Huazheng New Material Warns AI CCL Revenue Share Limited After 45% Rally, Plans RMB 1.2 Billion Placement
Huazheng New Material's shares surged 45.03% in four sessions to RMB 143.00, prompting a risk warning that AI-server-grade copper-clad laminates (CCL) contribute a limited share of revenue. The company also announced a RMB 1.2 billion private placement, with RMB 1 billion earmarked for a 12 million-sheet annual high-grade CCL project. The offering awaits regulatory approval.
Huazheng New Material's share price rose from RMB 98.60 to RMB 143.00 during the four trading sessions from August 4 to August 7, 2026, a cumulative gain of 45.03%, lifting the company's total market capitalization to RMB 22.421 billion. The average daily turnover rate during this period was 10.69%. As the cumulative closing-price deviation exceeded 20% over three consecutive trading days from August 4 to August 6, the company issued a stock trading anomaly notice on August 6. On August 7, the share price again closed at the daily limit, prompting the company to release a risk warning notice that evening.
In the risk warning notice, Huazheng New Material stated that high-end copper-clad laminates used in the AI computing sector currently account for a relatively limited share of its total revenue. The company also noted that the research, development, and certification of new high-end CCL products involve high barriers and long cycles, carrying significant uncertainty.
Running in parallel with the share price movement is the company's private placement plan. On August 4, Huazheng New Material received notification from the Shanghai Stock Exchange that its application to issue A-shares to specific targets in 2026 had been accepted for review. According to the draft prospectus, the company plans to issue shares to no more than 35 specific targets, raising no more than RMB 1.2 billion in total. Of this, RMB 1 billion is designated for the 'Annual 12 Million High-Grade CCL Sheets Project', with RMB 200 million allocated to replenish working capital.
The project focuses on high-speed CCL, high-frequency CCL, high-thermal-conductivity metal substrates, and HDI CCL product lines, which are applied in AI servers, switches, optical modules, 5G communication base stations, and automotive millimeter-wave radar. In the draft prospectus, Huazheng New Material said that as AI computing infrastructure expands, downstream demand for high-frequency and high-speed CCL continues to grow. The issuance remains subject to review by the Shanghai Stock Exchange and approval from the China Securities Regulatory Commission for registration; the final outcome and timing are still uncertain.