Suzhou Dongshan Precision Manufacturing Co Ltd

On the evening of August 24, multiple listed companies on the Shanghai and Shenzhen stock exchanges released important announcements. Dongshan Precision stated during its results briefing that its 1.6T optical module products have been supplied to customers, but due to commercial confidentiality, specific order information cannot be disclosed. Far East Smarter Energy's subsidiary plans to acquire 80% equity of Fudewangwang for 216 million yuan; Topstar Technology plans to acquire 49% equity of Lailer Optoelectronics for 147 million yuan; the merger and restructuring plan between Orient Securities and Shanghai Securities was approved by an overwhelming majority at the shareholders' meeting. In terms of performance, Eoptolink Technology's net profit in the first half of the year was 7.529 billion yuan, up 90.98% year-on-year; CIG Shanghai's net profit grew 171.08% year-on-year; Chengxin Lithium Group turned losses into profits year-on-year; Sinomine Resource Group's net profit surged 1146.81% year-on-year; Luxshare Precision's net profit rose 18.04% year-on-year. In addition, Genew Technologies' actual controller plans to increase holdings of company shares by 15 million to 30 million yuan, Selon Industrial plans to repurchase shares worth 30 million to 60 million yuan, Donghong Pipe Industry pre-won a steel pipe procurement project worth 144 million yuan, Longjian Road & Bridge jointly won a 333 million yuan engineering project, and Gangdi Technology's wholly-owned subsidiary signed a smart control system procurement contract worth approximately 230 million yuan with Huadong Heavy Machinery.

Dongshan Precision released its 2026 interim report, with net profit attributable to the parent company of 2.957 billion yuan. The company's total operating revenue was 27.798 billion yuan, and net cash inflow from operating activities was 2.384 billion yuan, down 4.65% from the same period last year. The latest asset-liability ratio was 64.51%, up 8.22 percentage points from the same period last year, with a gross margin of 20.15%, ROE of 12.14%, and diluted earnings per share of 1.62 yuan.

On the evening of August 21, multiple listed companies on the Shanghai and Shenzhen stock exchanges issued announcements. Among them, the IPO review status of Yangtze Memory Technologies Co., Ltd. on the STAR Market was changed to accepted, with a planned fundraising amount of 33 billion yuan. Zhongji Innolight reported semi-annual net profit attributable to the parent of 13.651 billion yuan, up 241.7 percent year on year, and plans to distribute 12 yuan per 10 shares. Yangtze Optical Fibre and Cable reported semi-annual net profit attributable to the parent of 2.925 billion yuan, up 888.88 percent year on year, and plans to distribute 10.6 yuan per 10 shares. Dongshan Precision Manufacturing reported semi-annual net profit attributable to the parent of 2.957 billion yuan, up 290.09 percent year on year. Zijin Mining Group reported semi-annual net profit attributable to the parent of 39.17 billion yuan, up 68.17 percent year on year, and plans to distribute 4.2 yuan per 10 shares. Sea Gull Housing's controlling shareholder Zhongyu Investment plans to transfer 20 percent of the company's shares to Botai Chelian, and 5.01 percent of the shares to Fuqing Yaohong. The company's controlling shareholder will change to Botai Chelian, and the actual controller will change to Ying Zhenkai. Trading in the shares will resume on August 24. Zoneco Group plans to list and transfer an 18 percent stake in Amur Company with a reserve price of 108 million yuan. Dosilicon plans to invest 682 million yuan to build a storage-computing integrated chip research and development project. In addition, Guolian Minsheng President Ge Xiaobo resigned, and Wang Jinling will act as president. Harbin Investment and Longjian Road and Bridge also saw changes in their board secretaries.

On August 4, the A-share PCB concept sector rallied across the board. Zhongjing Electronics hit its daily limit up, while Dongshan Precision, Shengyi Technology, Shennan Circuits, Dongcai Technology, and Tongguan Copper Foil all rose more than 5%. Newly listed Jialichuang surged over 177% intraday on its debut. The rally was directly catalyzed by rising upstream substrate costs. A Citi research report shows that electronic fabric prices recorded their largest single-month increase this year in August, with average prices for the 1080, 2116, and 7628 series rising 17% to 18%, and cumulative gains this year reaching 118% to 165%. AI power supplies are squeezing traditional supply, and costs are being passed on to copper-clad laminates. The spot price including tax for laminates from industry leader Kingboard Laminates may rise another 10% to 15% in August, with the year-to-date average price nearly doubling. China Securities believes that, driven by AI, the global PCB industry is entering a new upward cycle. In 2025, the PCB market space for GPU and ASIC servers has already exceeded 40 billion yuan, and it will surpass 90 billion yuan in 2026, doubling the growth rate. However, capacity expansion is constrained by multiple factors, and the supply-demand balance is unlikely to reverse in the short term.

On July 27, A-shares fluctuated and climbed higher. The Shanghai Composite Index closed up 1.15%, the Shenzhen Component Index rose 2.72%, and the ChiNext Index gained 3.16%. Total turnover across Shanghai, Shenzhen, and Beijing exchanges reached 2.0887 trillion yuan for the day, an increase of 144.2 billion yuan from the previous session. In the afternoon, the PCB sector saw widespread limit-up moves. International Composites and Juzi Technology both hit the 20% daily limit in late trading. Dongshan Precision experienced sharp intraday swings and ended up 6.39%. Redboard Technology plans to invest no more than 5 billion yuan to build a high-end mSAP precision circuit board project. The AI application sector continued to strengthen, with Zhidu Shares and Suzhou Keda hitting limit up. On the news front, the Ministry of Industry and Information Technology said that in the first half of the year, the AI technology application penetration rate among industrial enterprises above designated size exceeded 30%, and OpenAI released its AI agent operating platform Presence. Two new stocks delivered eye-catching performances. N Changxin, debuting on the STAR Market, closed up 465.82%, with a total market value of 3.28 trillion yuan, ranking first in the A-share market. N Weiji, listed on the Beijing Stock Exchange, surged over 800% intraday before closing up 599.50%.

The 2026 second-quarter reports of public funds show that well-known fund managers including Zhang Kun, Liu Yanchun, and Zhu Shaoxing collectively reduced their positions in core consumer assets such as baijiu during the second quarter, shifting their allocation focus toward the tech growth sector. In the top ten holdings of the E Fund Blue Chip Select managed by Zhang Kun, SMIC and Dongshan Precision were included for the first time. The concentration of holdings dropped from 90.5% at the end of the first quarter to 50.9%, and the overall position fell from 93% to 75%. The number of shares held in Wuliangye and Shanxi Xinghuacun Fenjiu declined by 70.68% and 70.91% respectively. The top ten holdings of the Invesco Great Wall Dingyi Mixed Fund managed by Liu Yanchun were completely replaced, with new additions including Konfoong Materials International and Zhongji Innolight. From the appointment of an additional manager on May 9 to June 30, the net value rose by 26.51%. The top ten holdings of the Fullgoal Tianhui Selected Growth Fund managed by Zhu Shaoxing underwent significant changes, with Zhongji Innolight and Zelgen Biopharmaceuticals entering for the first time. Kweichow Moutai dropped out of the top ten after being a major holding for 25 consecutive quarters, while the position in Sinocera was substantially reduced by 69.11%.

DSBJ announced plans to repurchase shares for 200 million to 300 million yuan, with a buyback price not exceeding 367.04 yuan per share, for employee stock ownership plans or equity incentives. Sanhua Intelligent Controls' controlling shareholder proposed repurchasing A-shares for 200 million to 400 million yuan. Three-Circle Group plans to repurchase shares for 450 million to 900 million yuan. Huayou Cobalt plans to repurchase shares for 600 million to 1 billion yuan. Broad-Ocean Motor terminated its H-share issuance and plans to repurchase shares for 120 million to 160 million yuan. Zhifei Biological plans to repurchase shares for 150 million to 300 million yuan. Puya Semiconductor's controlling shareholder proposed repurchasing shares for 30 million to 50 million yuan. Chunzhong Technology's chairman proposed repurchasing shares for 50 million to 100 million yuan to reduce registered capital. Kedali's controlling shareholder proposed repurchasing shares for 150 million to 300 million yuan. Sany Heavy Industry's chairman proposed repurchasing shares for 400 million to 800 million yuan. On the share increase side, Chuantou Energy's controlling shareholder plans to increase holdings by 200 million to 300 million yuan. China State Construction's controlling shareholder plans to increase holdings by 500 million to 1 billion yuan. Gongda Electroacoustic's controlling shareholder's concert party plans to increase holdings by 150 million to 250 million yuan. In addition, SDIC Power plans to jointly build the Yagen II Hydropower Station with CATL, with a total investment of 33.394 billion yuan. Hangdian Cable plans a private placement to raise no more than 2.88 billion yuan for optical fiber preform and other projects. Dajin Heavy Industry's subsidiary signed a shipbuilding contract worth about 2.1 billion yuan. Xingyun Technology signed a 300 million yuan computing power service contract. Yangdian Technology's wholly-owned subsidiary signed an 860 million yuan computing power service contract. Yushun Electronics' subsidiary signed a 731 million yuan computing power server lease contract. On the performance front, Raycus Laser's first-half net profit rose 117 percent year-on-year. Han's Laser's semi-annual net profit rose 163.47 percent year-on-year. Raytron Technology's first-half net profit is expected to increase by 242 percent to 270 percent. Haozhi Electromechanical's semi-annual net profit rose 267 percent year-on-year.

Several co-packaged optics companies have reported sharp first-half earnings growth. DSBJ expects net profit of 2.9 billion to 3 billion yuan for the first half of 2026, up 282.58 percent to 295.78 percent year on year. Its traditional businesses in consumer electronics and auto parts remain solid, the integration of its optical module business is showing results, and data center related investments are gradually generating returns. Yangtze Optical Fibre and Cable expects net profit of 2.4 billion to 3 billion yuan, up 711 percent to 914 percent, driven by demand for optical fibre and cable from computing power data center construction. Accelink Technologies expects net profit of 559 million to 615 million yuan, up 50 percent to 65.15 percent, as the AI computing power investment wave drives rapid growth in demand for datacom optical modules. Tongfu Microelectronics has entered the supply chain through advanced CPO packaging technology and expects net profit of 1.6 billion to 1.8 billion yuan, up 288.26 percent to 336.80 percent, with strong growth in the semiconductor industry and rising revenue from mid-to-high-end products boosting performance. ZTT expects net profit of 2.352 billion to 2.508 billion yuan, up 50 percent to 60 percent, as the accelerated rollout of AI computing power and new digital infrastructure improves the profitability of optical communication products. Earlier, Hengtong Optic-Electric, SDGI, and Yongding also disclosed positive profit forecasts. Brokerages believe the AI computing power boom is driving the optical communication industry into a new growth cycle. CICC expects the global optical module market to achieve a compound annual growth rate of 28 percent from 2024 to 2027, with 800G and 1.6T optical modules ramping up rapidly in 2026, bringing both volume and price increases. However, attention should be paid to uncertainties such as fluctuations in downstream capital expenditure and technology iteration.

On the evening of July 14, several popular stocks including Tianqi Lithium, Litong Electronics, and Yangtze Optical Fibre and Cable issued profit pre-increase announcements. Tianqi Lithium expects net profit attributable to shareholders of the listed company for the first half to be between 2.85 billion and 4.25 billion yuan, a year-on-year increase of 3,276% to 4,935%, mainly benefiting from the development of the new energy industry and downstream demand growth, a significant rise in the average selling price of lithium products, and a substantial expected increase in investment income from its associate SQM. Litong Electronics expects net profit attributable to the parent company for the first half to be between 650 million and 750 million yuan, a year-on-year increase of 1,172.53% to 1,368.31%, with significant growth in its computing power distribution business, narrowing losses in its precision metal structural parts business, and gains from fair value changes and disposal of equity investments. Yangtze Optical Fibre and Cable expects net profit attributable to the parent company for the first half to be between 2.4 billion and 3 billion yuan, a year-on-year increase of 711% to 914%, thanks to the accelerated construction of computing power data centres, increased demand for new types of optical fibre and cable, and the company's expansion into related businesses to achieve profit improvement. Honghe Technology expects net profit attributable to the parent company for the first half to be approximately 332 million to 405 million yuan, a year-on-year increase of 280% to 364%, driven by increased end-market demand leading to higher electronic cloth prices and product mix optimisation. Dongshan Precision expects net profit attributable to the parent company for the first half to be between 2.9 billion and 3 billion yuan, a year-on-year increase of 282.58% to 295.78%, with stable consumer electronics and auto parts businesses, the integration effect of the optical module business emerging, and returns from data centre investments. China Jushi expects net profit attributable to the parent company for the first half to be between 2.784 billion and 3.121 billion yuan, a year-on-year increase of 65% to 85%, as downstream demand for glass fibre increases and both product volume and prices rise. Demingli expects net profit attributable to the parent company for the first half to be between 5.7 billion and 6.5 billion yuan, turning from a loss to a profit year-on-year, driven by the accelerated implementation of AI applications boosting storage demand, rising storage product prices, the company's launch of self-developed enterprise-grade SSD controller chips, and continuous optimisation of its product mix.

A 22V Research report finds the United States relies on Chinese companies for almost 30% of its imports of AI-related products, with China playing a central role in data center supply chain components such as energy storage, transformers, critical minerals, and chemicals. The report notes that AI-related exports have accounted for about half the growth in China's overall exports this year, and many of the companies are listed in Shenzhen. Among the 10 biggest AI supply chain companies by market cap in the CSI 300 index, nine had at least doubled in the 12 months through May, including printed circuit board makers Victory Giant, Dongshan Precision, and Shengyi Technology, as well as multilayer ceramic capacitor manufacturer Sanhuan Group. On the server side, Foxconn Industrial Internet and Sungrow Power were also on the list, while optical and networking names InnoLight, Eoptolink, and TFC were highlighted by JPMorgan analysts for their role in high-speed data center links. Recent share price gains have pushed InnoLight and Foxconn Industrial Internet into the 1 trillion yuan market cap range.