Good News on Listing | Frost & Sullivan Assists Shanghai Cambridge Technology Co., Ltd. to Successfully List in Hong Kong (6166.HK)

Shanghai Cambridge Technology Co., Ltd. (hereinafter referred to as 'the Company') successfully went public on October 28, 2025. The Company plans to issue 67,010,500 shares, of which 60,309,450 shares will be for international sale and 6,701,050 shares will be for Hong Kong sale. The issue price per share is HK$68.88, raising a net amount of approximately HK$4.616 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 relevant parts of the prospectus (such as overview, competitive advantages and strategy, industry overview, business, and other important chapters), assisting the issuer in communicating with the Stock Exchange and investors, helping investors quickly understand the market ecosystem and competitive landscape, and assisting the issuer in completing feedback on various industry-related issues from the Stock Exchange, etc.

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 to 47 (market share 72%), 62 (market share 69%), and 162 (market share 70%) Hong Kong-listed IPOs respectively, ranking first in terms of number. It has rich industry experience and communication experience with regulatory authorities, exchanges, investment and financing institutions, and various related organizations.

• The company is a global leader in integrated optical and wireless connectivity devices, possessing a series of first-mover advantages that enable it to seize future growth opportunities;

• The company has a capable management and R&D team, which, with its background and industry insights, drives the company to achieve R&D breakthroughs;

• The company was the first in the world to mass-produce and deploy 25GPON and 50GPON;

• The company is one of the first in the world to deploy 800G and 1.6T optical module products;

• The company has a presence overseas and in China, and possesses a flexible and efficient business model as well as strong production capabilities.

According to the Frost & Sullivan report, the company:

• In terms of sales, among the top five global comprehensive OWCD companies by revenue in 2024, the company ranked fifth;

• In the global comprehensive OWCD industry in 2024, the company is one of the few market participants that also cover all segments as the second-largest player;

• As of December 31, 2024, in terms of shipments, the company's XGS PON products (the mainstream 10GPON products in the wired broadband field) accounted for more than 30% of the global 10GPON market.

●Overview

Driven by continuous digital transformation, infrastructure upgrades, and growing user demand, the global information and communication technology (ICT) and telecommunications industry is evolving rapidly. In 2024, global ICT investment will exceed $5 trillion and is expected to exceed $7 trillion by 2029, with a compound annual growth rate of about 7% during this period. The number of global internet users reached 5.5 billion in 2024 and is expected to exceed 6 billion by 2029, reflecting a continuous growth in global connectivity. Such trends lay a solid foundation for the continued expansion of digital services and the deployment of advanced ICT infrastructure.

At the same time, artificial intelligence technology is accelerating the upgrade of the ICT industry, bringing new development opportunities to many industries. The demand for massive computing power, high-speed connections, and low-latency data processing by AI is also accelerating the upgrade and expansion of ICT infrastructure, including advancements in data centers, communication networks, and data transmission systems. This makes all aspects more intelligent, efficient, and scalable, supporting AI workloads. The market for AI is expected to exceed $3 trillion by 2029, with a compound annual growth rate of 37.8% starting from 2024. Major global technology companies are expected to invest more than $400 billion over the next three years to develop AI infrastructure, including computing power, storage systems, and data center capacity. Therefore, the number of global data center racks, which are crucial for supporting AI workloads, is expected to reach 1.398 billion by 2029, growing at a compound annual rate of 32.8% starting from 2024. The rapid development of AI technology is not only changing end-user applications but also fundamentally reshaping the ICT industry.

In addition, with the surge in broadband demand across various industries from cloud computing and video streaming to industrial automation and smart cities, the demand for high-performance connection devices capable of supporting large-scale real-time data transmission is constantly growing. This demand has been further enhanced with the rise of edge computing, 5G networks, and the widespread adoption of data-intensive applications across industries. Advanced connection solutions have become a fundamental part of modern infrastructure, enabling efficient communication between devices, users, and platforms. At the same time, the Internet of Things (IoT) serves as an important bridge between the physical world and the digital world in fields such as smart manufacturing, intelligent transportation, and energy management, with its continuous expansion driving the rapid popularization of intelligent applications. The global number of IoT connections is expected to reach 718 billion by 2029, with a compound annual growth rate of 30.8% starting from 2024. As end-user devices become more intelligent and interconnected, the demand for faster and more robust connections required to support high-frequency interactions and real-time responses continues to grow.

Against this backdrop, the development of wired broadband and wireless access products is crucial for supporting an increasingly data-driven and intelligent global economy. The upgrade of ICT infrastructure, the continuous growth of network traffic, the expansion of artificial intelligence workloads, and IoT are collectively creating a strong momentum for high-performance connectivity technologies, while consolidating their strategic position in the next phase of digital and industrial transformation.

●OWCD Industry Overview

OWCD refers to a complete set of devices that support key links in the optical communication and wireless network industries, mainly including: (i) optical modules; (ii) wired broadband access equipment; and (iii) wireless network access equipment.

OWCD enables high-speed, low-latency, and high-bandwidth data and computing power transmission, playing a key role in supporting a broader ICT ecosystem. OWCD ensures reliable connections across core networks, edge nodes, and end-user environments. As artificial intelligence technology is increasingly integrated into the ICT ecosystem, OWCD plays a fundamental role in AI infrastructure, promoting efficient allocation and exchange of computing power and data within and between computing clusters, as well as from computing clusters to end-users. This drives industry innovation and transformation through enhanced connectivity and communication capabilities.

A comprehensive OWCD company refers to a company that covers at least two sectors within the OWCD category. Such companies possess a wide-ranging product portfolio that can meet the diverse needs of downstream customers, such as ICT equipment suppliers, communication service providers, technology companies, and IoT solution providers. Their products are mainly integrated into the overall solutions provided by customers to end-users, or directly integrated into the customers' own data communication infrastructure. Comprehensive OWCD companies mainly cooperate with customers through joint design manufacturing ('JDM') and original design manufacturing ('ODM') models to provide customized solutions that meet specific needs.

Integrated OWCD companies are becoming increasingly common in the industry. They can fully leverage the synergies between optical modules and wired broadband access devices (for optical communication) and wireless network access devices (for wireless communication), which are indispensable and closely connected components of modern communication networks. Most integrated OWCD companies cover two of the three sub-segments. By 2024, the market size of integrated OWCD companies accounted for 22.6% of the overall OWCD industry.

Comprehensive OWCD companies that cover all sectors need to engage in all three areas under this category. Only a few enterprises meet this standard, standing out with their unique and comprehensive product portfolio. They possess extensive capabilities to provide highly customized solutions based on the diverse and evolving needs of downstream customers. By 2024, the market share of comprehensive OWCD companies that cover all sectors accounted for less than 10.0% of the overall OWCD industry.

Source: Frost & Sullivan report

The comprehensive OWCD industry chain includes upstream suppliers of key raw materials (such as optical devices, integrated circuit chips, structural parts, printed circuit boards) and specialized equipment (such as coating machines and testing tools) necessary for manufacturing optical modules and network access devices. As for the midstream, comprehensive OWCD companies typically produce a variety of products across multiple categories through JDM or ODM models to meet customers' customized needs. Downstream enterprises then incorporate these products into their solutions or data communication infrastructure, ultimately enhancing the communication experience for enterprise and home end-users.

●Market scale of the OWCD industry

From 2020 to 2024, global sales of the OWCD industry increased from $324 billion to $546 billion, with a compound annual growth rate of 13.9%. Faced with accelerating development trends and intelligent transformation, coupled with preferential policies in various countries, the OWCD industry continues to innovate in technology and upgrade its industry. Therefore, due to accelerated iteration and the continuous evolution of cutting-edge technologies, it is expected that global sales revenue of the OWCD industry will reach $1118 billion by 2029, with a compound annual growth rate of 15.4% starting from 2024.

Data source: Frost & Sullivan reports and interviews with industry experts conducted by Frost & Sullivan.

From 2020 to 2024, global sales of the integrated optical communication (OWCD) industry increased from $7.1 billion to $12.4 billion, with a compound annual growth rate of 15.0%. Leading companies in the OWCD industry are capable of driving market growth by providing a diverse portfolio of leading optical modules, PON equipment, and wireless network access devices. This diversified product supply supports the rapid development of the global integrated OWCD industry. As customers' demand for one-stop suppliers grows, integrated OWCD suppliers are expected to increasingly be favored by customers in the future. It is estimated that the global sales revenue of the integrated OWCD industry will reach $28.6 billion in 2029, with a compound annual growth rate of 18.3% starting from 2024, exceeding the growth rate of the global OWCD industry during the same period.

Data source: Frost & Sullivan reports and interviews with industry experts conducted by Frost & Sullivan.

●Digital Transformation

The rapid growth in the demand for high-bandwidth, low-latency networks by enterprises and residential environments is driving an increasing deployment density and performance upgrade of wired broadband and wireless network access devices. As enterprises accelerate their digital transformation, industrial parks and office buildings are currently placing higher demands on efficient access and stable multi-device connections. In residential areas, the surge in high-definition video conferencing, online education, 4K/8K streaming media, AR/VR applications, and smart home devices is reshaping the demand for network infrastructure, posing challenges to the concurrent processing capabilities of access devices. The vigorous development of AIGC and other artificial intelligence technologies is rapidly driving the growth of the AI industry. At the same time, AI-driven applications such as AIGC are becoming increasingly popular, further expanding the demand for a robust and responsive network environment. In January 2025, a Chinese AI large language model company launched an open-source lightweight AI model, significantly improving the accessibility of AI technology and thereby promoting its widespread adoption. With the number of active users of major AI models in China and the United States reaching tens of millions, and global computing power expected to grow at a compound annual rate of 42.2% from 2024 to 2029, higher-performance and more reliable OWCD will become key for maintaining wide coverage, stable connections, and real-time data transmission in increasingly complex use scenarios.

●Continuous FTTX deployment

The number of home users with fixed broadband globally has increased from 1.2 billion households in 2020 to about 1.6 billion households by 2024, with a compound annual growth rate of 6.3%. As major countries and regions around the world prioritize broadband infrastructure as a strategic investment focus, the construction of FTTx networks continues to heat up, significantly driving demand for PON equipment. For example, China is actively promoting the "Gigabit Optical Network" initiative and the "East Data West Computing" project, aiming to achieve universal gigabit access capabilities by 2025. In addition, in January 2025, the Ministry of Industry and Information Technology (MIIT) issued a notice on the implementation of a ten-gigabit optical network pilot plan, mainly targeting residential communities, factories, and industrial parks. These pilots will promote the deployment of 50G-PON ultra-wideband access and advanced optical network technologies such as FTTH (fiber to the home) / FTTR (fiber to the room). In the United States, the Infrastructure Investment and Jobs Act passed in 2021 allocated $1.2 trillion for various infrastructure projects, including $65 billion specifically for improving broadband access and quality. Similarly, the European Union released the "Digital Compass 2030: The Road to the European Digital Decade" plan in 2021, aiming to ensure that all households are covered by gigabit networks by 2030. Driven by strong global policies, telecom operators expect to continue expanding PON network coverage, thereby creating a continuous demand for the procurement and replacement of PON equipment. The number of home users with fixed broadband globally is expected to reach 1.9 billion households by 2029.

●Advanced PON technology

With the acceleration of global digital transformation and the development of emerging technologies, advanced PON technology meets the market's urgent need for higher bandwidth and lower latency. 10G PON technology has become the mainstream solution for telecom operators to deploy gigabit networks and meet the growing demand for broadband. At the same time, with the accelerated application of emerging technologies such as digitization, artificial intelligence, and IoT, the industry's demand for higher bandwidth and stronger data processing capabilities has also significantly increased, driving the emergence of 25G/50G PON technology. Compared to 10G PON, 25G/50G PON can provide higher bandwidth, lower latency, and stronger network scalability, better meeting the high-speed data transmission needs in scenarios such as data centers, cloud computing, and intelligent manufacturing. With the continuous maturation of technology and the gradual release of market demand, it is expected that 25G/50G PON products will achieve larger-scale deployment in the short term, while 100G PON and above products will become a longer-term trend.

●Wireless network technology upgrade

With the advent of Wi-Fi 7 (IEEE 802.11be), the communication device industry will undergo a new round of wireless connectivity technology revolution. Wi-Fi 7 provides higher data transmission rates, lower latency, and greater spectrum efficiency, making it more suitable for supporting data-intensive applications. In enterprise and home environments, the deployment of Wi-Fi 7 will greatly improve the stability, speed, and coverage of wireless networks, allowing multiple devices to connect simultaneously without affecting performance. Wi-Fi 7 ensures a smoother user experience, meeting the needs for high concurrency, low latency, and high bandwidth. In addition, with the rise of emerging technologies such as 5G, edge computing, and artificial intelligence, the demand for wireless networks is becoming increasingly complex and diverse. The launch of Wi-Fi 7 will not only meet these evolving needs but also accelerate the widespread adoption and expansion of wireless connectivity technologies. At the same time, advanced research on Wi-Fi 8 is underway to further push the limits of future wireless performance.

●The number of data centers has surged, accelerating the iteration of high-speed optical module demand.

Governments around the world are now introducing policies to support the development of data centers. In the United States, the "Interstellar Gateway Program" was announced in January 2025, planning to invest $500 billion over four years to build new artificial intelligence infrastructure. Similarly, China has issued policies such as the "National Data Infrastructure Construction Guidelines" to accelerate the construction of data infrastructure. With the rapid development of cloud computing, global data centers are entering a large-scale commercialization phase. The cumulative number of global data center racks is expected to reach 1.398 million by 2029, with a compound annual growth rate of 32.8% starting from 2024. Therefore, the optical module industry is experiencing rapid technological progress and product iteration. High-speed optical modules (such as 400G and 800G) can provide larger bandwidth, lower latency, and higher efficiency, making them crucial for interconnecting devices within and between data centers. At the same time, the next generation of 1.6T high-speed optical modules are being developed and have already started small-scale shipments, expected to enter large-scale mass production around 2026. With the continuous growth in data demand, high-speed optical modules will be increasingly adopted in data communication applications, thereby accelerating the technological iteration and upgrading of the entire OWCD industry.

●The evolution of cutting-edge technologies in optical modules

Driven by downstream demand, companies in the optical module industry are actively strengthening the research and development of new technologies. The following introduces the leading cutting-edge technologies in the optical module industry:

• Silicon photonics module technology utilizes existing CMOS processes to develop and integrate optical devices and modules. Modules integrating silicon photonic devices are expected to dominate the market in the future due to their advantages of high integration and low power consumption.

   

• Innovative packaging technologies such as Linearly Pluggable Optical Devices (LPO) can significantly optimize optical module power consumption by eliminating Digital Signal Processing (DSP). Co-packaged optics (CPO) technology reduces energy consumption and improves transmission efficiency by encapsulating the optical engine and switching chip together on the same motherboard.

   

• Liquid-cooled optoelectronic technology can effectively improve heat dissipation efficiency and module stability through its unique liquid cooling design.