Newly emerging "thousand-yuan stocks," turning losses around! Planning a 10-for-7 dividend payout

Topic: With External Uncertainty Now Becoming Clear, A-Shares Are Poised to Shift from Defensive to Offensive

On the evening of March 24, Yangjie Technology (688498), a leading company in optical chips, released its 2025 annual report and a plan for annual profit distribution and conversion of capital reserve funds into share capital.

In 2025, the company achieved revenue of RMB 601 million, up 138.50% year over year; attributable net profit of RMB 191 million, and non-recurring profit after netting of RMB 167 million, with both resulting in a turnaround to profitability. At the same time, the company plans to distribute cash dividends of RMB 7 per 10 shares (tax included), and to convert 4.5 shares for every 10 shares.

Image source: Company announcement

On March 20, Yangjie Technology’s share price broke through RMB 1,000, becoming the eighth “1,000-yuan stock” in A-share history. As a leading optical-chip company, Yangjie Technology’s main business is the R&D, design, production, and sales of optical chips. Its primary products are optical chips, mainly used in the telecommunications market, data center market, and in-vehicle lidar market, among other areas.

With the explosive surge in global AI computing power demand in 2025, Yangjie Technology’s performance achieved a “V-shaped” reversal. Yangjie Technology said that in 2025, the company’s revenue growth was mainly driven by growth in revenue from its data center business, which increased its proportion of the company’s overall revenue. In addition, the company further optimized its overall product structure. Coupled with the fact that data center products have relatively high gross margin, the company’s net profit increased year over year.

Meanwhile, the company indirectly participates in equity investments through private funds, mainly investing in enterprises with development potential in high-tech industries within China such as the new generation of information technology and intelligent manufacturing. As the valuations of investee companies rise, investment gains are generated as a contribution. In addition, as government subsidy projects complete acceptance, the confirmation of government subsidies also makes a certain contribution to net profit.

Image source: Company announcement

Specifically, in 2025, Yangjie Technology’s telecommunications market business achieved revenue of about RMB 206 million, up 2.06% year over year; its data center business achieved revenue of RMB 393 million, up 719.06% year over year.

It is understood that Yangjie Technology’s core product—high-power continuous-wave (CW) laser emitter chips for silicon photonics solutions—is a key component for 800G and 1.6T high-speed optical modules and even next-generation CPO (co-packaged optics) technology. It is also a crucial part for solving the bottlenecks of high-speed, low-power data transmission inside data centers.

In its annual report, Yangjie Technology stated that in 2025, against the backdrop of ongoing growth in optical chip demand driven by advances in AI technology, the company optimized resource allocation based on technological accumulation and product performance, improved resource投入 efficiency and operating quality. Sales in the data center field saw a substantial increase; the revenue share exceeded 50%, making it an important source of the company’s revenue.

To meet demand for high-speed optical modules, the company shipped CW 70mW laser emitter chips in batches. This product is a major product of the data center business, and the gross margin level of data center products is higher than that of the telecommunications market, driving growth in the company’s revenue and profit.

Image source: Company announcement

The operating conditions of the telecommunications business segment have basically remained stable. The company further optimized its product structure. Building on the existing 2.5G and 10G DFB optical chip products, it stepped up customer promotion for 10G EML products. For optical-chip products targeting next-generation 25/50G PON network, mass deliveries were achieved and formed large-scale revenue, and the product technical indicators are benchmarked against international manufacturers.

Overall, the company, while continuing to deepen its focus on the telecommunications market, actively seizes data center market opportunities brought by AI development, accelerating its transformation into a provider of high-end optical-chip solutions driven by a “telecoms + data communications” dual-engine.

In terms of production model, Yangjie Technology has built end-to-end independent capabilities covering chip design, epitaxial growth (MOCVD), wafer manufacturing, chip processing, and testing & packaging. This scarce IDM (vertically integrated manufacturing) full-process business system can not only shorten product development cycles and enable autonomous, controllable optical-chip manufacturing, but also ensure supply-chain stability and fast-response capability. It forms a deep base of technical and manufacturing barriers.

At present, to keep pace with the expansion of the global AI computing power market, Yangjie Technology is actively expanding production capacity and laying out internationally. On the evening of February 9, the company announced that it plans to invest approximately RMB 1.251 billion to build Phase II of a research, development, and production base for optical-electronic communications semiconductor chips and devices. The plan is also intended to enhance the company’s comprehensive supply capability in the high-end optical-chip field by optimizing production capacity layout and manufacturing processes.

Image source: Company announcement

On the evening of March 6, Yangjie Technology announced that it plans to issue H shares and list in Hong Kong, in order to continuously advance the company’s internationalization strategy and global layout; to build an international capital operations platform; strengthen financing capabilities overseas; and further improve the company’s capital strength and overall competitiveness. At the same time, the company has already started building its production base in the United States, aiming to get closer to the market of global key customers.

Regarding Yangjie Technology’s dividend and share-conversion plan, industry insiders noted that the plan balances both return to shareholders and liquidity needs. Based on the company’s current share price of RMB 1,065 per share, the dividend yield is about 0.07%. Considering that the company is in a stage of production capacity expansion and internationalization layout, with significant funding needs, a lower cash dividend payout ratio aligns with the capital allocation logic of growth-oriented companies. With 4.5 shares converted for every 10 shares, on a diluted basis it helps lower the price per share and improve stock liquidity.

Author: Zhang Wenzhi

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责任编辑：江钰涵