Shandong Zhongji Electrical Equipment Co Ltd

Hong Kong share sales raised a record $47.5 billion in the third quarter as Chinese technology companies tapped investors for capital to fund artificial intelligence expansion, Bloomberg reported. Initial public offerings, placements and block trades during the July-to-September period produced the largest fundraising haul ever for those months, pushing the city's total for 2026 above $92 billion and putting Hong Kong within reach of the $112.5 billion annual record set in 2021. Alibaba Group's $10.2 billion follow-on offering was the quarter's largest transaction, while Zhongji Innolight raised almost $8 billion in Hong Kong's biggest listing in nearly seven years. AI model developer Z.AI has raised $9.6 billion this year through its IPO, placements and convertible bonds, and MiniMax, Shanghai Iluvatar CoreX Semiconductor and Shanghai Biren Technology also returned to investors shortly after their IPO lockups expired. The boom spread across Asia-Pacific, where third-quarter share sales exceeded $120 billion, the highest for the period in six years, with India raising a record $26 billion since July on domestic liquidity. Investor appetite is becoming more selective as markets weaken: the MSCI Asia-Pacific Index fell as much as 7% in July amid questions about returns from heavy AI spending, and only two of Hong Kong's 10 largest deals since July are currently trading above their offer prices.

Jones Tech announced that its controlling shareholders and actual controllers Wu Xiaoning, Ye Lu, and Hanwu, also known as Wu Han, have completed the registration of the transfer of a total of 31,372,504 shares, representing 10.47% of the company's total share capital, to Zhongji Innolight through a negotiated transfer. The total transfer price is 1.747 billion yuan. Following this transfer, Zhongji Innolight becomes a shareholder holding more than 5% of the company, while the company's controlling shareholders and actual controllers remain unchanged.

Zhongji Innolight disclosed its share buyback results and share change announcement on the evening of September 24. As of September 23, 2026, the company's current buyback had been fully implemented. The actual buyback period ran from September 1 to September 23, 2026. Through a dedicated securities account for share repurchases, the company bought back a total of 5,653,063 shares via centralized bidding, accounting for 0.48 percent of its total share capital. The highest transaction price was 944.68 yuan per share and the lowest was 806.93 yuan per share, with a total payment of approximately 4.997 billion yuan, excluding transaction fees. Earlier, on August 31, 2026, the company held the fourth meeting of its sixth board of directors and approved the buyback plan. It planned to use its own funds or self-raised funds to repurchase shares through centralized bidding for use in equity incentive plans or employee stock ownership plans. The total buyback amount was to be no less than 4 billion yuan and no more than 8 billion yuan, with a repurchase price not exceeding 1,200 yuan per share, and the buyback period was not to exceed 12 months from the date of board approval. The announcement showed that the actual implementation period, repurchase price, and total buyback amount did not differ from the plan approved by the board. The actual buyback amount reached the lower limit of the plan and did not exceed the upper limit, and the buyback plan has been fully implemented. Regarding share changes, the announcement listed two scenarios. If all the repurchased shares are used for employee stock ownership plans or equity incentives and are fully locked up, the company's total share capital will remain unchanged. If all are cancelled, the total share capital will decrease from 1,177,909,641 shares to 1,172,256,578 shares. In the first half of 2026, Zhongji Innolight achieved operating revenue of 41.778 billion yuan, up 182.49 percent year on year, and net profit attributable to shareholders of the listed company of 13.651 billion yuan, up 241.70 percent year on year.

U.S. banks have helped arrange 19 Chinese high-tech share sales worth $17.2 billion this year, nearly 30% of the sector's total issuance, according to Reuters citing LSEG data. Goldman Sachs and Morgan Stanley are among the banks riding the boom, which spans AI, chips and data-center infrastructure, ahead of a Thursday meeting between President Donald Trump and Chinese President Xi Jinping with AI expected on the agenda. Goldman, Morgan Stanley and Citigroup helped arrange optical-components maker Zhongji Innolight's $6.8 billion Hong Kong listing, while Goldman and Morgan Stanley also worked on offerings from AI developer MiniMax and chipmakers Montage Technology and Iluvatar CoreX. JPMorgan Chase helped bring Victory Giant Technology's roughly $2.6 billion share sale to market. Polymarket traders give the U.S. and China a 10% chance of agreeing to pace the AI frontier by Dec. 31, with about $36,000 traded, while mainland Chinese and Hong Kong investors now hold more than $750 billion in U.S. equities, up 23% over the past year.

The Ministry of Industry and Information Technology released the 15th Five-Year Plan for the development of the information and communications industry, setting the goal of building a new-generation communications network by 2030, with cumulative investment in information infrastructure reaching 3.8 trillion yuan, and the target for intelligent computing power jumping from 1,590 exaflops to 9,800 exaflops. It also proposed launching 6G commercial use at an appropriate time and advancing 6G standard development and technical trials. Driven by this industry catalyst, the Shanghai Composite Index fell 1.18% in the previous trading session, while the communications sector rose 0.63% against the trend. The Southern Fund's Communications ETF saw a turnover rate of 6.93% and turnover of 24 million yuan, while the CSI Communications Services Index it tracks gained 0.63%. At the industry level, institutional data shows that the communications sector rose 73.59% in the first half of 2026, significantly outperforming the CSI 300. Shipments of 800G optical modules continued to expand, and 1.6T entered the early stage of large-scale deployment. Third-party institutions forecast that the global AI optical module market will reach 26 billion US dollars in 2026. In addition, on September 11, the US Federal Communications Commission finalized relevant rules, and several leading domestic optical module makers such as Zhongji Innolight and Eoptolink were not included for the time being, easing overseas policy concerns.

Hangxiao Steel Structure has signed a $166 million procurement contract for a DEP project with Dangote Petroleum Refining Free Zone Enterprise, securing a major order. Meanwhile, three government departments issued guidelines on overseas competition conduct and compliance building for the automotive industry, regulating companies' overseas pricing strategies. The world's first international standard for legged robots, led by China, has been officially released, and China has achieved a major breakthrough in the comprehensive utilization of refractory iron ore resources. China Securities Index Company will launch four artificial intelligence-related indices. Eurozone inflation rose to 3.3% in August. Other company updates include: Huanrui Century said revenue from AIGC business accounts for a low proportion; Bona Film Group's AI film and television business is still in its early stages; Seagull Housing reminded of the risk of abnormal share price increases; Jitai Corporation's liquid cooling silicone oil has not formed large-scale orders; BAIC BluePark's August sales rose 29.88% year-on-year; Huaxia Eye Hospital's actual controller plans to increase holdings by no less than 30 million yuan; Northeast Pharmaceutical's director plans to reduce holdings; KTK Group's shareholder plans to reduce holdings by no more than 3%; Zhongji Innolight repurchased 374,100 shares for the first time at a cost of 318 million yuan; Shandong University Electric Power won a bid for a China Southern Power Grid project worth about 15.806 million yuan; Far East Smarter Energy's August winning bids and signed contract orders totaled 1.78 billion yuan; Sunshine Corporation's subsidiary signed a 633 million yuan server leasing contract; and GigaDevice expects the DRAM supply shortage will not ease significantly by 2027.

Several A-share companies disclosed progress on share buybacks. Among them, Zhongji Innolight repurchased 374,100 shares on the first day after announcing a planned buyback of up to 8 billion yuan, paying a total of 318 million yuan. As of August 31, China Petroleum and Chemical Corporation had cumulatively repurchased 104 million A-shares for a total of 500 million yuan; Jiuzhou Pharmaceutical had repurchased 15.41 million shares for 212 million yuan; MGI Tech had repurchased 2.01 million shares for about 100 million yuan; Double Medical Technology had repurchased 6.21 million shares for 260 million yuan; Jiansheng Group had repurchased 19.25 million shares for 224 million yuan; and Bear Electric Appliance had repurchased 1.95 million shares for 65.95 million yuan.

On the afternoon of September 1, the co-packaged optics sector rebounded, with multiple stocks rallying together. Qingshan Paper hit the daily limit during trading, extending a strong run of 4 limit-ups in 6 sessions, then briefly broke the limit before sealing it again. As of press time, it was up 9.97%. Optical module leaders Zhongji Innolight and Eoptolink climbed, with turnover for both exceeding 10 billion yuan each, ranking first and second among A-shares. On the news front, on the evening of August 31, Zhongji Innolight announced plans to use its own or self-raised funds to repurchase company shares through centralized bidding, with a total repurchase amount of no less than 4 billion yuan and no more than 8 billion yuan, at a price not exceeding 1,200 yuan per share. The company expects to repurchase about 3.33 million to 6.67 million shares, accounting for roughly 0.28% to 0.57% of total share capital, and the repurchased shares will be used for equity incentives or employee stock ownership plans. Guotai Haitong Securities believes that AI computing demand continues to expand, and high-speed optical modules are entering a new cycle of capacity expansion and product upgrades. The global optical module market is expected to grow from 126.7 billion yuan in 2024 to 295.4 billion yuan in 2029, a compound annual growth rate of 18.5%.

Optical module giant Zhongji Innolight announced on the evening of August 31 that it plans to repurchase A-shares through centralized bidding using its own or self-raised funds, with a total buyback amount of no less than 4 billion yuan and no more than 8 billion yuan, and a maximum repurchase price of 1,200 yuan per share. The repurchased shares will be used for employee stock ownership plans or equity incentives. If they are not fully used within 36 months after the buyback is completed, the remaining portion will be cancelled in accordance with the law. This buyback scale is considered a major move in the A-share market, with the 8 billion yuan upper limit second only to a few leading companies such as CATL, Gree Electric Appliances, and Midea Group. The announcement shows that as of June 30, 2026, the company's total assets were 68.942 billion yuan, net assets were 39.859 billion yuan, and current assets were 46.708 billion yuan. If the full 8 billion yuan buyback upper limit is used, the buyback amount would account for 11.60 percent of total assets, 20.07 percent of net assets, and 17.13 percent of current assets. Management believes this will not have an adverse impact on continuing operations, profitability, or debt repayment ability. In the first half of 2026, Zhongji Innolight achieved operating revenue of 41.778 billion yuan, a year-on-year increase of 182.49 percent, and net profit of 13.651 billion yuan, a year-on-year increase of 241.70 percent. Its first-half profit already exceeded the full-year 2025 figure of 10.797 billion yuan, with second-quarter net profit of 7.917 billion yuan, up 38 percent quarter-on-quarter. The company stated that demand for 800G optical modules remained strong in 2026, 1.6T products accelerated their volume ramp-up, and orders from nearly all customers already cover the full year, with some customer orders extending into 2027. It also emphasized that the current pricing system is healthy and there is no vicious competition. Industry research institutions predict that the global Ethernet optical module market is expected to continue rapid growth in 2026, but the supply bottleneck for high-speed optical chips may persist until mid-2027, and manufacturers with in-house chip development capabilities or stable supply channels will be in a more favorable position. Currently, Zhongji Innolight's total market value remains at the trillion-yuan level, and the market consensus estimate for its full-year net profit has approached 30 billion yuan. Second-quarter revenue grew about 14 percent quarter-on-quarter, slower than the first quarter. How the company maintains its profit release pace in the second half of the year will be key to validating the reasonableness of its valuation.

Zhili Fang disclosed its 2026 semi-annual report. In the first half, it achieved operating revenue of 437 million yuan, up 37.73% year on year. Net profit attributable to the parent company was 46.35 million yuan, up 8.07% year on year. Non-GAAP net profit was 38.77 million yuan, up 15.77% year on year. The company's main businesses are semiconductor equipment and automation equipment for electronic products. First-half research and development spending was 45.77 million yuan, up 36.19% year on year, mainly focused on display and pan-semiconductor equipment such as MiniLED and Micro LED, optical communication semiconductor equipment, and IC die bonding and placement semiconductor equipment. In the semiconductor equipment segment, multiple products have broken foreign monopolies and achieved import substitution. First-half semiconductor equipment revenue was 172 million yuan, up 187.58% year on year, with gross margin up 9.84 percentage points year on year. The company has entered the supply chains of leading enterprises such as Yuanjie Technology, HiSilicon, Changguang Huaxin, and Zhongji Innolight. Going forward, it will continue to focus on the research, development, and industrialization of equipment for high-end application areas related to the AI industry chain, such as advanced semiconductor packaging.

The three leading A-share optical module companies, Eoptolink, Zhongji Innolight, and Suzhou TFC Optical Communication, have all disclosed their 2026 half-year reports, with combined net profit attributable to shareholders totaling 22.384 billion yuan. Eoptolink reported first-half revenue of 20.91 billion yuan, up 100.34 percent year on year, and net profit attributable to shareholders of 7.529 billion yuan, up 90.98 percent. Zhongji Innolight posted revenue of 41.778 billion yuan, up 182.49 percent, and net profit attributable to shareholders of 13.651 billion yuan, up 241.7 percent. Suzhou TFC Optical Communication recorded revenue of 2.828 billion yuan, up 15.15 percent, and net profit attributable to shareholders of 1.204 billion yuan, up 33.92 percent. Zhongji Innolight said that in the past the optical module industry typically signed three-month orders, but many customers have now placed orders extending into 2027. Well-known retail investor Zhang Jianping became Zhongji Innolight's ninth-largest shareholder in the second quarter, holding 5.9348 million shares, or 0.53 percent of total share capital.

Between the evenings of August 21 and 23, several A-share companies disclosed major matters. Jinlong Shares is planning to transfer its 20% stake in Dongguan Securities, which is expected to constitute a major asset restructuring. Alled is planning to acquire no less than 51% equity in Huizhou Yuanbao Precision Hardware Die Casting through cash transfer and capital increase, also expected to constitute a major asset restructuring. ST Kangjia A will suspend trading from August 24 due to planning a major matter, expected to last no more than five trading days. Jiayuan Technology will be subject to other risk warnings from August 25 because of false records in its prospectus and annual reports, with its abbreviation changed to ST Jiayuan. Huayang Group's controlling shareholder Huayue Investment plans to transfer a 28.3% stake to Jiuzhou Group for 5.66 billion yuan, and the actual controller will change to the Mianyang State-owned Assets Supervision and Administration Commission. Seagull Housing's controlling shareholder Zhongyu Investment plans to transfer a combined 25.01% stake to Botai Chelian and Fuqing Yaohong, and the actual controller will change to Ying Zhenkai. In terms of performance, Zijin Mining's net profit in the first half of the year was 39.17 billion yuan, up 68.17% year on year. Zhongji Innolight's net profit was 13.651 billion yuan, up 241.7%. Yangtze Optical Fibre and Cable's net profit was 2.925 billion yuan, up 888.88%.

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.

Zhongji Innolight disclosed its semi-annual report, showing first-half operating revenue of 41.778 billion yuan, up 182.49 percent year on year, and net profit attributable to shareholders of the listed company of 13.651 billion yuan, up 241.70 percent year on year, with basic earnings per share of 12.31 yuan. The company plans to distribute a cash dividend of 12 yuan for every 10 shares to all shareholders. In addition, Zhang Jianping has newly become the ninth largest shareholder of Zhongji Innolight, holding 5.9348 million shares, accounting for 0.53 percent of the total share capital.

Jones Tech again hit the 20 percent daily limit-up on August 18, marking three consecutive limit-up sessions, closing at 97 yuan per share with a total market value of 29.1 billion yuan. Earlier, Zhongji Innolight announced plans to acquire, through a cash agreement, a combined 10.47 percent stake held by Jones Tech's controlling shareholders Wu Xiaoning, Ye Lu, and Han Wu, also known as Wu Han, at a transfer price of 55.70 yuan per share, for a total transaction value of 1.747 billion yuan. After the deal, Zhongji Innolight will become a shareholder holding more than 5 percent. Zhongji Innolight said Jones Tech's high-performance thermal conductive materials and EMI shielding materials can be widely used in digital infrastructure fields such as 5G communications, data centers, and computing power centers. In the future, as high-end optical modules such as 800G and 1.6T ramp up, demand for heat dissipation will increase significantly, and the company expects strong synergies. Jones Tech announced on August 17 that its closing price deviation over the three consecutive trading days from August 13 to 17 exceeded 30 percent cumulatively, which constitutes abnormal stock trading volatility. After verification, there were no undisclosed material matters that should have been disclosed, and the controlling shareholders and actual controller did not buy or sell company shares during the period of abnormal volatility.

Jones Tech surged by the 20 percent daily limit shortly after the market opened this morning, notching its third consecutive limit-up session. On the evening of August 13, Zhongji Innolight announced that, based on its recognition of Jones Tech's long-term investment value, the company signed a share transfer agreement with Jones Tech's controlling shareholders Wu Xiaoning, Ye Lu, and Han Wu. Zhongji Innolight plans to acquire 31.3725 million unrestricted tradable shares of Jones Tech in cash, representing 10.47 percent of its total share capital, at a transfer price of 55.70 yuan per share, for a total consideration of 1.747 billion yuan.

Jones Tech announced that its controlling shareholder, actual controller, and concert parties Wu Xiaoning, Ye Lu, and Hanwu Wu Han plan to transfer 31.3725 million shares, representing 10.47% of the company's total share capital, to Zhongji Innolight via a negotiated deal at 55.70 yuan per share, for a total consideration of 1.747 billion yuan. After the transfer, the transferring parties' combined shareholding will fall from 41.90% to 31.42%, while Zhongji Innolight will hold 10.47% and become a shareholder with more than 5% of the company. This negotiated transfer does not trigger a mandatory tender offer and will not result in a change of the company's controlling shareholder or actual controller.

On the evening of August 13, several A-share companies disclosed important announcements. G-bits reported first-half 2026 operating revenue of 3.727 billion yuan, up 48.01% year on year, with net profit attributable to shareholders of the listed company at 1.092 billion yuan, up 69.31% year on year. The company also plans to distribute a cash dividend of 100 yuan for every 10 shares to all shareholders, with total dividends expected to reach 718 million yuan. Ruixin Technology announced the termination of a major asset restructuring originally intended to acquire a 51% stake in Wuhu Deheng Automotive Equipment Co., Ltd., citing adverse changes in the target company's future profitability due to the market environment. Zhongji Innolight plans to acquire a 10.47% stake in Zhongshi Technology for 1.747 billion yuan, at a transaction price of 55.7 yuan per share. The company said Zhongshi Technology's high-performance thermal conductive materials and EMI shielding materials business will create synergies with its own high-end optical module business. In addition, Hygon Information's first-half net profit rose 49.69% year on year, Honghe Technology's net profit rose 334.32%, and Jianyuan Trust's net profit rose 2559.08%.

Equity capital markets activity in the Asia Pacific reached an all-time monthly high of more than $83 billion in July, driven by blockbuster deals from artificial intelligence-related companies. South Korea's SK Hynix Inc. led with a $26.5 billion US listing, the largest by a foreign company on American exchanges, while mainland China saw its second-biggest IPO as chipmaker CXMT Corp. raised 66.6 billion yuan. Optical transceiver maker Zhongji Innolight Co. added almost $7 billion in Hong Kong's largest first-time share sale in seven years. The record came despite a 7% slump in the MSCI Asia Pacific Index during the month, and momentum has continued into August with about $7 billion in share sales already, including India's $3.3 billion stake sale in Life Insurance Corp.

As of 10:22 a.m. on August 4, 2026, the CSI Communication Services Index briefly surged over 5% and is now up 4.48%. Communication ETF Southern recorded intraday turnover of 9.24%, with trading volume reaching 32.101 million yuan. In related news, the China Academy of Information and Communications Technology estimates that China's artificial intelligence industry scale exceeded 1.2 trillion yuan in 2025, up 40% year-on-year. As of June 2026, the number of AI enterprises surpassed 6,600, accounting for 15% of the global total. Institutional research reports note that capital expenditure by the four major North American cloud providers maintained rapid growth in the second quarter of calendar year 2026, with several further raising their full-year 2026 guidance. Optical interconnects, as a critical link in cluster networks, will continue to grow at a high speed, and the medium- to long-term outlook for the optical communication sector is positive. Communication ETF Southern closely tracks the CSI Communication Services Index, with its top ten holdings including Zhongji Innolight, Eoptolink, and TFC Communication.

Hikvision hosted research visits from 203 institutions, including 43 fund companies, 31 securities firms, and 75 private equity firms. In the first half, the company achieved total operating revenue of 46.823 billion yuan, up 11.97 percent year on year, and net profit attributable to the parent of 7.896 billion yuan, up 39.57 percent. Its second-quarter gross margin exceeded 50 percent for the first time and has risen for six consecutive quarters. Hikvision said stronger product competitiveness, product line streamlining, and an industry shift away from cutthroat competition were key factors lifting the gross margin midpoint. Guojin Securities noted that the company's results continue to beat expectations, and that it has launched over a thousand AI large-model products powered by AI large-model technology. Among them, Guanlan coding technology saves users 50 percent on storage hard drives, and cumulative sales of its text-search products have surpassed 100,000 units. In addition, Sunlord Electronics said its energy storage business is benefiting from a rapid recovery in downstream industry sentiment, while emerging strategic markets such as automotive electronics and data centers continue to show strong growth momentum. Zhongji Innolight disclosed that the average selling price of its 1.6T optical modules is far higher than market rumors suggest, there is no vicious competition in the industry, and overall demand is robust with tight delivery. Over the past week, stocks of companies receiving institutional research visits rose an average of 2.6 percent. Chuanzhi Education hit the daily limit up for five consecutive sessions, and Chinese All Digital is actively laying out cutting-edge content tracks such as AI short dramas and AI interactive film-games.

Liu Sheng, chairman and president of optical module giant Zhongji Innolight, has proposed that the company repurchase some A-shares using its own or self-raised funds, with a total repurchase amount of no less than 4 billion yuan and no more than 8 billion yuan. The repurchase price will not exceed 150 percent of the average trading price of the stock over the 30 trading days before the board approves the buyback plan. The repurchased shares will be used for equity incentives or employee stock ownership plans, and will be cancelled if not fully utilized within three years. The announcement shows that in the six months before the proposal, Liu Sheng increased his holdings by 112,000 shares through equity incentive exercises, while his concert parties reduced their holdings by a total of 500,000 shares. There are no plans to increase or decrease holdings during this buyback period. In the secondary market, Zhongji Innolight closed at 951 yuan per share on July 29, up 43.74 percent, with a latest total market value of 1.06 trillion yuan and full-day turnover of 43.5 billion yuan.

Chinese optical communication components giant Zhongji Innolight has raised a total of 53.41 billion Hong Kong dollars, or 6.81 billion US dollars, in its initial public offering on the Hong Kong market. The offer price was 980 Hong Kong dollars per share, below the top end of the indicative range of 1,010 Hong Kong dollars. It sold 54.5 million H shares and will list on the 30th. This is the second-largest IPO in Asia this year, following the roughly 8.6 billion US dollar Shanghai listing by Chinese memory semiconductor giant ChangXin Memory Technologies. The proceeds will be used to strengthen research and development and expand overseas production capacity.

On the evening of July 28, multiple listed companies on the Shanghai and Shenzhen stock exchanges issued significant positive announcements. Zhongji Innolight's chairman and president Liu Sheng proposed that the company repurchase shares worth 4 billion to 8 billion yuan for equity incentives or employee stock ownership plans. BOE Technology's controlling shareholder, Beijing Electronics Holdings, plans to increase its shareholding by 500 million to 1 billion yuan. Kingsoft Office expects a net profit attributable to the parent company of 2.316 billion to 2.719 billion yuan in the first half of 2026, a year-on-year increase of 209.98% to 263.89%, with some external investment fund projects achieving good returns. Wanma Technology's subsidiary, Wanma Polymer, plans to invest in cable material projects in Lin'an, Hangzhou, and the West Coast of Qingdao, with a total investment of approximately 820 million yuan. Jiuzhou Yigui's wholly-owned subsidiary plans to invest in an advanced semiconductor wafer laser stealth dicing industrialization project, with a total investment not exceeding 630 million yuan. In addition, Sanyou Chemical's controlling subsidiary plans to purchase a 31% stake in Sanyou New Materials, Daimei Auto Parts plans to acquire 100% equity of Rongming Technology, Leon Technology plans to raise no more than 255 million yuan through a private placement for an artificial intelligence computing resource pool project, Yandong Microelectronics' controlling shareholder's controlling subsidiary plans to increase its shareholding by 150 million to 300 million yuan, and Hongfuhan's liquid cooling business orders are progressing steadily.

Amid AI bubble worries, institutional investors and engineers are zeroing in on essential infrastructure like liquid cooling systems and high-speed optical transceivers, where two Chinese companies are major global players: Shenzhen Envicool Technology and Zhongji Innolight. Envicool is a leader in data center temperature control, buoyed by mandatory upgrade demand for cooling systems to handle scorching AI chips, and enjoys a business moat from high switching costs. Zhongji Innolight holds the number one global position in 800G and 1.6T high-speed optical transceivers, counting Big Tech firms in Silicon Valley as key customers. This reflects how, in advanced bottleneck technologies, business needs often transcend geopolitical barriers, and first-mover advantages allow companies to sustain premium gross margins early in a new product cycle.

The Shanghai Composite Index closed higher today after China's State Council pledged to implement policies to keep economic growth on track for the full year 2026. The index closed at 3,864.37 points, up 68.09 points or 1.79 percent. Chinese authorities also rolled out support measures for the technology sector, helping Cambricon Technologies surge 11.58 percent, SMIC jump 11.2 percent, Eoptolink Technology climb 7.25 percent, and Zhongji Innolight rise 2.51 percent.

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%.

On the morning of July 20, China's three major stock indices opened collectively higher, and the computing power leasing sector quickly surged. Xingyun Technology hit the 20% daily limit up, while Hangzhou Iron and Steel, Inspur Information, and Litong Electronics also hit their daily limit up. Zhongji Innolight, Eoptolink, and Cambricon all rose more than 5%. In terms of news, Goldman Sachs sharply raised its 12-month target price for Zhongji Innolight from 1,187 yuan to 2,581 yuan, maintaining a buy rating. Eoptolink expects its net profit for the first half of 2026 to be between 7 billion and 8 billion yuan, representing year-on-year growth of 77.56% to 102.93%. The liquor sector also saw unusual upward movement, with Weilong Grape Wine hitting the daily limit up. Kweichow Moutai raised the retail price of its 53% vol 500ml Feitian Moutai on the iMoutai platform to 1,639 yuan per bottle starting July 18, marking the third price increase this year.

Three brokerages concur that the visit to China by the Thai government and private sector is a key boost for attracting over 70 billion baht in foreign direct investment, especially from four major Chinese companies in the EV, AI, and data center industries. This will positively impact stocks in industrial estates, digital infrastructure, power, and electronics, covering 23 companies such as AMATA, WHA, GULF, GPSC, ADVANC, HANA, and KCE. Krungsri Securities notes that the trip from July 16 to 20, 2026, led by the prime minister along with 48 private companies, aims to build confidence and expand cooperation. The government expects to draw over 70 billion baht in investment, split into 50 billion baht for expanding existing investment bases and 20 billion baht in new investment. DBS Vickers Securities reveals that Xiaomi, ChangAn Automobile, InnoLight Technology, and Eoptolink Technology have confirmed investment plans in Thailand totaling over 70 billion baht by 2026, focusing on high-tech industries such as optical transceivers for data centers, semiconductors, and EV production capacity expansion. Asia Plus Securities states that Xiaomi is preparing to set up an R&D center and considering expanding its production base, while ChangAn plans to increase production capacity from 100,000 to 200,000 units per year by 2030. InnoLight and Eoptolink are preparing to expand their factories in Thailand to meet AI and cloud demand.

Zhongji Innolight Vice President and Board Secretary Wang Jun said on a conference call that recent market rumors about the company's performance are "basically all untrue." Wang Jun stated that the company's current order backlog covers the full year 2026, with some orders extending into 2027. Demand for 800G optical modules has increased significantly compared to expectations, while demand for 1.6T optical modules has not shrunk but is undergoing structural adjustments. Regarding annual price reductions, Wang Jun said that 2027 pricing is still being finalized, and the market rumors of price cuts are greatly exaggerated. He emphasized that the industry will still face tight delivery in 2027, and large-scale delivery capability is the most valuable asset. On the material supply front, the company has pushed suppliers to expand production, with effects expected to become evident from the second half of this year to the first half of next year. Gross margin will remain stable in the second quarter, with potential marginal improvement in the second half of the year.

Hong Kong's equity capital markets raised nearly $44 billion in the first half of 2026, the highest level in five years, driven by strong investor demand for artificial intelligence-related companies. The total, which includes initial public offerings, share placements, and block trades, was up 29% from a year earlier and accounted for the largest share of the $122 billion raised across the Asia-Pacific region. Chinese companies linked to the AI supply chain led the activity, with battery maker Contemporary Amperex Technology and printed circuit board manufacturer Victory Giant Technology completing multibillion-dollar offerings. The surge came despite the Hang Seng Index falling nearly 12% this year and new regulatory measures from Beijing. Several AI-related companies are preparing to tap the Hong Kong market in the coming months, including electronics manufacturer Luxshare Precision Industry, which is planning a listing of about $3 billion, optical transceiver maker Zhongji Innolight, and Baidu's AI chip subsidiary Kunlunxin.