JOURNALIST | SONG JIANAN
On June 8, according to reports from the Daily Economic News, Shenghong Technology (300476.SZ/02476.HK)—a key supplier for NVIDIA—issued a statement today addressing rumors surrounding one of its executives and a woman. “We’ve been tracking the circulating information,” the company clarified. “However, the content shown in the viral videos and other claims has absolutely nothing to do with our day-to-day operations or business activities. It doesn’t touch on corporate governance, internal controls, or any material information that requires disclosure. Rest assured, this situation will have zero impact on our normal business operations.”
Shenghong made it clear that everything behind the scenes is running smoothly. Production lines are humming, order books are full, and all projects are moving forward exactly as planned.
The whole saga kicked off on June 6 when a social media user going by “Zhenzhen Janice” started dropping posts about the private life of Shenghong’s chairman, Chen Tao. Within hours, the posts went viral. The user alleged a romantic entanglement with Chen and shared what appeared to be chat logs and video call screenshots. The real flashpoint, though, was an elevator surveillance clip showing a middle-aged man acting quite cozy with a woman in white—allegedly Chen himself.
Interestingly, reporters noticed that those specific videos have since vanished from the user’s history page.
Meanwhile, as reported by the Southern Daily, Shenghong President Zhao Qixiang stepped in on June 7 to say that Chen Tao had already discussed the matter directly with the board. “The rumors floating around aren’t entirely accurate,” Zhao noted. “We filed a police report on June 6, and relevant authorities are now looking into it.”
Naturally, the market didn’t take kindly to the drama. In early trading today, Shenghong’s A-shares plunged hard, dipping nearly 9% at their lowest point before settling down. By market close, they were still down over 7%, trading at 314.80 yuan per share. That translates to a market cap of roughly 309.4 billion yuan—wiping out more than 20 billion yuan in just one day. The H-share listing took a hit too, sliding past 8% to sit at a 332.6 billion HKD valuation.
When it comes to AI compute PCBs (Printed Circuit Boards), Shenghong isn’t just playing in the league—they’re leading it, and they’re firmly entrenched as a core NVIDIA partner. The roots of the company trace back to 2003, when Chen Tao founded Shenghua Electronics. Fast forward to July 2006, and Shenghong Technology (Huizhou) Co., Ltd. officially took shape. Born in 1972 in Longnan, Gansu, Chen moved south to Huizhou in 1996 to dive headfirst into the PCB world. He worked his way up from a grassroots sales rep to a seasoned industry veteran, steering the once-local workshop into a global powerhouse.
According to Tianyancha data, Chen currently serves as both the legal representative and actual controller of Shenghong. His compensation package clocked in at 6.395 million yuan as of March 2025. The company’s biggest shareholders are Shenzhen Shenghua Xinye Investment Co., Ltd. and Shenghong Technology Group (Hong Kong) Co., Ltd.—both tightly controlled by Chen, who holds a 90% stake in Shenghua Xinye.
At its core, Shenghong specializes in the research, manufacturing, and distribution of high-density PCBs. Their star products include advanced HDI boards and multi-layer PCBs, which power everything from AI systems and data centers to smart cars and 5G infrastructure. Riding the AI boom, the company has seen explosive growth thanks to serious technical moats. While your average consumer electronics PCB usually runs 4 to 6 layers, the premium boards needed for AI servers stack up to 20 layers or more, demanding micron-level precision. Honestly, the engineering challenge rivals semiconductor fabrication.
Right now, Shenghong is deeply integrated into the supply chains of tech giants like NVIDIA, AMD, Microsoft, Google, and Tesla. They’re officially a Tier-1 core supplier for NVIDIA’s AI server PCBs. Frost & Sullivan’s latest numbers paint an impressive picture: based on H1 2025 revenue in AI and high-performance computing PCBs, Shenghong captured a massive 13.8% market share, taking the global #1 spot. Just compare that to the same period in 2024, when they only held 1.7% and ranked seventh. Talk about a meteoric rise.
You can really see how much NVIDIA values them when you look at January’s infamous “Trillion-Yuan Banquet.” During NVIDIA CEO Jensen Huang’s annual supply chain dinner in Taipei, the event got nicknamed that because the combined market cap of invited companies topped 1 trillion TWD. It was basically a VIP gathering of heavyweights like TSMC, Foxconn, and Quanta. In a room packed with Taiwan-based tech moguls, Chen Tao stood out as the only mainland Chinese chairman invited—and he’s been a consistent guest for two years running.
On April 21 this year, Shenghong officially listed on the Hong Kong Stock Exchange main board, cementing its dual-capital strategy across both A-shares and H-shares. The IPO priced shares at 209.88 HKD each, offering 95.85 million new shares. With the overallotment fully exercised, the total haul surpassed 23 billion HKD, making it the largest Hong Kong IPO so far in 2026.
Trading on the Hong Kong exchange didn’t disappoint either. Shares opened at 330 HKD—a staggering 57.23% jump from the issue price—before closing at 315 HKD. For a brief moment, the market cap broke past 320 billion HKD. Notably, Shenghong also earned the title of Huizhou’s first company to successfully cross-list across both A and H markets.
The financials tell the real story. Full-year 2025 results showed Shenghong raking in 19.292 billion yuan in revenue, up nearly 80% year-over-year. Net profit attributable to shareholders skyrocketed by over 273% to 4.312 billion yuan. Gross margins hit 35.22%, climbing 12.5 percentage points from the previous year—a clear sign that customers are happily paying top dollar for their high-end AI PCBs.
The momentum hasn’t slowed down in Q1 2026. Revenue came in at 5.519 billion yuan (up 27.99%), while net profit grew almost 40% to 1.288 billion yuan. But the standout number? Operating cash flow jumped nearly 400% to 2.117 billion yuan, proving that money is actually hitting the bank accounts faster than ever.
Heading into May, management gave investors a solid update: order books are overflowing, and delivery pipelines are running smoothly. To keep up with demand, they’ve rolled out dedicated mSAP production lines in Huizhou, specifically targeting the growing need for 1.6T optical modules, and utilization rates are looking great. They’re also pushing hard on CoWoP technology integration, which combines advanced HDI designs with mSAP processes. Expect the value proposition of these upcoming boards to climb significantly. The team keeps a tight feedback loop with clients, prepping capacity exactly where it’s needed and rolling out resources to fast-track new product development and mass production.
