Daily Brief China: Iluvatar CoreX, Victory Giant Technology (HuiZhou), Lotus Horizon, Jinan Janbon Metallic Materials, Shenzhen Vergiga Semiconductor and more

• Following HSCI’s May 2026 review, six names became HK Connect eligible in the June 2026 implementation, with no deletions. All post-implementation windows through weeks 2 to 4 are complete.
• ADD first-week returns fell, but less than the historical first-week decline. Breadth was better than the historical base rate, and weeks 2 to 4 turned positive.
• Our pre-implementation first-week decline read held for the positive-bridge names, while the negative-bridge group split against its severe-decline precedent.

• We study the 32 HK IPOs of at least US$100m listed in 2Q26, comparing Day 1 and 2W performance with the five prior quarters.
• 2Q26 had more deals, smaller median deal size, and record subscription demand. Day 1 return reached a six-quarter high, while 2W follow-through weakened.
• International-Sponsored deals outperformed domestic-only deals after trailing for three quarters, while the high-retail-subscription debut screen produced negative Day 1 closes for the first time.

• Lotus Horizon is a specialized subcontractor in Hong Kong’s facade and building metal works sector, a niche market driven by both new construction and renovation projects.
• The company’s recent financial performance shows significant stress, with revenue declining and a swing from a net profit of HK$3.2 million in FY2025 to a net loss of HK$3.3 million in FY2026.
• While the broader Hong Kong construction market is expected to stabilize, supported by government infrastructure spending, the company faces intense competition, high uncertainty, and a challenging environment for private sector projects.

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• Jinan Janbon Metallic Materials is a prominent silver powder supplier in China, specializing in PV silver paste for PV cells, with over a decade of experience.
• The company ranked first in domestic PV silver powder sales in 2023 and xBC cell silver powders in 2025, with revenue increasing to RMB5,066.5 million in FY2025.
• FY2025 revenue reached RMB5,066,505 with a 4.7% gross profit margin, but net cash flows from operations were negative in FY2023, FY2024, and 5M 2026.

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• Shenzhen Vergiga Semiconductor is a China-based provider of high-performance power semiconductor devices, focusing on R&D, design, and sales of WLCSP products. It uses a mixed business model.
• Gross profit margin of WLCSP products increased from 18.6% in 2024 to 31.7% in 2025, while per-unit costs decreased by 23.4%.
• Profit for the five months ended May 31, 2026, decreased to RMB(510), with net cash used in operating activities.

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