Core Viewpoint - The company, Taicheng Light (300570), announced on October 20 that it has obtained a non-exclusive license for MDC connector-related patents, allowing it to manufacture MDC high-density fiber optic connectors and adapters based on USConec's core patents, and sell them globally [1] Group 1 - The company can now produce and sell MDC high-density fiber optic connectors and adapters globally [1] - The support from USConec enables the company to mass-produce and sell MMC fiber optic connectors and related products [1]

Group 1: Hong Kong Stock Market - Changfei Optical Fiber Cable (06869) fell over 4%, down more than 40% from its September peak due to declining fiber optic prices and shareholder sell-offs [1] - Solar stocks continued to decline, with Fuyao Glass (03606) down over 3%, New Special Energy (01799) down over 5%, Xinyi Solar (00968) down over 5%, and Folaite Glass (06865) down over 4%. Rumors about the establishment of a polysilicon storage platform were found to be untrue, and future installation demand remains to be observed [2] Group 2: US Stock Market - United Airlines (UAL.US) fell 5.63% after reporting third-quarter revenue slightly below market expectations [3] - TSMC (TSM.US) decreased by 1.60%, with Q3 net profit reaching a record high of 452.3 billion New Taiwan dollars [3] - Micron Technology (MU.US) rose 5.52% as Morgan Stanley upgraded its rating from "hold" to "buy" [4] Group 3: Technology and Innovation - Google (GOOGL.US) increased by 0.17% after launching a new video generation model, Veo 3.1, which improved audio output and editing control [4] - Thermo Fisher Scientific (TMO.US) rose 1.69% as it collaborates with OpenAI to enhance drug development speed and success rates [4] Group 4: Other Notable Movements - DoorDash (DASH.US) fell 2.18% after announcing a partnership with Waymo to launch autonomous delivery services [5] - Derin Holdings (01709) rose over 3% after signing a strategic cooperation agreement with Antalpha to promote digital asset business [5] - NIO-SW (09866) increased over 2% after responding to a lawsuit from a Singapore sovereign wealth fund, stating that the allegations have no factual basis [5]

Company Overview - Changying Tong is a national-level specialized and innovative "little giant" enterprise established on May 18, 2010, and listed on December 12, 2022, located in Wuhan, Hubei Province [1] - The company focuses on the research, production, sales, and service of optical fiber gyroscope core components, particularly optical fiber rings, and their application in military inertial navigation [1] Business Composition - The revenue composition of Changying Tong includes: - Optical fiber ring devices: 57.61% - Special optical fibers: 19.36% - Other (supplementary): 11.68% - New materials: 7.18% - Optical device equipment and others: 4.17% [1] Market Performance - On September 23, Changying Tong's stock price fell by 5.05%, closing at 45.66 CNY per share, with a trading volume of 116 million CNY and a turnover rate of 2.63%, resulting in a total market capitalization of 5.588 billion CNY [1] Fund Holdings - According to data, one fund under Baoying Fund holds a significant position in Changying Tong, specifically Baoying New锐 Mixed A (001543), which held 43,000 shares in the second quarter, accounting for 1.01% of the fund's net value, ranking as the seventh-largest holding [2] - The fund has experienced a floating loss of approximately 104,500 CNY as of the latest report [2] Fund Performance - Baoying New锐 Mixed A (001543) was established on November 4, 2015, with a current scale of 148 million CNY. Year-to-date, it has achieved a return of 31.83%, ranking 2786 out of 8172 in its category. Over the past year, it has returned 76.85%, ranking 1417 out of 7995, and since inception, it has returned 195.7% [2]

Core Insights - The article discusses advancements in hollow core fiber technology, which significantly enhances data transmission speed and reduces signal loss, addressing the increasing bandwidth demands of AI data centers [2][3]. Group 1: Technology Advancements - Researchers in the UK have developed a new type of hollow core fiber cable that can increase bandwidth by three times compared to standard fiber and improve transmission speed by 45%, extending the transmission distance to 33 kilometers [2]. - The new design, named Double Nested Anti-Resonant Nodeless Hollow Core Fiber (DNANF), utilizes a double layer of glass tubes to minimize signal loss and enhance speed, achieving a signal loss far below the best pure glass standards at 0.14 dB [2][3]. Group 2: Deployment Challenges - Despite the promising advancements, the existing infrastructure of over 50 billion kilometers of traditional fiber optics presents a significant challenge for the adoption of this new technology, which requires a new ecosystem including connectors and amplifiers [4]. - Microsoft is collaborating with partners to develop the necessary ecosystem and has already deployed early versions of DNANF between two Azure data centers in Europe, demonstrating the technology's commercial viability with 1,280 kilometers of hollow core fiber already in use [4]. Group 3: Competitive Landscape - Companies like YOFC and Linfiber Technology from China are also reporting similar performance achievements in hollow core fiber technology, indicating a competitive market landscape [4].

Core Viewpoint - Draka Comteq B.V. sold 37.595 million H-shares of Changfei Optical Fiber, representing 5.00% of the company's total share capital, through a block trade on the Hong Kong Stock Exchange on September 19, 2025, and no longer holds any H-shares of the company [1] Summary by Category - **Shareholding Change** - Draka Comteq B.V. has completely divested its holdings in Changfei Optical Fiber's H-shares [1] - The transaction involved a total of 37.595 million shares, which is equivalent to 5.00% of the company's total equity [1] - **Market Impact** - The sale was executed through a block trade on the Hong Kong Stock Exchange, indicating a significant transaction that may influence market perception [1] - **A-shares Status** - The equity change does not affect the company's A-shares, which remain unaffected by this transaction [1]

Core Points - The fifth China Quality Award was announced on September 16, recognizing organizations and individuals for their contributions to quality management and improvement [1] - Jiangsu Hengtong Optic-Electric Co., Ltd., a subsidiary of Hengtong Group, won the award for its unique "Four Full and Two Faced" quality management model, marking a significant achievement for private enterprises in Suzhou [1][2] - The China Quality Award aims to honor those making outstanding contributions to building a quality-oriented nation, showcasing innovative quality management practices and improvements in supply quality [1] Company Overview - Hengtong Group has established a "Five High" strategy focusing on high starting point, high technology, high efficiency, high standards, and high levels, viewing quality as the "lifeline" of the enterprise [2] - The "Four Full and Two Faced" quality management model includes full-stack self-research for core technology, full digital empowerment of quality management, comprehensive quality infrastructure, and a quality ecosystem across the entire value chain [2][3] - Hengtong has successfully developed the first domestically produced green fiber preform with independent intellectual property rights, significantly reducing the price of optical fibers and ending over two decades of reliance on imports [2] Industry Impact - The "Four Full and Two Faced" model is being replicated across Hengtong's domestic and international subsidiaries and is being promoted to upstream and downstream enterprises in the industry [3] - Hengtong is implementing a "Digital Navigation" plan, establishing the first "lighthouse factory" in the optical communication industry and a national dual-cross industrial internet platform to enhance quality digital control and drive industrial upgrades [3] - The company aims to deepen its new quality management system and enhance global competitiveness, contributing to the construction of a quality-oriented nation and advancing China's modernization [3]

Core Viewpoint - The Ministry of Commerce of China has initiated its first anti-circumvention investigation, which aligns with Chinese laws and WTO rules, aimed at maintaining the authority and effectiveness of existing trade remedy measures [1] Group 1: Investigation Details - The anti-circumvention investigation was launched on March 4, 2025, in response to a request from domestic enterprises regarding imports of specific single-mode optical fiber products originating from the United States [1] - The decision to implement anti-circumvention measures will take effect on September 4, 2025, based on the investigation results [1] Group 2: Legal Framework - The investigation is conducted under Article 36 and Article 49 of the Foreign Trade Law of the People's Republic of China, which allows the Ministry of Commerce to investigate and take necessary measures against behaviors that circumvent trade remedy measures [1] - A draft of the "Rules for Anti-Circumvention Investigations of Trade Remedy Measures" was published for public consultation on July 30, 2025, indicating ongoing efforts to refine and enhance China's trade remedy investigation system [1] Group 3: Trade Policy Stance - China maintains a cautious and restrained approach to implementing trade remedy measures, emphasizing the protection of fair and free trade while also taking necessary actions to uphold the effectiveness of existing trade remedy measures and protect the legitimate rights of domestic industries [1]

Core Viewpoint - The Ministry of Commerce of China has initiated anti-circumvention measures against imported optical fiber products from the United States, marking the first such investigation in China [2][4]. Group 1: Investigation Details - On March 4, 2025, the Ministry of Commerce launched an anti-circumvention investigation into imported single-mode optical fibers with specific cutoff wavelength displacement from the U.S. following a request from domestic companies [2]. - The investigation revealed that U.S. exporters were circumventing existing anti-dumping measures on non-dispersive single-mode optical fibers by altering their trade practices [4]. Group 2: Regulatory Actions - The Ministry of Commerce has recommended adjustments to the tax scope to the State Council Tariff Commission, which has decided to apply the existing anti-dumping tax rates on non-dispersive single-mode optical fibers to the newly identified optical fibers from the U.S. starting September 4, 2025 [4]. - The anti-dumping tax is calculated based on the customs-determined taxable price of the imported goods [4]. Group 3: Implications and Expert Opinions - The anti-circumvention investigation aims to prevent U.S. manufacturers or exporters from evading trade remedy measures, thereby enhancing the effectiveness of China's trade remedy practices [5]. - This investigation is seen as a significant step in enriching China's trade remedy investigation practices and strengthening the protective effect of trade remedy measures [5].

Core Viewpoint - The U.S. fiber optic manufacturers and exporters are found to be circumventing existing anti-dumping measures by altering trade practices, specifically regarding the export of G.654.C single-mode fiber to China [2][3] Group 1: Anti-Dumping Measures - The current anti-dumping measures were first implemented on April 21, 2011, with a five-year duration, and were renewed on April 21, 2017, for another five years [2] - The anti-dumping tax rates for U.S. companies were adjusted to a range of 33.3% to 78.2% on July 10, 2018 [2] - The latest announcement on April 21, 2023, confirmed the continuation of anti-dumping duties for another five years starting April 22, 2023 [2] Group 2: New Regulations - Based on investigation results, the Ministry of Commerce proposed adjustments to the tax scope, which were accepted by the State Council Tariff Commission [3] - Starting September 4, 2025, the existing anti-dumping tax rates for non-dispersive single-mode fiber will also apply to G.654.C single-mode fiber imported from the U.S. [3] - Specific anti-dumping tax rates for companies are as follows: Corning Inc. at 37.9%, OFS-Fitel LLC at 3.3%, and Draka Communications USA at 78.2%, with other U.S. companies also facing a rate of 78.2% [3] - The implementation period for these anti-circumvention measures will last from September 4, 2025, to April 21, 2028 [3]

Investment Rating - The report maintains a "Strong Buy" investment rating for the company [2][4]. Core Views - The company is a leading player in the domestic fiber optic communication and submarine cable sectors, with a strong position in sub-segments such as optical communication, renewable energy, and power systems. The transition from a "product supplier" to a "system integration service provider" in the energy sector positions the company as a global leader in energy network system solutions. The submarine cable business is expected to be a new growth driver in the coming years [2]. - The company is projected to achieve net profits of 3.43 billion yuan, 3.96 billion yuan, and 4.48 billion yuan for the years 2025 to 2027, representing growth rates of 21%, 16%, and 13% respectively. The corresponding price-to-earnings (PE) ratios are expected to be 15.8X, 13.7X, and 12.1X [2]. Financial Data and Valuation - The company reported total revenue of 45.065 billion yuan in 2023, with a year-on-year growth of 12%. The projected revenues for 2024, 2025, 2026, and 2027 are 48.055 billion yuan, 55.515 billion yuan, 61.525 billion yuan, and 67.081 billion yuan, respectively, with growth rates of 7%, 16%, 11%, and 9% [3][14]. - The net profit attributable to the parent company is forecasted to be 3.117 billion yuan in 2023, decreasing to 2.838 billion yuan in 2024, and then increasing to 3.426 billion yuan, 3.959 billion yuan, and 4.482 billion yuan in the following years, with corresponding growth rates of -3%, -9%, 21%, 16%, and 13% [3][14]. - The company’s current stock price is 15.85 yuan, with a total market capitalization of 54.1 billion yuan [4]. Business Growth Drivers - The renewable energy market is rapidly growing, contributing to steady performance improvements. In the second quarter of 2025, the company achieved revenue of 13.844 billion yuan, a year-on-year increase of 5.08%. The energy network sector is benefiting from national reforms in renewable energy pricing, leading to a surge in new installations [7]. - There is strong demand for submarine cables overseas, with the global market entering a new growth cycle. The company has secured significant projects and is expanding its global production capacity, including establishing a manufacturing base in Saudi Arabia [7]. - The company is enhancing its competitive edge in offshore engineering by developing advanced marine vessels and strengthening its capabilities across the entire industry chain, which includes construction, installation, and maintenance [7].