Lingyi Itech (HKEX: 01688) shares experienced a sharp late-day reversal, surging more than 11% into positive territory.

At the time of writing, the stock was up 10.25% to HK$7.53, with a turnover of HK$289 million.

The move follows news that the company plans to invest up to 4 billion yuan to participate in the restructuring of Fotong Group, aiming to gain control and operational rights over Fotong Jiashan's related assets.

Fotong Jiashan is noted as one of the few core enterprises in China with complete in-house R&D and production capabilities spanning from optical preforms to optical fibers and optical cables.

In a separate transaction, the company acquired 35% of LiminDa's equity for 875 million yuan and obtained voting rights delegation, bringing its total controlled voting rights to 52.78%.

LiminDa is a key supplier of liquid cooling solutions for AI servers and has secured NVIDIA's AVL certification, entering its top-tier supply chain.

Analysis suggests that Lingyi Itech is leveraging its strength in "hardcore physical layer hardware" to deeply integrate into the global AI computing power supply chain.

By absorbing high-quality restructuring assets like Fotong Jiashan and technologically advanced companies like LiminDa, Lingyi is building a significant moat in the AI computing infrastructure sector.

This strategy is seen as potentially opening up a highly impactful second growth curve for the company, beyond its existing end-side AI business.