Hantian Technology’s stock price surged over 41% on its first day of trading on the Hong Kong Stock Exchange, pushing its market capitalization close to HK$46 billion.

Hanteng Technology (Xiamen) was officially listed on the Hong Kong Stock Exchange. This “hidden champion” deeply involved in the field of silicon carbide epitaxial chips has achieved a “good start” in the capital market.

On its first day of trading, Hanteng Technology’s opening price reached HK$110.00, a significant increase from the final offer price of HK$76.26. As of press time, the share price was HK$108, a gain of 41.62%, pushing the company’s total market capitalization to HK$45.96 billion. The global offering of 21,492,050 H shares raised net proceeds of approximately HK$1.56 billion, demonstrating the market’s enthusiasm and recognition of core materials for third-generation semiconductors.

Founded in 2011, Hanteng Technology focuses on the research, development, production, and sales of silicon carbide epitaxial chips—a core material for wide-bandgap semiconductors. This seemingly low-profile company has already achieved a position in its niche global market.

According to the Frost & Sullivan report cited in the prospectus, since 2023, Hanteng Technology has become the world’s largest silicon carbide epitaxial wafer supplier by annual sales volume, with a market share exceeding 30% in 2024. Behind this figure lies its technological strength and production capacity accumulated over more than a decade.

In 2024, the company sold more than 164,000 silicon carbide epitaxial chips through epitaxial wafer sales and foundry sales models. During the reporting period from 2022 to the first five months of 2025, the cumulative delivery volume exceeded 500,000 chips.

Currently, Hanteng Technology’s products cover mainstream epitaxial wafer sizes such as 6-inch and 8-inch, and are widely used in strategic emerging fields such as new energy vehicles, photovoltaic energy storage, industrial power supplies, and rail transportation. Among them, 6-inch epitaxial wafers remain the company’s main source of revenue.

But Hanteng Technology’s sights are already set on the more distant future. The company explicitly stated in its prospectus that while 6-inch wafers currently dominate the market and are expected to continue growing, the market size for 8-inch silicon carbide wafers is projected to expand significantly. “The company continues to invest in the research and development and production of both 6-inch and 8-inch wafers, and anticipates that 8-inch wafers will account for an increasingly larger share of sales.”

The funds raised from this IPO will primarily be used to expand silicon carbide epitaxial chip production capacity and conduct related research and development to further solidify its technological advantages. During this critical window of opportunity for the silicon carbide industry’s transition from 6-inch to 8-inch wafers, Hanteng Technology clearly hopes to secure its competitive advantage in the next stage by making a first-mover advantage.

From a financial perspective, Hanteng Technology’s performance has shown some volatility in recent years. From 2022 to 2024, the company’s revenue was RMB 441 million, RMB 1.143 billion, and RMB 974 million, respectively; and its gross profit was RMB 197 million, RMB 445 million, and RMB 332 million, respectively.

Revenue and gross profit declined in 2024 compared to 2023, which is related to inventory adjustments and changes in downstream demand in the silicon carbide industry as a whole. However, with the continued expansion of end markets such as new energy vehicles and photovoltaics, the long-term demand for silicon carbide epitaxial wafers, as a key upstream material, is still generally viewed favorably by the market.

It is worth noting that Hanteng Technology has a high customer concentration. During the reporting period, the revenue share of the top five customers remained between 75% and 86.5%, with the largest customer accounting for over 56% at its peak. The company explained in its prospectus that this is closely related to industry characteristics—according to Frost & Sullivan data, in 2024, the top five suppliers in the global silicon carbide epitaxial chip industry held nearly 90% of the market share, and the concentration of the top five customers also exceeded 75%, which is a common phenomenon in the industry.