On October 8, shares of Dongshan Precision (SZ002384), priced at 150.66 yuan with a market value of 275.95 billion yuan, hit the daily limit down.

That evening, the company disclosed its "Investor Relations Activity Record Form," engaging with institutional investors on topics including market concerns over optical chip procurement restrictions, progress in optical module and AI PCB businesses, and responses to overseas policies.

The company stated that the market claim regarding a 65% proportion of U.S.-origin materials is an unofficial market rumor, not a formally issued and effective regulatory policy requirement. Some optical chips used in its optical module business are self-developed and self-produced, accounting for no more than 10% of the overall BOM cost of optical modules, leaving ample compliance room. The company also did not rule out establishing production capacity in the United States in the future.

Regarding the circulating rumor about optical chip procurement restrictions, Dongshan Precision explicitly responded during the investor relations activity that the claim is not an officially issued policy or regulation and has not affected the company's current production and operations. The company noted that some optical chips used in its optical module business are self-developed and self-produced, representing no more than 10% of the overall BOM cost, while the vast majority of other materials can better adapt to origin ratio requirements, providing ample compliance flexibility. Future supply chain optimization can further meet relevant requirements.

On overseas policy response, the company revealed it has already established related production capacity in China's Taiwan region. Should future policy adjustments take effect, relevant products may qualify for exemption arrangements. The company also stated it has set up overseas production bases with multi-regional production and delivery capabilities. If origin rules are adjusted in the future, it can either leverage the compliance advantages of its Taiwan region capacity or meet origin certification standards by planning and building U.S. factories, and does not rule out further expanding production capacity in the United States.

Regarding FCC-related policies, the company said all products exported to the United States have completed FCC certification and filing in accordance with relevant regulations, and as of now, it has not received specific inquiries from customers regarding FCC-related matters.

On business progress, the company introduced that since acquiring Source Photonics, customer onboarding for its optical module business has gradually shown results. With global AI computing demand continuing to grow, overall demand in the optical module industry remains robust, upstream core material supply is relatively tight, and industry sentiment is at a high level. Currently, 800G optical modules are the mainstream products in the market, while 1.6T products are gradually ramping up. With future technological iteration and upgrades, product value is expected to rise progressively.

In the PCB business, the company's AI PCB business sentiment is higher than previously expected, with strong demand from core downstream AI customers. The previously announced capital expenditure projects are proceeding as planned, and production capacity will be gradually released. The company stated that both its optical module (including optical chips) and AI PCB businesses now cover mainstream AI cloud providers, and are expected to continue benefiting from growing AI computing demand.

Dongshan Precision is an innovation-driven company focused on intelligent manufacturing with a global vision and layout, primarily engaged in the global design, production, and sales of electronic circuits, optical modules (including optical chips), precision components, and optoelectronic display modules. The company is currently among the world's top three PCB suppliers, the world's second-largest FPC supplier, and among the world's top ten optical module suppliers. It is also the only company globally with full-process capabilities in AI PCB and optical modules (including optical chips) from R&D and design to mass production.

According to the company's "2026 Semi-Annual Report" disclosed on August 21, in the first half of 2026, the company achieved operating revenue of 27.798 billion yuan, a year-on-year increase of 63.95%; net profit attributable to shareholders of the listed company was 2.957 billion yuan, up 290.09% year-on-year; net profit attributable to shareholders after deducting non-recurring gains and losses was 2.480 billion yuan, up 277.52% year-on-year; basic earnings per share were 1.62 yuan. During the reporting period, the company's overall operations ran smoothly and on an upward trend. Traditional businesses focused on improving quality and efficiency, while emerging businesses concentrated on new product launches, new customer development, and new capacity expansion. The dual business segments of optical modules (including optical chips) and AI PCB formed a synergistic resonance in technology, customers, and supply chain.

In terms of stock price performance, Dongshan Precision shares have generally trended upward this year. As of the close on October 8, the stock had accumulated a year-to-date gain of approximately 77.98%.

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