xFusion IPO Clears Review: $1.1B Raise, Up to $11B Valuation for Huawei-Spun Server Giant

智东西 · wechat · 2026-11-13

xFusion (超聚变), China's No.2 server vendor, has cleared the Shenzhen Stock Exchange listing review and is headed to the ChiNext board. The company plans to raise 8 billion yuan in what would be the board's largest IPO this year, implying a peak valuation of up to 80 billion yuan ($11B).

Origin: Formerly Huawei's x86 server unit, spun off in 2021 amid chip sanctions; Huawei has fully exited, and the company is now controlled by Henan state-owned assets, with China Mobile holding 15.69%.
Financials: Revenue grew from 25.1B yuan (2023) to 58.2B (2025); H1 2026 net profit of 2.11B yuan hit 204.66% of all of last year's, with 180K servers sold in six months.
AI servers drive growth: They contribute 53.29% of revenue but only 9.19% gross margin; the company ranks No.1 in China liquid-cooled servers for four straight years and leads Ascend-ecosystem server shipments.
Aggressive stockpiling: Short-term borrowings jumped from 1.56B to 18B yuan, operating cash flow burned 15.7B yuan in H1, and inventory hit 35.7B yuan — mostly locking in scarce GPUs and memory.
Market context: The global server market grew 80.4% to $444B in 2025, driven by AI servers; China's intelligent computing capacity is forecast to grow at 46.2% CAGR through 2028.

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xFusion IPO Clears Review: $1.1B Raise, Up to $11B Valuation for Huawei-Spun Server Giant

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