On August 29, 2025, Guangdong Jiayuan Technology Co.,Ltd. (688388.SH), a leading lithium battery copper foil manufacturer, announced its strategic investment of 500 million yuan in Wuhan Enda Optoelectronics Technology Co., Ltd. (hereinafter referred to as "Enda"). Through a combination of "equity transfer + capital increase," the company will acquire a 13.59% stake, formally entering the high-growth optical module sector. This alliance between the "copper foil veteran" and "optical communication rising star" not only reveals the transformation anxiety of traditional manufacturing industries but also reflects capital's aggressive pursuit of hard technology sectors amid the AI infrastructure wave.
**Optical Module Sector: The "Golden Gateway" of AI Computing Power**
Optical modules, as core components of optical communication networks, serve as "infrastructure" for AI computing centers, data centers, 5G communications, and other fields. According to Frost & Sullivan data, the global optical module market has surged from 77.5 billion yuan in 2020 to 126.7 billion yuan in 2024, with a compound annual growth rate of 13.1%, and is expected to exceed 295.4 billion yuan by 2029. North American AI computing center construction is in full swing, with surging demand for 800G/1.6T optical modules becoming the core engine of industry growth.
Enda is a "rising star" in this sector. This national-level specialized and innovative "little giant" enterprise, established in 2017, has rapidly penetrated cutting-edge scenarios including data centers, 5G communications, and LiDAR through its high-speed optical modules and active/passive components. Financial data shows that Enda achieved revenue of 1.477 billion yuan and net profit of 97.94 million yuan in 2024. In the first half of 2025, revenue exceeded 1.316 billion yuan, approaching full-year 2024 performance, while net profit reached 121 million yuan, directly surpassing the entire 2024 figure, demonstrating remarkable growth potential.
**Guangdong Jiayuan Technology's Transformation Anxiety and Strategic Logic**
As a domestic leader in lithium battery copper foil, Guangdong Jiayuan Technology once dominated the market with its 4.5μm ultra-thin copper foil technology. However, in recent years, it has faced industry overcapacity and intensified price competition. In 2024, the company's net profit attributable to shareholders turned to significant losses. Against this backdrop, cross-industry expansion into AI infrastructure has become key to its breakthrough strategy.
This investment in Enda represents more than just recognizing the growth potential of the optical module sector; it targets deep synergies in customers, products, and industrial chain integration:
1. **Customer Complementarity**: Over 90% of Enda's revenue comes from the US market, with major clients including a mysterious "Company O" (industry speculation points to Oracle), while Guangdong Jiayuan Technology's customers are concentrated in China's new energy sector. The two companies can form synergies through "overseas high-end optical modules + domestic basic copper materials." For instance, Enda's technical expertise in high-frequency, high-speed copper cables within 10 meters of AI server rooms could drive Guangdong Jiayuan Technology's entry into this niche market.
2. **Industrial Chain Integration**: Guangdong Jiayuan Technology's portfolio of high-end PCB copper foil (core optical module components), carrier copper foil (chip packaging materials), and high-purity copper targets (12-inch wafers) forms vertical integration with Enda's optical module business, creating a closed-loop ecosystem for AI infrastructure.
3. **Financial Enhancement**: Enda's original shareholders committed to net profit of no less than 143 million yuan in 2025. If performance falls below 70% of the committed value, Guangdong Jiayuan Technology has the right to demand share repurchase. This performance guarantee locks in high-growth assets for Guangdong Jiayuan Technology, directly enhancing its performance.
**Risks and Challenges: Tariff Clouds and Technology Evolution**
Despite Enda's impressive performance, its heavy dependence on the US market (90% of revenue from North America) harbors risks. Should trade tensions escalate or "Company O" shift orders elsewhere, Enda's performance could face a cliff-like decline. Additionally, optical module technology completes generational upgrades every 2-3 years, requiring Enda to continuously invest in R&D to maintain competitiveness. Whether Guangdong Jiayuan Technology can provide sustained financial support becomes a critical variable.
**Industry Insights: Transformation Paradigm for Traditional Enterprises**
Guangdong Jiayuan Technology's case provides new thinking for traditional manufacturing transformation: while maintaining core business focus, rapidly entering high-growth sectors through equity investment to achieve "new energy + AI infrastructure" dual-wheel drive. This model avoids the high risks of direct transformation while enabling participation in industry dividends through financial investment. In the AI era, corporate competition has evolved from single products to ecosystem competition. Through investing in Enda, Guangdong Jiayuan Technology not only gains optical module access but may also leverage this to enter broader markets including data centers and semiconductor materials.
Guangdong Jiayuan Technology's 500 million yuan investment represents both a bold bet on the optical module sector and an epitome of traditional manufacturing's transition toward hard technology. In this transformation, enterprises need not only courage but also precise judgment of technology trends, skilled resource integration capabilities, and reverent risk awareness.
Note: This article incorporates AI-generated content. Views expressed do not constitute investment advice and are for reference only. Markets carry risks, and investment requires caution.
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