Lingyi Itech (01688) plans to participate in the restructuring of Futom Jia Shan's 1500-ton production capacity to empower AIDC fiber track.

On July 10, Lingyi Itech (01688) announced that the company held the 26th meeting of the sixth board of directors, during which they approved the proposal on participating in the restructuring investment of Futong Group (Jiashan) Communication Technology Co., Ltd. The company plans to have its subsidiary participate in the restructuring investment of Futong Jiashan, intending to acquire the control and operating rights of relevant restructuring assets and business of Futong Jiashan with an estimated total investment cost not exceeding 4 billion yuan. As one of the few core enterprises in China with complete independent research and production capabilities in the optical rod-fiber-optic cable, Futong Group (Jiashan) Communication Technology Co., Ltd. ("Futong Jiashan" or "Futong" or the "Company") has deeply positioned itself in the high-end power fiber incremental track, with products covering and laying out single-mode fiber, multi-mode fiber, special polarization-maintaining fiber, hollow core fiber, multi-core fiber, among other directions. According to the CRU (Commodity Research Unit) Global Fiber Industry Ranking Report of June 2026, Futong Group's overall fiber production and sales scale ranks stably among the top four to five in the world, with the top three being Yangtze Optical Fibre and Cable Joint Stock, Prysmian (Italy), and Hengtong Optic-Electric, with Futong Group being close in size to Jiangsu Zhongtian Technology. Public information shows that Yangtze Optical Fibre and Cable Joint Stock, a global leader in optical rods, has an annual production capacity of over 4,000 tons of preforms and 140 million kilometers of fiber, with an A-share market value exceeding 300 billion yuan; Hengtong Optic-Electric: annual rod production capacity of over 3,000 tons, nearly 100 million kilometers of fiber, outstanding advantages in submarine cable support, and current A-share market value of nearly 200 billion yuan; Jiangsu Zhongtian Technology: annual rod production capacity of about 3,000 tons, diversified layout of power-optic cables + submarine cables, current A-share market value exceeding 150 billion yuan; Futong Jiashan has a fully integrated independent rod manufacturing, with a rod production capacity of about 1,000-1,500 tons and fiber of 30-45 million core kilometers, high barriers to overseas export channels, and differentiation advantages such as operational support and international layout support from Lingyi Itech, showing significant potential for upward growth. Futong Jiashan: A billion-dollar smart manufacturing base, covering a full range of fiber products Public information shows that Futong Jiashan is located in Xitang Town, Jiashan County, Jiaxing City, with a globally leading single-unit integrated optical communication production line, dedicated to the research, manufacturing, and sales of the entire industry chain products of optical fiber preforms, fiber, cables, optical devices, and optical systems in the optical communication industry field. According to the 2019 Provincial Key Construction and Pre-arranged Project Plan published by the Zhejiang Provincial Development and Reform Commission, Futong Jiashan's fiber preform project was listed as one of the 69 provincial key construction projects in Jiaxing City, involving the construction of a new annual production of 30 million core kilometers (1,000 tons) of fiber preform rods, 30 million core kilometers of fiber, and 30 million core kilometers of cable projects. The park supports complete MCVD preform deposition, fiber drawing, and cable cabling processes, with a total investment of about 6 billion yuan. After reaching full production capacity, it can achieve a billion-dollar revenue scale, firmly establishing itself in the forefront of the domestic optical communication industry. In September 2021, the project's environmental protection completion inspection report was publicly disclosed by a third-party service unit. Futong Jiashan's core production capacity of fiber preform rods, fiber, cables, etc., can deliver a full range of products such as general communication optical cables, high-core number optical cables, G.657 A1/A2 bend-resistant fibers, G.654E ultra-low loss fibers, G.652D general single-mode fibers, and more on a scale. Leveraging stable production capacity and quality advantages, the company has long been included in the annual centralized procurement list of the three major operators, covering various scenarios such as government-enterprise networks, national power hub, domestic and overseas smart computing center, and overseas digital infrastructure. Futong Jiashan's independent technology system covers both general and special optical fibers The current AIDC computing room optical fiber is divided into four categories: Bend-resistant single-mode G.657A2 fibers are preferred for high-density cabinet wiring, with G.657A1 as a cost-effective alternative and common G.652D for economic use. OM4 and OM5 multimode fibers are used for low-cost short-distance interconnections within a hundred meters in the rack. Ultra-low-loss G.654E fibers are used for cross-computing center connections and long-distance DCI scheduling, while a small amount of special scenes are equipped with polarization-maintaining and multi-core fibers. In the medium and long term, the industry will evolve towards hollow core fibers, which offer advantages such as low latency, low non-linearity, and ultra-high bandwidth, compatible with 1.6T/3.2T optical modules and CPO architecture, serving as the next-generation core solution for million-card AI clusters. Simultaneously, multi-core fibers are being promoted to address congestion issues in high-density wiring, gradually transitioning from general communication fibers to high-performance fibers exclusively used for computing, ultimately achieving a scaleable replacement of traditional solid-core fibers with hollow core fibers. The independent technology system is the core moat of Futong Jiashan. The company has long been engaged in the bottom-layer R&D of optical communication, achieving a breakthrough in the localization of fully synthesized optical fiber preforms technology. By accumulating a large number of independent intellectual property patents in the areas of preform preparation, intelligent drawing, and precise cabling, the company has completely eliminated its reliance on upstream foreign technology, achieving independent control over core materials and key processes. Leveraging its self-developed technology platform, the company has established a layered fiber product system, covering existing telecommunication networks, burgeoning AI data centers, and fully covering and laying out single-mode fibers, multi-mode fibers, special polarization-maintaining fibers, hollow core fibers, multi-core fibers, and other products and technology directions. In fact, there is a significant differentiation in the domestic supply side structure, and Futong's complete industry chain model is extremely scarce. According to research data from the China Communications Industry Institute in May 2026, more than seven-tenths of small and medium-sized cable companies in China only have the backend cable processing capabilities, outsourcing the core preform rods and facing difficulty in stable and scalable supply for high-end optical fibers used in computing scenarios, resulting in sustained pressure on profitability. Compared to contract manufacturing peers, Futong's full industry chain model can simultaneously deliver a complete set of premium optical fiber products, suitable for global mainstream computing infrastructure, with customers covering leading cloud providers, IDC operators, system integrators, and overall industry-leading competitiveness. Currently, Lingyi Itech has established three major business areas in end-side AI, humanoid Siasun Robot & Automation, and AI computing power infrastructure. The announcement shows that Lingyi Itech intends to enter the field of optical fiber communication material applications through this restructuring investment, forming a strategic synergistic effect with the company's existing AI computing business, further enriching the business layout in the AI hardware field, enhancing the company's core competitiveness and sustainable profitability.