STOCK TITAN
  1. Home
  2. Sec-filings
  3. AXTI
  4. [8-K] AXT INC Reports Material Event

AXT (AXTI) shifts Tongmei IPO to Hong Kong as RMB 324M may be redeemed

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

AXT, Inc. reported that majority-controlled subsidiary Beijing Tongmei Xtal Technology withdrew its pending IPO application for listing on the Shanghai Stock Exchange’s STAR Market. The company plans instead to pursue a Hong Kong Stock Exchange listing highlighting its indium phosphide business for high-speed optical and AI data center applications.

Because of the withdrawal, private equity investors who previously funded Tongmei’s planned STAR Market listing now hold redemption rights on an aggregate RMB 324,404,508 (approximately US$49 million). Each fund, as well as AXT or Tongmei, may choose to redeem these investments at the original RMB amount without interest. AXT states it has sufficient funds to redeem all investments in full if required, while it continues discussions with the eleven funds about remaining invested ahead of a potential Hong Kong listing.

Positive

  • None.

Negative

  • None.

Insights

IPO shift creates potential RMB 324M cash outlay but with stated funding capacity.

AXT has redirected its listing strategy for Tongmei from the STAR Market to the Hong Kong Stock Exchange, aligning the equity story with stronger demand for indium phosphide substrates in high-speed optical and AI data center uses. Strategically, this reframes Tongmei around faster-growing applications.

The withdrawal activates redemption rights on RMB 324,404,508 of private equity investments raised in China. Either the funds or AXT/Tongmei can elect redemption at the original RMB amount, with no interest. This introduces potential cash outflows, though the company states it has sufficient funds to redeem in full.

Actual financial impact depends on how many of the eleven funds choose redemption versus remaining invested as Tongmei advances toward a Hong Kong listing. Subsequent company filings may clarify final redemption levels and any resulting balance sheet effects once discussions with the funds conclude.

Item 2.04 Triggering Events That Accelerate or Increase a Direct Financial Obligation Financial
An event triggered acceleration or increase of an existing financial obligation, such as a debt covenant breach.
Private equity raised RMB 324,404,508 Aggregate amount raised in China for Tongmei’s prior STAR Market listing plan
Private equity raised (approx.) US$49 million Approximate U.S. dollar equivalent of Tongmei’s RMB 324,404,508 funding
STAR Market withdrawal notice date June 26, 2026 Date Tongmei notified the Shanghai Stock Exchange of IPO withdrawal
Withdrawal acceptance date July 8, 2026 Date the Shanghai Stock Exchange published acceptance of Tongmei’s withdrawal
Number of private equity funds 11 funds Total Chinese private equity funds holding redemption rights in Tongmei
initial public offering financial
"withdrawing its application for an initial public offering (“IPO”) on the exchange’s STAR Market"
An initial public offering (IPO) is when a private company first sells its shares to the public and becomes a stock-listed company. It matters because it allows the company to raise money from a wide range of investors, helping it grow, while giving early shareholders a way to sell some of their ownership.
STAR Market financial
"withdrawing its application for an initial public offering (“IPO”) on the exchange’s STAR Market"
A Star Market is a specialized segment of a stock exchange designed to list fast-growing, technology- or innovation-focused companies under rules intended to make it easier for startups and research-driven firms to raise capital. For investors it matters because it provides a way to access potentially high-growth opportunities that come with higher risk and volatility—like buying early-stage products at a startup fair rather than established brands at a supermarket.
Hong Kong Stock Exchange financial
"towards a listing on the Hong Kong Stock Exchange where its listing application will emphasize its updated business plan"
A major regulated marketplace where shares and other securities of listed companies are bought and sold, the Hong Kong Stock Exchange acts like a large, organized auction house that matches buyers and sellers. It matters to investors because it determines how easily shares can be traded (liquidity), helps set prices through supply and demand, and provides rules and oversight that affect risk, access to companies in the region, and how quickly market-moving news is reflected in stock prices.
redemption right financial
"Tongmei’s withdrawal of the listing application gives rise to a redemption right: each fund has the right, but not the obligation, to require"
indium phosphide technical
"updated business plan focusing on the development of the Company's indium phosphide ("InP") business"
Indium phosphide is a high-performance semiconductor material used to make chips, lasers and detectors that carry and process light and very fast electrical signals. Think of it as a specialized road surface designed for high-speed light traffic—better suited than ordinary silicon for fiber-optic communications, high-frequency electronics and some sensors. Investors care because demand and supply for this material affect companies in telecom, data centers, photonics and semiconductor supply chains, influencing costs, production capacity and technology competitiveness.
gallium arsenide technical
"emphasized Tongmei’s gallium arsenide (“GaAs”) semiconductor wafer substrates and other products for micro-LEDs"
Gallium arsenide is a crystalline semiconductor material used to make electronic and optical parts that need very fast switching, high-frequency signals, or efficient light emission and detection. It matters to investors because devices built with it—such as radio‑frequency chips, fiber‑optic lasers, LEDs and certain solar cells—can outperform silicon alternatives, creating competitive advantages, unique supply‑chain exposures, and different cost profiles that influence company value and product roadmaps.

FAQ

What did AXT (AXTI) announce about Tongmei’s IPO plans?
AXT disclosed that its majority-controlled subsidiary Tongmei withdrew its pending IPO application for listing on the Shanghai Stock Exchange’s STAR Market. Tongmei will instead focus on pursuing a listing on the Hong Kong Stock Exchange, aligning with its updated business plan centered on indium phosphide substrates.

Why is AXT (AXTI) shifting Tongmei’s listing to Hong Kong?
AXT plans a Hong Kong Stock Exchange listing to emphasize Tongmei’s indium phosphide business, which serves growing demand for high-speed optical data transmission and artificial intelligence data center applications. The prior STAR Market application had focused more on gallium arsenide wafer substrates and micro-LED-related products.

How much private equity funding is affected for AXT’s Tongmei unit?
In connection with the original STAR Market listing plan, Tongmei raised an aggregate RMB 324,404,508, approximately US$49 million, from eleven private equity funds in China. Withdrawal of the application now ties this entire amount to redemption rights held by both the funds and Tongmei or AXT.

What are the redemption rights triggered by Tongmei’s IPO withdrawal?
Each private equity fund can require AXT or Tongmei to redeem its investment at the original RMB amount, without interest or additional return. AXT or Tongmei also may choose to redeem on the same terms, making the total RMB 324,404,508 potentially redeemable following the STAR Market application withdrawal.

Does AXT (AXTI) say it can cover full redemption of Tongmei’s investors?
AXT states it has sufficient funds to redeem the private equity investments in full if all funds require redemption. At the same time, AXT and Tongmei are discussing with each of the eleven funds whether they will keep some or all of their investment while Tongmei pursues a Hong Kong listing.

How does currency affect potential redemption payments for AXT?
The redemption price for each fund is fixed in renminbi, equal to its original investment amount. Because obligations are denominated in RMB, the actual U.S. dollar value AXT or Tongmei might pay upon redemption will fluctuate with the RMB/USD exchange rate at the time of any payments.

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google
Add on Google
Understanding 8-K Material Events →
false 0001051627 0001051627 2026-06-17 2026-06-17
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
 
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported): July 8, 2026
 
AXT, INC.
(Exact name of registrant as specified in its charter)
 
 
 
Delaware
 
000-24085
 
94-3031310
 
 
(State or other jurisdiction
of incorporation)
 
(Commission File Number)
 
(IRS Employer
Identification No.)
 
 
4281 Technology Drive
Fremont, California 94538
(Address of principal executive offices) (Zip Code)
 
Registrant’s telephone number, including area code: (510) 438-4700
 
Not Applicable
(Former name or former address, if changed since last report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 
Emerging growth company ☐
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
 
Securities registered pursuant to Section 12(b) of the Act:
 
Title of each class:
 
Trading Symbol
 
Name of each exchange on which registered:
Common Stock, $0.001 par value
 
AXTI
 
The NASDAQ Stock Market LLC
 
Item 2.04 Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement.
 
On June 26, 2026, Beijing Tongmei Xtal Technology Co., Ltd. (“Tongmei”), a majority controlled subsidiary of AXT, Inc. (the “Company”), notified the Shanghai Stock Exchange that it was withdrawing its application for an initial public offering (“IPO”) on the exchange’s STAR Market (the “STAR Market”), and on July 8, 2026 the Shanghai Stock Exchange published the acceptance of the withdrawal. AXT and Tongmei will transfer their dedicated resources and efforts towards a listing on the Hong Kong Stock Exchange where its listing application will emphasize its updated business plan focusing on the development of the Company's indium phosphide ("InP") business to address the growing demand for InP substrates used in high-speed optical data transmission and artificial intelligence data center applications. Tongmei’s listing application on the STAR Market in 2021, which has been pending since that time, emphasized Tongmei’s gallium arsenide (“GaAs”) semiconductor wafer substrates and other products for micro-LEDs. Given the increase in demand for its InP wafer substrates used for high-speed optical data transmission in data centers employing artificial intelligence, the Company believes that the Hong Kong Stock Exchange is an attractive market to list Tongmei’s shares permitting a broader potential base of institutional and retail investors in its anticipated IPO.
 
In connection with its listing application on the STAR Market, Tongmei raised an aggregate of RMB 324,404,508 (approximately US$49 million) from eleven (11) private equity funds in China. Pursuant to the agreements with these private equity funds, Tongmei’s withdrawal of the listing application gives rise to a redemption right: each fund has the right, but not the obligation, to require the Company or Tongmei to redeem its investment, and the Company or Tongmei has the right, but not the obligation, to redeem each fund’s investment, in each case for a price equal to the original amount invested, without interest or any other return. Because the redemption price is fixed in RMB, the U.S. dollar amount payable will vary with the RMB/USD exchange rate. Tongmei and the Company are in discussions with each fund to determine whether it wishes to continue its investment as Tongmei advances toward an application for a Hong Kong Stock Exchange listing, or to have its investment redeemed in whole or in part. The Company has sufficient funds to redeem the fund's investments in full should full redemption be required.
 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
AXT, INC.
 
 
 
 
By: 
/s/ Gary L. Fischer
Date: July 8, 2026
 
Gary L. Fischer
 
 
Chief Financial Officer and Corporate Secretary
 
 

Source: View Original Filing on SEC EDGAR

Filing Exhibits & Attachments

4 documents

Other Documents