Xihe Technology Targets STAR Board With 1.83B Yuan Raise After AI Chip Surge

By Grace Kim

Shanghai Xihe Technology plans to raise 1.83 billion yuan on the Sci-Tech Innovation Board — 600 million yuan less than the figure in its first filing three months ago, according to an updated prospectus.

The cut doesn't dull the story. Xihe, a silicon photonic integrated chip supplier to global optical module makers and cloud providers, booked 569 million yuan in revenue in the first half of 2026. That beats its revenue for all of 2025, which came in at 460 million yuan.

Where will the 1.83 billion yuan go?

The prospectus breaks the raise into three buckets:

• 563 million yuan to expand industrialization capacity for silicon photonic chips used in AI computing power and data centers
• 952 million yuan for R&D and industrialization of next-generation silicon photonic chips
• 315 million yuan for an R&D center construction project

The biggest single chunk targets next-generation chips, not current capacity.

How fast is the business growing?

Fast — and from a small base. Operating revenue ran 6.23 million yuan in 2023, 70.95 million yuan in 2024, and 460 million yuan in 2025, the prospectus shows. Net profit swung from a 28.34 million yuan loss in 2023 and a 22.46 million yuan loss in 2024 to a 176 million yuan gain in 2025. Net profit after deducting non-recurring items followed the same arc: minus 30.62 million yuan, minus 23.95 million yuan, plus 167 million yuan.

The first half of 2026 delivered 569 million yuan in revenue, 160 million yuan in net profit, and 155 million yuan in net profit excluding non-recurring gains and losses.

Silicon photonic integration has become the mainstream optical interconnection solution in computing power infrastructure, and forms the technical base for next-generation architectures including NPO, CPO and OIO, per the prospectus. Xihe's chips already ship at scale into AI clusters and hyperscale data centers, and the company is extending into inter-data-center interconnection and silicon photonic sensing.

The takeaway: losses turned to nine-figure profit in a single year as AI data center demand hit.

What are the risks hiding in the filing?

Customer and supplier concentration stand out. The top five customers accounted for 100.00%, 98.41%, 96.40% and 92.26% of revenue across the reporting periods. One customer alone contributed 60.40% of sales in January–June 2025 and 55.55% in the same window of 2026.

Supplier concentration runs even tighter. Xihe bought 54.54% of its procurement from its single largest supplier in 2023, rising to 83.75% in 2024, 86.56% in 2025 and 90.08% through June 2026.

Both directions of the supply chain run through very few hands.

Who controls the company?

Founder Wu Aimin controls 45.3944% of voting rights — 34.1662% through Shanghai Xijing, 6.0118% through Shanghai Hanrui, 4.9784% through Shanghai Hanxi and 0.2380% through Shanghai Yacong, per the prospectus.

Wu studied microelectronics and solid-state electronics at the Institute of Microsystems, where he served from 2008 to January 2026 as assistant researcher, associate researcher and researcher. He was a visiting scholar at the University of California, Berkeley from 2013 to 2014, chaired Xihe Co., Ltd. from 2021 to 2025, and has chaired Xihe Technology since 2025.

The cap table spreads wide beyond him. Employee and affiliate vehicles Shanghai Hanrui, Shanghai Yacong and Shanghai Hanxi (whose upper-level partner is Shanghai Hanyang) hold a combined 11.2282%. Xiao Jiancong controls 6.6508% through Langma Peak Venture Capital vehicles; Ningbo Linyi Asset Management's vehicles hold 6.0531%; Xinding Rongsheng's vehicles hold 5.2494%. Other holders include Xindingsheng Ba at 4.3908%, Aocheng Venture Capital at 3.6305%, Juyuan Zhenxin at 2.5578%, Datai Capital at 2.4343% and Langma No.91 at 2.3768%.

Post-IPO, Shanghai Xijing's stake dilutes to 25.6246%, with Shanghai Hanrui at 4.5089% and Shanghai Hanxi at 3.7338%.

The math matters: Wu keeps control with less than half the vote, and a long tail of small venture holders gets its exit.