Like the millions of electronic gadgets it makes and sells each year, Huaqin Co. Ltd. (3296.HK; 603296.SH) is a complex machine with many moving parts.
The company is quite profitable, reporting double-digit profit gains over the last three years, including 41% growth last year, and a return on equity (ROE) rate that rose more than six percentage points to 16.9% in 2025.
To broaden its business scope and raise its pressured margins, the company is revving up its R&D spending on new product areas like data centers and automotive electronics. It’s also making strategic acquisitions to take it into areas like robotics, using its cash flow to fund those campaigns. Beyond acquisitions, the company has also set up its own in-house robotics R&D team. With the Hong Kong listing, it’s now turning to international investors to help fund those drives. Banking heavyweights BofA Securities and CICC underwrote the deal, which raised HK$4.46 billion ($654 million).