Shengyi Electronics Co. Ltd. A

Shengyi Electronics announced that its board of directors has reviewed and approved a proposal to use 1.1 billion yuan in raised funds to increase capital in its wholly-owned subsidiary Ji'an Shengyi, for the implementation of the "Intelligent Manufacturing High-Layer Computing Circuit Board Project." At the same time, the board agreed to use raised funds to replace self-raised funds that had been pre-invested in the fundraising project and issuance expenses already paid. In addition, the company agreed to use no more than 1.55 billion yuan of temporarily idle raised funds for cash management, purchasing principal-protected investment products with high safety and good liquidity, for a period of 12 months.

Today, the MSCI China Index adjustment takes effect after market close, with 33 new constituents added, including 31 A-shares such as Tongguan Copper Foil, Fenghua Advanced Technology, Huafeng Test & Control, Dingtai High-Tech, and KINGSEMI. Meanwhile, Inno Laser released its half-year report, with first-half operating revenue of 259 million yuan, up 19.02% year on year, and net profit attributable to the parent of 35.1507 million yuan, up 314.55% year on year. In addition, ChangXin Memory Technologies announced that its self-developed LPDDR6 memory has entered mass production and is first featured in the Xiaomi 18 Fold flagship foldable phone, marking the world's first commercial deployment of LPDDR6 products and breaking the monopoly of overseas manufacturers. China State Shipbuilding Corporation's wholly owned subsidiary Shanghai Waigaoqiao Shipbuilding, together with China Shipbuilding Trading, signed a contract with COSCO Shipping Assets for the construction of 12 21,700-TEU LNG dual-fuel container ships, with a total value of 2.688 billion US dollars, with delivery expected between 2028 and 2030. Shengyi Electronics' wholly owned subsidiary Ji'an Shengyi Electronics plans to invest 2.257 billion yuan to build a high-speed interconnect circuit board project, with a designed capacity of 445,900 square meters per year.

Shengyi Electronics announced on the evening of August 28 that it plans to have its wholly owned subsidiary Ji'an Shengyi Electronics invest in the construction of a high-speed interconnect circuit board manufacturing project called Core Computing Intelligent Connectivity. The total investment is approximately 2.257 billion yuan, of which new investment is about 2.158 billion yuan. The products are positioned as HDI printed circuit boards for AI servers, automotive electronics, and other fields, with a designed capacity of 445,900 square meters per year. In the first half of the year, the company's revenue was 5.784 billion yuan, up 53.46 percent year on year, and net profit attributable to the parent company was 1.111 billion yuan, up 109.36 percent year on year. Gross margin rose to 34.31 percent, a new high since listing. As of the close on August 28, Shengyi Electronics traded at 131.2 yuan per share, with a total market value of about 109.9 billion yuan, and had risen nearly 40 percent during the year. The company noted that project funding will come from its own and self-raised funds, while cash and cash equivalents at the end of the period were only 407 million yuan, and the asset-liability ratio rose to 53.76 percent, creating funding pressure. In the industry, according to CPCA statistics, in the first half of 2026 there were 76 new investment projects in China's PCB industry, with a total investment of about 169.1 billion yuan. Leading manufacturers such as Victory Giant Technology, Avary Holding, and Wus Printed Circuit have all expanded capacity significantly, but the new capacity is expected to be released mainly from the second half of 2026 to 2028, posing a risk of oversupply.

On August 28, A-share CPO concept stocks opened lower and moved higher. Star-Net Ruijie, Hefei Metalforming Intelligent Manufacturing, and Qingshan Paper hit limit up, while Shenzhen Microgate Technology, Shengyi Electronics, Optowide Technologies, and Advanced Fiber Resources followed higher. On the news front, the Shanghai Municipal Science and Technology Commission released the 2026 application guidelines for the new-generation optical communications technology project under the Intelligent Computing Optical Network program. Approved projects will receive 40 percent of fiscal funding at launch, another 40 percent after completing milestone targets, and the final 20 percent after meeting all assessment indicators. Overseas, Nvidia reported second-quarter results for fiscal 2027, with revenue of 96.2 billion dollars, up 106 percent year on year, and data center revenue of 89 billion dollars. It also guided to a midpoint of 108 billion dollars in revenue for the third fiscal quarter and raised its fiscal 2028 revenue growth forecast to 70 percent. After the earnings release, Nvidia shares jumped 8.7 percent, giving it a market value of 5.49 trillion dollars, and more than ten investment banks including Morgan Stanley and Citigroup raised their price targets. On the technology side, Nvidia's Spectrum-X Ethernet photonic switching platform has entered full mass production, marking CPO's move into large-scale manufacturing. LightCounting forecasts that global Ethernet optical module sales will grow 73 percent year on year in 2026. Brokerage analysts believe the industry's prosperity has medium- to long-term support, with the four major overseas cloud providers guiding to capital expenditure of 720 billion to 745 billion dollars in 2026.

Shengyi Electronics released its 2026 interim report, with net profit attributable to the parent company of 1.111 billion yuan, up 109.36% from the same period last year. Total operating revenue was 5.784 billion yuan, up 53.46% year on year, marking a third consecutive year of growth. Net cash inflow from operating activities was 917 million yuan, up 112.09% year on year. The company's latest gross margin was 34.31%, up 3.92 percentage points from a year earlier, and its latest return on equity was 17.06%, up 5.94 percentage points from a year earlier.

Shengyi Electronics released its 2026 half-year report, achieving operating revenue of 5.784 billion yuan, up 53.46% year on year. Net profit attributable to shareholders of the listed company was 1.111 billion yuan, up 109.36% year on year. Second-quarter net profit was 666 million yuan, first-quarter net profit was 445 million yuan, and second-quarter net profit rose 49% quarter on quarter.

On the evening of August 14, several A-share listed companies disclosed their half-year reports, with first-half net profit more than doubling year on year. Only Education achieved net profit attributable to the parent of 31.12 million yuan, up 977.30 percent year on year; Fudan-Zhangjiang posted net profit attributable to the parent of 36.90 million yuan, up 545.57 percent; Cangzhou Dahua recorded net profit attributable to the parent of 101 million yuan, up 330.75 percent. In addition, companies including Lianchuang Co., Huarui Precision, Jifeng Auto Parts, Zhongxing Fungus, Boliwei, Shengyi Electronics, and Satellite Chemical also saw net profit attributable to the parent rise by more than 100 percent year on year.

Shengyi Electronics released its 2026 semi-annual report, achieving operating revenue of 5.784 billion yuan, up 53.46% year on year, and net profit attributable to shareholders of the listed company of 1.111 billion yuan, up 109.36% year on year. Swancor Advanced Materials posted a net loss of 167 million yuan in the same period, swinging to a loss year on year. Nvidia announced that its Spectrum-X Ethernet silicon photonics switches have entered full mass production, achieving a fourfold reduction in the number of lasers, a fivefold reduction in power consumption, and a tenfold improvement in mean time between failures. Guangdong Province's first token economy special financial product, Token Loan, was launched in Haizhu, Guangzhou, and Bank of China Guangzhou Branch has already extended preliminary credit funds of 28 million yuan.