EASUNCOM, a Shanghai‑based fabless cellular IoT baseband chip designer, has refiled its HKEX IPO application – its second attempt after the initial filing lapsed in May 2026. CITIC Construction Investment International remains the sole sponsor.
Founded in 2017, the company has built three mature product lines: NB‑IoT, Cat.1bis, and LTE Cat.4 , with 5G RedCap as the next‑gen focus. It also licenses cellular communication IP – a high‑margin business (97% gross margin) with strong customer concentration risk.
According to Frost & Sullivan, EASUNCOM ranked third globally in cellular IoT chip revenue in 2025 with 3.9% market share. In sub‑segments: NB‑IoT chips rank second globally (40.2% share); Cat.1bis chips also rank second (26.1% share).
Financials (2023‑2025):
Revenue: RMB 533M / 552M / 689M (+24.8% in 2025)
Net profit: ‑159M / +12M / ‑16M (swinging between loss and thin profit)
Gross margin: 8.9% / 22.3% / 18.3%
H1 2026: Revenue RMB 416M (+23.3% YoY), net loss widened to RMB 39M – swinging from a profit in H1 2025. Gross margin dropped sharply to 7.8% , attributed to competitive pricing, intensified price wars, lower high‑margin IP revenue, and product mix shifts.
Revenue concentration: Cat.1bis grew from 64% of revenue in 2023 to 78.1% in H1 2026 , while NB‑IoT shrank to 18.1% – exposing the company to single‑category market volatility.
R&D spending declined from RMB 186M in 2023 to 135M in 2025, but rebounded in H1 2026 – signaling renewed investment.
The IPO proceeds will fund 5G RedCap development, edge AI initiatives, working capital, and brand expansion. However, the company still faces challenges: unstable profitability, compressed margins, and heavy reliance on a single product category. Success in RedCap will determine whether EASUNCOM can escape the mid‑to‑low‑end price competition and achieve sustainable profitability.
ICgoodFind Takeaway:
EASUNCOM holds strong positions in NB‑IoT and Cat.1bis, but margin pressure and revenue concentration are real hurdles. The 5G RedCap transition is the key to its next growth phase – and investors will be watching whether it can translate market share into consistent earnings.
