A-Share Indices Rebound; Zongxu Juchuang Plans RMB 4-8 Billion Buyback

Zongxu Juchuang announced on the evening of August 31 that it plans to repurchase company shares using its own funds or raised funds, with total repurchase funds of no less than RMB 4 billion and no more than RMB 8 billion, and a repurchase price not exceeding RMB 1,200 per share. The repurchased shares will be used for employee stock ownership plans or equity incentive plans; if not fully utilized within 36 months, the unused portion will be cancelled. The repurchase period is no more than 12 months from the date of board approval.

According to the company's 2026 semi-annual report, revenue for the period reached RMB 41.778 billion, up 182.49% year-on-year; net profit attributable to shareholders of the listed company was RMB 13.651 billion, up 241.7%. Among this, optical communication transceiver modules generated revenue of RMB 41.355 billion, up 186.56%, with a gross margin of 46.59%. Overseas business revenue was approximately RMB 39.615 billion, an increase of 209.9% compared with the same period in 2025. The company's R&D expenses were approximately RMB 1.153 billion, up 96.9%. The company listed on the Main Board of the Hong Kong Stock Exchange on July 30, 2026, with H-share code "3308". The profit distribution plan is RMB 12 per 10 shares (including tax).

On August 31, the three major A-share indices turned higher in the afternoon. AI application-related trading continued to heat up, the server sector strengthened, and coal and banking sectors rose steadily. Precious metals, photovoltaic equipment, and pharmaceutical sectors led declines, while major real estate stocks came under pressure. More than 3,000 stocks rose across the market, with Shanghai and Shenzhen turnover reaching RMB 2.14 trillion, up RMB 27.8 billion from the previous trading day.