Yangtze Optical Fibre A and H Shares Tumble, Market Cap Eroded by Over RMB 270 Billion
Yangtze Optical Fibre’s A shares fell over 7% and H shares over 9% on July 30, extending losses after a profit alert. Market capitalisation has eroded by over RMB 270 billion from June highs. The company’s half-year net profit is expected to surge 711% to 914%, but the rally stalled as early investors cashed out. The A-share price has dropped 56% from its June peak of RMB 600, while the H-share has fallen 67% from HK$287.6 to HK$95.15.
On July 30, Yangtze Optical Fibre’s A shares fell more than 7%, while its H shares dropped over 9%. From a high of RMB 600 on June 25, the A shares have declined 56% over the period, and the H shares have fallen from HK$287.6 to HK$95.15, a decline of 67%, eroding more than RMB 270 billion in market capitalisation.
Second-quarter net profit reached RMB 1.9 billion to RMB 2.5 billion, a quarter-on-quarter increase of 284% to 405%. Optical fibre prices rose; bare optical fibre G. 652. D rose from below RMB 20 per core-kilometre at the start of the year to RMB 83.4, and special optical fibre G. 657. A2 rose from RMB 32 to RMB 240.
On July 15, the day after the announcement, Yangtze Optical Fibre’s A shares hit the daily limit up, and H shares rose 14.94%, but prices then continued to fall. On July 28, A shares hit the daily limit down, and on July 30 they fell another 6.32%, while H shares dropped more than 7% in a single day.
Excessive earlier gains were one reason for the decline. Yangtze Optical Fibre’s A shares rose from RMB 116 at the end of 2025 to a June high of RMB 600, a gain of more than 400% in half a year, while H shares rose 456% over the same period. After the interim results were delivered, profit-taking funds exited en masse.
The optical communications sector has corrected across the board since mid-July. Zhongji Innolight fell over 32%, Tianfu Communication fell nearly 40%, and Hengtong Optic-Electric halved. The sector has heavy margin positions; after prices broke key levels, margin calls triggered a cascading sell-off.
Corning’s Glass Bridge technology solution unveiled at the OFC Conference raised market concerns about long-term demand for optical fibre. Corning clarified that the solution is a supplement to, not a replacement for, the FAU solution. Yangtze Optical Fibre President Zhuang Dan pointed out at a shareholder meeting that even if scaled to 100 million CPOs, the total amount of fibre replaced would be very small.
Yangtze Communication reduced its stake in early July, selling about 1 million shares in a price range of RMB 380 to RMB 448, cashing out RMB 412 million.
Yangtze Optical Fibre’s order backlog extends to 2027.