Movement Alert|CIG Rises 5.58% in Regular Trading, Invests 800 Million Yuan to Establish Optoelectronic Industry Fund Strengthening Supply Chain

Market Focus
Jul 27

On July 27, CIG rose 5.58% in regular trading, trading at HKD 88.8/share, with turnover of HKD 468 million.

On the news front, the company announced on July 24 that it will invest 800 million yuan of its own funds as a limited partner to establish the Jiaxing Hujiang Optoelectronic Industry Fund, holding a 99.9988% stake. The fund, with a total scale of approximately 800 million yuan and a 7-year duration (3-year investment period plus 4-year exit period), will primarily target equity investments in unlisted companies in optical components, chips, and core IC sectors. CIG holds veto power on the three-member investment decision committee. Upon completion, the partnership will be consolidated as a subsidiary.

Additionally, the company previously issued a profit alert forecasting H1 net attributable profit of 310 million to 359 million yuan, representing a 157% to 197% year-over-year surge, driven by robust demand for high-speed optical modules and improved gross margins from product mix optimization toward 800G and higher-speed products amid accelerating AI data center buildout.

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