- xFusion, a Huawei-spun China server maker, hired Citic Securities to start IPO tutoring from Jan to Apr/May 2026 as a first step toward listing.
- The Henan-based firm is China’s top AI server vendor and No.2 overall behind Inspur, with 2024 revenue of about RMB 40–43.5 billion and H1 2025 sales of RMB 26.8 billion.
- It was valued near US$9 billion in 2023 and is majority-owned by Henan SOEs with stakes held by China Telecom and China Mobile investment arms.
- The move fits China’s push for tech self-reliance amid US export curbs and follows hot AI/chip IPOs that have seen outsized first-day gains.
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xFusion’s move to enlist Citic Securities for IPO tutoring confirms its formal initiation toward going public, which likely involves corporate governance, regulatory compliance, disclosure obligations, and financial statement preparation. The timeframe (January to April/May 2026) suggests it may pursue a Mainland China listing via ChiNext or STAR Market.
The firm’s recent financials underscore a strong market position: revenues surged to RMB 43.5 billion in 2024 from lower levels in previous years and RMB 26.8 billion in the first half of 2025 alone. Despite being spun off in 2021, it has climbed rapidly to become China’s leading AI server provider and second overall server vendor domestically, just behind Inspur.
Its ownership and valuation profile indicate significant state backing and strategic relevance. Majority ownership lies with Henan SOEs and major telcos, which likely eases access to state-driven contracts and capital—but may also bring regulatory and political expectations. A 2023 valuation near US$9 billion aligns with its size and growth metrics.
The broader IPO environment in China’s AI and chip sectors is characterized by aggressive support and investor enthusiasm. Companies like Biren, Moore Threads, MetaX have registered extraordinary market debuts (gains of 76%, 400%, 700% respectively) and the CSI AI Index rose 67% in 2025, signaling frothy demand. xFusion may tap into this momentum, but faces elevated valuation expectations and competitive pressure as established and emerging players scale up.
Strategic implications: To maximize IPO success, xFusion must clearly articulate its competitive differentiation—AI-server hardware design, energy efficiency, liquid cooling, or R&D advantage—and manage investor concerns around transparency, supply chain vulnerability (especially absent US components), customer concentration, and regulatory risk given its SOE background and Huawei linkage. The company’s path also serves as a test case for China’s push to promote tech self-reliance, especially amid U.S. export control regimes.
Open questions include: Which market will xFusion choose (Hong Kong, Shanghai, or Shenzhen’s ChiNext)? Will it pursue a reverse merger or traditional IPO path? What valuation multiples will the market tolerate for AI infrastructure hardware businesses? How sustainable are its growth and margins, particularly under high competition and global supply chain constraints?
Supporting Notes
- xFusion hired Citic Securities on December 31, 2025 to begin an IPO tutoring process running from January through April or May 2026.
- Revenue in 2024 exceeded RMB 40 billion (≈ US$5.72 billion), or specifically RMB 43.5 billion, as per Henan provincial and C114 sources.
- In the first half of 2025, xFusion achieved RMB 26.8 billion in sales, rising to second place in China’s server market (behind Inspur).
- The company was valued at nearly US$9 billion in 2023 according to Great Wall Strategy Consultants.
- Major shareholders include state-linked entities: China Telecom Group Investment and China Mobile Capital Holding; the founding SOE, Henan Super Fusion Energy Technology, retains majority ownership (~70%).
- xFusion was spun off from Huawei’s x86 server business in 2021 in response to U.S. sanctions.
- AI-oriented firms Biren Technology, Moore Threads, and MetaX have recently listed in Hong Kong or Shanghai, posting first-day gains of 76%, 400%, 700% respectively; CSI AI Index rose 67% across 2025.