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Jack Ma’s Yunfeng and Hillhouse Target $2 Billion Listing for Nvidia Supplier Victory Giant

Summarized by NextFin AI
  • Victory Giant Technology is preparing for a Hong Kong IPO, potentially valued at $2 billion, with backing from prominent investors like Jack Ma’s Yunfeng Capital and Hillhouse Investment.
  • The company has shifted towards high-density interconnect (HDI) boards, becoming a Tier 1 supplier for Nvidia’s AI accelerator cards, resulting in a 339% year-on-year increase in net profit in Q1 2025.
  • Despite investor interest, the IPO's success is uncertain due to dependency on Nvidia and potential risks from U.S. export restrictions, which could impact margins.
  • This IPO is seen as a test for the Hong Kong market, indicating a possible reopening of capital for firms with AI-adjacent utility amidst ongoing volatility in the semiconductor cycle.

NextFin News - Victory Giant Technology, a critical link in Nvidia’s global artificial intelligence supply chain, is preparing a Hong Kong initial public offering that could value the company at approximately $2 billion, according to people familiar with the matter. The listing is set to draw high-profile backing from Jack Ma’s Yunfeng Capital and Hillhouse Investment, signaling a renewed appetite among China’s elite private equity firms for hardware-centric "hard tech" plays that bridge the gap between Chinese manufacturing and global AI demand.

The Huizhou-based printed circuit board (PCB) manufacturer has seen its profile rise sharply following a strategic pivot in 2019 toward high-density interconnect (HDI) boards. This technical shift allowed Victory Giant to secure a position as a Tier 1 supplier for Nvidia’s H-series AI accelerator cards and, more recently, obtain certification for the GB200 Blackwell architecture. The company’s financial performance has mirrored the AI boom; net profit attributable to shareholders surged 339% year-on-year in the first quarter of 2025, fueled by reports that Nvidia-linked orders now account for over 70% of its business volume.

Yunfeng Capital, co-founded by Jack Ma and David Yu, has historically focused on "Five-New" sectors—New Retail, New Finance, New Manufacturing, New Technology, and New Energy. Its interest in Victory Giant represents a calculated move into the foundational hardware layer of the AI era. While Yunfeng has a track record of backing winners like CATL and Xiaomi, its participation in this $2 billion listing is viewed by some analysts as a strategic alignment with U.S. President Trump’s broader industrial focus on high-end manufacturing, even as trade tensions persist. Hillhouse, led by Zhang Lei, brings a similar long-term institutional perspective, having pivoted its portfolio toward deep-tech and industrial upgrades over the last three years.

The involvement of these marquee investors is not yet a market-wide consensus on the IPO’s ultimate success. According to one senior analyst at a Hong Kong-based brokerage, who has maintained a cautious stance on Chinese tech listings, the valuation depends heavily on the "Nvidia premium." The analyst noted that while Victory Giant’s relationship with Nvidia CEO Jensen Huang is notably close—founder Chen Tao was reportedly the only mainland Chinese supplier invited to a private dinner with Huang in Taiwan—this concentration of revenue creates a significant dependency risk. Any shift in Nvidia’s sourcing strategy or further U.S. export restrictions on high-end PCB components could rapidly erode the company’s margins.

Beyond the geopolitical risks, the listing serves as a litmus test for the Hong Kong IPO market, which has struggled to regain its 2021 momentum. A $2 billion valuation would make Victory Giant one of the largest technology debuts in the city this year. The company’s ability to attract both Ma’s private equity vehicle and Hillhouse suggests that for firms with clear "AI-adjacent" utility, the capital taps are beginning to reopen. However, the sustainability of this valuation will likely be tested by the volatility of the global semiconductor cycle and the evolving regulatory landscape governing cross-border tech supply chains.

Explore more exclusive insights at nextfin.ai.

Insights

What are high-density interconnect boards and their significance for Victory Giant?

How did Victory Giant evolve to become a key supplier for Nvidia?

What recent trends are observed in the Chinese private equity investment landscape?

What financial performance metrics demonstrate Victory Giant's growth?

What role does Jack Ma's Yunfeng Capital play in the technology sector?

What challenges does Victory Giant face regarding its dependency on Nvidia?

How does the geopolitical landscape affect Victory Giant's business operations?

What implications does the $2 billion IPO have for the Hong Kong market?

How might future U.S. policies impact Victory Giant's supply chain?

What comparisons can be drawn between Victory Giant and other tech IPOs in Hong Kong?

What is the current sentiment among investors regarding tech IPOs in Hong Kong?

How does Victory Giant's strategic pivot relate to broader industry trends?

What risks are associated with the semiconductor cycle for Victory Giant?

What factors could influence the success of Victory Giant's IPO?

How does the relationship between Victory Giant and Nvidia enhance its market position?

What are the potential long-term impacts of the AI boom on Victory Giant?

How do investor strategies differ between Yunfeng Capital and Hillhouse?

What historical context is important for understanding Victory Giant's market entry?

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