Shanghai Allied Industrial Corp. Ltd. A

Between the evenings of August 21 and 23, several A-share companies disclosed major matters. Jinlong Shares is planning to transfer its 20% stake in Dongguan Securities, which is expected to constitute a major asset restructuring. Alled is planning to acquire no less than 51% equity in Huizhou Yuanbao Precision Hardware Die Casting through cash transfer and capital increase, also expected to constitute a major asset restructuring. ST Kangjia A will suspend trading from August 24 due to planning a major matter, expected to last no more than five trading days. Jiayuan Technology will be subject to other risk warnings from August 25 because of false records in its prospectus and annual reports, with its abbreviation changed to ST Jiayuan. Huayang Group's controlling shareholder Huayue Investment plans to transfer a 28.3% stake to Jiuzhou Group for 5.66 billion yuan, and the actual controller will change to the Mianyang State-owned Assets Supervision and Administration Commission. Seagull Housing's controlling shareholder Zhongyu Investment plans to transfer a combined 25.01% stake to Botai Chelian and Fuqing Yaohong, and the actual controller will change to Ying Zhenkai. In terms of performance, Zijin Mining's net profit in the first half of the year was 39.17 billion yuan, up 68.17% year on year. Zhongji Innolight's net profit was 13.651 billion yuan, up 241.7%. Yangtze Optical Fibre and Cable's net profit was 2.925 billion yuan, up 888.88%.

Premier Li Qiang chaired a State Council executive meeting on August 21, deploying moderately proactive and coordinated efforts to advance next-generation communications network construction, and deliberating and approving documents including a revised draft of the regulations on emergency response, investigation, and handling of electric power safety accidents. The application by Yangtze Memory Holding Company Limited for an initial public offering and listing on the STAR Market was accepted on the evening of August 21, with a planned fundraising amount of 33 billion yuan, and CITIC Securities and CSC Financial as sponsors. From January to March 2026, the company achieved operating revenue of 47.042 billion yuan and net profit attributable to the parent company of 33.379 billion yuan. At the 2026 Green Computing and Artificial Intelligence Conference held in Hohhot on August 22, Hohhot and Ulanqab signed 13 projects with companies including Volcano Engine and Cambricon, with a total investment of 136.1 billion yuan, covering areas such as chip testing, equipment manufacturing, computing power centers, and token factories. Jinnan Co. is planning to transfer its 20 percent stake in Dongguan Securities, and Allied plans to acquire no less than 51 percent equity in Yuanbao Precision through cash transfer and capital increase, both expected to constitute major asset restructuring. Zhiguang Electric announced the termination of its plan to issue shares and pay cash to acquire 27.18 percent equity in Guangzhou Zhiguang Energy Storage Technology Co., Ltd. and to raise supporting funds. Shares of Landun Photoelectron, Seagull Housing, and Zhongnan Culture will resume trading on August 24, with Seagull Housing's controlling shareholder changing to Botai Chelian. Yangtze Optical Fibre and Cable released its 2026 semi-annual report, achieving operating revenue of 9.809 billion yuan in the first half of the year, up 53.64 percent year on year, and net profit attributable to the parent company of 2.925 billion yuan, up 888.88 percent year on year. The United States' measure imposing 50 percent tariffs on some Canadian goods officially took effect at 12:00 a.m. Eastern Time on August 22, and Canadian Prime Minister Carney announced full reciprocal countermeasures, with the relevant measures to take effect on September 8. All three major U.S. stock indexes closed higher on August 21, with the Dow Jones Industrial Average up 0.98 percent, the S&P 500 up 0.43 percent, and the Nasdaq up 0.43 percent. Tesla surged 5.14 percent, while Alibaba plunged 8.57 percent. The China Securities Regulatory Commission approved the IPO registration of Crown New Material Technology Co., Ltd. on the main board of the Shenzhen Stock Exchange. This week, a total of 4 new shares will be issued, and 41 companies will have restricted shares unlocked, with a total unlocked market value of 17.923 billion yuan.

Allied announced plans to acquire no less than 51% equity in Huizhou Yuanbao Precision Hardware Die Casting Co., Ltd. through cash transfer and capital increase, which is expected to constitute a major asset restructuring. The counterparty is Bluemax Enterprise Limited, the sole shareholder of the target company. Both parties have signed an investment intention agreement, and the transaction is still in the preliminary planning stage, with no trading halt in the company's shares. Yuanbao Precision is mainly engaged in the research, development, production and services of heat dissipation housing products for optical communications, with full-process manufacturing capabilities covering zinc alloy and aluminum alloy die casting, product design and mold development, CNC precision machining, post-processing and automated assembly. Allied said the transaction will help further expand its business layout in related fields, strengthen the company's supporting service capabilities in the ICT industry chain, and is expected to enhance its in-house research and production capabilities across the full range of chip heat dissipation solutions, including heat dissipation housings, electronic heat dissipation materials and electromagnetic shielding. After the transaction is completed, Yuanbao Precision will become a controlling subsidiary of Allied and be consolidated into the company's financial statements, which is expected to help improve the company's revenue scale, asset scale and profitability.

On August 14, the communication equipment concept rose 3.09% intraday. Allied gained 20.00%, Changyingtong rose 13.38%, Gongjin Electronics rose 10.03%, Datang Telecom rose 9.96%, and Cambridge Technology rose 8.94%. On the news front, according to Xinwen Lianbo, since the beginning of this year China has accelerated the construction of a new generation of communication networks and continued to improve the integrated air-space-ground-sea information and communication layout. A research report from Western Securities pointed out that in 2026, the communication equipment industry is showing a structural expansion trend under the resonance of multiple factors, including the deepening of 5G-A and 6G deployment, a 7% increase in defense budgets, accelerated development of commercial aerospace, and AI-driven data center capacity expansion. A research report from Everbright Securities pointed out that capital expenditure of leading optical module manufacturers in the first quarter of 2026 surged 300% year-on-year, significantly boosting demand for upstream optical communication equipment, high-speed connectors, and precision structural components.