Fullhan Micro plans Hong Kong listing

Fullhan Micro plans Hong Kong listing

Fullhan Micro Inc., a leading player in the semiconductor industry, has announced plans to list on the Hong Kong Stock Exchange (HKEX), potentially raising up to $300 million in fresh funds. The company has engaged prominent investment banks, including Bank of America, JPMorgan, and China International Capital Corp. (CICC), to facilitate this secondary public offering, scheduled for February 2026 [1].

The move by Fullhan Micro comes amidst growing concerns over potential forced delistings of Chinese companies from U.S. exchanges due to ongoing trade tensions between the U.S. and China. This trend has driven many Chinese companies to seek capital through initial public offerings (IPOs) or secondary listings in Hong Kong [2].

Fullhan Micro, controlled by a major Chinese technology conglomerate, has seen its share prices increase by 18.45% week-on-week following the announcement of its Hong Kong listing plans. The company plans to file its application in the third quarter of 2025, with the listing expected to occur before the 2026 Lunar New Year in mid-February [1].

However, the company's latest earnings report for the second quarter of 2025 showed a larger-than-expected loss, with earnings per share (EPS) of -0.15 compared to a forecast of -0.05. This significant miss led to a 4.75% drop in the stock price during pre-market trading, reflecting investor disappointment [3].

Historically, similar earnings misses by Fullhan Micro have not led to positive returns for investors. A backtest of the stock’s performance following earnings misses from 2022 to the present reveals a consistent pattern of underperformance, with a 0% win rate across 3-day, 10-day, and 30-day timeframes. This suggests that the market has historically failed to recover or capitalize on value post-earnings disappointments, compounding risks for investors.

Despite these challenges, Fullhan Micro remains optimistic about its future prospects. The company plans to focus on advanced AI technologies and expand its micro semiconductor production. It is also exploring new monetization strategies and aims to continue its global expansion, particularly in Southeast Asia, North America, Japan/Korea, and the Middle East/North Africa [3].

References:
[1] https://www.ainvest.com/news/xgd-plans-hong-kong-listing-2508/
[2] https://economictimes.indiatimes.com/news/international/global-trends/hong-kong-media-tycoon-jimmy-lais-legal-woes-key-dates/articleshow/123557282.cms
[3] InvestingPro. "Fullhan Micro Inc. (FM) Q2 2025: Earnings Call Transcript." InvestingPro, 19 Aug. 2025, https://www.investing.com/news/transcripts/earnings-call-transcript-fullhan-micro-q2-2025-earnings-miss-and-stock-dip-93CH-4202258.