Shares of Chinese company FS.com began trading in Hong Kong on March 23 after completing its IPO in the city.
Based in Shenzhen, FS provides networking products and related services for businesses worldwide. Its offerings include optical modules, high-speed cables, switches, system software, and operations and maintenance services.
According to Frost & Sullivan, FS ranked second in the global online direct-to-consumer (D2C) networking solutions market in 2024, with a 6.9% market share. The firm also ranked first in high-performance networking solutions, which it defines as products operating at 100 gigabits per second and above
The company’s market gains come as demand rises for artificial intelligence infrastructure. As training and inference workloads for large language models increase, data center networks are being upgraded to handle higher bandwidth and lower latency. That has supported demand for components such as optical modules, high-speed cables, and switches.
FS has expanded in this segment with products and services for four main use cases: high-performance computing, data centers, enterprise networks, and telecommunications. Unlike traditional vendors focused mainly on hardware, it uses a decoupled architecture that combines standardized networking hardware with cloud-based software, allowing customers to adjust network resources based on their needs.
That combination also allows FS to tailor products for both vertical scaling, or scale-up, and horizontal scaling, or scale-out, in AI data centers.
The company has built a D2C platform through FS.com that covers presales consulting, solution design, procurement, and global delivery.
As of the latest practicable date, FS said it had 500,000 customers across more than 200 countries and regions, including about 60% of Fortune 500 companies. Unlike traditional distributors that focus on large government and enterprise accounts, FS.com uses a standardized catalog, self-service selection tools, and flexible small- and medium-batch purchasing options to reach smaller businesses as well.
In 2024, FS reported net revenue retention of 102.3%. Average revenue per customer rose from RMB 26,900 (USD 3,895.6) in 2022 to RMB 31,700 (USD 4,590.7) in 2024.
From 2022–2024, FS posted a compound annual revenue growth rate of 14.6%. Gross margin rose from 45.4% in 2022 to 52.6% in the nine months ended September 30, 2025, while adjusted net margin reached 21.2%. According to IPO Zaozhidao, that level of profitability is above that of traditional hardware distributors.
Over time, investors will likely watch:
- If high-performance networking solutions make up a larger share of its business.
- If its D2C model continues to improve efficiency.
- If its delivery network and regional reach expand further.
- And if it can broaden its position from a product seller to a platform-based solutions provider.
This article was adapted based on a feature originally published on IPO Zaozhidao. KrASIA is authorized to translate, adapt, and publish its contents.
Note: RMB figures are converted to USD at rates of RMB 6.91 = USD 1 based on estimates as of March 26, 2026, unless otherwise stated. USD conversions are presented for ease of reference and may not fully match prevailing exchange rates.