Core Viewpoint - Yanjiang Co., Ltd. is planning to issue shares to acquire assets and raise supporting funds, leading to a suspension of its stock trading starting January 5, 2026 [1][8]. Group 1: Acquisition Details - The target asset for the restructuring is Ningbo Yongqiang Technology Co., Ltd., which focuses on high-end integrated circuit interconnection materials and has passed performance certifications from leading domestic companies [2][9]. - Yanjiang Co. signed a letter of intent with the actual controller of Ningbo Yongqiang on December 31, 2025, the same day its stock price surged by 11.68% [2][9]. - The acquisition will involve both share issuance and cash payment to gain control over Ningbo Yongqiang [2][9]. Group 2: Timeline and Regulatory Compliance - Yanjiang Co. plans to disclose relevant information within 10 trading days, by January 19, 2026, in accordance with regulatory requirements [4][10]. - If the company fails to hold a board meeting and disclose the transaction plan by the deadline, its stock will resume trading on January 19, 2026, and the acquisition plans will be terminated [4][10]. Group 3: Current Status of the Transaction - The transaction is still in the planning stage, with specific details under discussion and no formal agreement signed yet [5][11]. - The range of potential transaction partners includes the actual controller of Ningbo Yongqiang and other shareholders, but this is not yet finalized [5][11]. Group 4: Ningbo Yongqiang Overview - Ningbo Yongqiang was established in December 2019 with a registered capital of approximately 13.97 million yuan and is located in Ningbo, Zhejiang Province [6][13]. - The company has a diverse ownership structure, with the largest shareholder holding about 18.3% and the second-largest holding about 17.9% [6][13]. - The R&D team includes members from renowned companies like Apple, Intel, and Huawei, boasting over 20 years of management experience [6][13]. Group 5: Product and Production Capacity - Ningbo Yongqiang aims to become a leading enterprise in high-end integrated circuit interconnection materials, with products including IC substrates and high-frequency boards [7][13]. - The company has established a production base of 3,000 square meters, with a second phase of 30,000 square meters expected to generate 1.8 billion yuan in output and 400 million yuan in net profit upon reaching full capacity [14].

Core Viewpoint - The communication industry is experiencing stable growth driven by advancements in AI and new infrastructure development, with significant increases in user scale for 5G, gigabit, and IoT services [1][2]. Industry Overview - In the first half of 2025, China's telecommunications industry generated a total revenue of 905.5 billion yuan, marking a year-on-year growth of 1%, and a 9.3% increase when adjusted for last year's prices [1]. - The Shenzhen Stock Exchange's communication sector has 26 companies forecasting a combined net profit of 9.4 billion to 11.3 billion yuan for the first half of 2025 [1]. Company Performance - Wuhan Guangxun Technology Co., Ltd. anticipates a net profit of 323 million to 407 million yuan for the first half of 2025, representing a substantial year-on-year increase of 55% to 95% [2]. - Fujian StarNet RuiJie Communication Co., Ltd. expects a net profit of 180 million to 240 million yuan, reflecting a growth of 43.81% to 91.75% year-on-year [2]. AI Impact - The AI wave is significantly driving growth in the communication sector, with companies like StarNet RuiJie reporting increased orders for data center switch products due to accelerated data center construction [3]. - The demand for AI computing power is expected to continue driving large-scale data center construction, becoming a primary growth engine for the industry [3]. Policy Support - Recent policies have created a favorable environment for the communication industry, including targeted support for 5G, gigabit networks, and AI-communication technology integration [5][6]. - The National Development and Reform Commission and other agencies have set a goal to establish a national data infrastructure by 2029, which will enhance the demand for computing and optical communication infrastructure [5][6]. Future Outlook - The integration of AI with communication technology is anticipated to create vast market opportunities, with companies positioned to benefit from ongoing digital transformation and infrastructure development [3][6]. - The optical module market for AI clusters is projected to grow significantly, with sales expected to reach 12 billion USD by 2029 [4].