Avary Holding's RMB 9.6 Billion Placement Heads to Shareholder Vote for AI Server and Optical Module PCB

Avary Holding announced after market close on September 1 that its previously disclosed RMB 9.6 billion private placement plan will be submitted for review at the first extraordinary general meeting on September 4. The plan involves issuing A-shares to specific investors, with total proceeds not exceeding RMB 9.6 billion. After deducting issuance costs, all net proceeds will be used for the Qingding AI server and high-speed optical module high-density interconnect build-up board project, which has a total investment of approximately RMB 12.73 billion.

The issuance will not exceed 10% of the company's total share capital before the issuance, or no more than 232 million shares. The issue price will be no lower than 80% of the average trading price over the 20 trading days preceding the pricing benchmark date. No more than 35 investors will be targeted, all subscribing in cash, with the subscribed shares subject to a six-month lock-up period from the completion of the issuance.

According to meeting materials, the extraordinary general meeting will consider 10 proposals, including the resolution on the company's eligibility for the private placement and the resolution on the 2026 private placement plan. All proposals require special resolutions, meaning approval by at least two-thirds of the voting rights held by shareholders present at the meeting, with separate vote counting for minority investors. The proposals have already been approved by the company's fourth board of directors at an interim meeting.

Avary Holding's 2026 interim report, released on August 11, shows that the company is primarily engaged in the research, development, design, manufacturing, sales, and services of various printed circuit boards (PCBs), with products widely used in mobile phones, network equipment, tablets, wearable devices, laptops, servers, automotive electronics, and optical modules. According to Prismark's global PCB ranking by revenue, the company has been the world's largest PCB manufacturer for nine consecutive years from 2017 to 2025.

In the first half of 2026, the company achieved operating revenue of RMB 17.217 billion, up 5.14% year on year; net profit attributable to shareholders of the listed company was RMB 1.284 billion, up 4.11%; and net profit excluding non-recurring items was RMB 892 million, down 22.31%. Due to RMB appreciation, the company recorded exchange losses of RMB 448 million in the period, impacting net profit by more than RMB 450 million. The overall gross margin was 23.82%, up 5.08 percentage points from the same period in 2025. By business segment, revenue from communication boards was RMB 10.048 billion, down 2.15%; revenue from consumer electronics and computer boards was RMB 4.742 billion, down 8.36%; and revenue from automotive and server boards was RMB 2.267 billion, up 181.58%, of which AI server business generated nearly RMB 1 billion in revenue and optical module business exceeded RMB 600 million. The company's R&D expenses reached RMB 1.597 billion, up 49% year on year, accounting for 9.28% of operating revenue.

In the first half of 2026, the company's optical module business generated sales revenue of RMB 626 million, an 11-fold increase from the same period in 2025. The company has also invested in new production parks in Huai'an and Shenzhen and launched a refinancing plan. As of September 1, the company's share price stood at RMB 88.22, with a total market capitalization of approximately RMB 204.453 billion, up more than 70% year to date.