The stock price surpasses Cambrian, how did Yuanjie Technology newly join the "Thousand-Yuan Club"?

Ask AI: Can a Capacity Expansion Plan Match the High Expectations of Thousand-Yuan Stock Prices?

21st Century Business Herald reporter Ling Chen

On March 25, the first thousand-yuan stock of the year, Yuanjie Technology, released its latest financial report.

According to the company’s 2025 annual report, over the past year the company achieved operating revenue of 601 million yuan, up 138.50% year over year; net profit attributable to shareholders of listed companies reached 191 million yuan, a major turnaround from the prior year’s loss of 6.13 million yuan.

Behind the data lies a strategic shift in product mix. Driven by demand for AI computing power, the share of revenue from the data center business increased significantly, and the overall product mix’s revenue proportions underwent a major adjustment. This explosive growth precisely caught the global data center’s window of benefits as it transitions from traditional architectures to high-speed computing-power clusters.

The secondary market responded with extremely aggressive enthusiasm. Taking the stock’s low of 87.7 yuan on April 9, 2025, by March 20, 2026 the share price had overtaken Cambricon, making it the eighth thousand-yuan stock in the A-share market and the first one of the year.

During that period, the company’s stock price rose by more than 1000%. In less than a year, Yuanjie Technology completed a valuation leap from the hundreds to the thousand-yuan level.

It is worth noting that more than a year ago, the company was also embroiled in doubts over its stock price being cut in half and its performance turning around. The AI computing-power wave sparked a surge in demand for optical chips, becoming a key driving force for Yuanjie Technology to swing from losses to profits.

In its 2025 annual report, Yuanjie Technology stated that it will, through the implementation of the Phase II project of the optical-electronic communications semiconductor R&D and production base, increase purchases of core equipment, steadily expand production capacity, and enhance the manufacturing capacity for high-end laser driver chips.

In the era of AI computing power going on a tear, benefiting from industry tailwinds, Yuanjie Technology’s 2025 annual report delivered a results sheet of truly turning-point significance. During the reporting period, the company successfully turned losses into profits, achieving growth in both revenue and net profit.

Behind the dramatic changes is the company’s “complete overhaul” of its revenue structure.

Before 2024, Yuanjie Technology’s growth engine relied mainly on the telecommunications market. However, against the backdrop of a slowdown in global telecom equipment investment, this traditional business once felt the chill.

In 2025, revenue from the telecommunications market was only 206 million yuan, a slight increase of 2.06%. However, the data center business—which originally accounted for a relatively small share—staged a “dance by the elephant” within a year, achieving revenue of 393 million yuan, with a year-over-year increase of 719.06%.

This kind of explosive shift directly caused the data center business to replace the telecommunications market business, becoming the main runway driving the company’s performance.

The jump in profit margin reveals a positive shift in its power in the industry value chain. In 2025, Yuanjie Technology’s consolidated gross margin rose to 58.11%. This high gross margin performance is attributable to the successful positioning of its core product—high-power continuous-wave (CW) laser driver chips used in silicon photonics solutions.

As a core component for 800G, 1.6T high-speed optical modules, and even the next-generation CPO (co-packaged optics) technology, this chip is key to solving the bottleneck of massive data center transmissions. With the iteration of AI large models and their scaled deployment, computing power demand is rising exponentially. Aggressive investment by domestic and overseas cloud service providers (CSPs) in AI infrastructure directly drives the ramp-up and volume expansion of high-end optical chips.

In its annual report, Yuanjie Technology clearly pointed out that 1.6T optical modules achieved mass shipments in 2025, and in 2026 they will enter a period of commercial explosive growth. Low power consumption, miniaturization, and integration have become the main themes in the industry. The surge in demand for optical interconnects has led to an obvious short-term capacity gap in currently available optical chips.

To ensure supply chain security during the market window, Yuanjie Technology is launching an unprecedented capacity-expansion gamble.

In February 2026, the company announced its plan to invest 1.251 billion yuan to build the Phase II project of its optical-electronic communications semiconductor R&D and production base. The project is intended to build new optical chip production lines and supporting facilities, with a planned construction period of 18 months.

At the same time, the investment budget for its key project under construction, the “50G optical chip industrialization construction project,” has been repeatedly raised. The project’s initial budget was only 129 million yuan, but after it was increased to 487 million yuan in March 2025, the total investment amount has recently been added again to 757 million yuan.

Worth noting is that Yuanjie Technology also said it will further improve its global capacity layout and orderly advance overseas factory construction.

In a short time, the project budget surged from the 100-million-yuan range to the 700-million-yuan range. The additional funds mainly flow into equipment procurement and construction engineering. From expanding domestic capacity to arranging a global capacity layout, it is evident how urgently it needs to expand capacity.

Currently, Yuanjie is fighting a dual-front battle using both oversubscribed funds and self-raised funds, trying to speed up closing the gap in demand. With high expectations supported by the thousand-yuan stock price, this “life-and-death race” for capacity expansion and delivery speed will become the biggest variable in realizing 2026 performance.

Looking back at its performance in the secondary market, it shows that the logic of funds shifted—from the initial “expectations arbitrage” to a “faith premium” in the mid-to-late stage.

In the first half of 2025, Yuanjie Technology’s stock price was still fluctuating around the hundred-yuan level. In January of that year, the stock’s highest point was 162.88 yuan, corresponding to a market value of 13.684 billion yuan. Afterwards, from February to April, the stock price fluctuated in the 130–160 yuan range, with April touching the year’s lowest point of 87.7 yuan.

After that, Yuanjie Technology entered a volatile upward channel. From July to December, each month’s peak kept rising by gains in the hundreds, moving upward with fluctuations all the way, and it crossed 1,000 yuan in March 2026.

At the critical time when the stock price was at a high level, Yuanjie Technology did not stop its ambition for strategic expansion.

A few days ago, Yuanjie Technology issued another announcement stating that the company plans to issue overseas listed shares (H shares).

Yuanjie Technology clearly stated: “Within the validity period of the shareholders’ meeting resolutions (i.e., from the date the matters are reviewed and approved by the company’s shareholders’ meeting, for 24 months), we will select an appropriate timing and issuance window to complete the listing of these H shares.”

Worth noting is that although domestic capital markets have been unusually hot, its share of overseas revenue between 2024 and 2025 was extremely low, showing a clear pattern of “hotness going in reverse.”

Therefore, for Yuanjie Technology, going public in Hong Kong is not simply a financing action, but a strategic self-rescue to complete the “going global” puzzle.

On the one hand, it leverages the high valuation in the A-share market to support large-scale capacity construction onshore, while connecting with international capital through the Hong Kong equity platform to hedge liquidity risks that are confined within a single boundary. On the other hand, it provides flexible cross-border financing channels for the overseas production bases it plans to set up.

More importantly, the company’s data center market is still mainly served by overseas suppliers.

Yuanjie Technology said that, based on years of R&D and production accumulation in the optical chip field, it has already launched relevant high-speed EML and high-power laser products to meet the demand for the relevant high-speed optical modules, and that indicators such as performance and reliability can be benchmarked against overseas products of the same type, enabling a sales breakthrough in the AI data center market.

Capital’s celebration often comes ahead of industrial rollout. Yuanjie Technology used one year to go through a valuation path that many ordinary companies would take several years to reach. This is both the market’s recognition of hard-core technology and the ultimate stress test of its ability to withstand performance pressure afterward.

While the 2025 annual report reveals impressive results, it also subtly sketches out the dual pressures of technological iteration and valuation reversion. For the optical chip industry, being ahead by one step is a dividend; but if the technology route behind it is switched, the first-mover advantage may instantly turn into sunk costs.

For Yuanjie Technology, the company’s 2025 financial report delivers a perfect answer, but the 2026 Long March is only just beginning.