Core Viewpoint - The company, Fenghuo Communication, has received approval from the China Securities Regulatory Commission for a private placement of shares to raise 1.1 billion yuan, aimed at enhancing its liquidity and supporting the rapid expansion of its computing and storage business while maintaining steady growth in its optical communication sector [1][2]. Group 1: Fundraising and Business Expansion - The company plans to issue 86.546 million shares at a price of 12.71 yuan per share to its controlling shareholder, China Information Communication Technology Group, with the total fundraising amount not exceeding 1.1 billion yuan [1][2]. - The funds raised will be used entirely to supplement the company's working capital, addressing the financial needs arising from the rapid expansion of its computing and storage business and optical communication main business [2][3]. - The private placement will not alter the company's control structure, with the controlling shareholder remaining Fenghuo Technology, and the actual controller being the State-owned Assets Supervision and Administration Commission [2]. Group 2: Financial Performance - In the first quarter of 2025, the company reported a revenue of 4.049 billion yuan and a net profit attributable to shareholders of 55.2 million yuan, reflecting a year-on-year growth of 33.08% [1][4]. - The company's computing and storage business has achieved a compound annual growth rate of over 50%, driven by significant investments in optical communication and the increasing demand for AI computing servers [3][4]. - The company has maintained a high level of research and development investment, reaching a historical high of 4.102 billion yuan in 2022, with continued focus on cutting-edge areas such as 50G PON and ocean communication [4].

Group 1 - The core point of the article is that the company has received approval from the China Securities Regulatory Commission for a specific stock issuance, which aims to raise up to 1.1 billion yuan to supplement working capital [1][2] - The company plans to issue 85.4037 million shares at a price of 12.88 yuan per share, with the approval valid for 12 months from the date of registration [1] - The company's stock closed at 21.27 yuan per share on July 8, with a market capitalization of 25.194 billion yuan, reflecting a 4.26% increase [1] Group 2 - The company is focusing on the rapid growth of its computing and storage business, which has a compound annual growth rate of over 50%, driven by increased demand for AI computing servers [2] - The funds raised will effectively address the company's working capital needs during its rapid development phase, aligning with future production and operational scale [2] - The company anticipates that a significant leap in computing networks could lead to a substantial development in its computing and storage business, creating a second growth curve [2]