China Server Leader xFusion Starts IPO Process Following Revenue Surge
xFusion Digital Technologies, a leading Chinese server manufacturer formerly a division of Huawei Technologies, has formally initiated proceedings for an initial public offering. The move signals a major capital expansion for the company, which has secured a dominant position in China’s specialized computing hardware sector.
The Henan-based company submitted its listing counseling filing to the Henan Securities Regulatory Bureau on January 6. CITIC Securities has been appointed as the counseling agency to guide the manufacturer through the regulatory process, according to official filings.
xFusion has established itself as a critical player in the domestic infrastructure market, ranking first in China’s standard liquid-cooled server market for two consecutive years. The potential listing is expected to provide the capital necessary to accelerate its "xFusion 2.0" strategy, which focuses on artificial intelligence and computing power infrastructure.
Backed by state-owned heavyweights including major telecommunications carriers, xFusion reported revenue of RMB 43.38 billion yuan (US$5.98 billion) in 2024. The IPO represents a pivotal shift for the company as it transitions from a post-spinoff survival phase to an aggressive expansion in the global AI and data center markets.
Revenue Growth and Market Dominance
xFusion has demonstrated rapid financial and operational growth since its establishment. In early 2025, General Manager Liu Hongyun set an annual revenue target exceeding RMB 50 billion, building upon the RMB 43.38 billion recorded in 2024. The company’s client base has expanded significantly, growing from approximately 2,000 customers three years ago to more than 24,000 today. Its global reach now includes major operators and energy giants, such as the European Union’s PCSS supercomputing center and Saudi Aramco.
The company has carved out a specific niche in advanced cooling technologies, a critical component for modern data centers running AI workloads. In 2023, xFusion commanded a 43% market share in China’s standard liquid-cooled server sector, with shipments reaching nearly 42,000 units. It maintained this top market position through 2024.
Throughout 2025, the company accelerated its product development, releasing upgraded versions of its FusionPod open-architecture liquid-cooled servers, AI integrated machines (FusionOne AI), and liquid-cooling technical white papers. It has also diversified into the smart energy sector, launching split-type charging hosts and liquid-cooled supercharging terminals.
From Spinoff to Independent Entity
xFusion was established in September 2021, originating as Huawei’s x86 server business unit. The division was spun off and reorganized as an independent entity in Henan province to navigate supply chain challenges related to chip and software licensing restrictions.
Two months after its formation, Huawei transferred its entire equity stake to XFusion Digital Technologies, a subsidiary of Henan Yuxin Electric Tech under the Henan State-owned Assets Supervision and Administration Commission. Currently, Chaojuneng Technology remains the controlling shareholder with a 31.38% stake.
State-Backed Ownership and Leadership Changes
The server maker boasts a prominent shareholder structure heavily influenced by state capital. China Mobile, through its subsidiary, is the second-largest shareholder with a 15.14% stake. China Telecom holds 3.03% through its subsidiary. Other investors include the China Internet Investment Fund and state-owned assets from Shenzhen, Xiamen, Zhengzhou, and Hainan.
Ahead of the IPO filing, the company underwent leadership adjustments. In November 2025, Ma Jianping, a former government official who previously served as Deputy Director of the Henan Provincial Finance Department and in various municipal roles in Zhoukou, succeeded Liu Hongyun as Chairman. Liu, a former President of Huawei’s Asia-Pacific region who long managed the server business, continues to serve as Vice Chairman and General Manager.
Targeting the AI Era
At the company's 2025 explorer conference, management outlined a strategic pivot from "survival" to "ascension." The firm's future roadmap is anchored in four technical areas: AI, data, computing power, and energy.
To support this, the company has launched the "xFusion 2.0" plan, which aims to reconstruct business processes using artificial intelligence. The leadership has positioned the IPO as a means to fuel this transformation and capitalize on the "intelligence era," aiming to solidify xFusion's role in China’s computing infrastructure landscape.