Yangtze Optical Fibre Shares Plunge, Market Value Erased Over RMB 270 Billion
Yangtze Optical Fibre and Cable Joint Stock Limited Company saw its A-share and H-share prices fall sharply on July 30, with the A-share down over 7% and the H-share down over 9%. From the June 25 peak, the A-share has dropped 56% and the H-share 67%, erasing more than RMB 270 billion in market value. The decline follows a profit alert projecting a 711% to 914% surge in first-half net profit, but investors exited after the strong results were realized.
On July 30, Yangtze Optical Fibre and Cable's A-share fell more than 7%, while its H-share dropped over 9%. From the June 25 high of RMB 600, the A-share has declined 56% in the interval, and the H-share has fallen from HK$287.6 to HK$95.15, a drawdown of 67%, erasing more than RMB 270 billion in market value.
Second-quarter net profit reached RMB 1.9 billion to RMB 2.5 billion, up 284% to 405% quarter-on-quarter. Fibre prices have risen, with G. 652. D bare fibre climbing from below RMB 20 per core-kilometre at the start of the year to RMB 83.4, and G. 657. A2 specialty fibre rising from RMB 32 to RMB 240.
The day after the profit alert (July 15), the A-share hit the daily limit up, and the H-share rose 14.94%, but prices have since fallen continuously. On July 28, the A-share hit the daily limit down, and on July 30 it fell another 6.32%, with the H-share down over 7% in a single day.
Excessive earlier gains are one reason for the decline. The A-share rose from RMB 116 at the end of 2025 to the June high of RMB 600, a gain of over 400% in six months, while the H-share gained 456% in the same period. After the interim results were realized, profit-taking funds exited in concentration.
The optical communications sector has pulled back across the board since mid-July, with Zhongji Innolight down over 32%, Tianfu Communication down nearly 40%, and Hengtong Optic-Electric halved. The sector has a high concentration of margin financing, and when prices broke key levels, forced liquidations were triggered, leading to a cascade of selling.
Corning's Glass Bridge technology solution, presented at the OFC conference, has raised concerns about long-term fibre demand. Corning clarified that the solution is a supplement to, not a replacement for, the FAU solution. Yangtze Optical Fibre's president, Zhuang Dan, noted at a shareholder meeting that even at a scale of 100 million CPO units, the total amount of fibre replaced would be very small.
In early July, Changjiang Communications reduced its stake, selling approximately 1 million shares at prices between RMB 380 and RMB 448, cashing out RMB 412 million.
Yangtze Optical Fibre's order backlog extends to 2027.