The stock price increased by 890% within a year! The emerging "thousand-yuan stock" Yuanjie Technology turned a profit last year after a loss, and this year it plans to list in Hong Kong. Shaanxi state-owned assets are making a fortune.

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More than a year ago, the company faced doubts about its stock price halving and its performance reversal. The wave of AI computing power has led to an explosion in demand for optical chips, becoming the key driving force for Yuanjie Technology’s turnaround.

On March 25, Shaanxi Yuanjie Semiconductor Technology Co., Ltd. (hereinafter referred to as “Yuanjie Technology”) officially submitted its prospectus to the Hong Kong Stock Exchange, aiming for a dual capital platform layout with “A+H” shares.

Yuanjie Technology is a hot target in the current A-share market, situated at the core of the CPO (Co-Packaged Optics) concept, with its stock price having surged approximately 85% since the beginning of this year. As of the market close on March 27, Yuanjie Technology’s stock price was reported at 1100.11 yuan/share, with a total market value of 94.6 billion yuan. Its stock price is second only to Kweichow Moutai, making it the second-highest-priced stock in the A-share market. Over the past year, Yuanjie Technology’s stock price has increased nearly 890%.

This semiconductor company, primarily engaged in optical chips, has staged an amazing “comeback” in the past year: while still deeply in the red in 2024, it delivered a net profit increase of over 32 times in 2025. Behind the soaring performance is the explosive growth in AI computing power demand and the company’s glamorous transformation from a traditional communication component manufacturer to a “water seller” in the AI industrial chain.

01

Performance “comeback”:

From a loss of 6.13 million to a net profit of 191 million

Yuanjie Technology was established on January 28, 2013, and listed on the Shanghai Stock Exchange’s Sci-Tech Innovation Board on December 21, 2022. The company is a high-tech enterprise that has completed the development of semiconductor crystal growth, wafer processing, chip testing, and packaging, forming industrial-scale production.

The turnaround in Yuanjie Technology’s performance is nothing short of dramatic. In 2024, affected by factors such as destocking in the telecom market and a slowdown in 5G construction, the company reported its first annual loss since going public, with a net profit attributable to the parent company of -6.1339 million yuan, leading to market doubts about its “face change” upon listing. For a long time, the company primarily served as a supplier for telecommunications market infrastructure, focusing on low-speed rate chips used in access networks and mobile networks.

The turning point began in 2025, as the AI wave swept the globe, restructuring the supply-demand pattern in the optical chip industry. Financial reports showed that in the first three quarters of 2025, Yuanjie Technology’s net profit attributable to the parent company reached 106 million yuan, a staggering increase of 19,348.65% year-on-year. In the third quarter alone, the company achieved revenue of 178 million yuan and a net profit of 59.63 million yuan, both hitting new highs since 2021.

Just at the end of February, Yuanjie Technology released a performance forecast, projecting a revenue of 601 million yuan for 2025, a year-on-year increase of 138.5%; a total profit of 214 million yuan; and a net profit attributable to the parent company of 191 million yuan, compared to a loss of 6.13 million yuan in 2024, which represents an increase of over 32 times.

According to the company announcement,

The engine behind the explosive growth in performance comes from the data center business. Yuanjie Technology stated in the announcement that the growth is attributed to the gradual increase in production of CW silicon optical source products, which elevated the gross margin from 29.69% in the same period of 2024 to 54.76%, significantly higher than the industry average.

As the data center business structurally replaces the telecom business, the revenue share from this segment jumped from 15.8% in 2022 to over half. By the first half of 2025, Yuanjie Technology had already crossed the 100 million yuan threshold. This means that Yuanjie Technology has transformed from a traditional “communication component manufacturer” into a “water seller” in the AI computing power industrial chain.

The key product playing the role of a dark horse is the core CW silicon optical source chip. Under the insatiable demand for computing power from AI large models, the internal connection rate within data centers is evolving rapidly, and the CW high-power laser is a crucial component for achieving high bandwidth and low power consumption connections.

It is worth noting that, in response to the continuously surging market demand, Yuanjie Technology has not been content with the status quo but has launched two “big bets.”

On February 9, the company issued two announcements regarding capacity expansion: one is a plan to invest approximately 1.251 billion yuan to build the second phase of the optical communication semiconductor chip and device R&D production base; the other is to use 98.6204 million yuan of raised funds to increase the investment in the “50G optical chip industrialization construction project.”

A month later, the company made another significant move. On the evening of March 6, Yuanjie Technology announced its intention to issue H-shares overseas and apply for listing on the main board of the Hong Kong Stock Exchange to establish an international capital operation platform, enhancing its overseas financing capabilities. The company plans to complete the listing within 24 months at an appropriate window.

02

Shaanxi state-owned assets have reaped huge profits

According to previous listing application documents, Yuanjie Technology completed as many as ten capital increases and fourteen equity transfers from its establishment to its listing. The earliest external capital increase can be traced back to May 2013, when Dengling Venture Capital invested 5.4 million yuan. Since then, Yuanjie Technology has maintained a rhythm of at least one capital increase per year.

It was not until 2018 that a key player emerged—Ningbo Chuangze Cloud, with 99.8% of its shares held by Zhongji Xuchuang. In November of that year, Ningbo Chuangze Cloud directly increased capital in Yuanjie Technology by 11.25 million yuan and acquired part of Dengling Venture Capital’s shares for 30 million yuan.

In May 2020, led by Zhongke Chuangxing, Gongda Kechuang, Guotou Chuangye, Guangfa Qianhe, CITIC Investment, Han Jingxi Cheng, Shanghai Fengze, Yuanjing Yicheng, and Chao Yue Moer completed the ninth capital increase for Yuanjie Technology. In this process, Zhongji Xuchuang increased its stake again through the Shaanxi Pilot Optoelectronics Fund managed by Zhongke Chuangxing.

The role of Shaanxi state-owned assets cannot be overlooked.

Today, Yuanjie Technology, located in the Xixian New Area of Shaanxi, is one of the “chain leader” enterprises in the first batch of key industrial chains in Shaanxi Province—the photon industrial chain, continuously receiving “financial lifeblood” from local state resources. The Xi’an Jin Kong managed Xi’an Guidance Fund led an investment of 170 million yuan through the sub-fund Shaanxi Pilot Optoelectronics Fund to help the company expand its capacity.

Regarding this investment, Mi Lei, founding partner of Zhongke Chuangxing, once recalled to the investment community: In 2018, he established contact with Zhang Xingang through multiple introductions by friends, but the latter was quite conservative about external investments at that time. To many investors, Zhang Xingang seemed mysterious, often hiding in the company’s laboratory for research and rarely coming out to socialize.

However, Mi Lei greatly admired such an extremely focused founder. In the following period, he and his team visited Yuanjie Technology repeatedly, spending nearly two years waiting for the latter’s financing window.

Later, Huawei also took action. In September 2020, Hubble Investment, a subsidiary of Huawei, jointly invested in Yuanjie Technology with the National Development Fund and the National Development Science & Technology Innovation Fund. During that time, nearly 200 investment institutions submitted term sheets, creating a very hot scene.

However, among the top ten shareholders disclosed in Yuanjie Technology’s third quarterly report, only two private equity funds remain, namely Ningbo Chuangze Cloud and the Shaanxi Pilot Optoelectronics Fund managed by Zhongke Chuangxing. Among them, Zhongji Xuchuang indirectly holds about 3.82% of Yuanjie Technology through these two funds, with a market value of 3.6 billion yuan. Meanwhile, the Shaanxi Pilot Optoelectronics Fund, after a series of reductions, still holds 1.87% of the shares, indicating substantial profits for the surrounding Shaanxi state-owned assets.

03

Highlights and Games

In the wave of AI computing power, Yuanjie Technology has gained dual highlights in stock price and performance, becoming a top “shovel seller” in the industry. However, beneath the halo of a hundred billion market value and a thousand-yuan stock price, the hidden risks and concerns cannot be ignored, primarily the pressure on the capital chain. Although as of the end of the third quarter of 2025, the company’s asset-liability ratio was less than 10%, with cash on hand of 933 million yuan, the tens of billions in expansion plans still require continual “blood transfusions.” It is noteworthy that Yuanjie Technology’s overseas revenue share during 2024 to 2025 is extremely low, showing a significant inversion of heat.

Therefore, for Yuanjie Technology, going public in Hong Kong may not merely be a financing act, but a strategic self-rescue to fill in the “overseas” puzzle.

On the one hand, it utilizes the high valuation in the A-share market to support large-scale domestic capacity construction while connecting with international capital through the Hong Kong stock platform, avoiding liquidity risks within a single boundary. On the other hand, it provides flexible cross-border financing channels for its overseas production bases.

More importantly, the company’s data center market still primarily relies on overseas suppliers.

Yuanjie Technology stated that based on years of R&D and production accumulation in the optical chip field, it has launched corresponding high-speed EML and high-power laser products to meet the demand for related high-speed optical modules, with performance and reliability indicators comparable to similar overseas products, achieving sales breakthroughs in the AI data center market.

Secondly, on the operational side, the high customer concentration is the company’s biggest hidden danger. In 2025, the revenue contribution from Yuanjie Technology’s top five customers exceeded 70%, with the listed company “Customer F” headquartered in Shandong contributing only 41.3 million yuan in revenue in 2024, but this figure skyrocketed to 321 million yuan in 2025, accounting for half of the company’s total revenue.

This “single-point support” revenue structure means the company’s performance is deeply tied to a single customer; if future customer relationships change, technology routes adjust, or demand declines, the company’s performance will face a cliff-like drop risk. Additionally, the company’s customer and supplier lists overlap significantly, with some core suppliers also being long-term customers, making this “mutual supply and procurement” business model potentially a focus of regulatory inquiry under the strict listing standards of the Hong Kong stock market, raising market concerns about transaction fairness.

On an industry level, the pressure of technological iteration and the entry of giants is becoming increasingly urgent. The technology update speed in the optical chip industry is extremely fast, and the iteration of technology routes directly determines the life and death of enterprises.

Currently, Nvidia, as the AI computing power giant, has begun to deeply penetrate the downstream industrial chain. At the GTC 2026 conference, Jensen Huang announced the new generation Feynman chip, which directly incorporates optical communication into inter-chip interconnection, and invested 4 billion dollars in overseas laser component giants like Lumentum and Coherent, locking in core production capacity and directly reshaping the competitive landscape of the global optical chip industry.

At the same time, Yuanjie Technology’s current price-to-earnings ratio (TTM) has exceeded 500 times, largely preemptively discounting the future growth expectations of AI computing power. If subsequent performance growth fails to meet market expectations, the high valuation will face severe mean reversion pressure.

For Yuanjie Technology, the financial report for 2025 has delivered a perfect answer, but the long march of 2026 has just begun.