Good News on Listing | Frost & Sullivan Assists Shenzhen Guanghetong Wireless Co., Ltd. in Successfully Going Public in Hong Kong (0638.HK)

Shenzhen Guanghetong Wireless Co., Ltd. (hereinafter referred to as 'Guanghetong') successfully went public on October 22, 2025. The company plans to issue 13,508,020 H shares, of which 90% will be international offerings and 10% will be public offerings. The maximum issue price per share is HK$21.50, and the net proceeds from the fundraising are expected to be approximately HK$2.689 billion.

During the process of listing in Hong Kong this time, Frost & Sullivan mainly undertook the following tasks: helping the issuer accurately and objectively understand its positioning in the target market, using objective market data to discover, support and highlight the issuer's competitive advantages, assisting the issuer, investment banks and other intermediaries in completing the writing of relevant parts of the prospectus (such as overview, competitive advantages and strategy, industry overview, business and other important chapters), helping the issuer complete communication with the Hong Kong Stock Exchange and investors, assisting investors in quickly understanding the market ecosystem and competitive landscape, and providing assistance to the issuer in completing feedback on various industry-related issues from the Hong Kong Stock Exchange.

Frost & Sullivan has always been a leader in helping companies go public in Hong Kong. According to LiveReport's big data (statistical data as of September 30, 2025), from January to September 2025, as well as during the past 12 and 36 months, Frost & Sullivan provided listing industry advisory services for 47 (market share of 72%), 62 (market share of 69%), and 162 (market share of 70%) Hong Kong-listed IPOs respectively, ranking first in terms of number. It has rich industry experience and communication skills with regulatory authorities, exchanges, investment and financing institutions, and various related institutions.

• The company is one of the first enterprises in the world to integrate blockchain technology into 5G data transmission modules;

   

• The company is one of the first in the world to develop intelligent and AI modules;

   

• The company is one of the first domestic enterprises to deploy 5G data transmission modules equipped with domestic chips;

   

• The company is one of the few suppliers globally to provide end-user AI solutions, and possesses core technologies for robot solutions such as visual perception and low-speed motion control;

   

• The company has been deeply involved in the wireless communication module industry for over two decades and continues to lead the global IoT connectivity field. It is a leading Chinese wireless communications provider that has rapidly grown in core areas such as 5G, connected vehicles, and industrial Internet;

According to the Frost & Sullivan report, in terms of revenue in 2024, the company:

• It is the world's second-largest wireless communication module provider;

   

• It leads in market share rankings across multiple downstream application scenarios, second in automotive electronics, and ranks first globally in smart homes and consumer electronics.

A communication module refers to an integrated hardware unit that encapsulates baseband chips, radio frequency chips, and related components together, providing end products with plug-and-play cellular or short-range wireless connectivity functions. Communication modules include wireless communication modules, Wi-Fi modules, Bluetooth modules, etc.

With the surge in AI applications and the continuous advancement of digital transformation, the global wireless communication module market has experienced strong growth, increasing from RMB 32.3 billion in 2020 to RMB 43.6 billion in 2024, with a compound annual growth rate of 7.7%. Regionally, the Chinese market has seen a growth rate exceeding that of other regions globally, expanding from RMB 17.4 billion in 2020 to RMB 24.7 billion in 2024, achieving a compound annual growth rate of 9.1% during this period.

With the mainstream adoption of 5G technology and a surge in AI applications, the global market is expected to grow further at an accelerated pace. From 2025 to 2029, the compound annual growth rate is projected to be 10.6%, reaching RMB726 billion by 2029, exceeding its historical growth rate. Meanwhile, as a leading electronics manufacturing powerhouse, China is expected to achieve a compound annual growth rate of 12.7% during the same period, surpassing other regions. By 2029, the market scale in China will expand to RMB455 billion.

Data source: Analysis by Frost & Sullivan

From a downstream perspective, the automotive industry (covering both pre-installation and aftermarket markets) continues to serve as the main growth engine.

In the front-end market of automotive electronics, wireless communication modules are mainly used in in-vehicle infotainment systems (IVI) to solve the problem of multi-screen interaction latency. They also support advanced driver assistance systems (ADAS) to meet the need for real-time transmission of environmental perception data. At the same time, these modules are primarily used in in-vehicle remote communication control units (T-boxes) to solve the problem of stable interaction between vehicle status data and cloud platforms.

In the aftermarket, wireless communication modules support vehicle-road coordination (C-V2X) to enable secure exchange of critical information between vehicles and roadside devices (RSUs). This segment grew from RMB 7.8 billion in 2020 to RMB 11.7 billion in 2024, and is expected to accelerate at a compound annual growth rate of 12.6% from 2025 to 2029, reaching RMB 212 billion by 2029.

Among them, the global market size of wireless communication modules used for pre-installation in new energy vehicles increased from RMB 560 million in 2020 to RMB 35 billion in 2024, with a compound annual growth rate of 58.4% during this period. It is expected to reach RMB 116 billion by 2029, with a compound annual growth rate of 26.5% from 2025 to 2029. Key driving factors include the rise of automotive electrification, progress in in-vehicle intelligence, and the widespread adoption of ADAS functions.

In contrast, driven by the continuous breakthroughs in AI, AI modules in the robotics field will see rapid development. It is estimated that by 2029, the market size will climb to RMB 5.6 billion, achieving a significant compound annual growth rate of 48.9% over the entire forecast period.

In recent years, the smart home industry has grown rapidly thanks to the rapid growth in 5G CPE shipments. The overall market size of smart homes has expanded from RMB 4.4 billion in 2020 to RMB 6.6 billion in 2024, and it is expected to further increase to RMB 11.4 billion by 2029. The compound annual growth rate from 2025 to 2029 is 11.2%.

5G FWA is a fixed broadband access technology that primarily replaces traditional optical/fiber/copper cables with wireless methods, providing high-speed broadband services to homes and businesses. The market size of the 5G FWA industry is expected to increase from RMB 4.7 billion in 2024 to RMB 10.9 billion in 2029, with a compound annual growth rate of 18.2%.

Meanwhile, more mature industries such as smart retail will achieve steady growth with the upgrade of digital payment infrastructure. From 2025 to 2029, the market size is expected to expand at a compound annual growth rate of 8.5%, reaching RMB 142 billion by 2029.

The consumer electronics industry is expected to maintain a stable trend, with a compound annual growth rate of 3.4% from 2025 to 2029, ultimately reaching RMB 27 billion by 2029. In addition, other industries are expected to have a compound annual growth rate of 5.4% during the same period, reaching RMB 175 billion by 2029.

Data source: Analysis by Frost & Sullivan

Looking at different module products, the data transmission module is the segment that occupies the largest market share, increasing from RMB 26.6 billion in 2020 to RMB 34.6 billion in 2024, with a compound annual growth rate of 6.7%. As the cornerstone of wireless communication module development, the demand for such modules is expected to maintain stable growth. It is estimated that the market size will expand to RMB 50 billion by 2029, with a compound annual growth rate of 7.5% from 2025 to 2029.

Driven by the rapid popularization of digital payments in North America and Europe, the global smart module sub-market is expected to grow from RMB 8.4 billion in 2024 to RMB 14.5 billion in 2029, thanks to advancements in secure transaction technology and Internet of Things payment solutions.

At the same time, as an emerging high-growth field for AI modules, it will also see explosive growth against the backdrop of accelerated commercialization of AI technology. Driven by AI edge computing, intelligent automation, and industrial digital applications, the market is expected to surge to RMB 8.1 billion by 2029, achieving an astonishing compound annual growth rate of 49.3% between 2025 and 2029.

Data source: Analysis by Frost & Sullivan

In 2024, the global wireless communication module market competition is relatively concentrated, with the top five companies collectively accounting for 76.1% of the market share. Among them, our company is one of the two leading enterprises in the wireless communication module field, ranking second with a market share of 15.4% and revenue of RMB 6.7 billion.

Data source: Analysis by Frost & Sullivan

It is worth mentioning that in the consumer electronics and smart home sectors, our company ranked first with revenues of RMB 1.7 billion and RMB 2.4 billion respectively. In the automotive electronics sector, our company ranked second with revenues of RMB 1.7 billion, demonstrating our strong competitiveness in the wireless communication module industry.

Data source: Analysis by Frost & Sullivan

Data source: Analysis by Frost & Sullivan

Data source: Analysis by Frost & Sullivan

● Diversification of downstream applications drives demand growth

Wireless communication module drives cross-industry innovation: enabling mobile/AR connectivity, automotive networking, IoT tracking, smart home automation, and retail AI systems. This has driven demand for multi-standard, high-efficiency, and rugged designs tailored to industry-specific needs.

● AI integration reshapes market opportunities

Edge AI transforms wireless communication modules into nodes, empowering autonomous vehicles, voice control centers, and retail visual systems. These AI-enhanced modules require accelerators, 5G/6G networks, and adaptive computing for localized inference, driving demand in manufacturing IoT and smart retail.

●5G commercialization

The commercialization of 5G has driven the demand for wireless communication modules in industrial Internet of Things, autonomous vehicles, and virtual reality due to its high-speed and low-latency connectivity. This has not only promoted market growth but also stimulated the development of 5G compatible modules in various industries.

●AI/ML and Edge Computing Collections

AI-powered wireless communication modules achieve autonomous systems through edge computing. Embedded NPU performs real-time analysis such as predictive maintenance, while reducing dependence on the cloud. 5G-AI modules can optimize connections in crowded places. Federated learning enhances privacy by locally training models, thus requiring efficient thermal management/energy-saving designs to handle edge workloads.

● Ultra-low power solutions

Ultra-low power wireless communication modules optimize hardware, software, and protocols to save energy while maintaining operation. These modules can extend battery life, reduce costs, and decrease emissions from IoT devices, wearable electronics, and smart homes. Advanced semiconductor and energy harvesting technologies make these modules a key component for AI applications.

●Modularization and customization for vertical industries

Industry-specific wireless communication modules have replaced general-purpose solutions. Automotive-grade (AEC-Q100) modules support connected vehicles and industrial IoT for TSN synchronization, while medical modules ensure HIPAA compliance. Software-defined radios (SDR) allow multi-protocol switching, and open-source SDKs support custom firmware for agricultural/logistics application scenarios.

●Technical complexity and certification barriers

As a key component for achieving device interconnection, the efficient data transmission capability of wireless communication modules depends on advanced wireless communication technology and intelligent data processing technology. However, 5G communication modules targeting the global market need to meet strict multi-layered certification requirements. They must not only comply with global communication standards such as 3GPP but also pass regional certifications such as FCC, CE, and NCC, as well as network access tests by major operators like AT&T and Verizon. The process of obtaining all these certifications is extremely complex and time-consuming, requiring a significant investment in R&D resources for repeated testing and optimization. For newcomers, they not only need to break through technical barriers but also bear high certification costs, making market entry extremely difficult. Currently, the number of enterprises worldwide that can obtain the aforementioned high-standard certifications is a very small proportion of all enterprises.

● High capital intensity and R&D investment

The wireless communication market is characterized by rapid technological iteration and strict standards. From module design to performance testing, a substantial amount of capital is required for building laboratories and purchasing precision equipment. At the same time, it is necessary to form high-end R&D teams to overcome core technical challenges such as radio frequency and communication protocols. The high sunk costs and long return periods make it difficult for enterprises with weak capital strength to enter this market.