB 5 billion in self-raised or self-financed funds to expand its Zhuhai Jinwan base, enhancing production capacity for high-end HDI, HLC, and SLP boards. This follows multiple large-scale investment announcements throughout 2023.

However, historical records indicate that the company's past convertible bond financing projects (such as the ‘600,000 square metre annual HDI production project’) were delayed twice due to market environment changes. Another project, the ‘1.2 million square metre annual multilayer board production project,’ also failed to meet initial profitability expectations upon completion. This raises practical questions about the execution efficiency and return prospects of the current ambitious investment plans.

Competition within the PCB industry is intensifying, particularly in the high-end segment where Jingwang Electronics focuses its efforts. With overseas sales accounting for nearly 40% of revenue, the company's performance remains vulnerable to fluctuations in international trade conditions and exchange rates. Furthermore, substantial R&D investments in high-end technologies are accompanied by lengthy customer certification cycles, introducing significant uncertainty.

As of 26 December 2025, a concerted action group centred on founders Liu Shaobao, Huang Xiaofen, and their son Liu Yu collectively controls approximately 56.95% of the voting rights in the company's issued shares. While such a concentrated control structure may enhance strategic decision-making stability, it could also draw market scrutiny regarding corporate governance and the balance of minority shareholder rights.

Disclaimer: The content herein is for reference only and does not constitute any form of investment advice. Should any information contained herein prove inaccurate, incomplete, or potentially misleading, please refer to the company's official announcements. Market risks exist; investment requires caution.