Straight to "20cm" limit up! 688498, soaring over 790% in a year, newly minted "thousand-yuan stock"!

On the morning of March 20, Yuanjie Technology (688498), a popular stock in the CPO concept, broke through the 1,000 yuan per share mark, hitting a new all-time high and becoming the 8th stock in A-shares history to reach this level. During trading, Yuanjie Technology hit a 20-cent limit-up, reaching 1,140 yuan per share.

By midday, the stock had risen nearly 20%. Looking back one year to March 20, 2024, based on the closing price, Yuanjie Technology’s stock price has increased by a total of 792% over the past year.

Reporters note that in the history of A-shares, a total of seven stocks have previously or currently traded above 1,000 yuan: Zhong An Ke, Kweichow Moutai, Yun Sai Zhi Lian, Cambrian, Stone Technology, Hemaike, and Aimeike.

Yuanjie Technology recently disclosed its performance brief for 2025, showing that the company achieved an operating revenue of 601 million yuan, a year-on-year increase of 138.50%; operating profit was 214 million yuan, with total profit also at 214 million yuan; net profit attributable to the parent company’s owners was 191 million yuan.

Yuanjie Technology stated that in 2025, driven by the continuous development of artificial intelligence technology and the resulting growth in demand for optical chips, the company optimized resource allocation and improved resource input efficiency and operational quality based on its technological accumulation and product performance. Sales of CW light source products in data centers saw significant growth, and the gross margin of data center products was higher than that of the telecom market. These factors contributed to increases in the company’s revenue and profit. The telecom business segment remained generally stable.

It is worth noting that last year, Yuanjie Technology’s total operating income increased by 138.50% year-on-year, with operating profit, total profit, net profit attributable to the parent, net profit attributable to the parent excluding non-recurring gains and losses, and basic earnings per share all turning positive from negative figures.

Yuanjie Technology explained that in 2025, the company’s revenue growth was mainly due to increased income from data center business, which improved the overall product structure. Coupled with the high gross margin of data center products, the company’s net profit increased year-on-year. Meanwhile, the company indirectly participated in equity investments through private equity funds, mainly investing in high-tech companies within China’s new-generation information technology and intelligent manufacturing sectors with growth potential. As the valuation of these invested companies rose, investment income was generated. Additionally, last year, government grants were recognized after project acceptance, contributing to net profit.

Reporters also note that in February this year, Yuanjie Technology announced plans to invest approximately 1.251 billion yuan to build a second phase of a semiconductor chip and device R&D and manufacturing base for optoelectronic communications. The project focuses on high-speed optical chips, seizing opportunities in the data center market and meeting the demand for core optical communication components driven by digital economy development. Once completed, the project will help the company capitalize on market growth, meet increasing product demands in data center construction, and enhance order delivery stability and responsiveness.

Yuanjie Technology stated that the project relies on the company’s independent IDM process technology and existing customer base, aiming to expand capacity and optimize processes to continuously respond to market changes, thereby increasing the company’s market share and overall competitiveness in the global optical chip field.

From an operational perspective, Yuanjie Technology believes that implementing this project will further improve production efficiency and product stability, forming a stable, large-scale supply of high-end optical chips to meet the growing product demands of domestic and international customers. This not only consolidates the company’s competitive advantage in existing markets but also creates favorable conditions to seize market opportunities brought by technological upgrades in the industry. Additionally, capacity expansion and process optimization will enhance the company’s overall profitability and risk resistance, laying a more solid foundation for sustainable development.

This year, an important capital operation for Yuanjie Technology is the initiation of a Hong Kong listing plan. In early March, the company announced that to continue advancing its internationalization strategy and global layout, and to build an international capital operation platform, enhance overseas financing capabilities, and further improve its capital strength and overall competitiveness, it plans to issue overseas listed shares (“H-shares”) and apply for listing on the Main Board of the Hong Kong Stock Exchange.

Notably, on March 20, stocks related to the CPO and optical module concepts continued to rise, with besides Yuanjie Technology, stocks like Xinyi Sheng, Changguang Huaxin, Huilu Ecology, Mingpu Guangci, and Reisconda also performing well.

Proofread by: Yang Shuxin