AXT, Inc. announced that its majority-controlled subsidiary, Beijing Tongmei Xtal Technology Co., Ltd. (Tongmei), has withdrawn its initial public offering (IPO) application from the Shanghai Stock Exchange's STAR Market. The withdrawal was officially accepted by the Shanghai Stock Exchange on July 8, 2026. Tongmei and AXT will now focus resources on pursuing a listing on the Hong Kong Stock Exchange. The updated business plan for the Hong Kong listing will emphasize the development of AXT's indium phosphide (InP) business, targeting the growing demand for InP substrates in high-speed optical data transmission and artificial intelligence data centers. Tongmei's previous STAR Market listing application, pending since 2021, focused on gallium arsenide (GaAs) semiconductor wafer substrates and micro-LED products. In connection with the STAR Market application, Tongmei raised approximately US$49 million (RMB 324,404,508) from eleven private equity funds in China. These private equity funds have a redemption right, allowing them to request redemption of their investment, or AXT/Tongmei can redeem the investments, at the original invested amount without interest. The redemption price is fixed in RMB, meaning the U.S. dollar amount will fluctuate with the exchange rate. Discussions are underway with each fund to determine if they wish to continue their investment for the Hong Kong listing or have their investment redeemed. AXT states it has sufficient funds to redeem all investments if required.