Hui Lyu Ecological Technology Groups Co Ltd

Huilv Ecology announced on the evening of September 27 that its controlling subsidiary, Wuhan Junheng Technology Co., Ltd., plans to invest 309 million yuan to build the Junheng Technology R&D and production base project in Wuhan East Lake High-tech Development Zone. The funding will come from its own funds or self-raised funds. The project was approved by the company's board of directors on September 24, does not involve related-party transactions, and does not require submission to the shareholders' meeting. After the project is completed, Junheng Technology's existing production line with an annual capacity of 1.5 million units will undergo a comprehensive technology upgrade, while the new base will add a production line with an annual capacity of 2 million high-speed optical modules. The total annual capacity for high-speed optical modules in the Wuhan area will reach 3.5 million units, after which the existing production facilities will no longer be used. The project will be implemented in two parts with phased coordination. The construction period for the R&D and production base is approximately 20 months, with construction planned from November 2026 to June 2028, and a proposed investment of 288 million yuan. The high-speed optical module R&D project is expected to take 3 months, with construction planned from April 2028 to June 2028, and an investment of approximately 21.5586 million yuan. The company stated that this project will help expand production capacity during a period of rising industry demand, ensure stable supply to customers, and reserve technical capabilities for next-generation products. The production capacity scale is broadly aligned with the current growth in market demand for 800G and 1.6T optical modules. In terms of performance, in the first half of 2026, Huilv Ecology achieved operating revenue of 1.037 billion yuan, up 49.01 percent year on year, while net profit attributable to the parent company was 27 million yuan, down 27.79 percent year on year. Revenue from optoelectronic device business was 958 million yuan, up 74.54 percent year on year, and its share of total revenue rose to 92.36 percent.