At noon on November 6th, the A-share optical module company "Yizhongtian" issued a collective announcement regarding the share repurchase matter.

Zhongji Xuchuang (300308. SZ) stated that at the board of directors meeting on October 29th, the company approved a proposal to change the purpose of repurchasing A shares. The purpose of the share repurchase has been changed from 'implementing an employee stock ownership plan or equity incentive plan' to 'using it for canceling and reducing registered capital.' The amount of the repurchase is not less than 4 billion yuan and not more than 8 billion yuan.

New Yisheng (300502. SZ) stated that as of November 5th, the company had repurchased 4.216 million shares through a dedicated securities account for share repurchases, using centralized competitive bidding. This repurchase represents 0.3023% of the company's total share capital. The total amount of the repurchase plan is not less than 800 million yuan and does not exceed 1 billion yuan, and the funds will be used for implementing equity incentives or an employee stock ownership plan.

Tianfu Communication (300394. SZ) stated that the company's board of directors approved a repurchase plan at its meeting on October 23. The proposed repurchase amount ranges from 100 million to 150 million yuan, which will be used to cancel and reduce the company's registered capital.

Zhongji Xuchuang, Xinyisheng, and Tianfu Communication all mentioned in their announcements that they noticed that on November 4th, the People's Bank of China issued a policy to further implement stock repurchase and increase lending, with a reduction in the interest rates for such loans.

Zhongji Xuchuang stated that the company will combine the repurchase and re-lending policy, the company's financial situation, market trends, etc., and use policy tools to protect the interests of investors through methods such as repurchases. Xinyisheng claimed that relevant policies provide strong support for the company to maintain its value through repurchases and other means. Tianfu Communication stated that it will consider the repurchase and re-lending policy, its own operating conditions, market trends, etc., and timely study and fully utilize policy tools in accordance with laws and regulations to protect the interests of shareholders.

Zhongji Xuchuang and Xinyisheng also mentioned their operating conditions in the announcement.

Zhongji Xuchuang stated that the company's revenue growth in the third quarter mainly came from the expansion of shipments of high-end products such as 800G and 1.6T. The company continues to maintain a stable market share among its customers, with a continuous increase in customer orders and stable prices and gross margins. Looking ahead, industry demand remains strong, and the main customer orders have basically covered the entire year of 2027. New Yisheng, on the other hand, indicated that the company's production and operations are normal and orderly, with sufficient orders in hand, and that order delivery and capacity expansion are being progressed according to business needs.

Before the announcement was released, on the morning of November 6th, the stock prices of "Yizhongtian" collectively fell. By the close of the morning session, Zhongji Xuchuang dropped by 8.78%, Xinyisheng by 7.04%, and Tianfu Communication by 5.29%. The combined market value of these three companies decreased by 76.7 billion yuan during the morning session.

Important downstream customers of major domestic optical module manufacturers include overseas data center clients. On the news front, after the Democratic Party in the United States secured a victory in the mid-term elections, concerns about a slowdown in the construction of AI data centers and stricter AI regulations in the US have also increased. U.S. Representative Iram Ansari stated on social media that the top priority for the Democratic Party on the first day of the next congressional session is to suspend the development of advanced artificial intelligence.

The stock prices of three companies related to "Yi Zhongtian" have fluctuated significantly recently. From September 22 to November 5, the stock price of Zhongji Xuchuang fell by 47.49%, that of Xinyisheng fell by 59.36%, and that of Tianfu Communication fell by 53.63%.

Author: Zheng Xutong