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Hui Lyu Ecological Technology Groups Co.,Ltd. (001267)'s controlled subsidiary Junheng Technology plans to ramp up optical module capacity.

On the evening of September 27, Hui Lyu Ecological Technology Groups Co.,Ltd. (stock code: 001267) issued two announcements in succession, one advancing the expansion of optical module capacity and the other clearing procedural obstacles for the acquisition of the remaining equity of its controlled subsidiary.

Specifically, the company's controlled subsidiary Wuhan Junheng Technology Co., Ltd. (hereinafter referred to as Junheng Technology) plans to invest 309 million yuan to build a R&D and production base in Wuhan East Lake High-tech Development Zone, adding an annual capacity of 2 million high-speed optical modules.

On the same day, the company's board of directors approved an extension of 12 months for the validity period of the shareholders' meeting resolution on acquiring the remaining 49% equity of Junheng Technology, buying more time to advance this major asset restructuring that has lasted for more than a year.

Optical module capacity leaping to 3.5 million units

Founded in 2012, Junheng Technology specializes in the R&D, manufacturing and sales of optical communication products, mainly optical modules. Its major customers include Coherent, Beijing Kingsoft Cloud Network Technology Co., Ltd., Source Photonics and New H3C, giving it a certain competitive advantage and market position in the optical module industry.

According to the announcement, the R&D and production base project invested by Junheng Technology is intended to replace and upgrade its existing production plant at No. 777 Guanggu Third Road, Wuhan East Lake New Technology Development Zone. The project is expected to involve a total investment of 309 million yuan, funded by its own or self-raised funds.

After the project is completed, Junheng Technology's existing production line with an annual capacity of 1.5 million units will undergo comprehensive technical upgrading, while the base will add a production line with an annual capacity of 2 million high-speed optical modules, bringing the total annual capacity in the Wuhan area to 3.5 million units.

The new production line focuses on high-speed optical modules, in line with the strong current demand for 400G, 800G and even higher-speed optical modules driven by AI computing power and data center construction.

From the overall capacity layout perspective, Junheng Technology has formed a structure of "domestic as the mainstay, overseas coordination." Domestically, the Wuhan headquarters currently has an annual capacity of about 3 million units, the first phase of Ezhou adds a planned annual capacity of about 1.5 million units, and together with the long-term plan of 3.5 million units after the upgrade of the Wuhan base, domestic capacity reserves are ample.

Overseas, the Malaysian factory was officially put into operation in April 2026 and is expected to add an annual capacity of 1 million to 1.5 million units. It is currently in the ramp-up stage of equipment debugging and personnel adjustment.

Since being included in Hui Lyu Ecological's consolidated financial statements, Junheng Technology has achieved remarkable performance growth. Financial data show that from 2023 to 2025, Junheng Technology's revenue jumped from 435 million yuan to 1.296 billion yuan, and net profit increased from 16.4874 million yuan to 148 million yuan. According to unaudited financial data, Junheng Technology achieved revenue of 980 million yuan and net profit of 89 million yuan in the first half of 2026.

From minority stake to control, then to full ownership and capacity expansion

Published on the same day as the capacity expansion announcement was another announcement on extending the validity period of the shareholders' meeting resolution. The company held a board meeting on September 24 and approved an extension of 12 months for the validity period of the shareholders' meeting resolution on this major asset restructuring, that is, from the originally scheduled October 14, 2026 to October 14, 2027.

This restructuring refers to the acquisition of the remaining 49% equity of Junheng Technology, with a transaction price of 1.127 billion yuan, of which 845 million yuan will be paid by issuing shares and 282 million yuan in cash consideration. After the transaction is completed, Hui Lyu Ecological will hold 100% equity of Junheng Technology.

The transaction constitutes a related-party transaction and a major asset restructuring, but does not constitute a restructuring listing. Looking back at the process of Hui Lyu Ecological gaining control of Junheng Technology, its acquisition pace has been quite tight. In June 2024, the company acquired a 30% stake in Junheng Technology for 195 million yuan in cash, making its first foray into the optical communications sector.

In October 2024, it subscribed to new registered capital for 50 million yuan, increasing its shareholding to 35%. In February 2025, the company spent 246 million yuan to subscribe to 18.6238 million yuan of new registered capital of Junheng Technology, raising its shareholding to 51%, formally obtaining control and including it in the scope of consolidated financial statements.

From the first minority stake to achieving control, the whole process took only about 8 months. After control was secured, Hui Lyu Ecological quickly launched the acquisition of the remaining equity. In July 2025, it planned to purchase 49% equity of Junheng Technology by issuing shares. In October 2025, the company held an extraordinary shareholders' meeting to approve the relevant proposals, with the resolution validity period set at 12 months.

Since then, the company received an inquiry letter from the Shenzhen Stock Exchange and completed its reply. The transaction is still in the review stage of the Shenzhen Stock Exchange and can only be implemented after approval by the exchange and registration by the China Securities Regulatory Commission.

Landscaping roots fading as optical communications take center stage

Hui Lyu Ecological listed in November 2021 and was originally a traditional enterprise mainly engaged in landscaping engineering. After launching the acquisition of Junheng Technology in 2024, the company's business structure underwent a fundamental reshaping.

The revenue increment brought by the consolidation of Junheng Technology quickly made the optical communications business replace landscaping engineering as the company's largest source of revenue. Hui Lyu Ecological's 2026 semi-annual report shows that optoelectronic devices generated revenue of 958 million yuan, accounting for 92.36% of revenue; the landscaping business generated revenue of 79 million yuan, with its revenue share dropping to 7.64%.

As the share of the traditional landscaping business in overall revenue fell sharply, Hui Lyu Ecological has in essence transformed from a landscaping enterprise into a technology manufacturing company with optical communications as its core track. However, this cross-sector transformation has also come with financial tensions.

Junheng Technology's net cash flows from operating activities in 2024 and 2025 were -89.6742 million yuan and -166 million yuan respectively, with net operating cash outflows for two consecutive years. Hui Lyu Ecological explained that this was mainly due to a surge in accounts receivable along with revenue growth and increased inventory stocking.

At the same time, the valuation of the target company (Junheng Technology) climbed sharply in a short period, from an overall valuation of about 661 million yuan at the time of the controlling acquisition in 2024 to an income-approach appraised value of 2.306 billion yuan when acquiring the remaining equity in 2025, an appreciation rate of more than 300%.

In the secondary market, Hui Lyu Ecological's share price experienced a significant rise driven by the cross-sector optical communications concept, though it has recently pulled back. As of the close on September 24, 2026, the company's share price stood at 36.75 yuan, up about 68% from the beginning of the year, with a total market value of 28.85 billion yuan.