Henan Shijia Photons Technology Co Ltd

Small-cap AI stocks in Asia surged as much as 90% in August, helping the MSCI Emerging Markets Index recover after investors broadened their exposure from major chipmakers to data center infrastructure companies in China, Taiwan, and South Korea. Stocks such as Taiwan's King Slide Works, China's Henan Shijia Photons Technology, and EverProX Technologies became some of the standout performers in the index, supported by nearly 2.4 trillion dollars in combined AI investment commitments from major US technology companies. Jitania Kandhari of Morgan Stanley Investment Management said the AI investment cycle spans the entire technology stack, and the market is seeing this investment theme confirmed layer by layer. Meanwhile, Nenad Dinic, an equity strategist at Julius Baer, cautioned that secondary AI stocks cannot be treated as a hedge if leading AI stocks fall, because their revenues still depend on AI and data center investment by large technology companies.

Nvidia announced that its Spectrum-X Ethernet silicon photonics switches have entered full mass production, driving a broad rally in A-share CPO concept stocks. On August 17, Jones Tech scored a second consecutive 20 percent daily limit, while T&S Communications and TZTEK Technology rose more than 10 percent. Gongjin Electronics and Tianyang New Materials hit their daily limits, and Shijia Photons and TFC Communication followed higher. The switch is the world's first 200 gigabit per lane CPO Ethernet switch system to enter mass production, cutting the number of lasers to one quarter of traditional designs, reducing power consumption to one fifth, lowering optical loss from about 22 decibels to about 4 decibels, and improving signal integrity by 64 times. Among overseas suppliers, Lumentum expects scale-up products to begin volume shipments in the second half of 2027, while Coherent's scale-out CPO will start contributing revenue in the second half of this year. Both Guolian Minsheng Securities and Sinolink Securities are bullish on the industry opportunities from accelerating CPO adoption.

Sinocera Materials last week received 152 institutions for research, making it one of the A-share companies with the most institutional research visits that week. Company executives said during the research that benefiting from the recovery of industry prosperity and demand from AI servers and automotive electronics, MLCC dielectric powder sales grew steadily in the first half of the year, and some high-end production lines have been expanded. The subsequent release of new capacity is expected to further boost production and sales. In addition, the company's zirconia powder has gained development opportunities due to the national rare earth export control policy, with prices adjusted in a timely manner, and is expected to achieve both volume and price increases this year. Another company in focus, Shijia Photonics, received 139 institutions for research during the same period. The company disclosed that 400G and 800G AWG chips and components have been shipped in large volumes, 1.6T AWG chips have been shipped in small volumes, and pointed out that the supply of high-end optical chips remains relatively tight overall.

The semiconductor supply chain rallied strongly, with the Penghua STAR 100 ETF rising 2.55%. In news, the official version of the DeepSeek-V4-Flash API entered public beta, with benchmark scores surpassing the previous flagship preview version, igniting the AI narrative. TSMC's target of producing 180,000 wafers per month on its 3-nanometer process is expected to be reached ahead of schedule by early fourth quarter, while monthly shipments of its 2-nanometer process are on track to approach 100,000 wafers as planned. Soochow Securities noted that global monthly demand for HBM wafers will surge from 29,000 in 2024 to 442,000 in 2028, a compound annual growth rate exceeding 90%, as memory process upgrades drive higher investment shares for etching, thin-film deposition, and metrology inspection equipment. As of 10:27 on August 4, 2026, the SSE STAR 100 Index was up strongly by 2.75%, with constituent Shijia Photonics rising 11.79%, Chipmore Technology up 7.81%, and JoulWatt up 7.17%. The Penghua STAR 100 ETF closely tracks the SSE STAR 100 Index, which selects 100 securities from the STAR Market with medium market capitalization and good liquidity as samples, with the top ten weighted stocks accounting for 27.56% of the total.

The STAR Composite Index ETF Huaxia rose 1.98%, while the Shanghai Stock Exchange STAR Composite Index climbed strongly by 1.89%. Among constituents, QingCloud Technologies hit the daily limit up, Shijia Photonics gained 10.26%, and Yuanjie Technology advanced 10.03%. In related news, data from the China Academy of Information and Communications Technology shows that domestic AI computing demand in the first quarter of 2026 jumped 417% year-on-year, while effective supply grew only 128%, further widening the supply-demand gap. The spot price for top-spec B300 has now exceeded 14.5 million yuan, and monthly rentals for H200 full systems have also risen, with high-end computing in short supply. Research institutions note that China's AI industry is moving from isolated breakthroughs to coordinated development across the entire industrial chain, and the domestic computing ecosystem is gradually transitioning from technical validation to large-scale deployment.

Shijia Photon has released its half-year report. In the first half of 2026, it achieved operating revenue of 1.495 billion yuan, up 50.66% year-on-year. Net profit attributable to shareholders of the listed company was 315 million yuan, up 45.3% year-on-year. Basic earnings per share were 0.6964 yuan. During the reporting period, driven by AI computing power demand, the data communications market grew rapidly, and the company's orders increased compared with the same period last year.

On the evening of July 15, a number of listed companies on the Shanghai and Shenzhen exchanges issued announcements. Biwin Storage expects to achieve a net profit attributable to the parent of 7 billion to 7.5 billion yuan in the first half of 2026, swinging from a loss to a profit year-on-year, mainly benefiting from the explosion of AI computing power and the high prosperity cycle of the storage industry. Shijia Photonics plans to raise no more than 2.8 billion yuan through a private placement for projects including the construction of production capacity for high-speed AWG chips and optical interconnect components. China Jushi plans to invest 2.405 billion yuan to build an electronic fabric production line with an annual output of 250 million meters. Unisplendour Corporation's holding subsidiary Unisplendour Computer will introduce investors through a capital increase and share expansion, after which Unisplendour Computer will no longer be included in the company's consolidated financial statements. Jingce Electronic plans to acquire a 41.17% stake in Shanghai Jingce, and after the transaction, Shanghai Jingce will become its wholly-owned subsidiary; the company's shares and convertible bonds will resume trading on the 16th. Chaozhuo Aviation Technology's shares will be suspended from trading on the 16th due to the controlling shareholder planning a major event that may lead to a change in control. In terms of performance, Konfoong Materials International expects its net profit attributable to the parent in the first half to increase by 89.99% to 121.65% year-on-year; Anlogic Infotech expects operating revenue to increase by 83.57% to 101.48% year-on-year; Penghui Energy expects to swing from a loss to a profit with a net profit of 800 million to 866 million yuan; while Guanghui Logistics expects its net profit to decline by 94.62% to 96.16% year-on-year. In addition, Youcai Resources disclosed the first half-year report for A-shares in 2026, with net profit attributable to the parent in the first half increasing by 103.87% year-on-year, and plans to distribute a cash dividend of 2 yuan for every 10 shares.

Biwin Storage expects net profit attributable to owners of the parent for the first half of 2026 to be between 7 billion and 7.5 billion yuan, a year-on-year increase of 3,200% to 3,422%, mainly driven by the explosion in AI computing power and the storage industry entering a high-growth cycle. Tinavi is planning to acquire a controlling stake in Shanghai Minimally Invasive Orthopedics Medical Technology by issuing shares, and also intends to raise matching funds; trading in the company's shares will be suspended from July 16. Shijia Photonics plans to raise no more than 2.8 billion yuan through a private placement for projects including high-speed AWG chip and optical interconnect component production capacity expansion, while Canqin Technology plans to raise no more than 851 million yuan for projects such as advanced ceramic packaging. Jiayuan Technology expects first-half net profit to grow 879% to 961% year-on-year, with copper foil market demand driving significant increases in production and sales. Dizal Pharmaceutical has signed a license agreement with AstraZeneca, under which it will receive an upfront payment of 600 million US dollars and up to 900 million US dollars in milestone payments, but the effectiveness of the agreement is subject to uncertainties. Chaozhuo Aviation's controlling shareholder and actual controller are planning a change of control, and trading in the stock will be suspended from July 16. Anlu Technology expects first-half operating revenue to increase by 83.57% to 101.48% year-on-year, and Jiulian Technology expects to turn from a loss to a profit in the first half. In addition, Alibaba's Qwen and Baidu AI will provide support for Apple Intelligence, and Tencent Cloud announced that starting August 1, 2026, it will charge for excess storage usage on cloud database MySQL local disk instances.

Shijia Photon announced plans to launch an A-share private placement, with a total fundraising cap of 2.8 billion yuan. After deducting issuance expenses, the proceeds will be allocated to a high-speed AWG chip and optical interconnect component capacity construction project, a continuous-wave laser chip and COC industrialization project, and a high-density optical interconnect device capacity expansion project, with the remainder used to supplement working capital.